UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07080

 

Name of Fund:   BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Michigan Quality Fund, Inc., 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2022

Date of reporting period: 01/31/2022


Item 1 – Report to Stockholders

(a) The Report to Shareholders is attached herewith.


 

LOGO

  JANUARY 31, 2022

 

  

2022 Semi-Annual Report

(Unaudited)

 

 

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

BlackRock MuniYield Pennsylvania Quality Fund (MPA)

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

The 12-month reporting period as of January 31, 2022 saw a continuation of the resurgent growth that followed the initial coronavirus (or “COVID-19”) pandemic reopening, albeit at a slower pace. The global economy weathered the emergence of several variant strains and the resulting peaks and troughs in infections amid optimism that increasing vaccinations and economic adaptation could help contain the pandemic’s disruptions. Continued growth meant that the U.S. economy regained and then surpassed its pre-pandemic output. However, rapid changes in consumer spending led to supply constraints and elevated inflation.

Equity prices were mixed, as persistently high inflation drove investors’ expectations for higher interest rates, which particularly weighed on relatively high valuation growth stocks and economically sensitive small-capitalization stocks. Overall, small-capitalization U.S. stocks declined slightly, while large-capitalization U.S. stocks posted a strong advance. International equities from developed markets also gained, although emerging market stocks declined, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose significantly during the reporting period as the economy expanded rapidly and inflation reached its highest annualized reading in decades. In the corporate bond market, the improving economy assuaged credit concerns and led to positive returns for high-yield corporate bonds, outpacing the modest negative return of investment-grade corporate bonds.

The U.S. Federal Reserve (the “Fed”) maintained accommodative monetary policy during the reporting period by keeping near-zero interest rates. However, the Fed’s tone shifted late in the period, as it reduced its bond-buying program and raised the prospect of higher rates in 2022. Continued high inflation and the Fed’s new tone led many analysts to anticipate that the Fed will raise interest rates multiple times throughout the year.

Looking ahead, however, the horrific war in Ukraine has significantly clouded the outlook for the global economy. Sanctions on Russia and general wartime disruption are likely to drive already-high commodity prices even further upwards, and we have already seen spikes in energy and metal markets. While this will exacerbate inflationary pressure, it could also constrain economic growth, making the Fed’s way forward less clear. Its challenge will be combating inflation without stifling a recovery that is now facing additional supply shocks.

In this environment, we favor an overweight to equities, as we believe low interest rates and continued economic growth will support further gains, albeit likely more modest than what we saw in 2021. Sectors that are better poised to manage the transition to a lower-carbon world, such as technology and health care, are particularly attractive in the long term. U.S. and other developed-market equities have room for further growth, while we believe Chinese equities stand to gain from a more accommodative monetary and fiscal environment. We are underweight long-term credit, but inflation-protected U.S. Treasuries, Asian fixed income, and emerging market local-currency bonds offer potential opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

In this environment, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of January 31, 2022
     6-Month   12-Month

U.S. large cap equities
(S&P 500® Index)

  3.44%   23.29%

U.S. small cap equities
(Russell 2000® Index)

  (8.41)   (1.21)

International equities
(MSCI Europe, Australasia, Far East Index)

  (3.43)   7.03

Emerging market equities
(MSCI Emerging Markets Index)

  (4.59)   (7.23)

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

  0.01   0.04

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

  (3.87)   (4.43)

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

  (3.17)   (2.97)

Tax-exempt municipal bonds
(S&P Municipal Bond Index)

  (2.56)   (1.22)

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

  (1.55)   2.05

 

Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

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Table of Contents

 

 

     Page  

The Markets in Review

    2  

Semi-Annual Report:

 

Municipal Market Overview

    4  

The Benefits and Risks of Leveraging

    5  

Derivative Financial Instruments

    5  

Fund Summary

    6  

Financial Statements:

 

Schedules of Investments

    14  

Statements of Assets and Liabilities

    35  

Statements of Operations

    36  

Statements of Changes in Net Assets

    37  

Statements of Cash Flows

    39  

Financial Highlights

    40  

Notes to Financial Statements

    44  

Additional Information

    54  

Glossary of Terms Used in this Report

    57  

 

 

  3


Municipal Market Overview For the Reporting Period Ended January 31, 2022

 

Municipal Market Conditions

Municipal bonds posted modestly negative total returns during the period amid rising interest rates spurred by strong economic growth and above trend inflation, waning COVID-19 variant fears, and hawkish Fed monetary policy expectations. The asset class benefited from favorable supply and demand dynamics and improved credit fundamentals amid considerable fiscal stimulus and a quicker-than-expected rebound in state and local government revenues. As a result, municipal bonds generated positive excess returns versus duration matched U.S. Treasuries. However, the market faced several bouts of volatility, including temporary valuation-based market corrections in February 2021 and January 2022. Shorter duration and lower credit quality strategies outperformed.

 

Technical support was helpful as robust demand outpaced supply. During the 12 months ended January 31, 2022, municipal bond funds experienced net inflows totaling $71 billion (based on data from the Investment Company Institute). However, the post-pandemic inflow cycle, which spanned 92-weeks and garnered $149 billion, came to an end late in the period with modest outflows. At the same time, the market absorbed $453 billion in issuance, a small increase from the $448 billion issued during the prior 12-month period. Taxable municipal issuance, which draws a unique buyer base, remained proportionally elevated, helping to make supply more easily digestible.

 

  

 

    S&P Municipal Bond Index

        Total Returns as of January 31, 2022    

          6 months: (2.56%)

        12 months: (1.22%)

   

A Closer Look at Yields

LOGO

From January 31, 2021 to January 31, 2022, yields on AAA-rated 30-year municipal bonds increased by 57 basis points (“bps”) from 1.38% to 1.95%, while ten-year rates increased by 83 bps from 0.72% to 1.55% and five-year rates increased by 100 bps from 0.22% to 1.22% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve flattened over the 12-month period with the spread between two- and 30-year maturities flattening by 22 bps, led by 26 bps of flattening between ten- and 30-year maturities.

After maintaining historically tight valuations for most of the reporting period, the most recent market correction has restored value to the asset class and reset municipal-to-Treasury ratios to levels on par with their 5-year averages.

 

 

Financial Conditions of Municipal Issuers

Buoyed by successive federal aid injections, vaccine distribution, and the subsequent re-opening of the economy, states and many local governments experienced revenue growth above forecasts in 2021. Increased immunity (natural or through vaccinations), the possible weakness of future variants, and new treatments could bring the end of the pandemic closer, leading to a longer-lasting return to more normal economic activity that bodes well for state and local fiscal conditions. Any prolonged inflation in a post-COVID recovery, especially from continued worker shortages, would adversely affect state and local entities. However, wage pressures, less consumer spending and higher interest rates could be offset by increased revenue collections, particularly sales and personal income tax receipts. Essential public services such as power, water, and sewer remain protected segments. State housing authority bonds, flagship universities, and strong national and regional health systems have absorbed the impact of the economic shock. Critical providers (safety net hospitals, mass transit systems, airports) with limited resources may still experience fiscal strain but the additional aid and the re-opening of the economy will continue to support operating results through 2022. Work-from-home policies will continue to be headwinds for mass transit farebox revenue and commercial real estate values. BlackRock anticipates that a small subset of the market, mainly non-rated stand-alone projects, will remain susceptible to credit deterioration. While credit fundamentals have improved noticeably across the municipal space, BlackRock advocates careful credit selection as the course of economic recovery remains unclear.

The opinions expressed are those of BlackRock as of January 31, 2022 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.

The S&P Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

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The Benefits and Risks of Leveraging

 

The Funds may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) is reflected in the per share NAV.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Fund’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Fund with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Fund’s financing cost of leverage is significantly lower than the income earned on a Fund’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if a Fund had not used leverage. Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the amount of each Fund’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Funds’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Fund’s intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Fund’s Common Shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of each Fund’s investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment adviser will be higher than if the Funds did not use leverage.

To obtain leverage, each Fund has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Fund is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Fund may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Fund may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Fund segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Fund’s obligations under the TOB Trust (including accrued interest), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by the 1940 Act.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

H E  E N E F I T S   A N D  I S K S   O F  E V E R A G I N G /   D E R I V A T I V E  I N A N C I A L  N S T R U M E N T S

  5


Fund Summary  as of January 31, 2022     BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Investment Objective

BlackRock MuniHoldings California Quality Fund, Inc.’s (MUC) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes and California personal income taxes. The Fund seeks to achieve its investment objective by investing primarily in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and California personal income taxes. Under normal market conditions, the Fund invests at least 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more at the time of investment. The municipal obligations in which the Fund primarily invests are either rated investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

On September 24, 2021, the Boards of Directors of BlackRock MuniYield California Fund, Inc. (MYC), BlackRock MuniYield California Quality Fund, Inc. (MCA) and the Fund each approved the reorganization of MYC and MCA into MUC. The reorganization was approved by each Fund’s shareholders and is expected to occur during the second quarter of 2022, subject to the satisfaction of customary closing conditions.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MUC

Initial Offering Date

  February 27, 1998

Yield on Closing Market Price as of January 31, 2022 ($14.34)(a)

  4.60%

Tax Equivalent Yield(b)

  10.02%

Current Monthly Distribution per Common Share(c)

  $0.0550

Current Annualized Distribution per Common Share(c)

  $0.6600

Leverage as of January 31, 2022(d)

  39%

 

  (a) 

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

 

 

  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.1%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

 

  (c) 

The distribution rate is not constant and is subject to change. In connection with the Reorganization, the Fund declared a special distribution, which is payable on May 2, 2022. See Note 11 in the Notes to Financial Statements for additional information on the special distribution.

 

 

  (d) 

Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/22      07/31/21      Change      High      Low  

Closing Market Price

  $ 14.34      $ 16.09        (10.88 )%     $   16.33      $   14.24  

Net Asset Value

    15.01        16.16        (7.12      16.19        15.01  

Performance

Returns for the period ended January 31, 2022 were as follows:

 

                 Average Annual Total Returns  
            6-month      1 Year      5 Years      10 Years  

Fund at NAV(a)(b)

      (5.10 )%       (3.07 )%       4.15      4.58

Fund at Market Price(a)(b)

      (8.95      (0.24      4.43        4.32  

California Customized Reference Benchmark(c)

      (3.48      (2.19      3.61        N/A  

Bloomberg Municipal Bond Index(d)

      (3.10      (1.89      3.46        3.20  

S&P® Municipal Bond Index(e)

      (2.56      (1.22      3.42        3.29  

Lipper California Municipal Debt Funds at NAV(f)

      (4.97      (2.90      4.37        5.04  

Lipper California Municipal Debt Funds at Market Price(f)

            (8.40      (1.57      3.62        4.64  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

 

 

  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 

 

  (c) 

The California Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged (90%) and the California Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). Effective October 1, 2021, the Fund changed its reporting benchmarks from S&P Municipal Bond Index and Lipper California Municipal Debt Funds to Bloomberg Municipal Bond Index and the California Customized Reference Benchmark. The investment adviser believes the new benchmarks are more appropriate reporting benchmarks for the Fund. The California Customized Reference Benchmark commenced on September 30, 2016.

 

 

  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

 

  (e) 

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 

 

  (f) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

 

 

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Fund Summary  as of January 31, 2022 (continued)    BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Fixed-income assets experienced rising yields (and falling prices) during the six-month period. The Fed pivoted to a more hawkish tone on monetary policy as inflation accelerated well beyond its 2% target and labor markets improved toward its mandate of full employment. In this environment, the benefit of municipal bonds’ yield was insufficient to make up for the decline in prices.

