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 811-06501
Name of Fund: BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM)
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 II, 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: 07/31/2013
Date of reporting period: 10/31/2012
Item 1 – Schedule of Investments
Schedule of Investments October 31, 2012 (Unaudited) |
BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
Par (000) |
Value | |||||||||||
Municipal Bonds | ||||||||||||
Michigan — 122.6% |
||||||||||||
Corporate — 4.2% | ||||||||||||
Dickinson County EDC, Michigan, Refunding RB, International Paper Co. Project, Series A, 5.75%, 6/01/16 | $ | 2,500 | $ | 2,508,225 | ||||||||
Monroe County EDC, Michigan, Refunding RB, Detroit Edison Co. Project, Series AA (NPFGC), 6.95%, 9/01/22 | 3,805 | 5,128,569 | ||||||||||
7,636,794 | ||||||||||||
County/City/Special District/School District — 37.2% | ||||||||||||
Adrian City School District Michigan, GO (AGM), 5.00%, 5/01/14 (a) | 2,400 | 2,567,328 | ||||||||||
Anchor Bay School District, GO, Refunding (Q-SBLF): | ||||||||||||
4.13%, 5/01/25 | 2,000 | 2,208,800 | ||||||||||
4.25%, 5/01/26 | 1,145 | 1,266,771 | ||||||||||
4.38%, 5/01/27 | 640 | 708,973 | ||||||||||
4.00%, 5/01/28 | 760 | 810,183 | ||||||||||
4.38%, 5/01/28 | 400 | 439,108 | ||||||||||
4.00%, 5/01/29 | 380 | 402,469 | ||||||||||
4.50%, 5/01/29 | 605 | 665,966 | ||||||||||
Bay City School District Michigan, GO, School Building & Site (AGM), 5.00%, 5/01/36 | 200 | 218,084 | ||||||||||
Brighton Area School District, GO, School Building, Series I (Q-SBLF): | ||||||||||||
4.25%, 5/01/37 | 2,280 | 2,349,426 | ||||||||||
4.00%, 5/01/42 | 860 | 870,569 | ||||||||||
Charter Township of Canton Michigan, GO, Capital Improvement (AGM): | ||||||||||||
5.00%, 4/01/25 | 1,250 | 1,437,925 | ||||||||||
5.00%, 4/01/26 | 1,250 | 1,416,800 | ||||||||||
5.00%, 4/01/27 | 500 | 566,720 | ||||||||||
City of Jackson, GO, Capital Appreciation Downtown Development (AGM), 4.87%, 6/01/26 (b) | 2,710 | 1,409,688 | ||||||||||
City of Oak Park Michigan, GO, Street Improvement (NPFGC), 5.00%, 5/01/30 | 600 | 658,632 | ||||||||||
Comstock Park Public Schools, GO, School Building & Site, Series B (Q-SBLF): | ||||||||||||
5.50%, 5/01/36 | 450 | 519,971 | ||||||||||
5.50%, 5/01/41 | 830 | 958,401 | ||||||||||
County of Genesee Michigan, GO, Water Supply System (NPFGC), 5.13%, 11/01/33 | 500 | 508,805 | ||||||||||
County of Genesee Michigan, GO, Refunding, Series A (NPFGC), 5.00%, 5/01/19 | 400 | 433,336 | ||||||||||
County of St. Clair, GO, Refunding, Limited Tax Refunding, 5.00%, 4/01/28 | 915 | 1,064,136 | ||||||||||
Par (000) |
Value | |||||||||||
Municipal Bonds | ||||||||||||
Michigan (continued) |
||||||||||||
County/City/Special District/School District (continued) | ||||||||||||
Dearborn Brownfield Redevelopment Authority, GO, Limited Tax, Redevelopment, Series A (AGC), 5.50%, 5/01/39 | $ | 2,000 | $ | 2,258,020 | ||||||||
Detroit City School District Michigan, GO, School Building & Site Improvement (NPFGC) (a): | ||||||||||||
Series A, 5.38%, 5/01/13 | 1,480 | 1,517,873 | ||||||||||
Series B, 5.00%, 5/01/13 | 1,600 | 1,637,952 | ||||||||||
