NPORT-EX 2 BRMuniYieldMichQualityFund.htm EX-MIY

Schedule of Investments  (unaudited) 

October 31, 2019

   

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Municipal Bonds — 133.8%

 

Michigan — 130.5%

 

Corporate — 3.6%  

County of Monroe Michigan EDC, Refunding RB, Detroit Edison Co. Project, Series AA (NPFGC), 6.95%, 09/01/22

   $   14,500     $   16,697,330  
   

 

 

  
County/City/Special District/School District — 25.3%  

Anchor Bay School District, GO, Refunding (Q-SBLF):

    

4.38%, 05/01/27

     1,600       1,670,448  

4.50%, 05/01/29

     1,505       1,573,161  

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

     1,170       1,377,523  

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

     2,965       3,442,484  

Byron Center Public Schools, GO, School Building & Site, Series I (Q-SBLF):

    

5.00%, 05/01/43

     4,475       5,241,478  

5.00%, 05/01/47

     740       857,741  

Columbia Michigan School District, GO, Unlimited Tax, School Building & Site (Q-SBLF), 5.00%, 05/01/38

     5,185       5,825,399  

Comstock Park Michigan Public Schools, GO, School Building & Site, Series B (Q-SBLF)(a):

    

5.50%, 05/01/21

     1,200       1,275,624  

5.50%, 05/01/21

     2,185       2,322,699  

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

     2,000       2,193,300  

Dearborn Brownfield Redevelopment Authority, GO, Limited Tax, Redevelopment, Series A (AGC), 5.50%, 05/01/39

     5,300       5,316,059  

Dearborn School District, GO, School Building & Site, Series A (Q-SBLF):

    

5.00%, 05/01/32

     1,500       1,698,660  

5.00%, 05/01/33

     1,600       1,809,088  

5.00%, 05/01/34

     1,200       1,355,628  

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

     1,140       1,333,196  

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

     1,000       1,185,590  

Farmington Public School District, GO, Refunding, School Building & Site (AGM):

    

5.00%, 05/01/33

     1,500       1,756,305  

5.00%, 05/01/34

     1,500       1,753,050  

5.00%, 05/01/35

     1,000       1,165,110  
Security  

Par

(000)

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

Flint EDC, RB, Michigan Department of Human Services Office Building Project, 5.25%, 10/01/41

   $ 4,950     $ 5,226,655  

Fraser Public School District, GO, Refunding, School Building & Site (Q-SBLF):

    

5.00%, 05/01/43

       2,000         2,367,120  

5.00%, 05/01/47

     3,225       3,781,603  

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

     750       911,610  

Goodrich Area School District, GO, School Building & Site (Q-SBLF):

    

5.50%, 05/01/21(a)

     1,540       1,637,051  

5.50%, 05/01/36

     460       486,464  

Goodrich Area School District Michigan, GO, School Building & Site (Q-SBLF):

    

5.50%, 05/01/21(a)

     2,575       2,737,277  

5.50%, 05/01/32

     1,000       1,059,600  

Grandville Public Schools, GO, School Building & Site, Series II (AGM), 5.00%, 05/01/40

     3,250       3,727,750  

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

     4,000       4,774,280  

Hudsonville Michigan Public Schools, GO, School Building & Site (Q-SBLF), 5.25%, 05/01/21(a)

     6,750       7,150,545  

Jackson Michigan Public Schools, GO, School Building & Site (Q-SBLF), 5.00%, 05/01/42

     4,000       4,794,680  

Kentwood Public Schools, GO, School Building & Site:

    

5.00%, 05/01/41

     1,120       1,316,067  

5.00%, 05/01/44

     1,815       2,127,489  

Livonia Public Schools, GO, Series I (AGM), 5.00%, 05/01/43

     5,000       5,506,700  

Mattawan Consolidated School District, GO, Series I (Q-SBLF), 5.00%, 05/01/39

     3,375       3,898,327  

Mona Shores Public Schools, GO, School Building & Site, Series I (Q-SBLF):

    

5.00%, 05/01/42

     1,000       1,218,240  

5.00%, 05/01/43

     1,025       1,246,544  

5.00%, 05/01/44

     1,525       1,852,494  

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

     4,270       5,173,318  
 

 

1

Schedule of Investments  (unaudited) (continued)

October 31, 2019

   

