BLACKROCK MUNIYIELD CALIFORNIA FUND, INC.

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 811-06499

Name of Fund: BlackRock MuniYield California Fund, Inc. (MYC)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield

California 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: 07/31/2016

Date of reporting period: 01/31/2016


Item 1 – Report to Stockholders


JANUARY 31, 2016

 

 

SEMI-ANNUAL REPORT (UNAUDITED)

 

    LOGO

 

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

BlackRock MuniYield Arizona Fund, Inc. (MZA)

BlackRock MuniYield California Fund, Inc. (MYC)

BlackRock MuniYield Investment Fund (MYF)

BlackRock MuniYield New Jersey Fund, Inc. (MYJ)

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


Table of Contents     

 

     Page  

The Markets in Review

    3   

Semi-Annual Report:

 

Municipal Market Overview

    4   

The Benefits and Risks of Leveraging

    5   

Derivative Financial Instruments

    5   

Fund Summaries

    6   
Financial Statements:  

Schedules of Investments

    16   

Statements of Assets and Liabilities

    37   

Statements of Operations

    38   

Statements of Changes in Net Assets

    39   

Statements of Cash Flows

    42   

Financial Highlights

    43   

Notes to Financial Statements

    48   

Officers and Directors

    57   

Additional Information

    58   

 

                
2    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


The Markets in Review

 

Dear Shareholder,

Diverging monetary policies and shifting economic outlooks across regions have been the overarching themes driving financial markets over the past couple of years. With U.S. growth outpacing the global economic recovery while inflationary pressures remained low, investors spent most of 2015 anticipating a short-term rate hike from the Federal Reserve (“Fed”), which ultimately came to fruition in December. In contrast, the European Central Bank and the Bank of Japan moved to a more accommodative stance over the year. In this environment, the U.S. dollar strengthened considerably, causing profit challenges for U.S. exporters and high levels of volatility in emerging market currencies and commodities.

Market volatility broadly increased in the latter part of 2015 and continued into 2016 given a collapse in oil prices and decelerating growth in China, while global growth and inflation failed to pick up. Oil prices were driven lower due to excess supply while the world’s largest oil producers had yet to negotiate a deal that would stabilize oil prices. In China, slower economic growth combined with a depreciating yuan and declining confidence in the country’s policymakers stoked worries about the potential impact to the broader global economy. After a long period in which global central bank policies had significant influence on investor sentiment and hence the direction of financial markets, in recent months, the underperformance of markets in Europe and Japan — where central banks had taken aggressive measures to stimulate growth and stabilize their currencies — highlighted the possibility that central banks could be losing their effectiveness.

In this environment, higher quality assets such as municipal bonds, U.S. Treasuries and investment grade corporate bonds outperformed risk assets including equities and high yield bonds. Large cap U.S. equities fared better than international developed and emerging markets.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. 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, 2016  
    6-month     12-month  

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

    (6.77 )%      (0.67 )% 

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

    (15.80     (9.92

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

    (14.58     (8.43

Emerging market equities
(MSCI Emerging Markets
Index)

    (16.96     (20.91

3-month Treasury bills
(BofA Merrill Lynch
3-Month U.S. Treasury

Bill Index)

    0.05        0.05   

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

    3.36        (0.41

U.S. investment-grade bonds
(Barclays U.S.
Aggregate Bond Index)

    1.33        (0.16

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

    3.67        2.66   

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

    (7.75     (6.58
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.    

 

                
   THIS PAGE NOT PART OF YOUR FUND REPORT       3


Municipal Market Overview     

 

For the Reporting Period Ended January 31, 2016

Municipal Market Conditions

Municipal bonds generated positive performance for the period, due to a favorable supply-and-demand environment. Interest rates were volatile in 2015 (bond prices rise as rates fall) leading up to a long-awaited rate hike from the U.S. Federal Reserve (the “Fed”) that ultimately came in December. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in strong demand for fixed income investments, with municipal bonds being one of the strongest-performing sectors. Investors favored the relative stability of municipal bonds amid bouts of volatility resulting from uneven U.S. economic data, falling oil prices, global growth concerns, geopolitical risks, and widening central bank divergence — i.e., policy easing outside the United States while the Fed was posturing to commence policy tightening. During the 12 months ended January 31, 2016, municipal bond funds garnered net inflows of approximately $16 billion (based on data from the Investment Company Institute).

 

For the same 12-month period, total new issuance remained relatively strong from a historical perspective at $392 billion (considerably higher than the $349 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 60%) as issuers took advantage of low interest rates and a flatter yield curve to reduce their borrowing costs.

S&P Municipal Bond Index

Total Returns as of January 31, 2016

  6 months: 3.67%

12 months: 2.66%

A Closer Look at Yields

 

LOGO

 

From January 31, 2015 to January 31, 2016, yields on AAA-rated 30-year municipal bonds increased by 25 basis points (“bps”) from 2.50% to 2.75%, while 10-year rates fell by 1 bp from 1.72% to 1.71% and 5-year rates increased 6 bps from 0.94% to 1.00% (as measured by Thomson Municipal Market Data). The slope of the municipal yield curve remained unchanged over the 12-month period with the spread between 2- and 30-year maturities holding steady at 209 bps as the spread between 2- and 10-year maturities flattened by 26 bps and the spread between 10- and 30-year maturities steepened by 26 bps.

 

During the same time period, U.S. Treasury rates increased by 50 bps on 30-year bonds, 25 bps on 10-year bonds and 14 bps on 5-year bonds. Accordingly, tax-exempt municipal bonds outperformed Treasuries, most notably in the intermediate and long-end of the curve as a result of manageable supply and robust demand. In absolute terms, the positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities had become scarce. More broadly, municipal bonds benefited from the greater appeal of tax-exempt investing in light of the higher tax rates implemented in 2014. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of January 31, 2016, 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 Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the US municipal bond market. All bonds in the index are exempt from US federal income taxes or subject to the alternative minimum tax. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

                
4    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


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, these objectives cannot 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 the Funds (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings 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 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 the Funds’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds 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 value of the Funds’ obligations under their, respective, leverage arrangements 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.