Eaton Rapids Public Schools Michigan, GO, School Building & Site (AGM), 5.25%, 5/01/14 (a) | 2,000 | 2,147,860 | ||||||||||
Flint EDC, RB, Michigan Department of Human Services Office Building, 5.25%, 10/01/41 | 1,880 | 2,018,255 | ||||||||||
Fraser Public School District, GO, School Building & Site (AGM), 5.00%, 5/01/25 | 1,255 | 1,373,196 | ||||||||||
Gibraltar School District Michigan, GO, School Building & Site Improvement (NPFGC) (a): | ||||||||||||
5.00%, 5/01/14 | 585 | 626,061 | ||||||||||
5.00%, 5/01/14 | 3,065 | 3,278,692 | ||||||||||
Goodrich Area School District, GO, School Building & Site (Q-SBLF): | ||||||||||||
5.50%, 5/01/32 | 400 | 470,924 | ||||||||||
5.50%, 5/01/36 | 800 | 927,600 | ||||||||||
5.50%, 5/01/41 | 1,000 | 1,152,300 | ||||||||||
Gull Lake Community School District, GO, Refunding (AGM), 4.00%, 5/01/26 | 500 | 532,700 | ||||||||||
Harper Creek Community School District Michigan, GO, Refunding (AGM), 5.00%, 5/01/22 | 1,000 | 1,096,260 | ||||||||||
Harper Woods School District Michigan, GO, Refunding, School Building & Site (NPFGC), 5.00%, 5/01/14 (a) | 10 | 10,442 | ||||||||||
Howell Public Schools, Refunding, GO (Q-SBLF), 4.50%, 5/01/29 | 660 | 739,570 | ||||||||||
Hudsonville Public Schools, GO, School Building & Site (Q-SBLF), 5.25%, 5/01/41 | 2,650 | 3,005,100 | ||||||||||
Jonesville Community Schools Michigan, GO, Refunding (NPFGC), 5.00%, 5/01/29 | 1,085 | 1,165,919 | ||||||||||
L'Anse Creuse Public Schools Michigan, GO, School Building & Site (AGM): | ||||||||||||
5.00%, 5/01/25 | 1,000 | 1,094,180 | ||||||||||
5.00%, 5/01/26 | 1,050 | 1,146,075 | ||||||||||
5.00%, 5/01/35 | 2,000 | 2,149,160 | ||||||||||
Lincoln Consolidated School District Michigan, GO, Refunding (NPFGC), 4.63%, 5/01/28 | 2,325 | 2,494,446 | ||||||||||
BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC. | OCTOBER 31, 2012 1 |
Schedule of Investments (continued) |
BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
Par (000) |
Value | |||||
Municipal Bonds | ||||||
Michigan (continued) |
||||||
County/City/Special District/School District (concluded) | ||||||
Livonia Public Schools School District Michigan, GO, Refunding, Series A (NPFGC), 5.00%, 5/01/24 | $ | 500 | $ | 528,520 | ||
Ludington Area School District Michigan, GO (NPFGC), 5.25%, 5/01/23 | 1,440 | 1,498,507 | ||||
New Lothrop Area Public Schools Michigan, GO, School Building & Site (AGM), 5.00%, 5/01/35 | 1,200 | 1,306,884 | ||||
Parchment School District, County of Kalamazoo, State of Michigan, GO, School Building and Site, 5.00%, 5/01/25 | 590 | 681,480 | ||||
Reed City Public Schools Michigan, GO, School Building & Site (AGM), 5.00%, 5/01/14 (a) | 1,000 | 1,070,500 | ||||
Romulus Community Schools, GO, Unlimited Tax, Refunding: | ||||||
4.13%, 5/01/25 | 715 | 779,164 | ||||
4.25%, 5/01/26 | 740 | 808,176 | ||||
4.25%, 5/01/27 | 725 | 785,755 | ||||
4.50%, 5/01/29 | 630 | 690,039 | ||||
(AGM), 4.00%, 5/01/24 | 500 | 542,615 | ||||
(AGM), 4.38%, 5/01/28 | 1,335 | 1,454,042 | ||||
Southfield Public Schools Michigan, GO, School Building & Site, Series B (AGM), 5.00%, 5/01/14 (a) | 1,000 | 1,070,190 | ||||
Sparta Area Schools Michigan, GO, School Building & Site (NPFGC), 5.00%, 5/01/14 (a) | 1,000 | 1,068,940 | ||||