Positions in long-dated securities were the largest detractors from performance due to their higher interest-rate sensitivity. AA rated bonds were the Fund’s largest allocation among the various credit tiers and thus were most significant detractors on an absolute basis. In terms of sectors, housing bonds—led by the high yield workforce housing sub-sector—were the largest detractors.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields rose, as prices fell, this strategy contributed to results. Positions in select longer-dated bonds that were pre-refunded also helped performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

Sector(a)(b)   01/31/22     07/31/21  

County/City/Special District/School District

    33     38

Health

    18       19  

Transportation

    15       13  

Education

    9       9  

Utilities

    8       8  

Housing

    7       4  

State

    5       4  

Tobacco

    5       5  

Corporate

    (c)       (c)  

CALL/MATURITY SCHEDULE

Calendar Year Ended December 31,(a)(d)   Percentage  

2022

    7

2023

    8  

2024

    3  

2025

    19  

2026

    9  

CREDIT QUALITY ALLOCATION

Credit Rating(a)(e)   01/31/22     07/31/21  

AAA/Aaa

    10     14

AA/Aa

    54       54  

A

    18       17  

BBB/Baa

    2       3  

BB/Ba

    (c)       1  

B

    (c)       (c)  

N/R(f)

    16       11  

 

 

 

(a)  

Excludes short-term securities.

 

(b)  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

(c)  

Rounds to less than 1% of total investments.

 

(d)  

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

(e)  

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

(f)  

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2022 and July 31, 2021, the market value of unrated securities deemed by the investment adviser to be investment grade represents 2% and less than 1%, respectively, of the Fund’s total investments.

 

 

U N D  U M M A R Y

  7


Fund Summary  as of January 31, 2022    BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

 

Investment Objective

BlackRock MuniHoldings New Jersey Quality Fund, Inc.’s (MUJ) (the “Fund”) investment objective is to provide shareholders with current income exempt from U.S. federal income tax and New Jersey personal income taxes. The Fund seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from U.S federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and New Jersey personal income taxes. The municipal obligations in which the Fund primarily invests are either rated investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

On September 24, 2021, the Boards of Directors of BlackRock MuniYield New Jersey Fund, Inc. (MYJ) and the Fund each approved the reorganization of MYJ into MUJ. The reorganization was approved by each Fund’s shareholders and is expected to occur during the second quarter of 2022, subject to the satisfaction of customary closing conditions.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MUJ

Initial Offering Date

  March 11, 1998

Yield on Closing Market Price as of January 31, 2022 ($14.42)(a)

  5.24%

Tax Equivalent Yield(b)

  10.82%

Current Monthly Distribution per Common Share(c)

  $0.0630

Current Annualized Distribution per Common Share(c)

  $0.7560

Leverage as of January 31, 2022(d)

  40%

 

  (a) 

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

 

 

  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 51.55%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 

 

  (c) 

The distribution rate is not constant and is subject to change. In connection with the Reorganization, the Fund declared a special distribution, which is payable on May 2, 2022. See Note 11 in the Notes to Financial Statements for additional information on the special distribution.

 

 

  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/22      07/31/21      Change      High      Low  

Closing Market Price

  $ 14.42      $ 15.63        (7.74 )%     $ 16.06      $ 14.19  

Net Asset Value

    15.15        16.29        (7.00      16.30        15.15  

Performance

Returns for the period ended January 31, 2022 were as follows:

 

                 Average Annual Total Returns  
              6-month        1 Year        5 Years        10 Years  

Fund at NAV(a)(b)

      (4.70 )%       (2.28 )%       5.15      4.89

Fund at Market Price(a)(b)

      (5.46      4.72        5.45        4.69  

New Jersey Customized Reference Benchmark(c)

      (3.26      (1.07      4.97        N/A  

Bloomberg Municipal Bond Index(d)

      (3.10      (1.89      3.46        3.20  

S&P® Municipal Bond Index(e)

      (2.56      (1.22      3.42        3.29  

Lipper New Jersey Municipal Debt Funds at NAV(f)

      (4.71      (2.48      4.95        4.68  

Lipper New Jersey Municipal Debt Funds at Market Price(f)

            (6.88      3.16        5.06        4.66  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

 

 

  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 

 

  (c) 

The New Jersey Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: New Jersey Exempt Total Return Index Unhedged (90%) and the New Jersey Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). Effective October 1, 2021, the Fund changed its reporting benchmarks from S&P Municipal Bond Index and Lipper New Jersey Municipal Debt Funds to Bloomberg Municipal Bond Index and the New Jersey Customized Reference Benchmark. The investment adviser believes the new benchmarks are more appropriate reporting benchmarks for the Fund. The New Jersey Customized Reference Benchmark commenced on September 30, 2016.

 

 

  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

 

  (e) 

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 

 

  (f) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Past performance is not an indication of future results.

 

 

8  

2 0 2 2   B L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Fund Summary  as of January 31, 2022 (continued)    BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

 

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Fixed-income assets experienced rising yields (and falling prices) during the six-month period. The Fed pivoted to a more hawkish tone on monetary policy as inflation accelerated well beyond its 2% target and labor markets improved toward its mandate of full employment.

The Fund was positioned longer on the yield curve, with a heavier weighting in bonds with maturities of 20 year and above. This positioning detracted from performance, since longer-dated bonds underperformed due to their higher degree of interest-rate sensitivity. Holdings in the state tax-backed sector detracted the most, since it is the largest sector weighting in the portfolio. Positions in transportation issues detracted, as well. Similarly, the A and BBB ratings categories were the Fund’s largest allocations and thus were most significant detractors on an absolute basis. Positions in lower-coupon bonds, which tend to be more sensitive to moves in interest rates, also hurt performance. The Fund’s use of leverage, which magnified the impact of falling prices, was an additional detractor.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields rose, as prices fell, this strategy contributed to results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

     
Sector(a)(b)   01/31/22     07/31/21  

State

    28     28

Transportation

    26       27  

Education

    16       15  

County/City/Special District/School District

    11       10  

Health

    7       6  

Utilities

    5       5  

Tobacco

    3       4  

Housing

    3       4  

Corporate

    1       1  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2022

    10

2023

    9  

2024

    14  

2025

    9  

2026

    7  

CREDIT QUALITY ALLOCATION

     
Credit Rating(a)(d)   01/31/22     07/31/21  

AAA/Aaa

    4     5

AA/Aa

    35       36  

A

    23       22  

BBB/Baa

    31       31  

BB/Ba

    3       3  

B

    (e)       (e)  

N/R(f)

    4       3  

 

 

 

(a)  

Excludes short-term securities.

(b)  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c)  

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d)  

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e)  

Rounds to less than 1% of total investments.

(f)  

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2022 and July 31, 2021, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.

 

 

U N D  U M M A R Y   9


Fund Summary  as of January 31, 2022    BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

Investment Objective

BlackRock MuniYield Michigan Quality Fund, Inc.’s (MIY) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Michigan income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and Michigan income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MIY

Initial Offering Date

  October 30, 1992

Yield on Closing Market Price as of January 31, 2022 ($14.33)(a)

  4.69%

Tax Equivalent Yield(b)

  8.54%

Current Monthly Distribution per Common Share(c)

  $0.0560

Current Annualized Distribution per Common Share(c)

  $0.6720

Leverage as of January 31, 2022(d)

  38%

 

  (a) 

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 45.05%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/22      07/31/21      Change      High      Low  

Closing Market Price

  $ 14.33      $ 15.80        (9.30 )%     $   15.98      $   14.15  

Net Asset Value

    15.02        16.04        (6.36      16.06        15.02  

Performance

Returns for the period ended January 31, 2022 were as follows:

 

                 Average Annual Total Returns  
              6-month        1 Year        5 Years        10 Years  

Fund at NAV(a)(b)

      (4.27 )%       (1.97 )%       4.67      4.95

Fund at Market Price(a)(b)

      (7.28      1.17        5.77        4.64  

Michigan Customized Reference Benchmark(c)

      (2.99      (1.43      4.22        N/A  

Bloomberg Municipal Bond Index(d)

      (3.10      (1.89      3.46        3.20  

S&P® Municipal Bond Index(e)

      (2.56      (1.22      3.42        3.29  

Lipper Other States Municipal Debt Funds at NAV(f)

      (3.83      (1.48      4.21        4.04  

Lipper Other States Municipal Debt Funds at Market Price(f)

            (5.77      0.74        4.46        4.12  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

The Michigan Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: Michigan Exempt Total Return Index Unhedged (90%) and the Michigan Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). Effective October 1, 2021, the Fund changed its reporting benchmarks from S&P Municipal Bond Index and Lipper Other States Municipal Debt Funds to Bloomberg Municipal Bond Index and the Michigan Customized Reference Benchmark. The investment adviser believes the new benchmarks are more appropriate reporting benchmarks for the Fund. The Michigan Customized Reference Benchmark commenced on September 30, 2016.

 
  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 
  (e) 

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 
  (f) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

 

 

10  

2 0 2 2  L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Fund Summary  as of January 31, 2022 (continued)    BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

 

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Fixed-income assets experienced rising yields (and falling prices) during the six-month period. The Fed pivoted to a more hawkish tone on monetary policy as inflation accelerated well beyond its 2% target and labor markets improved toward its mandate of full employment. In this environment, the benefit of yield was insufficient to make up for the decline in municipal bond prices.

The Fund’s holdings in bonds with maturities of ten years and above detracted from performance. The Fund was also adversely impacted by the ongoing loss of income from higher-yielding securities being called or maturing. The Fund’s use of leverage, while augmenting income, further detracted by amplifying the effect of falling prices.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

     
Sector(a)(b)   01/31/22     07/31/21  

Education

    27     28

Health

    19       21  

State

    18       16  

County/City/Special District/School District

    17       16  

Utilities

    7       7  

Transportation

    5       4  

Housing

    4       5  

Corporate

    2       2  

Tobacco

    1       1  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2022

    10

2023

    15  

2024

    9  

2025

    12  

2026

    11  

CREDIT QUALITY ALLOCATION

     
Credit Rating(a)(d)   01/31/22     07/31/21  

AAA/Aaa

    3     2

AA/Aa

    61       61  

A

    27       28  

BBB/Baa

    4       4  

BB/Ba

    (e)       (e)  

N/R(f)

    5       5  

 

 

 

(a)  

Excludes short-term securities.

(b)  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c)  

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d)  

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e)  

Rounds to less than 1% of total investments.

(f)  

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2022 and July 31, 2021, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.

 

 

U N D  U M M A R Y

  11


Fund Summary  as of January 31, 2022    BlackRock MuniYield Pennsylvania Quality Fund (MPA)

 

Investment Objective

BlackRock MuniYield Pennsylvania Quality Fund’s (MPA) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from U.S. federal and Pennsylvania income taxes as is consistent with its investment policies and prudent investment management. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and Pennsylvania income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in securities or synthetically through the use of derivatives.

No assurance can be given that the Fund’s investment objective will be achieved.

Fund Information

 

Symbol on New York Stock Exchange

  MPA

Initial Offering Date

  October 30, 1992

Yield on Closing Market Price as of January 31, 2022 ($14.77)(a)

  4.47%

Tax Equivalent Yield(b)

  7.96%

Current Monthly Distribution per Common Share(c)

  $0.0550

Current Annualized Distribution per Common Share(c)

  $0.6600

Leverage as of January 31, 2022(d)

  38%

 

  (a) 

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 43.87%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The distribution rate is not constant and is subject to change.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/22      07/31/21      Change      High      Low  

Closing Market Price

  $ 14.77      $ 16.23        (9.00 )%     $   17.27      $   14.54  

Net Asset Value

    15.55        16.64        (6.55      16.66        15.55  

Performance

Returns for the period ended January 31, 2022 were as follows:

 

                 Average Annual Total Returns  
            6-month      1 Year      5 Years      10 Years  

Fund at NAV(a)(b)

      (4.59 )%       (1.47 )%       5.05      4.85

Fund at Market Price(a)(b)

      (7.09      5.01        5.17        4.37  

Pennsylvania Customized Reference Benchmark(c)

      (2.89      (1.24      4.09        N/A  

Bloomberg Municipal Bond Index(d)

      (3.10      (1.89      3.46        3.20  

S&P® Municipal Bond Index(e)

      (2.56      (1.22      3.42        3.29  

Lipper Pennsylvania Municipal Debt Funds at NAV(f)

      (3.60      (0.50      4.86        4.50  

Lipper Pennsylvania Municipal Debt Funds at Market Price(f)

            (5.04      4.40        5.72        4.46  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Fund’s use of leverage.