Leverage also generally causes greater changes in the Funds’ NAVs, market prices 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 Funds were not leveraged. In addition, the Funds 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 Funds 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. The Funds incur 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 the Funds’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Funds’ investment advisor 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”) 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., VRDP 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 VRDP Shares’ governing instruments or by agencies rating the VRDP 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), a TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.

 

 

Derivative Financial Instruments     

 

The Funds may invest in various derivative financial instruments. Derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities 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. Derivative financial instruments also 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

derivative financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial 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.

 

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    5


Fund Summary as of January 31, 2016    BlackRock Muni New York Intermediate Duration Fund,  Inc.

 

Fund Overview

BlackRock Muni New York Intermediate Duration Fund, Inc.’s (MNE) (the “Fund”) investment objective is to provide shareholders with high current income exempt from federal income tax and New York State and New York City personal income taxes. The Fund seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income tax (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Fund invests at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with a duration of three to ten years. The Fund may invest directly in such 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 (“NYSE”)

  MNE

Initial Offering Date

  August 1, 2003

Yield on Closing Market Price as of January 31, 2016 ($14.73)1

  4.68%

Tax Equivalent Yield2

  9.47%

Current Monthly Distribution per Common Share3

  $0.0575

Current Annualized Distribution per Common Share3

  $0.6900

Economic Leverage as of January 31, 20164

  35%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.59%, 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.

 

  3   

The monthly distribution per Common Share, declared on March 1, 2016, was decreased to $0.0533 per share. The yield on closing market price, current monthly distribution per Common Share and current annualized distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.

 

  4   

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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

   

    Returns Based On    

 
     Market Price     NAV  

MNE1,2

    7.21     6.33

Lipper Intermediate Municipal Debt Funds3

    7.48     4.85

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets. New York municipal bonds outperformed the national tax-exempt market, as the state’s healthy economy, robust overall financial position and general lack of pension-funding issues contributed to strong investor demand.

 

 

At a time of falling yields, the Fund’s positions in longer-duration and longer-dated bonds generally provided the largest absolute returns. (Duration is a measure of interest-rate sensitivity). The Fund’s positions in tax-backed (state and local), education, transportation, and health care sectors made positive contributions to performance. The Fund’s exposure to lower-coupon bonds also benefited returns. The Fund’s exposure to higher-yielding, lower-rated bonds in the investment grade category aided performance, as this market segment outperformed during the period. Income in the form of coupon payments made up a meaningful portion of the Fund’s total return for the period. The Fund’s leverage allowed it to increase its income.

 

 

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.

 

                
6    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock Muni New York Intermediate Duration Fund,  Inc.

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
14.73
  
   $ 14.07         4.69    $ 15.31       $ 13.67   

Net Asset Value

   $
15.97
  
   $ 15.37         3.90    $ 15.97       $ 15.25   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation   1/31/16    

7/31/15

 

Education

    22     15

County/City/Special District/School District

    21        17   

Transportation

    21        19   

Health

    11        12   

State

    10        11   

Utilities

    7        12   

Corporate

    5        9   

Housing

    3        4   

Tobacco

           1   

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 advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Credit Quality Allocation1   1/31/16    

7/31/15

 

AAA/Aaa

    10     9

AA/Aa

    51        50   

A

    22        22   

BBB/Baa

    10        9   

BB/Ba

    3        5   

N/R2

    4        5   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) 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.

 

  2   

The investment advisor 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 advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% and 4%, respectively, of the Fund’s total investments.

 
 
Call/Maturity Schedule3  

Calendar Year Ended December 31,

 

2016

    3

2017

    4   

2018

    8   

2019

    9   

2020

    6   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    7


Fund Summary as of January 31, 2016    BlackRock MuniYield Arizona Fund, Inc.

 

Fund Overview

BlackRock MuniYield Arizona Fund, Inc.’s (MZA) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and Arizona 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 federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Arizona income taxes. Under normal market conditions, the Fund expects to invest at least 75% of its assets in municipal obligations that are investment grade quality at the time of investment. The Fund may invest directly in such 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 NYSE MKT

  MZA

Initial Offering Date

  October 29, 1993

Yield on Closing Market Price as of January 31, 2016 ($16.48)1

  5.06%

Tax Equivalent Yield2

  9.37%

Current Monthly Distribution per Common Share3

  $0.0695

Current Annualized Distribution per Common Share3

  $0.8340

Economic Leverage as of January 31, 20164

  37%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 45.97%, 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.

 

  3   

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

 

  4   

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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

        Returns Based On      
     Market Price     NAV  

MZA1,2

    0.06     5.05

Lipper Other States Municipal Debt Funds3

    7.55     5.60

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets. Arizona municipal bonds slightly underperformed the national market. The state has seen lower new issuance of the types of longer-term and higher-yielding credits that outperformed in the past six months, which somewhat dampened buying interest during the period.

 

 

The largest positive contribution to performance came from the Fund’s duration exposure, as municipal yields fell significantly during the reporting period. (Duration is a measure of interest-rate sensitivity). Income in the form of coupon payments made up a meaningful portion of the Fund’s total return. Performance also benefited from the Fund’s investments in the education and utilities sectors.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income at a time when the municipal yield curve was steep and short-term interest rates remained low. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund utilized ten-year U.S. Treasury futures contracts to manage exposure to a rise in interest rates, which had a slightly negative impact on performance given that the Treasury market finished with positive returns.

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.

 

                
8    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield Arizona Fund, Inc.

 

 

Market Price and Net Asset Value Per Share Summary

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
16.48
  
   $ 16.90         (2.49 )%     $ 17.52       $ 15.91   

Net Asset Value

   $
15.07
  
   $ 14.72         2.38    $ 15.10       $ 14.56   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation  

1/31/16

   

7/31/15

 

Utilities

    23     22

County/City/Special District/School District

    22        24   

Education

    18        16   

Health

    12        11   

Corporate

    11        12   

State

    11        12   

Transportation

    3        3   

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 advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Credit Quality Allocation1   1/31/16    

7/31/15

 

AAA/Aaa

    10     11

AA/Aa

    54        55   

A

    17        23   

BBB/Baa

    10        2   

BB/Ba

    5        4   

N/R2

    4        5   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.