Thornapple Kellogg School District Michigan, GO, Refunding, School Building & Site (NPFGC), 5.00%, 5/01/32 | 1,500 | 1,675,740 | ||||
Van Dyke Public Schools Michigan, GO, School Building & Site (AGM), 5.00%, 5/01/28 | 750 | 846,757 | ||||
Zeeland Public Schools Michigan, GO, School Building & Site (NPFGC), 5.00%, 5/01/14 (a) | 1,230 | 1,316,334 | ||||
68,448,319 | ||||||
Education — 9.1% | ||||||
Ferris State University, Refunding RB, General (AGM): | ||||||
4.50%, 10/01/23 | 1,360 | 1,501,426 | ||||
4.50%, 10/01/24 | 1,595 | 1,748,471 | ||||
4.50%, 10/01/25 | 1,405 | 1,534,176 | ||||
Lake Superior State University, Refunding RB (AGM): | ||||||
4.00%, 11/15/26 | 475 | 499,377 | ||||
4.00%, 11/15/27 | 285 | 298,207 | ||||
4.00%, 11/15/28 | 190 | 198,054 | ||||
4.00%, 11/15/29 | 250 | 259,415 | ||||
4.00%, 11/15/30 | 190 | 196,411 | ||||
Par (000) |
Value | |||||
Municipal Bonds | ||||||
Michigan (continued) |
||||||
Education (concluded) | ||||||
Michigan Higher Education Facilities Authority, RB, Limited Obligation, Hillsdale College Project, 5.00%, 3/01/35 | $ | 1,030 | $ | 1,045,470 | ||
Michigan State University, Refunding RB, General, Series C: | ||||||
5.00%, 2/15/40 | 3,770 | 4,202,683 | ||||
5.00%, 2/15/44 | 1,000 | 1,106,560 | ||||
Michigan Technological University, Refunding RB, Series A, 5.00%, 10/01/34 | 1,000 | 1,130,370 | ||||
Saginaw Valley State University Michigan, Refunding RB, General (NPFGC), 5.00%, 7/01/24 | 1,450 | 1,493,645 | ||||
Western Michigan University, Refunding RB, General, 5.25%, 11/15/40 | 1,400 | 1,597,736 | ||||
16,812,001 | ||||||
Health — 25.3% | ||||||
Flint Hospital Building Authority Michigan, Refunding RB, Hurley Medical Center (ACA): | ||||||
6.00%, 7/01/20 | 570 | 578,938 | ||||
Series A, 5.38%, 7/01/20 | 385 | 385,547 | ||||
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital (AGM), 5.25%, 5/15/36 | 2,750 | 3,091,632 | ||||
Kent Hospital Finance Authority Michigan, Refunding RB, Spectrum Health, Series A, 5.00%, 11/15/29 | 3,000 | 3,413,340 | ||||
Michigan State Finance Authority, RB, Sparrow Obligated Group, 5.00%, 11/15/36 | 950 | 1,043,565 | ||||
Michigan State Finance Authority, Refunding RB, Trinity Health Credit: | ||||||
5.00%, 12/01/31 | 1,900 | 2,172,517 | ||||
5.00%, 12/01/35 | 1,900 | 2,127,924 | ||||
Michigan State Hospital Finance Authority, RB: | ||||||
Ascension Health Senior Credit Group, 5.00%, 11/15/25 | 2,300 | 2,638,606 | ||||
McLaren Health Care, Series C, 5.00%, 8/01/35 | 1,585 | 1,710,247 | ||||
MidMichigan Obligation Group, Series A, 5.00%, 4/15/26 | 380 | 402,971 | ||||
MidMichigan Obligation Group, Series A (AMBAC), 5.50%, 4/15/18 | 1,000 | 1,002,910 | ||||
Trinity Health Credit, 5.00%, 12/01/16 (a) | 145 | 170,256 | ||||
Trinity Health Credit, 5.00%, 12/01/26 | 855 | 960,020 | ||||
Michigan State Hospital Finance Authority, Refunding RB: | ||||||
5.38%, 12/01/12 (a) | 1,000 | 1,004,300 | ||||
5.38%, 12/01/12 (a) | 185 | 185,797 | ||||
BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC. | OCTOBER 31, 2012 2 |
Schedule of Investments (continued) |
BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
Par (000) |
Value | |||||||
Municipal Bonds | ||||||||
Michigan (continued) |
||||||||
Health (concluded) | ||||||||