 
  (b) 

The Fund’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

The Pennsylvania Customized Reference Benchmark is comprised of the Bloomberg Pennsylvania Total Return Index Unhedged (90%) and the Pennsylvania Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). Effective October 1, 2021, the Fund changed its reporting benchmarks from S&P Municipal Bond Index and Lipper Pennsylvania Municipal Debt Funds to Bloomberg Municipal Bond Index and the Pennsylvania Customized Reference Benchmark. The investment adviser believes the new benchmarks are more appropriate reporting benchmarks for the Fund. The Pennsylvania Customized Reference Benchmark commenced on September 30, 2016.

 
  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 
  (e) 

A broad, market value-weighted index that seeks to measure the performance of the U.S. municipal bond market.

 
  (f) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not an indication of future results.

The Fund is presenting the performance of one or more indices for informational purposes only. The Fund is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Fund’s investment strategies, portfolio components or past or future performance.

 

 

12  

2 0 2 2  L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Fund Summary  as of January 31, 2022 (continued)    BlackRock MuniYield Pennsylvania Quality Fund (MPA)

 

More information about the Fund’s historical performance can be found in the “Closed End Funds” section of blackrock.com.

The following discussion relates to the Fund’s absolute performance based on NAV:

Fixed-income assets experienced rising yields (and falling prices) during the six-month period. The Fed pivoted to a more hawkish tone on monetary policy as inflation accelerated well beyond its 2% target and labor markets improved toward its mandate of full employment.

The Fund was positioned longer on the yield curve, with a heavier weighting in bonds with maturities of 20 year and above. This positioning detracted from performance, since longer-dated bonds underperformed due to their higher degree of interest-rate sensitivity. Holdings in the health care sector detracted the most, since it is the largest sector weighting in the portfolio. Similarly, A rated bonds were the Fund’s largest allocation on a ratings basis and thus were most significant detractors from absolute performance. Positions in lower-coupon bonds, which tend to be more sensitive to moves in interest rates, also hurt performance. The Fund’s use of leverage, which magnified the impact of falling prices, was an additional detractor.

The Fund actively sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields rose, as prices fell, this strategy contributed to results.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Overview of the Fund’s Total Investments

 

SECTOR ALLOCATION

     
Sector(a)(b)   01/31/22     07/31/21  

Health

    28     27

County/City/Special District/School District

    20       18  

Education

    16       18  

Transportation

    11       11  

State

    11       10  

Utilities

    9       10  

Housing

    2       2  

Corporate

    2       1  

Tobacco

    1       3  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2022

      6

2023

      3  

2024

      7  

2025

      13  

2026

            6  

CREDIT QUALITY ALLOCATION

Credit Rating(a)(d)   01/31/22     07/31/21  

AAA/Aaa

    %(e)       (e)  

AA/Aa

    50       49  

A

    30       29  

BBB/Baa

    5       6  

BB/Ba

    3       3  

B

    1       1  

CCC/Caa

    1       1  

N/R(f)

    10       11  

 

 

 

(a)  

Excludes short-term securities.

(b)  

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

(c)  

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d)  

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e)  

Rounds to less than 1% of total investments.

(f)  

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2022 and July 31, 2021, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 2%, respectively, of the Fund’s total investments.

 

 

U N D  U M M A R Y

  13


Schedule of Investments  (unaudited)

January 31, 2022

  

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds

 

California — 110.1%

 

Corporate — 0.3%  

California Municipal Finance Authority, RB, Series A, AMT, 4.00%, 07/15/29

  $          1,620     $       1,802,845  
   

 

 

 
County/City/Special District/School District — 37.0%  

California Municipal Finance Authority, RB, 5.00%, 06/01/43

    2,000       2,363,026  

California Statewide Communities Development Authority, SAB

   

Series B, 4.00%, 09/02/40

    605       663,537  

Series B, 4.00%, 09/02/50

    735       797,921  

Series C, 4.00%, 09/02/40

    2,160       2,368,991  

Series C, 4.00%, 09/02/50

    1,550       1,682,691  

California Statewide Communities Development Authority, SAB, S/F Housing

   

5.00%, 09/02/39

    535       626,855  

5.00%, 09/02/40

    400       473,393  

5.00%, 09/02/44

    615       710,128  

5.00%, 09/02/49

    900       1,031,702  

4.00%, 09/02/50

    320       343,584  

5.00%, 09/02/50

    320       374,211  

Series C, 5.00%, 09/02/44

    130       150,108  

Series C, 5.00%, 09/02/49

    640       733,655  

California Statewide Communities Development Authority, ST

   

4.00%, 09/01/41

    295       321,872  

4.00%, 09/01/51

    565       611,436  

Chabot-Las Positas Community College District, GO, Series A, 4.00%, 08/01/47

    1,500       1,663,263  

Chaffey Joint Union High School District, GO, CAB(a)

   

Series C, 0.00%, 08/01/32

    250       182,836  

Series C, 0.00%, 08/01/33

    500       349,530  

Series C, 0.00%, 08/01/34

    510       341,130  

Series C, 0.00%, 08/01/35

    545       348,326  

Series C, 0.00%, 08/01/36

    500       305,360  

Series C, 0.00%, 08/01/37

    650       378,727  

Series C, 0.00%, 08/01/38

    625       347,658  

Series C, 0.00%, 08/01/39

    750       398,464  

Series C, 0.00%, 08/01/40

    1,855       940,776  

Series C, 0.00%, 08/01/41

    305       147,731  

Series C, 0.00%, 02/01/42

    350       165,646  

ChiNo.Valley Unified School District, GO, Series B, 5.00%, 08/01/55

    1,285       1,560,238  

City of Dixon California, ST, 4.00%, 09/01/45

    535       570,503  

City of Roseville California, ST, 4.00%, 09/01/50

    365       391,410  

City of Sacramento California Transient Occupancy Tax Revenue, RB, Series A, 5.00%, 06/01/43

    1,230       1,420,703  

Coronado Community Development Agency Successor Agency, Refunding TA, Series A, 5.00%, 09/01/33

    1,785       2,005,039  

County of Santa Clara California, GO, Series B, 4.00%, 08/01/43

    10,225       10,354,950  

El Dorado Irrigation District, Refunding RB, Series A, (AGM), 5.25%, 03/01/24(b)

    10,000       10,870,910  

Elk Grove Unified School District, GO, 4.00%, 08/01/46

    10,000       10,823,980  

Fremont Union High School District, Refunding GO, 4.00%, 08/01/40

    2,500       2,656,808  
Security  

Par

(000)

    Value  
County/City/Special District/School District (continued)  

Garden Grove Unified School District, GO, Series C, 5.25%, 08/01/23(b)

  $        5,500     $       5,857,665  

Glendale Community College District, GO, Series A, 4.00%, 08/01/46

    8,000       8,762,360  

Hayward Unified School District, GO, Series A, (BAM), 4.00%, 08/01/48

    2,000       2,211,798  

Kern Community College District, GO(b)

   

Series C, 5.25%, 11/01/23

    5,715       6,146,477  

Series C, 5.75%, 11/01/23

    12,085       13,101,916  

Los Alamitos Unified School District, Refunding GO, 5.25%, 08/01/23(b)

    3,700       3,940,611  

Los Angeles County Facilities Inc., RB

   

5.00%, 12/01/28(b)

    7,130       8,751,590  

5.00%, 12/01/51

    11,140       13,047,580  

Los Angeles County Metropolitan Transportation Authority, Refunding RB

   

5.00%, 06/01/28

    315       383,559  

Series A, 5.00%, 07/01/44

    2,000       2,399,888  

Los Angeles County Public Works Financing Authority, Refunding RB, Series D, 5.00%, 12/01/45

    1,430       1,600,074  

Mount San Jacinto Community College District, GO

   

Series A, 5.00%, 08/01/35

    3,565       4,010,654  

Series C, 2.38%, 08/01/51

    6,115       5,525,300  

Natomas Unified School District, GO, (BAM), 4.00%, 08/01/42

    5,000       5,441,725  

Orange County Community Facilities District, ST

   

4.00%, 08/15/40

    345       369,822  

4.00%, 08/15/50

    320       339,827  

Rio Elementary School District, GO, Series A, (AGM), 5.25%, 08/15/25(b)

    5,865       6,674,012  

Riverside County Public Financing Authority, Refunding TA, Series A, (BAM), 4.00%, 10/01/40

    4,045       4,414,381  

San Benito High School District, GO, 4.00%, 08/01/48

    5,000       5,480,045  

San Bernardino County Transportation Authority, RB, Series A, 5.25%, 03/01/40

    4,545       4,914,695  

San Diego Unified School District, GO, Series B, 3.25%, 07/01/48

    6,000       6,288,312  

San Diego Unified School District, GO, CAB(a)

   

Series K-2, 0.00%, 07/01/38

    2,755       1,568,399  

Series K-2, 0.00%, 07/01/39

    3,340       1,819,218  

Series K-2, 0.00%, 07/01/40

    4,285       2,232,481  

San Jose Financing Authority, RB, 5.75%, 05/01/42

    4,500       4,517,554  

San Jose Financing Authority, Refunding RB, Series A, 5.00%, 06/01/23(b)

    5,800       6,124,591  

San Luis Obispo County Community College District, Refunding GO, Series B, 4.00%, 08/01/43

    3,555       3,992,692  

San Marcos Redevelopment Agency Successor Agency, Refunding TA

   

Series A, 5.00%, 10/01/32

    1,700       1,914,127  

Series A, 5.00%, 10/01/33

    1,125       1,266,002  

Santa Clara Unified School District, GO, 4.00%, 07/01/48

    10,000       10,923,970  

Santa Clarita Community College District, Refunding GO, 4.00%, 08/01/46

    10,000       10,924,240  

South San Francisco Public Facilities Financing Authority, RB, 4.00%, 06/01/46

    4,890       5,525,592  

Washington Township Health Care District, GO, Series B, 5.50%, 08/01/38

    1,625       1,788,239  
 

 

 

14  

2 0 2 2   B L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
County/City/Special District/School District (continued)  

West Contra Costa Unified School District, GO(b)

   

Series A, 5.50%, 08/01/23

  $          2,500     $       2,671,853  

Series B, 5.50%, 08/01/23

    3,195       3,414,628  
   

 

 

 
      227,822,975  
Education — 10.1%            

California Educational Facilities Authority, RB, Series V-1, 5.00%, 05/01/49

    5,800       8,423,038  

California Enterprise Development Authority, RB

   

Series A, 5.00%, 08/01/50

    650       760,720  

Series A, 5.00%, 08/01/57

    600       699,544  

California Enterprise Development Authority, Refunding RB(c)

   

4.00%, 06/01/51

    625       674,422  

4.00%, 06/01/61

    345       370,158  

California Municipal Finance Authority, RB(c)

   

Series A, 5.50%, 08/01/34

    250       264,209  

Series A, 5.00%, 10/01/39

    285       310,360  

Series A, 5.00%, 10/01/49

    480       515,181  

Series A, 5.00%, 10/01/57

    940       1,004,342  

California Municipal Finance Authority, Refunding RB
5.00%, 08/01/39

    1,105       1,252,635  

Series B, 5.00%, 01/01/42

    1,750       2,001,571  

California School Finance Authority, RB(c)

   

5.00%, 06/01/40

    355       382,933  

5.00%, 06/01/50

    555       591,179  

5.00%, 06/01/59

    885       938,543  

Series A, 5.00%, 07/01/49

    850       984,962  

Series A, 5.00%, 06/01/58

    4,135       4,417,806  

Series A, 5.00%, 07/01/59

    1,380       1,521,059  

Series A, 4.00%, 06/01/61

    850       861,155  

Series B, 4.00%, 07/01/45

    560       560,301  

Hastings Campus Housing Finance Authority, RB

   

Series A, 5.00%, 07/01/45

    785       918,206  

Series A, 5.00%, 07/01/61

    3,935       4,505,473  

University of California, RB, Series M, 5.00%, 05/15/47

    15,000       17,425,620  

University of California, Refunding RB

   

Series AO, 5.00%, 05/15/40

    5,430       6,058,637  

Series AZ, 4.00%, 05/15/48

    6,000       6,584,088  
   

 

 

 
      62,026,142  
Health — 12.4%            

California Health Facilities Financing Authority Refunding RB, 3.00%, 08/15/51(c)