 

  2   

The investment advisor 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 advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 2% and 4%, respectively, of the Fund’s total investments.

 
   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    3

2017

    1   

2018

    26   

2019

    9   

2020

    9   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    9


Fund Summary as of January 31, 2016    BlackRock MuniYield California Fund, Inc.

 

Fund Overview

BlackRock MuniYield California Fund, Inc.’s (MYC) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal and California 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 federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Fund may invest directly in such 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 NYSE

  MYC

Initial Offering Date

  February 28, 1992

Yield on Closing Market Price as of January 31, 2016 ($16.12)1

    5.51%

Tax Equivalent Yield2

  11.23%

Current Monthly Distribution per Common Share3

  $0.074

Current Annualized Distribution per Common Share3

  $0.888

Economic Leverage as of January 31, 20164

  38%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 50.93%, 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.

 

  3   

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

 

  4   

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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

        Returns Based On      
     Market Price     NAV  

MYC1,2

    8.02     5.12

Lipper California Municipal Debt Funds3

    10.81     5.97

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets. California municipal bonds outperformed the national tax-exempt market, reflecting the improvement in state finances that resulted from the combination of austerity measures and steady revenues from a diversified economy. In addition, the market benefited from the robust demand for tax-exempt investments in a state with a high income tax.

 

 

The Fund’s positions in longer-term bonds made a strong contribution to performance at a time when yields fell. Its investments in AA-rated credits in the school district, transportation and health care sectors also aided performance. AA-rated bonds generally experienced rising valuations as a result of California’s improving credit profile. On a sector basis, investments in health care and utilities made the largest contributions to performance. The Fund was also helped by having a zero-weighting in Puerto Rico credits, which fell in price as the deterioration of the Commonwealth’s finances led it to pursue additional debt restructuring efforts.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income at a time when the municipal yield curve was steep and short-term interest rates remained low. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund generally kept its position in cash and cash equivalents at a minimum level. To the degree that the Fund held reserves, these securities added little in the form of additional yield and provided no price performance in a generally positive period for the market. As a result, the Fund’s cash position detracted slightly from performance. The Fund utilized ten-year U.S. Treasury futures contracts to manage exposure to a rise in interest rates, which had a slightly negative impact on performance given that the Treasury market finished with positive returns.

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.

 

                
10    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield California Fund, Inc.

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
16.12
  
   $ 15.47         4.20    $ 16.18       $ 15.25   

Net Asset Value

   $
16.59
  
   $ 16.35         1.47    $ 16.66       $ 16.14   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation   1/31/16    

7/31/15

 

County/City/Special District/School District

    41     42

Utilities

    14        14   

Health

    14        13   

Education

    14        15   

Transportation

    7        7   

State

    6        6   

Tobacco

    2        1   

Corporate

    1        1   

Housing

    1        1   

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 advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Credit Quality Allocation1  

1/31/16

   

7/31/15

 

AAA/Aaa

    2      4

AA/Aa

    75     72   

A

    21        21   

BBB/Baa

    2        2   

B

    2        1   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.

 

  2   

Represents less than 1% of the Fund’s total investments.

 
 
Call/Maturity Schedule3  

Calendar Year Ended December 31,

 

2016

    1

2017

    9   

2018

    15   

2019

    21   

2020

    9   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    11


Fund Summary as of January 31, 2016    BlackRock MuniYield Investment Fund

 

Fund Overview      

BlackRock MuniYield Investment Fund’s (MYF) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal 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 federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Fund primarily invests in municipal bonds that are investment grade quality at the time of investment. The Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Fund may invest directly in such 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 NYSE

  MYF

Initial Offering Date

  February 28, 1992

Yield on Closing Market Price as of January 31, 2016 ($15.84)1

    6.17%

Tax Equivalent Yield2

  10.90%

Current Monthly Distribution per Common Share3

  $0.0815

Current Annualized Distribution per Common Share3

  $0.9780

Economic Leverage as of January 31, 20164

  38%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.

 

  3   

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

 

  4   

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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

 

        Returns Based On      
     Market Price     NAV  

MYF1,2

    11.44     4.80

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    9.89     5.99

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets.

 

 

The Fund’s overweight position in A-rated bonds, which outperformed higher-rated issues amid investors’ continued search for yield, made a positive contribution to performance. Holdings in longer-dated, A-rated bonds in the transportation and utilities sectors made particularly strong contributions. The Fund’s positions in long-term bonds, which outpaced their short-term counterparts, aided performance. Income generated in the form of coupon payments also made a meaningful contribution to the Fund’s total return.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund’s positions in shorter-dated holdings, such as pre-refunded issues and bonds with very short call dates, detracted from performance. The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance at a time when yields fell.

 

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.

 

                
12    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield Investment Fund

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
15.84
  
   $ 14.67         7.98    $ 15.95       $ 14.45   

Net Asset Value

   $
15.86
  
   $ 15.61         1.60    $ 15.89       $ 15.37   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation   1/31/16    

7/31/15

 

Transportation

    29     27

County/City/Special District/School District

    19        20   

Utilities

    16        16   

Health

    15        14   

Education

    7        7   

State

    6        7   

Corporate

    3        4   

Tobacco

    3        3   

Housing

    2        2   

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 advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Credit Quality Allocation1   1/31/16    

7/31/15

 

AAA/Aaa

    7     7

AA/Aa

    57        58   

A

    27        25   

BBB/Baa

    4        6   

BB/Ba

    1        1   

B

    1          

N/R2

    3        3   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.

 

  2   

The investment advisor evaluates the credit quality of not-rated 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 advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade each represents less than 1% of the Fund’s total investments.

 
   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    1

2017

    1   

2018

    13   

2019

    30   

2020

    12   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    13


Fund Summary as of January 31, 2016    BlackRock MuniYield New Jersey Fund, Inc.