Michigan State Hospital Finance Authority, Refunding RB (concluded): | ||||||||
6.25%, 12/01/28 | $ | 570 | $ | 675,427 | ||||
Hospital, Crittenton, Series A, 5.63%, 3/01/27 | 1,300 | 1,324,375 | ||||||
Hospital, Oakwood Obligation Group, Series A, 5.00%, 7/15/21 | 400 | 444,932 | ||||||
Hospital, Oakwood Obligation Group, Series A, 5.00%, 7/15/25 | 2,470 | 2,681,704 | ||||||
Hospital, Oakwood Obligation Group, Series A, 5.00%, 7/15/37 | 3,340 | 3,516,920 | ||||||
Hospital, Sparrow Obligated, 5.00%, 11/15/31 | 1,595 | 1,702,343 | ||||||
McLaren Health Care, 5.75%, 5/15/38 | 1,500 | 1,677,375 | ||||||
McLaren Health Care, Series A, 5.00%, 6/01/35 | 860 | 950,223 | ||||||
Trinity Health Credit, 5.38%, 12/01/12 (a) | 1,765 | 1,772,589 | ||||||
Trinity Health Credit, Series A, 6.13%, 12/01/23 | 940 | 1,125,594 | ||||||
Trinity Health Credit, Series A, 6.50%, 12/01/33 | 1,400 | 1,687,854 | ||||||
Trinity Health Credit, Series C, 4.00%, 12/01/32 | 3,040 | 3,175,371 | ||||||
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 | 1,000 | 1,289,500 | ||||||
Sturgis Building Authority, RB, Sturgis Hospital Project (NPFGC), 4.75%, 10/01/34 | 3,525 | 3,595,394 | ||||||
46,508,171 | ||||||||
Housing — 3.4% | ||||||||
Michigan State HDA, RB: | ||||||||
Deaconess Tower, AMT (Ginnie Mae), 5.25%, 2/20/48 | 1,000 | 1,039,540 | ||||||
Series A, 4.75%, 12/01/25 | 2,675 | 2,949,803 | ||||||
Series A (NPFGC), 5.30%, 10/01/37 | 20 | 20,019 | ||||||
Michigan State HDA, Refunding RB, Series A, 6.05%, 10/01/41 | 2,000 | 2,224,160 | ||||||
6,233,522 | ||||||||
State — 14.3% | ||||||||
Michigan Municipal Bond Authority, Refunding RB, Local Government, Charter County Wayne, Series B (AGC), 5.38%, 11/01/24 | 125 | 146,081 | ||||||
Michigan State Building Authority, Refunding RB, Facilities Program: | ||||||||
Series A, 5.50%, 10/15/45 | 750 | 869,453 | ||||||
Par (000) |
Value | |||||||
Municipal Bonds | ||||||||
Michigan (continued) |
||||||||
State (concluded) | ||||||||
Michigan State Building Authority, Refunding RB, Facilities Program (concluded): | ||||||||
Series H (AGM), 5.00%, 10/15/26 | $ | 3,000 | $ | 3,434,100 | ||||
Series I, 6.25%, 10/15/38 | 2,350 | 2,750,393 | ||||||
Series I (AGC), 5.25%, 10/15/24 | 2,000 | 2,404,620 | ||||||
Series I (AGC), 5.25%, 10/15/25 | 1,500 | 1,809,825 | ||||||
Series I (AGC), 5.25%, 10/15/26 | 400 | 482,172 | ||||||
Series II (NPFGC), 5.00%, 10/15/29 | 2,000 | 2,067,700 | ||||||
Michigan State Finance Authority, RB, Local Government Loan Program, Series F, 5.25%, 10/01/41 | 2,510 | 2,735,423 | ||||||
Michigan Strategic Fund, Refunding RB, Cadillac Place Office Building Project, 5.25%, 10/15/31 | 1,000 | 1,140,130 | ||||||
State of Michigan, RB, GAB (AGM), 5.25%, 9/15/27 | 3,250 | 3,605,485 | ||||||
State of Michigan Trunk Line Revenue, RB, Fund: | ||||||||
5.00%, 11/15/29 | 750 | 888,848 | ||||||
5.00%, 11/15/33 | 1,150 | 1,341,797 | ||||||
5.00%, 11/15/36 | 2,220 | 2,573,024 | ||||||
26,249,051 | ||||||||
Transportation — 11.0% | ||||||||
Wayne County Airport Authority, RB, Detroit Metropolitan Wayne County Airport, AMT (NPFGC): | ||||||||
5.25%, 12/01/25 | 4,475 | 4,688,860 | ||||||
5.25%, 12/01/26 | 3,700 | 3,865,908 | ||||||
5.00%, 12/01/34 | 3,550 | 3,629,129 | ||||||
