N-Q 1 d565474dnq.htm BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21179

Name of Fund: BlackRock New York Municipal Income Quality Trust (BSE)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock New York Municipal Income Quality Trust, 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: 08/31/2013

Date of reporting period: 05/31/2013

Item 1    –    Schedule of Investments

Schedule of Investments May 31, 2013 (Unaudited)    BlackRock New York Municipal Income Quality Trust (BSE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

New York – 114.5%

      

Corporate – 1.6%

      

New York City Industrial Development Agency, Refunding RB, Senior Series A, AMT,

      

5.00%, 7/01/28

    $ 165       $ 173,476   

New York Liberty Development Corp., RB, Goldman Sachs Headquarters,

      

5.25%, 10/01/35

      1,160         1,348,256   
     

 

 

  
        1,521,732   
     

 

 

  

County/City/Special District/School District – 20.1%

      

City of New York, GO:

      

Series A-1, 5.00%, 8/01/35

      200         224,310   

Sub-Series A-1, 5.00%, 10/01/34

      330         375,731   

City of New York, New York, GO:

      

Refunding, Series J, 5.00%, 8/01/25(a)

      910         1,089,670   

Sub-Series A-1, 4.00%, 10/01/34

      175         180,710   

Sub-Series G-1, 5.00%, 4/01/28

      1,000         1,155,830   

Erie County Industrial Development Agency, RB, City School District of Buffalo, Series A:

      

Project, 5.25%, 5/01/31

      200         226,674   

(AGM), 5.75%, 5/01/25

      1,000         1,157,480   

Hudson New York Yards Infrastructure Corp., RB, Series A:

      

5.00%, 2/15/47

      500         522,770   

5.75%, 2/15/47

      1,000         1,153,470   

(AGC), 5.00%, 2/15/47

      1,250         1,310,900   

(AGM), 5.00%, 2/15/47

      750         786,540   

(NPFGC), 4.50%, 2/15/47

      1,250         1,273,725   

New York City Industrial Development Agency, RB, PILOT:

      

CAB, Yankee Stadium Project (AGC), 4.97%, 3/01/39(b)

      1,000         282,200   

Queens Baseball Stadium (AGC), 6.38%, 1/01/39

      150         171,674   

Yankee Stadium Project (NPFGC), 4.75%, 3/01/46

      800         810,256   

New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC):

      

5.00%, 11/15/44

      5,175         5,454,968   

4.75%, 11/15/45

      500         519,470   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project:

      

5.00%, 11/15/31

      1,000         1,118,270   

5.75%, 11/15/51

      670         776,845   

New York State Dormitory Authority, Refunding RB, School Districts Financing Program, Series A (AGM),

      

5.00%, 10/01/35

      1,000         1,081,730   
     

 

 

  
     19,673,223   
     

 

 

  

Education – 36.0%

      

Dutchess County Local Development Corp., RB, Vassar College, Series A,

      

5.00%, 1/01/49

      500         538,325   

Herkimer County Industrial Development Agency, RB, College Foundation, Inc. Student Housing Project,

      

6.25%, 8/01/34

      1,000         1,002,350   

Madison County Capital Resource Corp., Refunding RB, Colgate University Project, Series A,

      

4.50%, 7/01/39

      1,600         1,727,856   

Madison County Industrial Development Agency, RB, Colgate University Project, Series A (AMBAC),

      

5.00%, 7/01/30

      1,000         1,045,230   

Monroe County Industrial Development Corp., RB, University of Rochester Project, Series A,

      

5.00%, 7/01/31

      500         564,785   

New York City Industrial Development Agency, RB, Lycee Francais de New York Project, Series A (ACA),

      

5.38%, 6/01/23

      2,195         2,242,456   

New York City Trust for Cultural Resources, Refunding RB:

      

American Museum of Natural History, Series A (NPFGC), 5.00%, 7/01/44

      2,500         2,584,325   

Museum of Modern Art, Series 1A, 5.00%, 4/01/31

      700         804,279   

Wildlife Conservation Society, Series A, 3.25%, 8/01/32

      440         417,578   

Wildlife Conservation Society, Series A, 5.00%, 8/01/42

      410         459,975   

 

    BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013   1

Schedule of Investments (continued)    BlackRock New York Municipal Income Quality Trust (BSE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

New York (continued)

      

Education (concluded)

      

New York State Dormitory Authority, RB:

      

Brooklyn Law School, Series B (Syncora), 5.13%, 7/01/13(c)