    2,875       2,868,666  

California Health Facilities Financing Authority, RB
4.00%, 11/15/47

    825       913,197  

Series A, 5.00%, 11/15/35

    1,960       2,337,733  

Series A, 4.00%, 11/15/42

    450       504,834  

California Health Facilities Financing Authority, Refunding RB

   

Series A, 5.00%, 07/01/23(b)

    10,000       10,582,360  

Series A, 5.00%, 10/01/24(b)

    4,745       5,230,010  

Series A, 5.00%, 10/01/38

    6,225       6,814,396  

Series B, 5.00%, 11/15/26(b)

    3,385       3,958,169  

Series B, 5.00%, 11/15/46

    4,910       5,691,736  

California Municipal Finance Authority, Refunding RB

   

Series A, 5.00%, 02/01/37

    3,110       3,575,502  

Series A, 5.00%, 11/01/39(c)

    250       279,718  

Series A, 5.00%, 02/01/42

    5,250       6,001,973  
Security  

Par

(000)

    Value  
Health (continued)            

California Municipal Finance Authority, Refunding RB (continued)

   

Series A, 5.00%, 11/01/49(c)

  $             280     $          307,904  

California Statewide Communities Development Authority, RB

   

4.00%, 08/01/45

    2,500       2,547,855  

4.00%, 07/01/48

    2,220       2,418,439  

California Statewide Communities Development Authority, Refunding RB

   

4.00%, 04/01/42

    3,005       3,220,885  

4.00%, 04/01/47

    2,655       2,822,602  

5.00%, 04/01/47

    2,995       3,382,263  

Series A, 5.00%, 08/15/51

    1,635       1,875,917  

Series A, 5.00%, 12/01/53

    1,000       1,175,751  

Series A, 4.00%, 12/01/57

    3,250       3,334,331  

Series A, 5.00%, 12/01/57

    1,750       2,060,315  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series L, 5.00%, 05/15/47

    4,000       4,507,192  
   

 

 

 
      76,411,748  
Housing — 11.7%            

California Community Housing Agency, RB, M/F Housing(c)

   

3.00%, 08/01/56

    1,500       1,254,456  

4.00%, 02/01/50

    455       427,294  

4.00%, 08/01/51

    2,320       2,074,839  

3.00%, 02/01/57

    1,520       1,196,982  

Series A, 5.00%, 04/01/49

    3,840       4,124,087  

Series A, 4.00%, 02/01/56

    4,615       4,524,263  

Series A-1, 4.00%, 08/01/50

    480       437,131  

Series A-1, 3.00%, 02/01/57

    955       802,801  

California Housing Finance Agency, RB, M/F Housing Class A, (FHLMC), 3.75%, 03/25/35

    7,919       8,862,950  

Series 2021-1, Class A, 3.50%, 11/20/35

    2,327       2,542,341  

Series A, 4.25%, 01/15/35

    926       1,061,077  

California Housing Finance, RB, M/F Housing, Series 2, Class A, 4.00%, 03/20/33

    3,996       4,429,933  

CMFA Special Finance Agency VII, RB, M/F Housing, 4.00%, 08/01/47(c)

    1,420       1,291,182  

CMFA Special Finance Agency VIII, RB, M/F Housing, 3.00%, 08/01/56(c)

    1,860       1,521,752  

CMFA Special Finance Agency XII, RB, M/F Housing, Series A, 3.25%, 02/01/57(c)

    1,400       1,169,108  

CMFA Special Finance Agency, RB, M/F Housing(c)

   

Series A, 4.00%, 12/01/45

    1,155       1,092,453  

Series A-2, 4.00%, 08/01/45

    1,135       1,131,588  

CSCDA Community Improvement Authority, RB, M/F Housing(c)

   

4.00%, 10/01/46

    2,180       2,077,139  

2.65%, 12/01/46

    1,825       1,566,472  

4.00%, 07/01/56

    1,490       1,504,453  

3.13%, 08/01/56

    605       524,563  

4.00%, 08/01/56

    1,905       1,828,596  

3.25%, 04/01/57

    755       657,959  

4.00%, 04/01/57

    2,025       1,859,357  

4.00%, 05/01/57

    2,335       2,245,355  

3.13%, 06/01/57

    1,455       1,159,738  

4.00%, 06/01/58

    3,195       3,012,029  

4.00%, 12/01/58

    2,025       1,898,049  
 

 

 

C H E D U L E   O F   I N V E S  T M E N T S

  15


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Housing (continued)            

CSCDA Community Improvement Authority, RB, M/F Housing(c) (continued)

   

Series A, 2.45%, 02/01/47

  $             775     $          654,458  

Series A, 5.00%, 07/01/51

    1,325       1,416,565  

Series A-2, 4.00%, 09/01/56

    2,700       2,748,568  

Series B, 4.00%, 02/01/57

    605       584,331  

Freddie Mac Multifamily ML Certificates, RB, M/F Housing, Series CA, Class A, 3.35%, 11/25/33

    9,558       10,300,600  
   

 

 

 
      71,982,469  
State — 3.3%            

California State Public Works Board, RB, Series I, 5.50%, 11/01/33

    2,015       2,166,758  

City of Roseville California, ST, 4.00%, 09/01/45

    100       107,314  

State of California, Refunding GO

   

4.00%, 10/01/41

    10,075       11,560,519  

5.00%, 08/01/45

    5,690       6,325,334  
   

 

 

 
      20,159,925  
Tobacco — 7.6%            

California County Tobacco Securitization Agency, Refunding RB

   

4.00%, 06/01/49

    320       356,618  

Series A, 4.00%, 06/01/49

    465       520,654  

California County Tobacco Securitization Agency, Refunding RB, CAB(a)

   

0.00%, 06/01/55

    3,185       757,944  

Series B-2, Subordinate, 0.00%, 06/01/55

    4,780       911,575  

Golden State Tobacco Securitization Corp., Refunding RB

   

0.00%, 06/01/66(a)

    3,660       566,993  

Series A, (AGM-CR SAP), 5.00%, 06/01/25(b)

    9,765       10,986,885  

Series A-1, 3.50%, 06/01/22(b)

    6,330       6,393,692  

Series A-1, 5.00%, 06/01/22(b)

    11,350       11,520,250  

Series A-1, 5.00%, 06/01/28(b)

    7,560       9,172,896  

Series A-2, 5.00%, 06/01/22(b)

    1,645       1,669,614  

Tobacco Securitization Authority of Southern California, Refunding RB, 5.00%, 06/01/48

    1,130       1,302,357  

Tobacco Securitization Authority of Southern California, Refunding RB, CAB, 0.00%, 06/01/54(a)

    13,750       2,662,096  
   

 

 

 
      46,821,574  
Transportation — 18.5%            

Alameda Corridor Transportation Authority, Refunding RB, Series B, Sub Lien, 5.00%, 10/01/35

    1,500       1,712,895  

Bay Area Toll Authority, Refunding RB, 4.00%, 04/01/42

    5,000       5,427,660  

California Municipal Finance Authority, ARB, AMT, Senior Lien, 4.00%, 12/31/47

    13,915       14,978,412  

City of Los Angeles Department of Airports, ARB

   

Series A, AMT, 5.00%, 05/15/40

    3,830       4,239,791  

Series C, AMT, 5.00%, 05/15/45

    5,000       6,037,890  

Series D, AMT, 5.00%, 05/15/35

    2,000       2,220,732  

Series D, AMT, 5.00%, 05/15/36

    1,500       1,664,479  

Sub-Series A, AMT, 5.00%, 05/15/47

    6,725       7,639,049  

City of Los Angeles Department of Airports, Refunding ARB, 5.00%, 05/15/43

    7,000       8,501,101  
Security  

Par

(000)

    Value  
Transportation (continued)            

County of Sacramento California Airport System Revenue, Refunding RB

   

Series A, 5.00%, 07/01/41

  $          2,500     $       2,841,360  

Sub-Series B, 5.00%, 07/01/41

    1,250       1,424,215  

Norman Y Mineta San Jose International Airport SJC, Refunding RB

   

Series A, AMT, 5.00%, 03/01/41

    3,075       3,518,387  

Series A, AMT, 5.00%, 03/01/47

    11,770       13,466,222  

Port of Los Angeles, Refunding ARB, Series A, AMT, 5.00%, 08/01/44

    500       542,559  

Riverside County Transportation Commission, Refunding RB

   

4.00%, 06/01/46

    1,235       1,396,048  

4.00%, 06/01/47

    380       419,679  

3.00%, 06/01/49

    3,180       3,196,103  

San Diego County Regional Airport Authority, Refunding ARB, Series A, 5.00%, 07/01/42

    4,275       4,973,535  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB

   

4.00%, 05/01/52(d)

    5,500       6,194,980  

Series A, AMT, 5.00%, 05/01/29

    6,435       6,498,050  

Series A, AMT, 5.00%, 05/01/44

    5,000       5,880,420  

Series A, AMT, 5.00%, 05/01/47

    5,000       5,677,505  

Series B, AMT, 5.00%, 05/01/41

    5,000       5,608,955  
   

 

 

 
      114,060,027  
Utilities — 9.2%            

City of Riverside California Electric Revenue, Refunding RB, Series A, 5.00%, 10/01/43

    3,500       4,249,893  

City of San Francisco California Public Utilities Commission Water Revenue, RB, Series A, 5.00%, 11/01/39

    5,245       5,854,548  

East Bay Municipal Utility District Water System Revenue, RB

   

Series A, 4.00%, 06/01/45

    4,585       5,076,342  

Series A, 5.00%, 06/01/49

    11,190       13,565,279  

Los Angeles Department of Water, RB, Series A, 5.00%, 07/01/42

    8,825       10,182,214  

San Diego Public Facilities Financing Authority, Refunding RB, Series A, Subordinate, 5.00%, 08/01/43

    9,655       11,500,215  

San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB, Series B, 4.00%, 10/01/42

    3,000       3,057,267  

San Juan Water District, Refunding RB, Series A, 5.25%, 02/01/33

    1,095       1,097,653  

San Mateo Foster City Public Financing Authority, RB, 4.00%, 08/01/44

    2,000       2,262,468  
   

 

 

 
      56,845,879  
   

 

 

 

Total Municipal Bonds in California

      677,933,584  

Puerto Rico — 4.8%

   
State — 4.8%            

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

   

Series A-1, Restructured, 4.75%, 07/01/53

    8,317       9,100,154  
 

 

 

16  

2 0 2 2   B L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
State (continued)            

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB (continued)

   

Series A-1, Restructured, 5.00%, 07/01/58

  $        11,280     $     12,550,354  

Series A-2, Restructured, 4.33%, 07/01/40

    2,677       2,905,883  

Series A-2, Restructured, 4.78%, 07/01/58

    553       607,216  

Series B-1, Restructured, 4.75%, 07/01/53

    848       929,879  

Series B-2, Restructured, 4.78%, 07/01/58

    822       903,204  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(a)

    8,705       2,815,380  
   

 

 

 

Total Municipal Bonds in Puerto Rico

      29,812,070  
   

 

 

 

Total Municipal Bonds — 114.9%
(Cost: $669,615,021)

      707,745,654  
   

 

 

 
Municipal Bonds Transferred to Tender Option Bond Trusts(e)  
California — 44.1%            
County/City/Special District/School District — 15.8%  

Palomar Community College District, GO, Series C, 5.00%, 08/01/25(b)

    15,140       17,101,750  

Riverside County Public Financing Authority, RB, 5.25%, 11/01/25(b)

    10,000       11,459,260  

Sacramento Area Flood Control Agency, Refunding SAB, Series A, 5.00%, 10/01/43

    9,990       11,493,422  

San Luis Obispo County Community College District, Refunding GO, Series A, 4.00%, 08/01/40

    6,585       7,114,561  

San Mateo County Community College District, GO, Series A, 5.00%, 09/01/25(b)

    17,615       19,943,695  

Southwestern Community College District, GO, Series D, 5.00%, 08/01/25(b)

    10,820       12,225,702  

West Valley-Mission Community College District, GO, Series B, 4.00%, 08/01/40

    17,000       18,326,051  
   

 

 