 

Fund Overview      

BlackRock MuniYield New Jersey Fund, Inc.’s (MYJ) (the “Fund”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes and New Jersey personal income tax 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 federal income taxes (except that the interest may subject to the federal alternative minimum tax) and New Jersey personal income taxes. Under normal market conditions, the Fund invests primarily in long-term municipal obligations that are investment grade quality at the time of investment. The Fund may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Fund may invest directly in such 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 NYSE

  MYJ

Initial Offering Date

  May 1, 1992

Yield on Closing Market Price as of January 31, 2016 ($15.78)1

    5.70%

Tax Equivalent Yield2

  11.06%

Current Monthly Distribution per Common Share3

  $0.075

Current Annualized Distribution per Common Share3

  $0.900

Economic Leverage as of January 31, 20164

  38%

 

  1   

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

 

  2   

Tax equivalent yield assumes the maximum marginal federal and state tax rate of 48.48%, 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.

 

  3   

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

 

  4   

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 accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 5.

 

Performance      

Returns for the six months ended January 31, 2016 were as follows:

        Returns Based On      
     Market Price     NAV  

MYJ1,2

    10.47     5.75

Lipper New Jersey Municipal Debt Funds3

    5.99     6.08

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

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

 

  3   

Average return.

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

 

 

Municipal bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall). Municipals also benefited from a general “flight to quality” caused by the elevated volatility in the higher-risk segments of the financial markets.

 

 

New Jersey municipal bonds outperformed the national tax-exempt market during the period. The slump in the state’s bond market during the first half of 2015 led to a significant widening of yield spreads (the extra yield received when compared to U.S. government securities). Higher yields attracted buying interest in the state during the past six months, which helped boost prices at a time of dwindling supply.

 

 

The Fund’s overweight position in A-rated bonds, which outperformed higher-rated issues amid investors’ continued search for yield, made a positive contribution to performance. Holdings in longer-dated, A-rated bonds in state and local tax-backed, transportation and education sectors made particularly strong contributions. The Fund’s positions in long-term bonds, which outpaced their short-term counterparts, aided performance. Income generated in the form of coupon payments also made a meaningful contribution to the Fund’s total return.

 

 

Using TOB Trusts, the Fund continued to employ leverage in order to increase income. Leverage amplifies the effect of interest rate movements, which was a positive for Fund performance during the past six months, given that yields declined.

 

 

The Fund’s positions in shorter-dated holdings, such as pre-refunded issues and bonds with very short call dates, detracted from performance. The Fund’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance at a time when yields fell.

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.

 

                
14    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


     BlackRock MuniYield New Jersey Fund, Inc.

 

 

Market Price and Net Asset Value Per Share Summary                              

 

     

1/31/16

    

7/31/15

     Change      High      Low  

Market Price

   $
15.78
  
   $ 14.72         7.20    $ 15.92       $ 14.39   

Net Asset Value

   $
16.43
  
   $ 16.01         2.62    $ 16.48       $ 15.69   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Fund’s Total Investments*
Sector Allocation  

1/31/16

   

7/31/15

 

Transportation

    36     35

Education

    18        19   

County/City/Special District/School District

    16        15   

State

    14        15   

Corporate

    7        7   

Health

    6        6   

Housing

    2        2   

Utilities

    1        1   

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 advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Credit Quality Allocation1  

1/31/16

   

7/31/15

 

AAA/Aaa

           3

AA/Aa

    42     39   

A

    45        46   

BBB/Baa

    10        9   

BB/Ba

    2        1   

N/R2

    1        2   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s 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.

 

  2   

The investment advisor 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 advisor has deemed certain of these unrated securities as investment grade quality. As of January 31, 2016 and July 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade each represents 1% of the Fund’s total investments.

 
   
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    3

2017

    6   

2018

    11   

2019

    12   

2020

    6   

 

  3   

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

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    15


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock Muni New York Intermediate Duration Fund, Inc. (MNE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

New York — 130.3%

                

Corporate — 7.7%

  

Build NYC Resource Corp., Refunding RB:

    

Ethical Culture Fieldston School Project, 5.00%, 6/01/30

   $ 385      $ 457,153   

Pratt Paper, Inc. Project, AMT, 4.50%, 1/01/25 (a)

     500        544,140   

The Packer Collegiate Institute Project, 5.00%, 6/01/35

     250        290,010   

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series B, 4.00%, 11/01/24 (a)

     500        505,475   

Onondaga County Industrial Development Agency, RB, AMT, 5.75%, 3/01/24

     500        636,255   

State of New York Energy Research & Development Authority, Refunding RB (NPFGC):

    

Brooklyn Union Gas/Keyspan, Series A, AMT, 4.70%, 2/01/24

     500        501,685   

Rochester Gas & Electric Corp., Series C, 5.00%, 8/01/32 (b)

     1,000        1,020,130   

Utility Debt Securitization Authority, Refunding RB, New York Restructuring, Series E, 5.00%, 12/15/32

     1,000        1,208,720   
    

 

 

 
               5,163,568   

County/City/Special District/School District — 28.3%

  

Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.00%, 10/01/24

     1,000        1,080,750   

City of New York New York, GO, Refunding, Series E:

    

5.25%, 8/01/22

     2,000        2,477,800   

5.00%, 8/01/30

     1,250        1,495,275   

City of New York New York, GO:

    

Sub-Series A-1, 5.00%, 8/01/33

     700        831,194   

Sub-Series I-1, 5.50%, 4/01/21

     1,500        1,725,765   

Sub-Series I-1, 5.13%, 4/01/25

     750        849,652   

City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/31

     1,500        1,542,420   

City of New York New York Industrial Development Agency, Refunding ARB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 7/01/22

     750        849,652   

City of Yonkers New York, GO, Refunding Series B, 5.00%, 8/01/24

     490        599,481   

County of Nassau New York, 5.00%, 1/01/32 (c)

     1,000        1,187,050   

Haverstraw-Stony Point Central School District, GO, (AGM), 5.00%, 10/15/33

     300        355,761   

Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

     1,000        1,164,260   

New York Convention Center Development Corp., Refunding RB, 5.00%, 11/15/32

     3,060        3,697,184   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.00%, 11/15/31

     1,000        1,158,590   
    

 

 

 
               19,014,834   
Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

                

Education — 30.9%

  

Build NYC Resource Corp., RB, Bronx Charter School For Excellence Project, Series A, 3.88%, 4/15/23