    $ 4,000       $ 4,016,120   

Convent of the Sacred Heart (AGM), 5.75%, 11/01/40

      300         344,079   

FIT Student Housing Corp. (NPFGC), 5.13%, 7/01/14(c)

      2,500         2,630,075   

Fordham University, Series A, 5.00%, 7/01/28

      500         567,070   

New York University, Series B, 5.00%, 7/01/37

      500         567,070   

New York University, Series C, 5.00%, 7/01/38

      1,000         1,108,390   

Saint Joachim & Anne Residence, 5.25%, 7/01/27

      3,000         3,000,810   

State University Dormitory Facilities, Series A, 5.00%, 7/01/40

      600         654,048   

The New School (AGM), 5.50%, 7/01/43

      350         392,403   

New York State Dormitory Authority, Refunding RB:

      

Cornell University, Series A, 5.00%, 7/01/40

      250         280,163   

Fordham University, 4.00%, 7/01/29

      385         400,161   

Mount Sinai School of Medicine at New York University (NPFGC), 5.00%, 7/01/35

      2,400         2,556,312   

New York University, Series A, 5.00%, 7/01/37

      745         844,934   

Rochester Institute of Technology, 4.00%, 7/01/32

      395         399,345   

Rochester Institute of Technology, 5.00%, 7/01/40

      550         598,108   

Rockefeller University, Series B, 4.00%, 7/01/38

      830         852,269   

Skidmore College, Series A, 5.00%, 7/01/27

      135         153,213   

Teachers College, Series A, 5.00%, 7/01/31

      525         595,424   

Orange County Funding Corp., Refunding RB, Mount State Mary College, Series A:

      

5.00%, 7/01/37

      180         193,874   

5.00%, 7/01/42

      115         122,959   

Schenectady County Capital Resource Corp., Refunding RB, Union College Project, Series A,

      

5.00%, 7/01/32

      940         1,064,512   

Tompkins County Development Corp., RB, Ithaca College Project (AGM),

      

5.50%, 7/01/33

      250         283,755   

Tompkins County Industrial Development Agency, RB, Civic Facility Cornell University Project, Series A,

      

5.00%, 7/01/37

      1,000         1,128,110   

Troy Capital Resource Corp., Refunding RB, Rensselaer Polytechnic, Series A,

      

5.13%, 9/01/40

      1,000         1,082,560   
     

 

 

  
     35,222,923   
     

 

 

  

Health – 12.9%

      

Dutchess County Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC),

      

5.50%, 4/01/30

      500         557,655   

Monroe County Industrial Development Corp., Refunding RB:

      

Rochester General Hospital Project, Series A, 5.00%, 12/01/37

      850         924,341   

Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40

      325         365,280   

New York State Dormitory Authority, RB:

      

Hudson Valley Hospital (BHAC), 5.00%, 8/15/36

      1,250         1,346,887   

Mental Health Services (AGM), 5.00%, 8/15/18(c)

      5         5,996   

Mental Health Services (AGM), 5.00%, 2/15/22

      995         1,156,926   

New York University Hospitals Center, Series A, 6.00%, 7/01/40

      250         288,903   

North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/37

      350         390,470   

North Shore-Long Island Jewish Health System, Series C, 4.25%, 5/01/39

      185         189,692   

 

2   BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013    

Schedule of Investments (continued)    BlackRock New York Municipal Income Quality Trust (BSE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

New York (continued)

      

Health (concluded)

      

New York State Dormitory Authority, RB (concluded):

      

North Shore-Long Island Jewish Health System, Series D, 4.25%, 5/01/39

    $ 405       $ 416,810   

St. Barnabas, Series A (FHA) (AMBAC), 5.00%, 2/01/31

      3,000         3,008,970   

New York State Dormitory Authority, Refunding RB:

      

North Shore-Long Island Jewish Health System, Series A, 5.00%, 5/01/32

      750         826,095   

North Shore-Long Island Jewish Health System, Series A, 5.25%, 5/01/34

      1,840         2,074,471   

NYU Hospitals Center, Series A, 5.00%, 7/01/36

      500         533,195   

St. Luke’s Roosevelt Hospital (FHA), 4.90%, 8/15/31

      500         529,735   
     

 

 

  
        12,615,426   
     

 

 

  

Housing – 1.8%

      

New York City Housing Development Corp., Refunding RB, Series L-2-A,

      

4.00%, 5/01/44

      1,335         1,295,724   

New York State Mortgage Agency, RB, 49th Series,

      

4.00%, 10/01/43

      500         495,635   
     

 

 