 
      97,664,441  
Education — 3.8%            

California State University, Refunding RB, Series A, 5.00%, 11/01/43

    6,001       6,758,523  

University of California, RB, Series AM, 5.25%, 05/15/44

    10,210       11,122,896  

University of California, Refunding RB, Series AF, 5.00%, 05/15/39

    5,000       5,243,110  
   

 

 

 
      23,124,529  
Health — 16.2%            

California Health Facilities Financing Authority, RB

   

5.00%, 11/15/49(f)

    5,000       5,775,859  

5.00%, 11/15/56

    6,000       7,096,820  

Series A, 5.00%, 08/15/23(b)

    14,520       15,430,869  

Series B, 5.00%, 08/15/55

    4,500       5,162,655  

California Health Facilities Financing Authority, Refunding RB

   

Series A, 5.00%, 08/15/25(b)

    19,425       21,966,739  

Series A, 4.00%, 10/01/47

    4,997       5,345,829  

Sub-Series A-2, 4.00%, 11/01/44

    17,720       19,676,447  

California Statewide Communities Development Authority, RB, Series A, 5.00%, 04/01/42

    19,070       19,187,280  
   

 

 

 
      99,642,498  
Security  

Par

(000)

    Value  
Transportation — 5.8%            

Bay Area Toll Authority, Refunding RB, 4.00%, 04/01/49(f)

  $ 10,005     $ 11,066,437  

City of Los Angeles Department of Airports, ARB

   

Series A, AMT, 5.00%, 05/15/40

    5,500       6,088,472  

Series B, AMT, 5.00%, 05/15/41

    3,645       4,080,080  

Series D, AMT, 5.00%, 05/15/41

    13,332       14,748,759  
   

 

 

 
      35,983,748  
Utilities — 2.5%            

City of Los Angeles California Wastewater System Revenue, RB, Series A, 5.00%, 06/01/44

    13,790       15,319,663  
   

 

 

 

Total Municipal Bonds in California

      271,734,879  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 44.1%
(Cost: $256,294,922)

      271,734,879  
   

 

 

 

Total Long-Term Investments — 159.0%
(Cost: $925,909,943)

      979,480,533  
   

 

 

 
     Shares         

Short-Term Securities

   
Money Market Funds — 2.8%            

BlackRock Liquidity Funds California Money Fund, Institutional Class, 0.01%(g)(h)

    17,118,189       17,107,918  
   

 

 

 

Total Short-Term Securities — 2.8%
(Cost: $17,114,999)

 

    17,107,918  
   

 

 

 

Total Investments — 161.8%
(Cost: $943,024,942)

 

    996,588,451  

Other Assets Less Liabilities — 0.9%

 

    5,631,387  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.5)%

 

    (132,184,780

VMTP Shares at Liquidation Value — (41.2)%

 

    (254,000,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $   616,035,058  
   

 

 

 

 

(a) 

Zero-coupon bond.

 

(b) 

U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

(c) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(d) 

When-issued security.

 

(e) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

 

(f) 

All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between April 1, 2025 to May 15, 2025, is $10,754,131. See Note 4 of the Notes to Financial Statements for details.

 

(g) 

Affiliate of the Fund.

 

(h) 

Annualized 7-day yield as of period end.

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

C H E D U L E   O F   I N V E S  T M E N T S

  17


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings California Quality Fund, Inc. (MUC)

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
07/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
01/31/22
    Shares
Held at
01/31/22
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Liquidity Funds California Money Fund, Institutional Class

  $ 19,391,202     $     $ (2,260,431 )(a)    $ (8,007   $ (14,846   $ 17,107,918       17,118,189     $ 23,419     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

Derivative Financial Instruments Categorized by Risk Exposure

For the period ended January 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
       Credit
Contracts
       Equity
Contracts
       Foreign
Currency
Exchange
Contracts
       Interest
Rate
Contracts
       Other
Contracts
       Total  

Net Realized Gain (Loss) from:

                                

Futures contracts

   $        $        $        $        $ 1,060,539        $        $ 1,060,539  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

   

Average notional value of contracts — short

  $25,855,176

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $        $ 707,745,654        $             —        $ 707,745,654  

Municipal Bonds Transferred to Tender Option Bond Trusts

              271,734,879                   271,734,879  

Short-Term Securities

                 

Money Market Funds

     17,107,918                            17,107,918  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $   17,107,918        $ 979,480,533        $        $   996,588,451  
  

 

 

      

 

 

      

 

 

      

 

 

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:

 

         
      Level 1        Level 2        Level 3        Total  
Liabilities                  

TOB Trust Certificates

   $             —        $ (132,144,550      $             —        $ (132,144,550

VMTP Shares at Liquidation Value

              (254,000,000                 (254,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (386,144,550      $        $ (386,144,550
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

18  

2 0 2 2   B L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Schedule of Investments  (unaudited)

January 31, 2022

  

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Municipal Bonds

    
Guam — 0.3%             
Utilities — 0.3%             

Guam Government Waterworks Authority, RB, Series A, 5.00%, 01/01/50

  $        1,015      $        1,197,632  
    

 

 

 
New Jersey — 124.0%             
Corporate — 1.5%             

New Jersey Economic Development Authority, RB(a)

    

Series A, (NPFGC), 5.25%, 07/01/25

    535        608,108  

Series A, (NPFGC), 5.25%, 07/01/26

    1,415        1,655,772  

New Jersey Economic Development Authority, Refunding RB

    

3.38%, 04/01/38

    2,230        2,278,471  

3.50%, 04/01/42

    1,675        1,710,793  

Series A, AMT, 2.20%, 10/01/39(b)

    850        857,018  
    

 

 

 
       7,110,162  
County/City/Special District/School District — 11.0%             

Casino Reinvestment Development Authority, Inc., Refunding RB

    

5.25%, 11/01/39

    11,130        11,959,997  

5.25%, 11/01/44

    3,755        4,005,947  

City of Bayonne New Jersey, Refunding GO, (BAM, SAW), 5.00%, 07/01/26(c)

    3,720        4,301,194  

County of Essex New Jersey, GO, Series B, (SCH BD RES FD), 3.00%, 09/01/46

    1,700        1,736,689  

County of Mercer New Jersey, Refunding GO, 2.38%, 02/15/30

    1,640        1,686,674  

Essex County Improvement Authority, RB, (GTD), 4.00%, 11/01/49

    575        637,538  

Essex County Improvement Authority, Refunding RB

    

(NPFGC GTD), 5.50%, 10/01/27

    250        305,759  

(NPFGC GTD), 5.50%, 10/01/28

    4,840        6,078,188  

Ewing Township Board of Education, GO

    

4.00%, 07/15/38

    1,470        1,661,338  

4.00%, 07/15/39

    1,330        1,500,908  

Gloucester County Improvement Authority, RB

    

(BAM), 4.00%, 07/01/46

    465        521,543  

(BAM), 4.00%, 07/01/51

    645        722,579  

Hudson County Improvement Authority, RB, 4.00%, 10/01/51

    2,800        3,136,020  

Hudson County Improvement Authority, RB, CAB, Series A-1, (NPFGC GTD), 0.00%, 12/15/32(d)

    1,000        773,870  

Jersey City Redevelopment Agency, 4.00%, 12/15/31

    2,720        3,227,005  

New Jersey Economic Development Authority, RB

    

5.00%, 06/15/23(c)

    3,065        3,237,796  

Series KK, 5.00%, 09/01/22(c)

    325        333,058  

Series QQQ, 4.00%, 06/15/50

    2,070        2,257,484  

Township of Irvington New Jersey, Refunding GO, Series A, (AGM, SAW), 5.00%, 07/15/24(c)

    1,175        1,283,535  

Union County Utilities Authority, Refunding RB, Series A, AMT, (GTD), 5.25%, 12/01/31

    645        647,287  
    

 

 

 
       50,014,409  
Education — 18.2%             

Atlantic County Improvement Authority, RB, Series A, (AGM), 4.00%, 07/01/46

    1,300        1,387,506  

Clifton Board of Education GO

    

(AGM), 2.25%, 08/15/45

    3,425        3,068,666  

(AGM), 2.25%, 08/15/46

    3,425        3,050,165  
Security  

Par

(000)

     Value  
Education (continued)             

Gloucester County Improvement Authority, RB

    

5.00%, 07/01/44

  $        1,985      $        2,195,716  

Series A, 5.00%, 07/01/31

    1,950        2,182,358  

Series A, 5.00%, 07/01/32

    1,775        1,985,323  

Series A, 5.00%, 07/01/33

    2,250        2,515,183  

Series A, 5.00%, 07/01/34

    1,200        1,340,658  

New Jersey Economic Development Authority, RB

    

Series A, 5.00%, 01/01/35

    2,000        2,079,328  

Series A, 5.00%, 07/01/38

    190        220,259  

Series A, 5.00%, 07/01/47

    795        832,502  

Series A, 5.00%, 07/01/50

    495        562,518  

Series A, 5.25%, 11/01/54(e)

    2,235        2,319,890  

Series WW, 5.25%, 06/15/25(c)

    460        520,503  

New Jersey Economic Development Authority, Refunding RB

    

(AGM), 5.00%, 06/01/37

    3,990        4,632,550  

(AGM), 5.00%, 06/01/42

    810        939,319  

New Jersey Educational Facilities Authority, RB

    

Series A, 5.00%, 07/01/45

    1,345        1,580,737  

Series C, (AGM), 3.25%, 07/01/49

    585        605,263  

Series C, (AGM), 4.00%, 07/01/50

    495        551,007  

New Jersey Educational Facilities Authority, Refunding RB

    

Series A, (BAM), 5.00%, 07/01/28

    1,135        1,311,473  

Series A, 5.00%, 07/01/39

    15,555        16,846,361  

Series A, 5.00%, 07/01/44

    3,540        3,826,754  

Series A, 4.00%, 07/01/47

    1,145        1,213,188  

Series D, 5.00%, 07/01/38

    500        522,623  

Series D, 5.00%, 07/01/43

    600        626,212  

New Jersey Higher Education Student Assistance Authority, RB

    

Series 1A, AMT, 4.00%, 12/01/28.

    280        285,559  

Series 1A, AMT, 4.50%, 12/01/28

    740        757,731  

Series 1A, AMT, 4.00%, 12/01/29

    190        193,717  

Series 1A, AMT, 4.50%, 12/01/29

    935        957,131  

Series 1A, AMT, 4.63%, 12/01/30

    920        942,502  

Series 1A, AMT, 4.00%, 12/01/31

    300        305,744  

Series 1A, AMT, 4.13%, 12/01/35

    180        182,540  

Series 1A-1, AMT, 4.00%, 12/01/29

    1,885        1,961,371  

Series 1A-1, AMT, 4.25%, 12/01/32

    680        707,193  

Series 1A-1, AMT, 4.50%, 12/01/36

    595        618,532  

Sub-Series C, AMT, 4.00%, 12/01/48

    1,760        1,906,135  

New Jersey Higher Education Student Assistance Authority, Refunding RB

    

1st Series, AMT, 5.50%, 12/01/26

    585        585,511  

Series 1, AMT, 5.38%, 12/01/24

    485        485,426  

Series B, AMT, 3.00%, 12/01/32

    3,435        3,539,555  

New Jersey Institute of Technology, RB, Series A, 5.00%, 07/01/45

    7,500        8,324,272  

Newark Board of Education, Refunding GO

    

(BAM SCH BD RES FD), 3.00%, 07/15/38

    700        723,253  

(BAM SCH BD RES FD), 3.00%, 07/15/39

    120        123,940  

(BAM SCH BD RES FD), 3.00%, 07/15/41

    1,500        1,541,013  

Sustainability Bonds, (BAM), 3.00%, 07/15/42

    485        496,506  

Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23(c)

    1,565        1,643,048  
    

 

 

 
       83,196,741  
Health — 8.4%             

Camden County Improvement Authority, Refunding RB, 5.00%, 02/15/33

    2,000        2,132,470  
 

 

 

C H E D U L E   O F   I N V E S  T M E N T S

  19


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Health (continued)             

Middlesex County Improvement Authority, RB, AMT, (AMBAC), 5.50%, 09/01/30

  $           475      $           476,884  

New Jersey Economic Development Authority, Refunding RB

    