   $ 505      $ 506,384   

Build NYC Resource Corp., Refunding RB, 5.00%, 7/01/33

     2,000        2,289,300   

City of New York New York Trust for Cultural Resources, Refunding RB, American Museum of Natural History, Series A, 5.00%, 7/01/32

     500        597,330   

County of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, Buffalo State College Foundation Housing, 6.00%, 10/01/31

     1,000        1,180,090   

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 7/01/30

     1,000        1,191,890   

County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 5.00%, 3/01/21

     1,000        1,119,170   

County of Schenectady New York Capital Resource Corp., Refunding RB, Union College, 5.00%, 7/01/32

     500        578,225   

State of New York Dormitory Authority, RB:

    

Convent of the Sacred Heart (AGM), 4.00%, 11/01/18

     880        951,474   

Convent of the Sacred Heart (AGM), 5.00%, 11/01/21

     120        143,446   

Fordham University, Series A, 5.25%, 7/01/25

     500        590,005   

Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 7/01/32

     1,000        1,168,440   

Mount Sinai School of Medicine, 5.50%, 7/01/19 (d)

     1,000        1,149,560   

Mount Sinai School of Medicine, Series A (NPFGC), 5.15%, 7/01/24

     250        297,070   

Series A, 5.00%, 3/15/32

     1,000        1,199,090   

Touro College & University System Obligation Group, Series A, 4.13%, 1/01/30

     1,000        1,056,070   

State of New York Dormitory Authority, Refunding RB:

    

5.00%, 7/01/31

     1,500        1,813,035   

Fordham University, 5.00%, 7/01/29

     375        442,676   

Fordham University, 5.00%, 7/01/30

     300        351,786   

Pace University, Series A, 5.00%, 5/01/27

     1,000        1,108,850   

State University Dormitory Facilities, Series A, 5.25%, 7/01/30

     1,050        1,272,589   

The Culinary Institute of America, 5.00%, 7/01/28

     500        563,770   

Troy Capital Resource Corp., Refunding RB, 5.00%, 8/01/32

     1,000        1,182,200   
    

 

 

 
               20,752,450   

Health — 17.0%

  

Build NYC Resource Corp., Refunding RB, New York Methodist Hospital Project, 5.00%, 7/01/30

     500        576,135   

County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.00%, 4/01/21

     215        248,987   

County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A (AGM), 5.25%, 7/01/25

     1,000        1,150,150   
 
Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.      EDA    Economic Development Authority    M/F    Multi-Family
AGM    Assured Guaranty Municipal Corp.      ERB    Education Revenue Bonds    NPFGC    National Public Finance Guarantee Corp.
AMBAC    American Municipal Bond Assurance Corp.      GARB    General Airport Revenue Bonds    PILOT    Payment in Lieu of Taxes
AMT    Alternative Minimum Tax (subject to)      GO    General Obligation Bonds    RB    Revenue Bonds
ARB    Airport Revenue Bonds      IDA    Industrial Development Authority    S/F    Single-Family
BARB    Building Aid Revenue Bonds      IDB    Industrial Development Board    SONYMA    State of New York Mortgage Agency
CAB    Capital Appreciation Bonds      ISD    Independent School District    Syncora    Syncora Guarantee
COP    Certificates of Participation      LRB    Lease Revenue Bonds      

 

See Notes to Financial Statements.

 

                
16    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock Muni New York Intermediate Duration Fund, Inc.  (MNE)

 

Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

                

Health (continued)

  

County of Erie New York Industrial Development Agency, RB, Episcopal Church Home, Series A, 5.88%, 2/01/18

   $ 110      $ 110,034   

County of Suffolk New York Industrial Development Agency, Refunding RB, Jefferson’s Ferry Project, 4.63%, 11/01/16

     800        818,368   

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:

    

Remarketing, Series A, 5.00%, 11/01/24

     910        1,058,403   

Remarketing, Series A, 5.00%, 11/01/30

     580        654,327   

Series B, 6.00%, 11/01/30

     240        277,452   

County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project:

    

3.00%, 1/01/18

     500        514,635   

4.00%, 1/01/23

     250        274,320   

5.00%, 1/01/28

     875        988,304   

State of New York Dormitory Authority, RB, Series A:

    

New York State Association for Retarded Children, Inc., 5.30%, 7/01/23

     450        514,287   

New York University Hospitals Center, 5.00%, 7/01/22

     1,000        1,146,440   

State of New York Dormitory Authority, Refunding RB, Series A:

    

Mount Sinai Hospital, 4.25%, 7/01/23

     250        275,198   

North Shore-Long Island Jewish Obligated Group, 5.00%, 5/01/32

     1,770        2,059,221   

Yonkers New York Industrial Development Agency, RB, Sacred Heart Association Project, Series A, AMT (SONYMA), 4.80%, 10/01/26

     750        769,080   
    

 

 

 
               11,435,341   

Housing — 2.1%

  

City of New York New York Housing Development Corp., RB, M/F Housing:

    

Series B1, 5.25%, 7/01/30

     500        599,540   

Series H-2-A, Remarketing, AMT, 5.00%, 11/01/30

     780        805,303   
    

 

 

 
               1,404,843   

State — 10.6%

    

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.00%, 1/15/23

     575        645,501   

State of New York Dormitory Authority, RB:

    

Haverstraw King’s Daughters Public Library, 5.00%, 7/01/26

     1,015        1,181,785   

Municipal Health Facilities Lease, Sub-Series 2-4, 5.00%, 1/15/27

     600        648,636   

State of New York Dormitory Authority, Refunding RB, Barnard College, Series A, 4.00%, 7/01/31

     1,000        1,095,290   

State of New York Thruway Authority, RB, Transportation, Series A, 5.00%, 3/15/32

     250        294,855   

State of New York Thruway Authority, Refunding RB, Series A-1, 5.00%, 4/01/22

     1,000        1,132,150   

State of New York Urban Development Corp., RB:

    

Personal Income Tax, Series A-1, 5.00%, 3/15/32

     400        471,768   

Service Contract, Series B, 5.00%, 1/01/21

     1,500        1,652,955   
    

 

 

 
               7,122,940   

Tobacco — 0.8%

  

Niagara Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 5.25%, 5/15/34

     500        576,095   

Transportation — 27.8%

  