Wayne County Airport Authority, Refunding RB, AMT (AGC): | ||||||||
5.75%, 12/01/26 | 3,060 | 3,359,207 | ||||||
5.38%, 12/01/32 | 4,300 | 4,595,969 | ||||||
20,139,073 | ||||||||
Utilities — 18.1% | ||||||||
City of Detroit Michigan Water Supply System, RB: | ||||||||
Second Lien, Series B (AGM), 7.00%, 7/01/36 | 2,000 | 2,428,800 | ||||||
Senior Lien, Series A (NPFGC), 5.00%, 7/01/34 | 4,000 | 4,030,560 | ||||||
City of Detroit Michigan Water Supply System, Refunding RB, Second Lien, Series C (AGM), 5.00%, 7/01/29 | 6,275 | 6,633,616 | ||||||
City of Grand Rapids Michigan, Refunding RB, Series A (NPFGC), 5.50%, 1/01/22 | 1,500 | 1,893,300 | ||||||
City of Grand Rapids Michigan Sanitary Sewer System, RB: | ||||||||
5.00%, 1/01/37 | 570 | 657,347 | ||||||
4.00%, 1/01/42 | 1,050 | 1,084,545 | ||||||
BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC. | OCTOBER 31, 2012 3 |
Schedule of Investments (continued) |
BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
Par (000) |
Value | ||||||
Municipal Bonds | |||||||
Michigan (concluded) |
|||||||
Utilities (concluded) | |||||||
City of Port Huron Michigan, RB, Water Supply: | |||||||
5.25%, 10/01/31 | $ | 190 | $ | 211,272 | |||
5.63%, 10/01/40 | 500 | 560,020 | |||||
City of Wyoming Michigan, RB, Sewer System (NPFGC), 5.00%, 6/01/30 | 5,300 | 5,719,177 | |||||
Lansing Board of Water & Light Utilities System, RB, Series A: | |||||||
5.00%, 7/01/27 | 1,210 | 1,417,612 | |||||
5.00%, 7/01/31 | 2,600 | 3,026,504 | |||||
5.00%, 7/01/37 | 1,270 | 1,451,077 | |||||
5.50%, 7/01/41 | 2,000 | 2,375,640 | |||||
Michigan Municipal Bond Authority, RB, Clean Water Revolving Fund: | |||||||
Pooled Project, 5.00%, 10/01/27 | 760 | 939,626 | |||||
Subordinate, 5.00%, 10/01/27 | 750 | 864,630 | |||||
33,293,726 | |||||||
Total Municipal Bonds in Michigan | 225,320,657 | ||||||
Guam — 2.9% |
|||||||
State — 2.1% | |||||||
Government of Guam Business Privilege Tax Revenue, RB, Series A, 5.13%, 1/01/42 | 1,800 | 2,002,212 | |||||
Territory of Guam, Limited Obligation Bonds, RB, Section 30, Series A, 5.63%, 12/01/29 | 850 | 953,921 | |||||
Territory of Guam, RB, Series B-1, 5.00%, 1/01/37 | 715 | 789,596 | |||||
3,745,729 | |||||||
Utilities — 0.8% | |||||||
Guam Power Authority, Refunding RB, Series A: | |||||||
5.00%, 10/01/34 | 335 | 362,276 | |||||
(AGM), 5.00%, 10/01/26 | 600 | 682,932 | |||||
(AGM), 5.00%, 10/01/27 | 390 | 441,967 | |||||
1,487,175 | |||||||
Total Municipal Bonds in Guam | 5,232,904 | ||||||
Puerto Rico — 7.2% |
|||||||
State — 5.5% | |||||||
Puerto Rico Sales Tax Financing Corp., Refunding RB: | |||||||
CAB, Series A (NPFGC), 5.62%, 8/01/43 (b) | 12,500 | 2,274,250 | |||||
CAB, Series A (NPFGC), 5.70%, 8/01/46 (b) | 30,000 | 4,498,200 | |||||
First Sub-Series C (AGM), 5.13%, 8/01/42 | 3,200 | 3,473,184 | |||||
10,245,634 | |||||||
Par (000) |
Value | ||||||
Municipal Bonds | |||||||
Puerto Rico (concluded) |
|||||||
Transportation — 1.3% | |||||||
Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGC), 5.50%, 7/01/31 | $ | 2,000 | $ | 2,371,340 | |||
Utilities — 0.4% | |||||||
Puerto Rico Electric Power Authority, RB, Series WW, 5.50%, 7/01/38 | 680 | 698,911 | |||||
Total Municipal Bonds in Puerto Rico | 13,315,885 | ||||||