5.00%, 01/01/34

    675        754,499  

5.00%, 01/01/39

    675        750,279  

New Jersey Health Care Facilities Financing Authority, RB

    

5.00%, 07/01/42

    2,270        2,623,739  

4.00%, 07/01/44

    2,175        2,402,703  

2.38%, 07/01/46

    1,495        1,290,465  

3.00%, 07/01/51

    760        749,498  

Series A, 5.50%, 07/01/43

    7,105        7,513,182  

New Jersey Health Care Facilities Financing Authority, Refunding RB

    

5.00%, 07/01/25

    1,000        1,017,714  

5.00%, 07/01/26

    3,720        3,784,951  

5.00%, 07/01/28

    3,000        3,219,012  

5.00%, 07/01/29

    715        766,013  

5.00%, 07/01/34

    1,330        1,527,456  

5.00%, 07/01/39

    1,825        2,077,043  

4.00%, 07/01/41

    1,600        1,742,486  

Series A, 4.00%, 07/01/43

    1,865        2,014,685  

Series A, 5.00%, 07/01/43

    3,080        3,550,602  
    

 

 

 
       38,393,681  
Housing — 5.5%             

New Jersey Housing & Mortgage Finance Agency, RB, Series A, (AGM), 5.00%, 05/01/27

    2,260        2,266,809  

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing

    

Series H, 2.15%, 10/01/41

    1,710        1,539,335  

Series H, 2.30%, 10/01/46

    1,285        1,135,083  

Series H, 2.40%, 04/01/52

    1,285        1,134,033  

New Jersey Housing & Mortgage Finance Agency, Refunding RB

    

Series 2, AMT, 4.60%, 11/01/38

    3,120        3,156,988  

Series 2, AMT, 4.75%, 11/01/46

    3,795        3,829,356  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing

    

Series A, (HUD SECT 8), 2.25%, 11/01/36

    640        604,133  

Series A, (HUD SECT 8), 2.45%, 11/01/45

    475        432,247  

Series A, (HUD SECT 8), 2.65%, 11/01/46

    640        589,740  

Series A, 4.00%, 11/01/48

    370        385,029  

Series A, (HUD SECT 8), 2.55%, 11/01/50

    430        386,355  

Series A, (HUD SECT 8), 2.70%, 11/01/51

    640        578,439  

Series A, 4.10%, 11/01/53

    220        232,099  

Series A, (HUD SECT 8), 2.63%, 11/01/56

    430        377,828  

Series A, (HUD SECT 8), 2.75%, 11/01/56

    640        569,455  

Series D, AMT, 4.25%, 11/01/37

    490        513,206  

Series D, AMT, 4.35%, 11/01/42

    1,000        1,039,220  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing

    

Series A, 3.75%, 10/01/35

    3,420        3,704,298  

Series E, 2.25%, 10/01/40

    1,500        1,387,347  

Series E, 2.40%, 10/01/45

    1,155        1,051,298  
    

 

 

 
       24,912,298  
State — 35.3%             

Garden State Preservation Trust, RB, CAB(d)

    

Series B, (AGM), 0.00%, 11/01/23

    15,725        15,393,124  

Series B, (AGM), 0.00%, 11/01/25

    10,000        9,388,840  
Security  

Par

(000)

     Value  
State (continued)             

New Jersey Economic Development Authority, RB

    

4.00%, 06/15/49

  $        2,930      $        3,192,944  

Series A, (NPFGC), 5.25%, 07/01/24

    1,785        1,948,347  

Series A, (NPFGC), 5.25%, 07/01/25

    4,465        5,028,800  

Series A, (NPFGC), 5.25%, 07/01/26

    7,415        8,561,418  

Series B, 5.00%, 06/15/43

    1,235        1,433,873  

Series EEE, 5.00%, 06/15/43

    5,395        6,276,349  

Series WW, 5.25%, 06/15/33

    380        424,942  

Series WW, 5.00%, 06/15/34

    5,500        6,100,320  

Series WW, 5.00%, 06/15/36

    3,115        3,449,202  

Series WW, 5.25%, 06/15/40

    7,915        8,733,601  

New Jersey Economic Development Authority, Refunding RB

    

5.00%, 06/15/22(c)

    11,875        12,029,292  

4.00%, 07/01/46

    2,770        3,032,078  

Series N-1, (AMBAC), 5.50%, 09/01/26

    800        936,695  

Series N-1, (NPFGC), 5.50%, 09/01/27

    1,000        1,197,137  

Series NN, 5.00%, 03/01/23(c)

    5,000        5,218,210  

Sub-Series A, 4.00%, 07/01/32

    5,000        5,431,235  

Sub-Series A, 5.00%, 07/01/33

    3,875        4,431,396  

Sub-Series A, 4.00%, 07/01/34

    7,300        7,908,484  

New Jersey Educational Facilities Authority, RB

    

Series A, 4.00%, 09/01/28

    9,705        10,347,918  

Series A, 5.00%, 09/01/33

    5,370        5,841,883  

New Jersey Sports & Exposition Authority, Refunding RB, (NPFGC), 5.50%, 03/01/22(a)

    4,200        4,216,888  

South Jersey Port Corp., ARB

    

Series B, AMT, 5.00%, 01/01/42

    3,000        3,402,057  

Series B, AMT, 5.00%, 01/01/48

    1,500        1,689,606  

State of New Jersey, GO
2.00%, 06/01/37

    3,225        3,017,030  

Series A, 5.00%, 06/01/28

    3,500        4,194,526  

Series A, 5.00%, 06/01/29

    1,105        1,340,926  

Series A, 4.00%, 06/01/30

    3,410        3,917,691  

Series A, 4.00%, 06/01/31

    3,000        3,483,291  

Series A, 4.00%, 06/01/32

    7,755        9,193,312  
    

 

 

 
       160,761,415  
Tobacco — 5.5%             

Tobacco Settlement Financing Corp., Refunding RB

    

Series A, 5.00%, 06/01/46

    3,000        3,402,798  

Series A, 5.25%, 06/01/46

    1,960        2,257,755  

Sub-Series B, 5.00%, 06/01/46

    17,315        19,490,647  
    

 

 

 
       25,151,200  
Transportation — 31.6%             

New Brunswick Parking Authority, Refunding RB, Series B, (AGM MUN GOVT GTD), 3.00%, 09/01/39

    2,500        2,573,855  

New Jersey Economic Development Authority, RB

    

AMT, 5.13%, 01/01/34

    2,290        2,443,247  

AMT, 5.38%, 01/01/43

    7,730        8,251,752  

New Jersey Transportation Trust Fund Authority, 4.00%, 06/15/50

    2,130        2,318,277  

New Jersey Transportation Trust Fund Authority, RB

    

Series A, (NPFGC), 5.75%, 06/15/24

    1,205        1,331,503  

Series A, 5.00%, 06/15/30

    2,250        2,552,996  

Series AA, 5.25%, 06/15/33

    5,690        5,991,382  

Series AA, 5.25%, 06/15/34

    1,305        1,458,087  

Series AA, 5.00%, 06/15/38

    2,340        2,523,021  

Series AA, 4.00%, 06/15/50

    6,300        6,855,616  

Series B, 5.00%, 06/15/33

    1,340        1,574,031  

Series BB, 4.00%, 06/15/50

    3,325        3,602,175  
 

 

 

20  

2 0 2 2  L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Transportation (continued)             

New Jersey Transportation Trust Fund Authority, RB (continued)

    

Series D, 5.00%, 06/15/32

  $        3,300      $        3,620,229  

New Jersey Transportation Trust Fund Authority, RB, CAB(d)

    

Series A, 0.00%, 12/15/35

    6,000        3,961,392  

Series C, (AGM), 0.00%, 12/15/32

    8,800        6,754,572  

Series C, (AMBAC), 0.00%, 12/15/35

    4,160        2,803,457  

Series C, (AMBAC), 0.00%, 12/15/36

    7,210        4,678,785  

New Jersey Transportation Trust Fund Authority, Refunding RB

    

4.00%, 12/15/39

    165        181,923  

Series A, 5.00%, 06/15/26

    400        457,597  

Series A, 5.00%, 06/15/31

    7,480        8,554,809  

Series A, 5.00%, 06/15/32

    750        921,942  

Series A, 5.00%, 12/15/32

    4,285        5,043,381  

Series A, 5.00%, 06/15/33

    3,315        4,043,942  

Series A, 4.00%, 06/15/34

    1,950        2,195,679  

Series A, 4.00%, 06/15/35

    2,950        3,319,198  

Series A, 5.00%, 12/15/35

    1,095        1,280,577  

Series A, 4.00%, 06/15/36

    2,655        2,977,559  

Series A, 5.00%, 06/15/42

    5,000        5,064,885  

Series AA, 5.00%, 06/15/33

    3,000        3,046,515  

New Jersey Turnpike Authority, RB

    

Series A1, 5.00%, 01/01/35

    1,440        1,672,468  

Series E, 5.00%, 01/01/45

    8,000        8,747,176  

New Jersey Turnpike Authority, Refunding RB

    

Series A, (AGM), 5.25%, 01/01/29

    4,000        4,980,620  

Series A, (BHAC-CR AGM), 5.25%, 01/01/29

    500        618,174  

Series A, (AGM), 5.25%, 01/01/30

    4,000        5,081,828  

Series B, 5.00%, 01/01/34

    2,300        2,724,258  

Series B, 5.00%, 01/01/40

    5,740        6,778,670  

Series G, 5.00%, 01/01/36

    5,000        5,919,260  

Series G, 4.00%, 01/01/43

    3,320        3,659,135  

South Jersey Transportation Authority, RB, Series A, 5.00%, 11/01/45

    2,865        3,424,428  
    

 

 

 
       143,988,401  
Utilities — 7.0%             

Essex County Utilities Authority, Refunding RB, (AGC

    

GTD), 4.13%, 04/01/22

    2,000        2,005,398  

New Jersey Infrastructure Bank, RB 2.00%, 09/01/43

    915        793,233  

2.25%, 09/01/50

    2,245        1,943,564  

Passaic Valley Sewerage Commission, Refunding RB

    

Series J, (AGM), 3.00%, 12/01/40

    1,140        1,181,017  

Series J, (AGM), 3.00%, 12/01/41

    1,170        1,209,798  

Series J, (AGM), 3.00%, 12/01/42

    1,190        1,227,154  

Series J, (AGM), 3.00%, 12/01/43

    1,220        1,254,427  

Series J, (AGM), 3.00%, 12/01/44

    1,250        1,281,440  

Series J, (AGM), 3.00%, 12/01/45

    1,275        1,305,605  

Rahway Valley Sewerage Authority, RB, CAB(d)

    

Series A, (NPFGC), 0.00%, 09/01/26

    4,100        3,803,197  

Series A, (NPFGC), 0.00%, 09/01/28

    6,600        5,823,847  
Security  

Par

(000)

     Value  
Utilities (continued)             

Rahway Valley Sewerage Authority, RB, CAB(d) (continued)

    

Series A, (NPFGC), 0.00%, 09/01/29

  $        9,650      $          8,283,434  

Series A, (NPFGC), 0.00%, 09/01/33

    2,350        1,791,670  
    

 

 

 
       31,903,784  
    

 

 

 

Total Municipal Bonds in New Jersey

 

     565,432,091  
New York — 6.5%             
Transportation — 6.5%             

Port Authority of New York & New Jersey, ARB

    

Consolidated, 93rd Series, 6.13%, 06/01/94

    1,000        1,109,644  

Consolidated, 218th Series, AMT, 4.00%, 11/01/34

    1,640        1,854,747  

Consolidated, 218th Series, AMT, 4.00%, 11/01/47

    2,485        2,695,604  

Consolidated, 221st Series, AMT, 4.00%, 07/15/45

    2,165        2,371,907  

Port Authority of New York & New Jersey, Refunding ARB

    