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

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

Troy School District, GO, School Building & Site (Q-SBLF), 5.00%, 05/01/28

   $ 2,000     $ 2,288,280  

Walled Lake Consolidated School District, GO, School Building & Site (Q-SBLF):

    

5.00%, 05/01/37

     2,850       3,200,464  

5.00%, 05/01/40

     2,630       2,949,992  

5.00%, 05/01/43

     1,530       1,710,938  

Zeeland Public Schools, GO, School Building & Site, Series A (AGM):

    

5.00%, 05/01/33

     1,000       1,164,250  

5.00%, 05/01/34

     1,000       1,162,270  

5.00%, 05/01/35

     1,000       1,160,950  
   

 

 

  
        117,783,501  
Education — 21.2%  

City of Grand Rapids Michigan EDC, RB, Ferris State University Project, Series A, 5.50%, 10/01/35

     760       789,047  

Ferris State University, Refunding RB, General (AGM):

    

4.50%, 10/01/24

     1,595       1,599,083  

4.50%, 10/01/25

     1,405       1,408,597  

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

     1,600       1,938,496  

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

       3,750       4,403,437  

Michigan Finance Authority, Refunding RB:

    

College for Creative Studies,
4.00%, 12/01/33

     1,720       1,792,412  

5.00%, 12/01/36

     1,550       1,684,726  

5.00%, 12/01/40

     2,900       3,131,884  

5.00%, 12/01/45

     4,400       4,735,412  

Series 25 A, AMT, Student Loan Revenue,

    

4.00%, 11/01/29

     5,900       6,213,703  

4.00%, 11/01/30

     2,850       2,996,148  

4.00%, 11/01/31

     3,150       3,305,894  

Michigan State University, Refunding RB, General, Series C:

    

5.00%, 02/15/40

     8,470       8,553,260  

5.00%, 02/15/44

     1,000       1,009,500  

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

     1,800       2,076,390  
Security  

Par

(000)

     Value  
Education (continued)  

Oakland University, RB:

    

5.00%, 03/01/41

   $ 3,635     $ 4,239,646  

General, 5.00%, 03/01/32

     400       431,968  

General, Series A, 5.00%, 03/01/38

     5,490       6,063,979  

General, Series A, 5.00%, 03/01/43

       16,845       18,520,741  

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

     3,425       3,926,626  

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

     3,000       3,359,520  

Western Michigan University, Refunding RB, General, University and College Improvements:

    

5.25%, 11/15/40

     3,500       3,741,465  

5.25%, 11/15/43

     8,475       9,560,986  

(AGM), 5.25%, 11/15/33

     1,000       1,143,320  

(AGM), 5.00%, 11/15/39

     1,750       1,966,843  
   

 

 

  
        98,593,083  
Health — 31.7%  

Grand Traverse County Hospital Finance Authority, RB:

    

Munson Healthcare Obligated Group, Series A, 5.00%, 07/01/49

     2,610       3,081,079  

Munson Healthcare Obligated Group, Series B, 4.00%, 07/01/49

     2,000       2,186,480  

Series A, 5.00%, 07/01/44

     4,230       4,746,398  

Series A, 5.00%, 07/01/47

     2,200       2,466,684  

Kalamazoo Economic Development Corp., Refunding RB, Heritage Community of Kalamazoo Project:

    

5.00%, 05/15/32

     2,000       2,266,160  

5.00%, 05/15/37

     1,230       1,377,231  

5.00%, 05/15/42

     1,050       1,158,245  

Kalamazoo Hospital Finance Authority, RB, Bronson Methodist Hospital (AGM):

    

5.25%, 05/15/20(a)

     4,140       4,227,851  

5.25%, 05/15/36

     3,360       3,429,619  

Kent Hospital Finance Authority Michigan, Refunding RB, Spectrum Health, Series A, 5.00%, 11/15/21(a)

     7,500       8,043,000  

Kentwood Economic Development Corp., Refunding RB, Holland Home Obligated Group, 5.00%, 11/15/41

     2,335       2,656,203  
 

 

2

Schedule of Investments  (unaudited) (continued)

October 31, 2019

   

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Health (continued)  

Michigan Finance Authority, RB:

    

Beaumont Health Credit Group, 4.00%, 11/01/46

   $ 1,025     $ 1,085,229  

Sparrow Obligated Group,

    

5.00%, 11/15/36

     2,500       2,721,250  

5.00%, 11/15/45

     3,750       4,277,437  

Michigan Finance Authority, Refunding RB:

    

Henry Ford Health System,

    

4.00%, 11/15/46

     8,500       9,124,580  

5.00%, 11/15/37

     3,000       3,548,790  

5.00%, 11/15/41

     1,000       1,172,700  

Hospital, McLaren Health Care,
5.00%, 05/15/32

     1,000       1,159,740  

5.00%, 05/15/33

     2,000       2,314,980  

5.00%, 05/15/34

     5,000       5,775,400  

5.00%, 05/15/34

     1,500       1,732,620  

5.00%, 05/15/35

     4,945       5,699,360  

Hospital; Trinity Health Credit Group, 5.00%, 12/01/39

     4,980       5,304,497  

MidMichigan Health, 5.00%, 06/01/39

     1,500       1,690,140  

Trinity Health Credit Group,

    

5.00%, 12/01/21(a)

     20       21,542  

5.00%, 12/01/31

     5,000       5,355,200  

5.00%, 12/01/35

     6,500       6,900,725  

Michigan State Hospital Finance Authority, RB, Ascension Health Senior Credit Group, 5.00%, 11/15/25

     6,000       6,006,960  

Michigan State Hospital Finance Authority, Refunding RB:

    

Henry Ford Health System, 5.75%, 11/15/19(a)

     3,165       3,169,114  

Hospital, Oakwood Obligated Group, 5.00%, 11/01/32

     4,000       4,390,200  

McLaren Health Care, Series A, 5.00%, 06/01/35

     2,250       2,436,210  

Michigan Strategic Fund, Refunding RB, Holland Home Obligated Group, 5.00%, 11/15/43

     1,220       1,384,127  

Royal Oak Hospital Finance Authority Michigan, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 09/01/39

       27,365         30,629,644  
Security  

Par

(000)

     Value  
Health (continued)            

State of Michigan Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32

   $ 5,300     $ 5,619,378  
   

 

 

  
      147,158,773  
Housing — 8.0%  

Michigan State HDA, RB, M/F:

    

Housing, Rental Housing Revenue, Series A,

    

4.45%, 10/01/34

     1,000       1,065,320  

4.63%, 10/01/39

     3,490       3,702,401  

4.75%, 10/01/44

     5,000       5,273,300  

Williams Pavilion, AMT (Ginnie Mae), 4.75%, 04/20/37

     3,080       3,082,187  

Michigan State Housing Development Authority, RB, Series A:

    

M/F Housing, 4.30%, 10/01/40

     3,320       3,575,308  

M/F, 4.00%, 10/01/43

     7,420       8,027,179  

S/F Housing, 4.00%, 12/01/44

     4,000       4,309,400  

State of Michigan Housing Development Authority, RB, S/F Housing, Series C, 4.13%, 12/01/38

     7,500       8,181,150  
   

 

 

  
        37,216,245  
State — 19.0%  

Michigan Finance Authority, RB, Charter County of Wayne Criminal Justice Center Project:

    

5.00%, 11/01/34

     215       265,998  

5.00%, 11/01/43

     4,000       4,842,000  

5.00%, 11/01/38

     2,500       3,057,600  

Michigan Finance Authority, Refunding RB, Detroit Regional Convention Facility Authority Local Project Bonds, 5.00%, 10/01/39

     5,400       6,085,746  

Michigan State Finance Authority, RB, Local Government Loan Program, Series F, 5.00%, 04/01/31

     1,000       1,059,650  

Michigan Strategic Fund, RB:

    

1-75 Improvement Project, AMT (AGM), 4.25%, 12/31/38

       14,000       15,611,680  

I-75 Improvement Project, AMT, 5.00%, 12/31/43

     15,000       17,709,300  

Michigan Senate Offices Project, Series A, 5.25%, 10/15/40

     3,000       3,548,370  
 

 

3

Schedule of Investments  (unaudited) (continued)

October 31, 2019

   

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
State (continued)  

Michigan Strategic Fund, Refunding RB, Cadillac Place Office Building Project, 5.25%, 10/15/31

   $ 7,000     $ 7,524,440  

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

     3,000       2,878,470  

State of Michigan Building Authority, RB, Local Government Loan Program, Series F, 5.25%, 10/01/41

     8,595       9,075,375  

State of Michigan Building Authority, Refunding RB:

    

Facilities Program, Series I-A, 5.50%, 10/15/45

     2,000       2,140,300  

Series I, 5.00%, 04/15/41

     4,750       5,611,412  

State of Michigan Trunk Line Fund, RB:

    

5.00%, 11/15/33

     3,000       3,216,060  

5.00%, 11/15/36

     5,345       5,718,883  
   

 

 

  
      88,345,284  
Transportation — 5.4%  

Wayne County Airport Authority, ARB, Series A, 5.00%, 12/01/42

     1,000       1,189,800  

Wayne County Airport Authority, RB:

    

Detroit Metropolitan Wayne County Airport, AMT (NPFGC), 5.00%, 12/01/39

     1,475       1,663,844  

Series B, AMT, 5.00%, 12/01/42

     1,000       1,167,160  

Series B, AMT, 5.00%, 12/01/47

     1,250       1,449,787  

Series D, 5.00%, 12/01/35

     3,850       4,500,419  

Series D, 5.00%, 12/01/45

     5,000       5,774,350  

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

     8,000       9,226,400  
   

 

 

  
      24,971,760  
Utilities — 16.3%  

City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39

     2,655       2,895,171  

City of Detroit Michigan Water Supply System Revenue, RB, Series A:

    

Senior Lien, 5.25%, 07/01/41

     4,325       4,569,622  

(NPFGC), 5.00%, 07/01/34

     10       10,025  

City of Grand Rapids Michigan Sanitary Sewer System, Refunding RB, Series A (NPFGC), 5.50%, 01/01/22

     810       850,314  

City of Holland Michigan Electric Utility System, RB, Series A, 5.00%, 07/01/39

       10,000         10,554,600  
Security  

Par

(000)

     Value  
Utilities (continued)  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A:

    

5.00%, 07/01/27

   $ 3,180     $ 3,375,729  

5.00%, 07/01/31

     6,830       7,240,141  

5.00%, 07/01/37

     3,335       3,523,394  

5.50%, 07/01/41

     5,000       5,314,600  

City of Port Huron Michigan, RB, Water Supply System:

    

5.25%, 10/01/31

     500       533,650  

5.63%, 10/01/40

     1,500       1,602,600  

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

     1,000       1,200,080  

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

       10,000         11,663,600  

Karegnondi Water Authority, Refunding RB:

    

5.00%, 11/01/41

     2,750       3,222,038  

5.00%, 11/01/45

     3,000       3,478,920  

Michigan Finance Authority, Refunding RB:

    

Government Loan Program,
5.00%, 07/01/34

     2,000       2,330,240  

5.00%, 07/01/35

     750       873,173  

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

     1,000       1,154,530  

5.00%, 07/01/32

     5,250       6,058,290  

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

     3,000       3,462,000  

Michigan Municipal Bond Authority, RB, State Clean Water Revolving Fund, Pooled Project, 5.00%, 10/01/20(a)

     2,000       2,068,900  
   

 

 

  
      75,981,617  
   

 

 

  

Total Municipal Bonds in Michigan

 

     606,747,593  
   

 

 

  

Puerto Rico — 3.3%

 

State — 3.3%  

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

    

Series A-1, 5.00%, 07/01/58

     380       397,693  

Series B-1, 4.75%, 07/01/53

     616       634,825  
 

 

4

Schedule of Investments  (unaudited) (continued)

October 31, 2019

   

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
State (continued)  

Series B-1, 5.00%, 07/01/58

   $ 7,451     $ 7,788,903  

Series B-2, 4.33%, 07/01/40

     5,880       5,972,904  

Series B-2, 4.78%, 07/01/58

     597       612,695  
   

 

 

  

Total Municipal Bonds in Puerto Rico

 

     15,407,020  
   

 

 

  

Total Municipal Bonds — 133.8%
(Cost — $579,118,777)

 

     622,154,613  
   

 

 

  

Municipal Bonds Transferred to Tender Option Bond Trusts(d)

 

Michigan — 26.8%

 

Education — 11.9%  

Eastern Michigan University, RB, General ,Series A (AGM), 4.00%, 03/01/44

     10,000       10,924,000  

Michigan State University, Refunding RB, General, Series A, 5.00%, 08/15/38(e)

     10,000       11,205,900  

University of Michigan, Refunding RB, 5.00%, 04/01/46

     10,000       11,821,201  

Wayne State University, RB, General,
Series A(e):

    

5.00%, 11/15/40

     10,000       11,198,400  

5.00%, 11/15/43

     8,530       10,370,859  
   

 