Metropolitan Transportation Authority, RB:

    

Series A, 5.00%, 11/15/27

     1,000        1,178,250   

Series A (NPFGC), 5.00%, 11/15/24

     1,010        1,047,622   
Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

                

Transportation (continued)

  

Metropolitan Transportation Authority, RB (continued):

  

Series A-1, 5.25%, 11/15/33

   $ 500      $ 603,495   

Series B, 5.25%, 11/15/33

     1,000        1,199,010   

Series B (NPFGC), 5.25%, 11/15/19

     860        994,530   

Sub-Series B-1, 5.00%, 11/15/24

     460        555,767   

Sub-Series B-4, 5.00%, 11/15/24

     300        362,457   

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, 5.00%, 12/01/20

     1,000        1,138,420   

Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/21

     2,000        2,376,820   

Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 152nd Series, AMT, 5.00%, 11/01/23

     500        539,475   

Port Authority of New York & New Jersey, Refunding RB, AMT:

    

178th Series, 5.00%, 12/01/32

     1,000        1,162,250   

Consolidated, 152nd Series, 5.00%, 11/01/24

     1,000        1,078,950   

State of New York Thruway Authority, Refunding RB, General:

    

Series I, 5.00%, 1/01/37

     660        760,492   

Series K, 5.00%, 1/01/32

     650        778,070   

Triborough Bridge & Tunnel Authority, RB:

    

5.00%, 11/15/33

     500        606,530   

Series B, 5.00%, 11/15/31

     2,005        2,459,493   

Triborough Bridge & Tunnel Authority, Refunding RB, Series A:

    

5.00%, 11/15/24

     1,000        1,234,350   

5.00%, 1/01/27

     500        603,530   
    

 

 

 
               18,679,511   

Utilities — 5.1%

  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series DD, 5.00%, 6/15/32

     500        546,865   

Long Island Power Authority, Refunding RB, Series A:

    

Electric System, 5.50%, 4/01/19 (d)

     500        571,680   

5.00%, 9/01/34

     1,000        1,164,410   

State of New York Environmental Facilities Corp., Refunding RB, NYC Municipal Water Finance Authority Project, 2nd Resolution, Series B, 5.00%, 6/15/31

     1,000        1,161,430   
    

 

 

 
               3,444,385   
Total Municipal Bonds in New York              87,593,967   
    

Puerto Rico — 2.2%

                

Housing — 2.2%

    

Puerto Rico Housing Finance Authority, Refunding RB, M/F Housing, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

     1,360        1,473,546   
    

U.S. Virgin Islands — 0.8%

                

State — 0.8%

    

Virgin Islands Public Finance Authority, Refunding RB, Gross Receipts Taxes Loan Note, Series C, 5.00%, 10/01/30

     500        564,535   
Total Municipal Bonds — 133.3%              89,632,048   
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    17


Schedule of Investments (continued)

  

BlackRock Muni New York Intermediate Duration Fund, Inc.  (MNE)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
  

Par  

(000)

    Value  

New York — 20.7%

                

County/City/Special District/School District — 4.1%

  

City of New York New York, GO, Refunding, Series E, 5.00%, 8/01/27

   $ 599      $ 682,966   

City of New York New York, GO:

    

Series I, 5.00%, 3/01/32

     991        1,178,934   

Sub-Series G-1, 5.00%, 4/01/29

     750        892,980   
    

 

 

 
               2,754,880   

Education — 2.8%

  

State of New York Dormitory Authority, 5.25%, 3/15/33

     1,500        1,858,230   

State — 4.4%

  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A, 5.00%, 10/15/31

     990        1,213,017   

State of New York Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 3/15/32

     1,499        1,767,864   
    

 

 

 
               2,980,881   

Transportation — 4.3%

  

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/25

     749        868,784   

Port Authority of New York & New Jersey, ARB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26

     750        884,265   

Port Authority of New York & New Jersey, RB, 178th Series, AMT, 5.00%, 12/01/32

     991        1,151,777   
    

 

 

 
               2,904,826   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
  

Par  

(000)

    Value  

New York (continued)

                

Utilities — 5.1%

    

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System:

    

2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 6/15/32

   $ 1,560      $ 1,821,409   

Series A, 4.75%, 6/15/30

     1,500        1,580,085   
    

 

 

 
               3,401,494   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 20.7%
        13,900,311   

Total Long-Term Investments

(Cost — $95,447,574) — 154.0%

  

  

    103,532,359   
    
                  
Short-Term Securities    Shares         

BIF New York Municipal Money Fund, 0.00% (f)(g)

     712,866        712,866   

Total Short-Term Securities

(Cost — $712,866) — 1.1%

  

  

    712,866   
Total Investments (Cost — $96,160,440) — 155.1%        104,245,225   
Liabilities in Excess of Other Assets — (0.4)%        (247,205

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (10.7)%

   

    (7,169,587
VRDP Shares, at Liquidation Value — (44.0)%        (29,600,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 67,228,433   
    

 

 

 
 
Notes to Schedule of Investments

 

(a)   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.

 

(b)   Variable rate security. Rate as of period end.

 

(c)   When-issued security.

 

(d)   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.

 

(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)   During the six months ended January 31, 2016, investments in issuers considered to be an affiliate 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 July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

BIF New York Municipal Money Fund

       970,820           (257,954        712,866         $ 188   

 

(g)   Current yield as of period end.

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 rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts          
Contracts
Short
    Issue      Expiration      Notional
Value
       Unrealized
Depreciation
           
  (14   5-Year U.S. Treasury Note      March 2016      $ 1,689,406         $ (25,253    
  (18   10-Year U.S. Treasury Note      March 2016      $ 2,332,406           (53,086    
  (5   Long U.S. Treasury Bond      March 2016      $ 805,157           (30,819        
  Total                     $ (109,158    
                

 

 

 

See Notes to Financial Statements.