  
        1,791,359   
     

 

 

  

State – 8.2%

      

New York City Transitional Finance Authority, BARB:

      

Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/33

      1,000         1,157,000   

Series S-2 (AGM), 5.00%, 1/15/37

      850         924,409   

New York State Dormitory Authority, ERB:

      

Series B, 5.75%, 3/15/36

      600         714,438   

Series C, 5.00%, 12/15/31

      1,500         1,668,330   

New York State Dormitory Authority, RB, General Purpose, Series B,

      

5.00%, 3/15/42

      500         552,710   

New York State Dormitory Authority, Refunding RB, Third General Resolution, State University Educational Facilities Issue, Series A,

      

5.00%, 5/15/30

      1,500         1,721,355   

New York State Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A,

      

3.50%, 3/15/28

      1,250         1,291,325   
     

 

 

  
        8,029,567   
     

 

 

  

Transportation – 23.2%

      

Metropolitan Transportation Authority, RB:

      

Series 2008C, 6.50%, 11/15/28

      750         928,260   

Series A, 5.00%, 11/15/27

      575         656,282   

Series D, 5.25%, 11/15/41

      1,750         1,926,680   

Series H, 5.00%, 11/15/25

      1,500         1,747,395   

Series H, 4.00%, 11/15/34

      1,160         1,140,280   

Series H, 5.00%, 11/15/42

      1,000         1,079,710   

Metropolitan Transportation Authority, Refunding RB:

      

Series B, 5.00%, 11/15/34

      540         595,285   

Series F, 5.00%, 11/15/30

      630         710,376   

Series F (AGM), 4.00%, 11/15/30

      1,000         1,032,610   

New York State Thruway Authority, Refunding RB:

      

General, Series H (AGM), 5.00%, 1/01/37

      4,000         4,380,920   

General, Series I, 5.00%, 1/01/24

      1,000         1,185,240   

General, Series I, 5.00%, 1/01/37

      500         548,955   

Series I, 4.13%, 1/01/42

      435         440,011   

Series I, 5.00%, 1/01/42

      425         462,043   

Triborough Bridge & Tunnel Authority, Refunding RB:

      

Series A, 5.00%, 11/15/34

      1,000         1,139,720   

Series B, 5.00%, 11/15/31

      90         103,841   

Series C, 5.00%, 11/15/38

      1,000         1,109,300   

Series E (NPFGC), 5.00%, 11/15/32

      2,660         2,668,432   

Sub-Series A, 5.00%, 11/15/29

      675         778,498   
     

 

 

  
        22,633,838   
     

 

 

  

Utilities – 10.7%

      

Albany Municipal Water Finance Authority, Refunding RB, Series A,

      

5.00%, 12/01/33

      1,000         1,121,960   

 

    BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013   3

Schedule of Investments (continued)    BlackRock New York Municipal Income Quality Trust (BSE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

    Par
(000)		      Value  

New York (concluded)

      

Utilities (concluded)

      

Long Island Power Authority, RB, General:

      

Series A (AGM), 5.00%, 5/01/36

    $ 500       $ 542,455   

Series C (CIFG), 5.25%, 9/01/29

      1,000         1,187,970   

Long Island Power Authority, Refunding RB, Series A (AGC):

      

5.75%, 4/01/39

      1,690         1,975,593   

6.00%, 5/01/33

      2,000         2,372,240   

New York City Municipal Water Finance Authority, Refunding RB:

      

Series DD, 5.00%, 6/15/32

      1,100         1,243,187   

Series FF, 4.00%, 6/15/45

      400         396,424   

Series FF, 5.00%, 6/15/45

      440         479,363   

New York State Power Authority, Refunding RB, Series A,

      

5.00%, 11/15/38

      1,000         1,124,530   
     

 

 

  
        10,443,722   
     

 

 

  

Total Municipal Bonds in New York

         111,931,790   
     

 

 

  

Puerto Rico – 8.2%

      

State – 3.6%

      

Commonwealth of Puerto Rico, GO, Refunding, Sub-Series C-7 (NPFGC),

      

6.00%, 7/01/27

      700         734,888   

Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series M-3 (NPFGC),

      

6.00%, 7/01/28

      500         521,035   

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A:

      

5.75%, 8/01/37

      1,000         1,077,750   

(AGM), 5.00%, 8/01/40

      500         517,140   

Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A, (NPFGC)(b):

      

5.57%, 8/01/41

      1,500         319,080   

5.61%, 8/01/43

      2,000         376,940   
     

 

 

  
        3,546,833   
     

 