 

  
      55,520,360  
Health — 7.5%  

Michigan Finance Authority, RB, Beaumont Health Credit Group, Series A, 5.00%, 11/01/44

     10,002       11,415,850  

Michigan Finance Authority, Refunding RB:

    

Trinity Health Corp., Series 2016, 5.00%, 12/01/45

     19,735       23,050,635  

Trinity Health Credit Group, 5.00%, 12/01/39

     190       202,380  
   

 

 

  
      34,668,865  
Security  

Par

(000)

     Value  
State — 4.8%  

Michigan State Finance Authority, Refunding RB, Student Loan, AMT, Series A, 4.00%, 11/01/28

   $ 8,750     $ 9,257,148  

Michigan State University, RB, Board of Trustees, Series B, 5.00%, 02/15/44(e)

     5,750       7,057,261  

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45

     5,150       6,022,307  
   

 

 

  
    22,336,716  
Utilities — 2.6%  

Lansing Board of Water & Light, Refunding RB, Series A, 5.00%, 07/01/44

     10,000       12,283,897  
   

 

 

  
    124,809,838  

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 26.8%
(Cost — $117,280,312)

 

     124,809,838  
   

 

 

  

Total Long-Term Investments — 160.6%
(Cost — $696,399,089)

 

     746,964,451  
   

 

 

  
     Shares         

Short-Term Securities — 1.2%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.04%(f)(g)

     5,476,274       5,476,821  
   

 

 

  

Total Short-Term Securities — 1.2%
(Cost — $5,476,785)

 

     5,476,821  
   

 

 

  

Total Investments — 161.8%
(Cost — $701,875,874)

 

     752,441,272  

Other Assets Less Liabilities — 2.0%

 

     9,317,278  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.9)%

 

     (64,725,008 ) 

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (49.9)%

 

     (231,900,000 ) 
   

 

 

  

Net Assets Applicable to Common Shares — 100.0%

 

     465,133,542  
   

 

 

  
 

 

(a) 

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.

(b) 

Zero-coupon bond.

(c) 

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

(d) 

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.

 

5

Schedule of Investments  (unaudited) (continued)

October 31, 2019

   

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

    

 

(e) 

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 June 01, 2021 to February 15, 2027, is $20,395,805.

(f) 

Annualized 7-day yield as of period end.

(g) 

During the period ended October 31, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate   

Shares

Held at

07/31/2019

     

Net

Activity

     

Shares

Held at

10/31/19

     

Value at

10/31/19

      Income     

Net

Realized

Gain (Loss) (a)

     

Change in
Unrealized

Appreciation
(Depreciation)

  

BlackRock Liquidity Funds, MuniCash, Institutional Class

      2,325,529        3,150,745        5,476,274      $ 5,476,821      $ 9,333      $ (285 )     $ (133 ) 
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 

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.

 

Portfolio Abbreviations
AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
COP    Certificates of Participation
EDC    Economic Development Corp.
GO    General Obligation Bonds
HDA    Housing Development Authority
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
Q-SBLF    Qualified School Bond Loan Fund
RB    Revenue Bonds
S/F    Single-Family

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

      57          12/19/19        $ 7,427        $ 10,737  

Long U.S. Treasury Bond

      84          12/19/19          13,556          49,281  

5-Year U.S. Treasury Note

      49          12/31/19          5,841          11,068  
                 

 

 

  
                    71,086  
                 

 

 

  

 

6

Schedule of Investments  (unaudited) (continued)

October 31, 2019

   

BlackRock MuniYield Michigan Quality Fund, Inc. (MIY)

    

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value 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 Fund 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 BlackRock Global Valuation Methodologies Committee’s (the “Global Valuation Committee”) 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. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors.The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

    $ —        $ 746,964,451        $             —        $ 746,964,451  

Short-Term Securities

     5,476,821          —          —          5,476,821  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 5,476,821        $ 746,964,451        $ —        $ 752,441,272  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(b)

                  

Assets:

                 

Interest rate contracts

   $ 71,086        $ —        $ —        $ 71,086  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)

See above Schedule of Investments for values in each sector.

 
  (b)

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 disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (64,527,053 )       $             —        $ (64,527,053 ) 

VRDP Shares at Liquidation Value

     —          (231,900,000 )         —          (231,900,000 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ —        $ (296,427,053 )       $ —        $ (296,427,053 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

7