Total Municipal Bonds – 132.7% | 243,869,446 | ||||||
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (c) | |||||||
Michigan — 18.5% |
|||||||
County/City/Special District/School District — 4.2% | |||||||
Lakewood Public Schools Michigan, GO, School Building & Site (AGM), 5.00%, 5/01/37 | 3,970 | 4,519,349 | |||||
Portage Public Schools Michigan, GO, School Building & Site (AGM), 5.00%, 5/01/31 | 2,850 | 3,152,898 | |||||
7,672,247 | |||||||
Education — 6.2% | |||||||
Saginaw Valley State University, Refunding RB, General (AGM), 5.00%, 7/01/31 | 2,500 | 2,831,075 | |||||
Wayne State University, Refunding RB, General (AGM), 5.00%, 11/15/35 | 7,793 | 8,549,224 | |||||
11,380,299 | |||||||
Health — 1.0% | |||||||
Michigan Finance Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/39 | 1,650 | 1,834,321 | |||||
Housing — 2.5% | |||||||
Michigan HDA, RB, Rental Housing, Series A, 6.00%, 10/01/45 | 4,280 | 4,665,714 | |||||
Utilities — 4.6% | |||||||
City of Grand Rapids Michigan, RB, Sanitary Sewer System (NPFGC), 5.00%, 1/01/34 | 6,898 | 7,310,388 | |||||
BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC. | OCTOBER 31, 2012 4 |
Schedule of Investments (continued) |
BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) (Percentages shown are based on Net Assets) |
Par (000) |
Value | ||||
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (c) | |||||
Michigan (concluded) |
|||||
Utilities (concluded) | |||||
Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A, 5.25%, 7/01/39 | $ | 1,012 | $ | 1,096,569 | |
8,406,957 | |||||
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 18.5% | 33,959,538 | ||||
Total Long-Term Investments (Cost – $256,815,208) – 151.2% |
277,828,984 | ||||
|
|||||
Shares |
|||||
Short-Term Securities | |||||
BIF Michigan Municipal Money Fund, 0.00% (d)(e) | 6,551,600 | 6,551,600 | |||
Total Short-Term Securities (Cost – $6,551,600) – 3.6% |
6,551,600 | ||||
Total Investments (Cost - $263,366,808*) – 154.8% | 284,380,584 | ||||
Other Assets Less Liabilities – 1.8% | 3,375,265 | ||||
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (9.1)% | (16,732,803) | ||||
VRDP Shares, at Liquidation Value – (47.5)% | (87,300,000) | ||||
Net Assets Applicable to Common Shares – 100.0% | $ | 183,723,046 | |||
* | As of October 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows: |
Tax cost | $ | 247,017,027 | ||
Gross unrealized appreciation | $ | 22,506,665 | ||
Gross unrealized depreciation | (1,861,292) | |||
Net unrealized appreciation | $ | 20,645,373 | ||
(a) | 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. |
(b) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
(c) | Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. |
(d) | Investments in issuers considered to be an affiliate of the Fund during the period ended October 31, 2012, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliate | Shares Held at July 31, 2012 |
Net Activity |
Shares Held at October 31, 2012 |
Income | |||||
BIF Michigan Municipal Money Fund | 6,554,292 | (2,692) | 6,551,600 | $ | — | ||||
(e) | Represents the current yield as of report date. |
• | For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications or reporting ease. |