 

                
18    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (concluded)

  

BlackRock Muni New York Intermediate Duration Fund, Inc.  (MNE)

 

 

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
Contacts
    Total  
Liabilities — Derivative Financial Instruments                                                 

Financial futures contracts

  Net unrealized depreciation1                               $ 109,158             $ 109,158  

 

1    Includes cumulative appreciation (depreciation) on financial futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

        

For the six months ended January 31, 2016, 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
Contacts
  Total  
Net Realized Gain (Loss) From:              

Financial futures contracts

          $ (47,836     $ (47,836

Net Change in Unrealized Appreciation (Depreciation) on:

  

Financial futures contracts

          $ (90,000     $ (90,000

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:       

Average notional value of contracts — short

  $ 3,439,992   

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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 Investments1

            $ 103,532,359              $ 103,532,359   

Short-Term Securities

  $ 712,866                          712,866   
 

 

 

 

Total

  $ 712,866         $ 103,532,359              $ 104,245,225   
 

 

 

 

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

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1   

Liabilities:

                

Interest rate contracts

  $ (109,158                     $ (109,158

1   Derivative financial instruments are financial futures contracts, which 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  

Assets:

  

Cash pledged for financial futures contracts

  $ 57,450                        $ 57,450   

Liabilities:

  

TOB Trust Certificates

            $ (7,169,171             (7,169,171

VRDP Shares

              (29,600,000             (29,600,000
 

 

 

 

Total

  $ 57,450         $ (36,769,171           $ (36,711,721
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    19


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Arizona — 140.6%

                

Corporate — 18.1%

  

County of Maricopa Arizona Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35

   $ 4,350      $ 4,893,054   

County of Pima Arizona IDA, RB, Tucson Electric Power Co. Project, Series A, 5.25%, 10/01/40

     1,000        1,110,030   

County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 9/01/29

     1,000        1,050,680   

Salt Verde Financial Corp., RB, Senior:

    

5.50%, 12/01/29

     2,000        2,508,440   

5.00%, 12/01/37

     2,500        3,000,625   
    

 

 

 
               12,562,829   

County/City/Special District/School District — 34.0%

  

City of Tucson Arizona, COP (AGC), 5.00%, 7/01/29

     1,000        1,107,530   

County of Maricopa Arizona Community College District, GO, Series C, 3.00%, 7/01/22

     1,000        1,056,210   

County of Maricopa Arizona School District No. 28 Kyrene Elementary, GO, School Improvement Project of 2010, Series B (a):

    

5.50%, 7/01/29

     480        591,984   

5.50%, 7/01/30

     400        491,468   

County of Maricopa Arizona Unified School District No. 89 Dysart, GO, School Improvement Project of 2006, Series C, 6.00%, 7/01/28

     1,000        1,122,940   

County of Maricopa Unified School District No 11-Peoria, GO, 5.00%, 7/01/35

     1,250        1,480,887   

County of Mohave Arizona Unified School District No. 20 Kingman, GO, School Improvement Project of 2006, Series C (AGC), 5.00%, 7/01/26

     1,000        1,129,230   

County of Pinal Arizona, RB, 5.00%, 8/01/33

     500        588,120   

County of Yuma Arizona Library District, GO (Syncora), 5.00%, 7/01/26

     500        531,255   

Gilbert Public Facilities Municipal Property Corp., RB, 5.50%, 7/01/27

     2,000        2,259,520   

Gladden Farms Community Facilities District, GO, 5.50%, 7/15/31

     750        754,792   

Greater Arizona Development Authority, RB, Santa Cruz County Jail, Series 2, 5.25%, 8/01/31

     1,155        1,256,652   

Marana Municipal Property Corp., RB, Series A, 5.00%, 7/01/28

     2,500        2,714,850   

Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT, 5.00%, 7/01/38

     3,600        3,958,056   

Town of Buckeye Arizona, RB, 5.00%, 7/01/43

     4,000        4,557,160   
    

 

 

 
               23,600,654   

Education — 27.5%

  

Arizona Board of Regents, COP, Refunding, University of Arizona, Series C, 5.00%, 6/01/30

     2,595        3,000,339   

Arizona State University, RB, Series C (b):

    

6.00%, 7/01/18

     970        1,090,251   

6.00%, 7/01/18

     745        837,358   

6.00%, 7/01/18

     425        477,687   

6.00%, 7/01/18

     400        449,588   

City of Phoenix Arizona IDA, RB:

    

Candeo School, Inc. Project, 6.63%, 7/01/33

     500        564,460   

Great Hearts Academies — Veritas Project, 6.30%, 7/01/42

     500        540,260   

Great Hearts Academies Project, Series A, 5.00%, 7/01/44 (c)

     2,000        2,067,980   

Legacy Traditional Schools Project, Series A, 6.75%, 7/01/44 (c)

     440        497,380   

City of Phoenix Arizona IDA, Refunding RB (c):

    

Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/45

     1,000        1,032,590   

Legacy Traditional School Projects, 5.00%, 7/01/45

     500        494,660   
Municipal Bonds   

Par  

(000)

    Value  

Arizona (continued)

                

Education (continued)

  

County of Pima Arizona IDA, Refunding RB:

    

Arizona Charter Schools Project, Series O, 5.00%, 7/01/26

   $ 915      $ 916,986   

Series A, 5.00%, 7/01/46 (c)

     1,500        1,548,525   

Northern Arizona University, RB, Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/38

     3,000        3,417,840   

Student & Academic Services LLC, RB, 5.00%, 6/01/39

     1,400        1,608,502   

Town of Florence, Inc. Arizona, IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses, 6.00%, 7/01/43

     500        542,920   
    

 

 

 
               19,087,326   

Health — 18.4%

  

Arizona Health Facilities Authority, RB, Catholic Healthcare West, Series B-2 (AGM), 5.00%, 3/01/41

     500        551,575   

Arizona Health Facilities Authority, Refunding RB:

    

5.00%, 12/01/42

     1,750        1,980,703   

Banner Health, Series D, 5.50%, 1/01/38

     4,800        5,140,608   

Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42

     1,000        1,084,560   

City of Tempe Arizona IDA, Refunding RB, Friendship Village of Tempe, Series A, 6.25%, 12/01/42

     500        545,525   

County of Maricopa Arizona IDA, RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     170        192,321   

County of Maricopa Arizona IDA, Refunding RB, Samaritan Health Services, Series A (NPFGC), 7.00%, 12/01/16 (d)