Consolidated, 206th Series, AMT, 5.00%, 11/15/42

    3,110        3,590,644  

Consolidated, 206th Series, AMT, 5.00%, 11/15/47

    3,475        3,962,185  

Series 178th, AMT, 5.00%, 12/01/33

    4,005        4,268,537  

Series 223, AMT, 4.00%, 07/15/51

    2,960        3,250,740  

Port Authority of New York & New Jersey, Refunding RB

    

Consolidated, 200th Series, 5.00%, 09/01/36

    3,090        3,762,980  

Consolidated, 212th Series, 4.00%, 09/01/37

    2,460        2,807,406  
    

 

 

 

Total Municipal Bonds in New York

       29,674,394  
Pennsylvania — 2.7%             
Transportation — 2.7%             

Delaware River Port Authority, RB 5.00%, 01/01/29

    2,000        2,148,566  

5.00%, 01/01/37

    8,830        9,436,771  

Delaware River Port Authority, Refunding RB, 5.00%, 01/01/27

    785        812,251  
    

 

 

 

Total Municipal Bonds in Pennsylvania

 

     12,397,588  
    

 

 

 
Puerto Rico — 4.8%             
State — 4.8%             

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

    

Series A-1, Restructured, 4.75%, 07/01/53

    583        637,897  

Series A-1, Restructured, 5.00%, 07/01/58

    3,462        3,851,891  

Series A-2, Restructured, 4.33%, 07/01/40

    11,732        12,735,086  

Series A-2, Restructured, 4.78%, 07/01/58

    878        964,079  

Series B-1, Restructured, 4.75%, 07/01/53

    638        699,603  

Series B-2, Restructured, 4.78%, 07/01/58

    618        679,051  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d)

    7,564        2,446,356  
    

 

 

 

Total Municipal Bonds in Puerto Rico

       22,013,963  
    

 

 

 

Total Municipal Bonds — 138.3%
(Cost: $594,001,503)

       630,715,668  
    

 

 

 
 

 

 

C H E D U L E   O F   I N V E S  T M E N T S

  21


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Municipal Bonds Transferred to Tender Option Bond Trusts(f)  
New Jersey — 23.8%             
County/City/Special District/School District — 6.2%  

Hudson County Improvement Authority, RB, 5.25%, 05/01/51

  $        3,120      $        3,564,924  

Union County Utilities Authority, Refunding RB

    

Series A, 5.00%, 06/15/41

    7,574        7,598,126  

Series A, AMT, 5.25%, 12/01/31

    17,231        17,292,149  
    

 

 

 
       28,455,199  
Education — 7.5%             

New Jersey Economic Development Authority, Refunding RB(g)

    

AMT, 3.00%, 08/01/41

    9,749        9,777,478  

AMT, 3.00%, 08/01/43

    14,021        14,061,990  

Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/23(c)

    10,000        10,498,745  
    

 

 

 
       34,338,213  
Health — 3.2%             

New Jersey Health Care Facilities Financing Authority, RB

    

4.00%, 07/01/47

    6,133        6,571,560  

4.00%, 07/01/51

    7,006        7,899,816  
    

 

 

 
       14,471,376  
State — 4.8%             

Garden State Preservation Trust, RB, Series A, 5.75%, 11/01/28

    12,460        14,696,198  

New Jersey Economic Development Authority, Refunding RB, Series NN, 5.00%, 03/01/23(g)

    6,698        6,990,490  
    

 

 

 
       21,686,688  
Transportation — 2.1%             

New Jersey Turnpike Authority, RB, Series A, 5.00%, 07/01/22(c)(g)

    9,300        9,466,317  
    

 

 

 

Total Municipal Bonds in New Jersey

       108,417,793  
    

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.8%
(Cost: $105,504,875)

       108,417,793  
    

 

 

 

Total Long-Term Investments — 162.1%
(Cost: $699,506,378)

       739,133,461  
    

 

 

 
Security  

Par

(000)

     Value  

Short-Term Securities

 

Commercial Paper — 1.1%  

Port Authority of New York & New Jersey, Refunding ARB, 0.13%, 03/03/22

  $          5,100      $        5,099,832  
    

 

 

 
       5,099,832  
    

 

 

 
     Shares          
Money Market Funds — 1.6%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.01%(h)(i)

    6,938,365        6,938,365  
    

 

 

 

Total Short-Term Securities — 2.7%
(Cost: $12,038,874)

       12,038,197  
    

 

 

 

Total Investments — 164.8%
(Cost: $711,545,252)

       751,171,658  

Other Assets Less Liabilities — 0.5%

       2,585,821  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.4)%

 

     (61,186,532

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (51.9)%

 

     (236,696,654
    

 

 

 

Net Assets Applicable to Common Shares — 100.0%

     $ 455,874,293  
    

 

 

 

 

(a) 

Security is collateralized by municipal bonds or U.S. Treasury obligations.

(b) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(c) 

U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(d) 

Zero-coupon bond.

(e) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(f) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(g) 

All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between July 1, 2022 to February 1, 2037, is $24,100,690. See Note 4 of the Notes to Financial Statements for details.

(h) 

Affiliate of the Fund.

(i) 

Annualized 7-day yield as of period end.

 

 

For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended January 31, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
07/31/21
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
01/31/22
    Shares
Held at
01/31/22
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

  $  22,337,405     $  —     $  (15,397,763 )(a)    $  (768   $  (509   $  6,938,365       6,938,365     $  366     $  —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a)

Represents net amount purchased (sold).

 

 

 

22  

2 0 2 2   B L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts

                 

10-Year U.S. Treasury Note

     60          03/22/22        $ 7,678        $ 181,781  

U.S. Long Bond

     24          03/22/22          3,733          133,689  

5-Year U.S. Treasury Note

     55          03/31/22          6,557          131,647  
                 

 

 

 
                  $ 447,117  
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

     Commodity
Contracts
    Credit
Contracts
    Equity
Contracts
    Foreign
Currency
Exchange
Contracts
    Interest
Rate
Contracts
    Other
Contracts
    Total  

Assets — Derivative Financial Instruments

             

Futures contracts

             

Unrealized appreciation on futures contracts(a)

  $  —     $  —     $     $     $  447,117     $     $  447,117  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended January 31, 2022, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
       Credit
Contracts
       Equity
Contracts
       Foreign
Currency
Exchange
Contracts
       Interest
Rate
Contracts
       Other
Contracts
       Total  

Net Realized Gain (Loss) from:

                                

Futures contracts

   $  —        $  —        $        $        $  491,104        $        $  491,104  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                                

Futures contracts

   $        $        $        $        $  1,295,484        $        $  1,295,484  
  

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

   

Average notional value of contracts — short

  $18,168,879

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Long-Term Investments

                 

Municipal Bonds

   $             —        $  630,715,668        $             —        $  630,715,668  

Municipal Bonds Transferred to Tender Option Bond Trusts

              108,417,793                   108,417,793  

 

 

C H E D U L E   O F   I N V E S  T M E N T S

  23


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniHoldings New Jersey Quality Fund, Inc. (MUJ)

 

Fair Value Hierarchy as of Period End (continued)

 

      Level 1        Level 2        Level 3        Total  

Short-Term Securities

                 

Commercial Paper

   $        $ 5,099,832        $             —        $ 5,099,832  

Money Market Funds

     6,938,365                            6,938,365  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $     6,938,365        $  744,233,293        $        $    751,171,658  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(a)

                 

Assets

                 

Interest Rate Contracts

   $ 447,117        $        $        $ 447,117  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities

                 

TOB Trust Certificates

   $             —        $  (61,170,038      $             —        $ (61,170,038

VRDP Shares at Liquidation Value

              (237,100,000                 (237,100,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $  (298,270,038      $        $  (298,270,038
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

24  

2 0 2 2   B L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Schedule of Investments  (unaudited) 

January 31, 2022

  

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

    (Percentages shown are based on Net Assets)

 

Security

 

Par

(000)

   

Value

 
Municipal Bonds  
Michigan — 137.7%  
Corporate — 3.4%  

Monroe County Economic Development Corp., Refunding RB, Series AA, (NPFGC), 6.95%, 09/01/22

  $      14,500     $      15,035,326  
   

 

 

 
County/City/Special District/School District — 27.0%  

Battle Creek School District, Refunding GO, (Q-SBLF), 5.00%, 05/01/37

    1,170       1,337,650  

Berkley School District, GO, (Q-SBLF), 5.00%, 05/01/35

    2,965       3,301,545  

Byron Center Public Schools, GO

   

Series I, (Q-SBLF), 5.00%, 05/01/43

    4,475       5,198,961  

Series I, (Q-SBLF), 5.00%, 05/01/47

    740       857,832  

Columbia School District, GO, (Q-SBLF), 5.00%, 11/01/23(a)

    5,185       5,549,511  

County of Saginaw Michigan, GO, 4.00%, 11/01/42

    2,000       2,199,714  

Dearborn School District, GO

   

Series A, (Q-SBLF), 5.00%, 11/01/23(a)

    1,500       1,605,452  

Series A, (Q-SBLF), 5.00%, 05/01/33

    1,600       1,705,910  

Series A, (Q-SBLF), 5.00%, 05/01/34

    1,200       1,278,917  

Dowagiac Union School District, GO, (Q-SBLF), 5.00%, 05/01/41

    1,140       1,293,036  

East Lansing School District, GO, Series I, (Q-SBLF), 5.00%, 05/01/42

    1,000       1,155,548  

Farmington Public School District, Refunding GO

   

(AGM), 5.00%, 05/01/33

    1,500       1,671,507  

(AGM), 5.00%, 05/01/34

    1,500       1,670,589  

(AGM), 5.00%, 05/01/35

    1,000       1,113,116  

Fraser Public School District, Refunding GO

   

(Q-SBLF), 5.00%, 05/01/43

    2,000       2,309,284  

(Q-SBLF), 5.00%, 05/01/47

    3,225       3,714,819  

Gibraltar School District, GO, (Q-SBLF), 5.00%, 05/01/36

    750       890,617  

Grandville Public Schools, GO

   

Series I, (AGM), 4.00%, 05/01/38

    910       1,035,095  

Series II, (AGM), 5.00%, 05/01/40

    3,250       3,603,106  

Gull Lake Community School District, GO, Series I, (Q-SBLF), 5.00%, 05/01/45

    4,000       4,703,048  

Hudsonville Public Schools, GO

   

Series I, (Q-SBLF), 4.00%, 05/01/43

    1,875       2,109,420  

Series I, (Q-SBLF), 4.00%, 05/01/44

    1,950       2,189,546  

Series I, (Q-SBLF), 4.00%, 05/01/45

    2,040       2,287,203  

Jackson Public Schools, GO, (Q-SBLF), 5.00%, 05/01/42

    4,000       4,706,524  

Kentwood Public Schools, GO 5.00%, 05/01/41

    1,120       1,275,382  

5.00%, 05/01/44

    1,815       2,058,148  

Livonia Public Schools, GO, Series I, (AGM), 5.00%, 05/01/23(a)

    5,000       5,259,985  

Mattawan Consolidated School District, GO, Series I, (Q-SBLF), 5.00%, 05/01/25(a)

    3,375       3,783,685  

Michigan Finance Authority, RB
5.00%, 11/01/34

    215       259,562  

5.00%, 11/01/38

    2,500       3,008,147  

5.00%, 11/01/43

    4,000       4,784,756  

Series H-1, 5.00%, 10/01/24

    5,400       5,891,022  

Mona Shores Public Schools, GO

   

Series I, (Q-SBLF), 5.00%, 05/01/42

    1,000       1,208,817  

Series I, (Q-SBLF), 5.00%, 05/01/43

    1,025       1,236,883  

 

 

Security

 

Par

(000)

    

Value

 
County/City/Special District/School District (continued)  

Mona Shores Public Schools, GO (continued)

    

Series I, (Q-SBLF), 5.00%, 05/01/44

  $        1,525      $        1,837,166  

Portage Public Schools, GO, 4.00%, 11/01/44

    3,940        4,518,309  

Swartz Creek Community Schools, GO, (Q-SBLF), 5.00%, 05/01/44

    4,270        5,102,377  

Troy School District, GO, (Q-SBLF), 5.00%, 11/01/23(a)

    2,000        2,140,602  

Walled Lake Consolidated School District, GO

    

(Q-SBLF), 5.00%, 11/01/23(a)