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 Corp. | |
AGC | Assured Guaranty Corp. | |
AGM | Assured Guaranty Municipal Corp. | |
AMBAC | American Municipal Bond Assurance Corp. | |
AMT | Alternative Minimum Tax (subject to) | |
CAB | Capital Appreciation Bonds | |
EDC | Economic Development Corp. | |
GAB | Grant Anticipation Bonds | |
Ginnie Mae | Government National Mortgage-Association | |
GO | General Obligation Bonds | |
HDA | Housing Development Authority | |
NPFGC | National Public Finance Guarantee Corp. | |
Q-SBLF | Qualified School Bond Loan Fund | |
RB | Revenue Bonds | |
• | Fair Value Measurements - Various inputs are used in determining the fair value of investments. 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 and liabilities that the Fund has the ability to access | ||
BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC. | OCTOBER 31, 2012 5 |
Schedule of Investments (concluded) |
BlackRock MuniYield Michigan Quality Fund II, Inc. (MYM) |
• | 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 Fund's own assumptions used in determining the fair value of investments) | ||
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 level in the fair value hierarchy within which the fair value measurement falls in its entirety 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 Fund'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 is based on the pricing transparency of the investment 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 other significant accounting policies, please refer to the Fund's most recent financial statements as contained in its annual report. | |
The following table summarizes the Fund's investments categorized in the disclosure hierarchy as of October 31, 2012: |
Level 1 | Level 2 | Level 3 | Total | |||||
Assets: | ||||||||
Investments: | ||||||||
Long-Term Investments1 |
— | $ | 277,828,984 | — | $ | 277,828,984 | ||
Short-Term Securities |
$ | 6,551,600 | — | — | 6,551,600 | |||
Total | $ | 6,551,600 | $ | 277,828,984 | — | $ | 284,380,584 |
1 | See above Schedule of Investments for values in each sector. |
Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of October 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:
Level 1 | Level 2 | Level 3 | Total | |||||
Liabilities: | ||||||||
TOB trust certificates | — | $ | (16,718,184) | — | $ | (16,718,184) | ||
VRDP Shares | — | (87,300,000) | — | (87,300,000) | ||||
Total | — | $ | (104,018,184) | — | $ | (104,018,184) |
There were no transfers between levels during the period ended October 31, 2012.
BLACKROCK MUNIYIELD MICHIGAN QUALITY FUND II, INC. | OCTOBER 31, 2012 6 |
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 MuniYield Michigan Quality Fund II, Inc.
By: | /s/ John M. Perlowski |
John M. Perlowski | |
Chief Executive Officer (principal executive officer) of | |
BlackRock MuniYield Michigan Quality Fund II, Inc. |
Date: December 21, 2012
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 MuniYield Michigan Quality Fund II, Inc. |
Date: December 21, 2012
By: | /s/ Neal J. Andrews |
Neal J. Andrews | |
Chief Financial Officer (principal financial officer) of | |
BlackRock MuniYield Michigan Quality Fund II, Inc. |
Date: December 21, 2012