 

  

Transportation – 3.3%

      

Puerto Rico Highway & Transportation Authority, RB, Series Y (AGM),

      

6.25%, 7/01/21

      2,000         2,366,240   

Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGM),

      

5.50%, 7/01/29

      800         877,336   
     

 

 

  
        3,243,576   
     

 

 

  

Utilities – 1.3%

      

Puerto Rico Electric Power Authority, Refunding RB, Series VV (NPFGC):

      

5.25%, 7/01/29

      250         254,345   

5.25%, 7/01/30

      1,000         1,012,360   
     

 

 

  
        1,266,705   
     

 

 

  

Total Municipal Bonds in Puerto Rico

         8,057,114   
     

 

 

  

Total Municipal Bonds – 122.7%

         119,988,904   
     

 

 

  

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(d)

      

New York – 38.1%

      

County/City/Special District/School District – 15.3%

      

City of New York, New York, GO, Sub-Series C-3 (AGC),

      

5.75%, 8/15/28(e)

      1,000         1,210,220   

Hudson New York Yards Infrastructure Corp., RB, Series A,

      

5.75%, 2/15/47

      1,800         2,076,067   

New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1:

      

4.00%, 9/15/35

      3,000         3,082,770   

5.00%, 9/15/40

      2,085         2,321,418   

Sales Tax Asset Receivable Corp., Refunding RB, Series A (AMBAC),

      

5.00%, 10/15/32

      5,997         6,310,400   
     

 

 

  
        15,000,875   
     

 

 

  

Education – 5.7%

      

New York State Dormitory Authority, LRB, State University Dormitory Facilities, Series A,

      

5.00%, 7/01/35

      1,999         2,236,971   

 

4   BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013    

Schedule of Investments (continued)    BlackRock New York Municipal Income Quality Trust (BSE)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(d)

    Par
(000)		      Value  

New York (concluded)

      

Education (concluded)

      

New York State Dormitory Authority, RB, New York University, Series A (AMBAC),

      

5.00%, 7/01/37

    $ 2,499       $ 2,727,921   

New York State Dormitory Authority, Refunding LRB, Series A,

      

5.00%, 7/01/42

      440         490,965   
     

 

 

  
        5,455,857   
     

 

 

  

Housing – 1.4%

      

New York State Mortgage Agency, Refunding RB, 48th Series, AMT,

      

3.70%, 10/01/38

      1,440         1,409,069   
     

 

 

  

State – 2.8%

      

New York City Transitional Finance Authority, RB, Future Tax Secured Revenue,

      

5.00%, 11/01/38

      2,475         2,754,997   
     

 

 

  

Transportation – 4.9%

      

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority,

      

5.25%, 12/15/43

      3,495         3,923,747   

New York State Thruway Authority, Refunding RB, Series A,

      

5.00%, 3/15/31

      800         907,192   
     

 

 

  
        4,830,939   
     

 

 

  

Utilities – 8.0%

      

New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A,

      

5.75%, 6/15/40

      495         580,506   

New York City Municipal Water Finance Authority, Refunding RB:

      

Second General Resolution, Fiscal 2011, Series HH, 5.00%, 6/15/32

      2,249         2,535,386   

Second General Resolution, Fiscal 2012, Series BB, 5.00%, 6/15/44

      2,011         2,202,023   

Series FF-2, 5.50%, 6/15/40

      405         472,952   

Suffolk County Water Authority, Refunding RB, New York Water System,

      

3.00%, 6/01/25

      2,041         2,067,888   
     

 

 

  
        7,858,755   
     

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts in New York

         37,310,492   
     

 

 

  

Puerto Rico – 3.3%

      

State – 3.3%

      

Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C:

      

5.00%, 8/01/40

      2,000         2,108,120   

5.25%, 8/01/40

      1,010         1,081,907   
     

 

 

  
        3,190,027   
     

 

 

  

Total Municipal Bonds in Puerto Rico

         3,190,027   
     

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 41.4%

         40,500,519   
     

 

 

  

Total Long-Term Investments
(Cost – $151,950,012) – 164.1%

         160,489,423   
     

 

 

  

Short-Term Securities

    Shares         

Money Market Fund – 1.1%

      

BIF New York Municipal Money Fund,

      

0.00%(f)(g)

      1,075,150         1,075,150   
     

 

 

  

Total Short-Term Securities
(Cost – $1,075,150) – 1.1%

         1,075,150   
     

 

 

  