    7,010        7,502,811  

(Q-SBLF), 5.00%, 05/01/50

    3,000        3,638,001  

West Ottawa Public Schools, GO

    

(AGM), 4.00%, 11/01/39

    1,105        1,272,547  

(AGM), 4.00%, 11/01/40

    800        920,162  

(AGM), 4.00%, 11/01/41

    845        970,850  

(AGM), 4.00%, 11/01/46

    1,725        1,965,481  

Zeeland Public Schools, GO

    

Series A, (AGM), 5.00%, 05/01/25(a)

    2,000        2,242,184  

Series A, (AGM), 5.00%, 05/01/33

    1,000        1,111,286  
    

 

 

 
       119,476,113  
Education — 30.1%  

Grand Valley State University, RB, 5.00%, 12/01/43

    1,600        1,886,069  

Lake Superior State University, RB, (AGM), 5.00%, 01/15/48

    3,750        4,336,590  

Michigan Finance Authority, Refunding RB 4.00%, 02/01/29

    700        743,294  

5.00%, 02/01/33

    830        914,058  

4.00%, 12/01/33

    1,720        1,781,691  

5.00%, 12/01/36

    1,550        1,637,544  

5.00%, 09/01/40

    1,000        1,090,050  

5.00%, 12/01/40

    2,900        3,033,980  

5.00%, 12/01/45

    4,400        4,592,746  

4.00%, 09/01/46

    1,750        1,936,919  

Series 25-A, AMT, 4.00%, 11/01/29

    5,900        6,037,169  

Series 25-A, AMT, 4.00%, 11/01/30

    2,850        2,915,248  

Series 25-A, AMT, 4.00%, 11/01/31

    3,150        3,221,215  

Michigan State University, Refunding RB, Series A, 5.00%, 08/15/38

    10,000        10,566,580  

Michigan Technological University, RB, Series A, 5.00%, 10/01/45

    1,800        2,009,221  

Michigan Technological University, Refunding RB 5.00%, 10/01/31

    1,080        1,378,066  

5.00%, 10/01/32

    1,250        1,592,648  

5.00%, 10/01/33

    1,325        1,683,888  

5.00%, 10/01/34

    1,400        1,775,274  

Oakland University, RB
5.00%, 03/01/32

    400        401,348  

5.00%, 03/01/41

    3,635        4,092,999  

Series A, 5.00%, 03/01/38

    5,490        5,702,688  

Series A, 5.00%, 03/01/43

    16,845        17,476,469  

University of Michigan, RB, Series A, 5.00%, 04/01/39

    3,425        3,694,332  

Wayne State University, RB, Series A, 5.00%, 11/15/40

    13,000        13,821,028  

Western Michigan University, RB, Series A, (AGM), 5.00%, 11/15/51

    5,000        6,124,220  

Western Michigan University, Refunding RB

    

(AGM), 5.00%, 11/15/23(a)

    1,750        1,875,417  

5.25%, 11/15/23(a)

    8,475        9,119,812  

(AGM), 5.25%, 11/15/23(a)

    1,000        1,076,084  

5.00%, 11/15/44

    5,650        6,756,564  

5.00%, 11/15/49

    8,680        10,370,361  
    

 

 

 
       133,643,572  
 

 

 

C H E D U L E   O F   I N V E S  T M E N T S

  25


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

Security

 

Par

(000)

   

Value

 
Health — 29.6%  

Grand Traverse County Hospital Finance Authority, RB

   

Series A, 5.00%, 07/01/44

  $        4,230     $        4,577,803  

Series A, 5.00%, 07/01/47

    2,200       2,377,976  

Series A, 5.00%, 07/01/49

    2,610       3,042,534  

Series B, 4.00%, 07/01/49

    2,000       2,172,062  

Grand Traverse County Hospital Finance Authority, Refunding RB

   

5.00%, 07/01/32

    2,135       2,706,877  

5.00%, 07/01/33

    1,125       1,420,466  

5.00%, 07/01/34

    1,180       1,485,258  

Kalamazoo Economic Development Corp., Refunding RB

   

5.00%, 05/15/32

    865       943,532  

5.00%, 05/15/42

    425       458,525  

Kentwood Economic Development Corp., RB, 4.00%, 11/15/45

    750       811,328  

Kentwood Economic Development Corp., Refunding RB, 5.00%, 11/15/41

    2,335       2,661,606  

Michigan Finance Authority, RB 5.00%, 11/15/36

    2,500       2,576,292  

Series S, 4.00%, 11/01/46

    1,025       1,079,045  

Michigan Finance Authority, Refunding RB 5.00%, 06/01/24(a)

    1,500       1,636,004  

5.00%, 06/01/26

    290       334,808  

5.00%, 11/01/32

    4,000       4,116,620  

5.00%, 11/15/37

    3,000       3,443,559  

5.00%, 11/15/41

    1,000       1,142,839  

5.00%, 11/15/45

    3,750       4,118,437  

5.00%, 12/01/45

    19,445       21,932,638  

4.00%, 11/15/46

    8,500       9,052,848  

4.00%, 12/01/47

    4,000       4,544,676  

Series S, 5.00%, 05/15/32

    1,000       1,115,091  

Series S, 5.00%, 05/15/33

    2,000       2,228,672  

Series S, 5.00%, 05/15/34

    6,500       7,238,277  

Series S, 5.00%, 05/15/35

    4,945       5,502,806  

Michigan State Hospital Finance Authority, Refunding RB

   

Series A, 5.00%, 06/01/35

    2,250       2,278,912  

Series C, 4.00%, 06/01/22(a)

    5,300       5,361,708  

Michigan Strategic Fund, Refunding RB, 5.00%, 11/15/43

    1,220       1,379,739  

Royal Oak Hospital Finance Authority, Refunding RB, Series D, 5.00%, 09/01/39

    27,365       29,364,205  
   

 

 

 
      131,105,143  
Housing — 6.7%  

Michigan State Housing Development Authority, RB, M/F Housing

   

Series A, 4.45%, 10/01/34

    1,000       1,025,102  

Series A, 4.63%, 10/01/39

    3,490       3,568,382  

Series A, 4.30%, 10/01/40

    3,320       3,481,422  

Series A, 4.00%, 10/01/43

    7,420       7,887,156  

Series A, 4.75%, 10/01/44

    5,000       5,106,580  

Series A, 2.45%, 10/01/46

    5,000       4,587,900  

AMT, (GNMA), 4.75%, 04/20/37

    2,850       2,851,906  

Michigan State Housing Development Authority, RB, S/F Housing, Series A, 4.00%, 12/01/44

    1,220       1,244,095  
   

 

 

 
      29,752,543  

Security

 

Par

(000)

   

Value

 
State — 23.3%  

Flint Economic Development Corp., RB, 5.25%, 10/01/41

  $        4,950     $        4,966,523  

Michigan Finance Authority, RB

   

Series F, 5.00%, 04/01/31

    1,000       1,003,509  

Series F, 5.25%, 10/01/41

    8,595       8,624,120  

Michigan State Building Authority, Refunding RB

   

Series I, 5.00%, 04/15/41

    4,750       5,433,948  

Series I, 4.00%, 10/15/46

    6,250       7,205,937  

Michigan Strategic Fund, RB

   

Series A, 5.25%, 10/15/40

    3,000       3,378,201  

AMT, (AGM), 4.25%, 12/31/38

    14,000       15,806,056  

AMT, 5.00%, 12/31/43

    15,000       17,231,235  

Michigan Strategic Fund, Refunding RB, 5.25%, 10/15/31

    7,000       7,026,362  

State of Michigan Trunk Line Revenue, RB 4.00%, 11/15/46

    17,910       20,530,412  

Series B, 4.00%, 11/15/45

    8,000       9,067,280  

State of Michigan, COP, (AMBAC), 0.00%, 06/01/22(b)(c)

    3,000       2,995,329  
   

 

 

 
      103,268,912  
Tobacco — 1.8%  

Michigan Finance Authority, Refunding RB, Series A, Class 1, 4.00%, 06/01/40

    1,250       1,407,608  

Michigan Finance Authority, Refunding RB, CAB, Series B-2, Class 2, 0.00%, 06/01/65(c)

    50,000       6,471,050  
   

 

 

 
      7,878,658  
Transportation — 7.8%  

Gerald R Ford International Airport Authority, ARB

   

AMT, (GTD), 5.00%, 01/01/46

    1,685       2,102,846  

AMT, (GTD), 5.00%, 01/01/51

    2,250       2,811,996  

Wayne County Airport Authority, ARB

   

Series A, 5.00%, 12/01/42

    1,000       1,164,149  

Series A, 5.00%, 12/01/46

    2,000       2,508,216  

Series D, 5.00%, 12/01/35

    3,850       4,333,583  

Series D, 5.00%, 12/01/45

    7,500       8,347,530  

Series B, AMT, 5.00%, 12/01/42

    1,000       1,149,807  

Series B, AMT, 5.00%, 12/01/47

    1,250       1,422,495  

Series C, AMT, 5.00%, 12/01/39

    1,475       1,608,498  

Wayne County Airport Authority, Refunding ARB, Series F, AMT, 5.00%, 12/01/34

    8,000       8,968,568  
   

 

 

 
      34,417,688  
Utilities — 8.0%  

City of Detroit Michigan Sewage Disposal System Revenue, Refunding RB, Series A, Senior Lien, 5.25%, 07/01/22(a)

    2,655       2,707,335  

City of Detroit Michigan Water Supply System Revenue, RB, Series A, Senior Lien, (NATL), 5.00%, 07/01/34

    10       10,035  

Downriver Utility Wastewater Authority, Refunding RB, (AGM), 5.00%, 04/01/43

    1,000       1,150,033  

Great Lakes Water Authority Water Supply System Revenue, RB, Series B, 2nd Lien, 5.00%, 07/01/46

    10,000       11,276,040  

Karegnondi Water Authority, Refunding RB 5.00%, 11/01/41

    2,750       3,189,249  

5.00%, 11/01/45

    3,000       3,476,103  

Michigan Finance Authority, Refunding RB

   

Series D-1, 5.00%, 07/01/34

    2,000       2,243,102  

Series D-1, 5.00%, 07/01/35

    750       841,304  

Series C-3, Senior Lien, (AGM), 5.00%, 07/01/31

    1,000       1,085,779  
 

 

 

26  

2 0 2 2   B L A C K O C K  E M I - A N N U A L  E P O R T   T O  H A R E H O L D E R S


Schedule of Investments  (unaudited) (continued)

January 31, 2022

  

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

Security

 

Par

(000)

   

Value

 
Utilities (continued)  

Michigan Finance Authority, Refunding RB (continued)

   

Series C-3, Senior Lien, (AGM), 5.00%, 07/01/32

  $        5,250     $        5,696,764  

Series C-3, Senior Lien, (AGM), 5.00%, 07/01/33

    3,000       3,253,599  

Michigan Strategic Fund, RB, AMT, 4.00%, 10/01/61(d)

    445       488,138  
   

 

 

 
      35,417,481  
   

 

 

 
Total Municipal Bonds in Michigan     609,995,436  
Puerto Rico — 4.7%  
State — 4.7%  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

   

Series A-1, Restructured, 4.75%, 07/01/53

    534       584,283  

Series A-1, Restructured, 5.00%, 07/01/58

    825       917,912  

Series A-2, Restructured, 4.33%, 07/01/40

    1,109       1,203,820  

Series A-2, Restructured, 4.78%, 07/01/58

    103       113,098  

Series B-1, Restructured, 4.75%, 07/01/53

    616       675,479  

Series B-1, Restructured, 5.00%, 07/01/58

    7,451       8,280,095  

Series B-2, Restructured, 4.33%, 07/01/40

    5,880       6,372,479  

Series B-2, Restructured, 4.78%, 07/01/58

    597       655,976  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(c)

    6,295       2,035,935  
   

 

 

 

Total Municipal Bonds in Puerto Rico

 

    20,839,077  
   

 

 

 

Total Municipal Bonds — 142.4%

 

 

(Cost: $603,451,774)

 

    630,834,513  
   

 

 

 
Municipal Bonds Transferred to Tender Option Bond Trusts(e) &n