Total Investments (Cost – $153,025,162*) – 165.2%

         161,564,573   

Other Assets Less Liabilities – 0.1%

         62,995   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (23.9%)

         (23,342,122 ) 

VRDP Shares, at Liquidation Value – (41.4%)

         (40,500,000 ) 
     

 

 

  

Net Assets Applicable to Common Shares – 100.0%

       $ 97,785,446   
     

 

 

  

 

* As of May 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 130,109,864   
  

 

 

  

Gross unrealized appreciation

    $ 9,230,712   

Gross unrealized depreciation

      (1,106,304 ) 
  

 

 

  

Net unrealized appreciation

    $ 8,124,408   
  

 

 

  

 

    BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013   5

Schedule of Investments (continued)    BlackRock New York Municipal Income Quality Trust (BSE)
  

 

Notes to Schedule of Investments

 

(a) When-issued security. Unsettled when-issued transactions were as follows:

Counterparty

    Value      Unrealized
Depreciation		  

Merrill Lynch, Pierce, Fenner & Smith

    $ 1,089,670       $ (14,751 ) 

 

(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

(c) US 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) Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

(e) All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expires on February 15, 2017, is $529,549.

 

(f) Investments in issuers considered to be an affiliate of the Trust during the period ended May 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

   Shares Held at
August  31,
2012		      Net Activity      Shares Held at
May  31,
2013		      Income  

BIF New York Municipal Money Fund

      1,020,744         54,406         1,075,150       $ 71   

 

(g) Represents the current yield as of report date.

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:   ACA   American Capital Access Holding Ltd.     CIFG   CDC IXIS Financial Guaranty
  AGC       Assured Guarantee Corp.     ERB   Education Revenue Bonds
  AGM   Assured Guaranty Municipal Corp.     FHA   Federal Housing Administration
  AMBAC   American Municipal Bond Assurance Corp.     GO   General Obligation Bonds
  AMT   Alternative Minimum Tax (subject to)     LRB   Lease Revenue Bonds
  BARB   Building Aid Revenue Bonds     NPFGC   National Public Finance Guarantee Corp.
  BHAC   Berkshire Hathaway Assurance Corp.     PILOT   Payment in Lieu of Taxes
  CAB   Capital Appreciation Bonds     RB   Revenue Bonds
        Syncora   Syncora Guarantee

 

6   BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013    

Schedule of Investments (continued)    BlackRock New York Municipal Income Quality Trust (BSE)
 

 

•  

Financial futures contracts as of May 31, 2013 were as follows:

 

Contracts Sold

    Issue    Exchange    Expiration    Notional Value      Unrealized
Appreciation		  

        (12)

    10-Year US Treasury Note    Chicago Board of Trade    September 2013    $ 1,550,625       $ 12,484   

For Trust compliance purposes, the Trust’s sector classifications refer to any 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 Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

•  

Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 – unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

  •  

Level 2 – other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •  

Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of May 31, 2013:

 

     Level 1      Level 2      Level 3      Total  

Assets:

            

Investments:

            

Long-Term Investments1

      –       $ 160,489,423         –       $ 160,489,423   

Short-Term Securities

    $ 1,075,150         –         –         1,075,150   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,075,150       $ 160,489,423         –       $ 161,564,573   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1          See above Schedule of Investments for values in each state.

   
     Level 1      Level 2      Level 3      Total  

Derivative Financial Instruments2

            

Assets:

            

Interest rate contracts

    $ 12,484         –         –       $ 12,484   

 

2 

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

 

    BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013   7

Schedule of Investments (concluded)    BlackRock New York Municipal Income Quality Trust (BSE)
  

 

Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of May 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1      Level 2     Level 3      Total  

Assets:

           

Cash pledged for financial futures contracts

    $ 70,000         —        —       $ 70,000   

Liabilities:

           

TOB trust certificates

      —       $ (23,330,301 )      —         (23,330,301 ) 

VRDP shares

      —         (40,500,000 )      —         (40,500,000 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 70,000       $ (63,830,301 )      —       $ (63,760,301 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

There were no transfers between levels during the period ended May 31, 2013.

 

8   BLACKROCK NEW YORK MUNICIPAL INCOME QUALITY TRUST    MAY 31, 2013    

Item 2    –    Controls and Procedures
2(a)    –    The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b)    –    There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3    –    Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock New York Municipal Income Quality Trust
By:   /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock New York Municipal Income Quality Trust

Date: July 25, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock New York Municipal Income Quality Trust

Date: July 25, 2013

 

By:   /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock New York Municipal Income Quality Trust

Date: July 25, 2013