     235        247,671   

County of Yavapai IDA, Refunding RB, Northern Arizona Healthcare System, 5.25%, 10/01/26

     1,000        1,172,260   

University Medical Center Corp., RB, 6.50%, 7/01/19 (b)

     500        592,285   

University Medical Center Corp., Refunding RB, 6.00%, 7/01/21 (b)

     1,000        1,251,240   
    

 

 

 
               12,758,748   

Housing — 0.5%

  

City of Phoenix & County of Maricopa Arizona IDA, Refunding RB, S/F Housing, AMT (Fannie Mae):

    

Series A-1, 5.75%, 5/01/40

     30        32,070   

Series A-2, 5.80%, 7/01/40

     35        36,624   

City of Phoenix & County of Pima Arizona IDA, RB, S/F Housing, Series 1A, AMT (Fannie Mae), 5.65%, 7/01/39

     154        154,271   

City of Phoenix & County of Pima Arizona IDA, Refunding RB, S/F Housing, AMT (Fannie Mae):

    

Series 1, 5.25%, 8/01/38

     11        10,734   

Series 2, 5.50%, 12/01/38

     39        40,779   

County of Maricopa Arizona IDA, RB, S/F Housing, Series 3-B, AMT (Ginnie Mae), 5.25%, 8/01/38

     50        49,995   
    

 

 

 
               324,473   

State — 14.3%

  

Arizona Department of Transportation State Highway Fund, RB, Series B, 5.00%, 7/01/18 (b)

     4,000        4,405,240   

Arizona School Facilities Board, COP (b):

    

5.13%, 9/01/18

     1,000        1,110,860   

5.75%, 9/01/18

     2,000        2,253,680   

State of Arizona, RB, Lottery Revenue, Series A (AGM), 5.00%, 7/01/29

     1,930        2,172,215   
    

 

 

 
               9,941,995   

Transportation — 4.3%

  

City of Phoenix Arizona Civic Improvement Corp., RB, Senior Lien, Series A, AMT, 5.00%, 7/01/33

     1,000        1,085,440   
 

 

See Notes to Financial Statements.

 

                
20    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Municipal Bonds   

Par  

(000)

    Value  

Arizona (continued)

                

Transportation (continued)

  

City of Phoenix Arizona Civic Improvement Corp., Refunding RB:

    

Junior Lien, Series A, 5.00%, 7/01/40

   $ 1,000      $ 1,122,080   

Senior Lien, AMT, 5.00%, 7/01/32

     700        805,581   
    

 

 

 
               3,013,101   

Utilities — 23.5%

  

City of Lake Havasu City Arizona Wastewater System Revenue, RB, Series B, 5.00%, 7/01/40

     3,500        4,058,285   

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Senior Lien, 5.50%, 7/01/22

     2,000        2,227,380   

County of Pinal Arizona, RB, Electric District No. 4, 6.00%, 12/01/18 (b)

     2,000        2,287,040   

County of Pinal Arizona, Refunding RB, Electric District No. 3, 5.25%, 7/01/36

     2,500        2,800,750   

County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 6/01/26

     500        519,275   

Gilbert Water Resource Municipal Property Corp., RB, Subordinate Lien (NPFGC), 5.00%, 10/01/29

     900        954,351   

Greater Arizona Development Authority, RB, Series B (NPFGC), 5.00%, 8/01/30

     45        45,144   

Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/24

     1,000        1,080,950   

Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 12/01/41

     2,000        2,355,700   
    

 

 

 
               16,328,875   
Total Municipal Bonds in Arizona        97,618,001   
    

Guam — 2.6%

  

State — 2.6%

  

Territory of Guam, RB, Business Privilege Tax:

    

Bonds, Series A, 5.13%, 1/01/42

     620        682,155   

Series B-1, 5.00%, 1/01/42

     1,000        1,089,620   
Total Municipal Bonds in Guam        1,771,775   
Municipal Bonds   

Par  

(000)

    Value  

Puerto Rico — 1.2%

  

Utilities — 1.2%

  

Children’s Trust Fund, Refunding RB, Asset-Backed, 5.63%, 5/15/43

   $ 845      $ 846,420   
Total Municipal Bonds — 144.4%        100,236,196   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
 

Arizona — 10.8%

                

Utilities — 10.8%

  

City of Mesa Arizona, RB, Utility System, 1.00%, 7/01/35

     3,000        3,477,810   

City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 7/01/34

     3,000        3,346,890   

Salt River Project Agricultural Improvement & Power District, RB, Electric System, Series A, 5.00%, 1/01/38

     660        703,989   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 10.8%
        7,528,689   
Total Long-Term Investments
(Cost — $98,407,952) — 155.2%
        107,764,885   
    
                  
Short-Term Securities    Shares         

BlackRock Liquidity Funds, MuniCash, 0.02% (f)(g)

     1,698,146        1,698,146   
Total Short-Term Securities
(Cost — $1,698,146) — 2.5%
        1,698,146   
Total Investments (Cost — $100,106,098) — 157.7%        109,463,031   
Other Assets Less Liabilities — 0.8%        587,055   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (4.8)%

   

    (3,330,054
VRDP Shares, at Liquidation Value — (53.7)%        (37,300,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 69,420,032   
    

 

 

 
 
Notes to Schedule of Investments

 

(a)   Variable rate security. Rate as of period end.

 

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

 

(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)   During the six months ended January 31, 2016, investments in issuers considered to be 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 July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

FFI Institutional Tax-Exempt Fund

       1,074,105           (1,074,105                $ 106   

BlackRock Liquidity Funds, MuniCash

                 1,698,146           1,698,146             

 

(g)   Current yield as of period end.

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 rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    21


Schedule of Investments (continued)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts          
Contracts
Short
    Issue      Expiration      Notional
Value
       Unrealized
Depreciation
           
  (10   5-Year U.S. Treasury Note      March 2016      $ 1,206,719         $ (17,528    
  (9   10-Year U.S. Treasury Note      March 2016      $ 1,166,203           (25,058    
  (4   Long U.S. Treasury Bond      March 2016      $ 644,125           (23,872        
  Total                     $ (66,458    
                

 

 

 

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
Contacts
     Total  
Liabilities — Derivative Financial Instruments                                                  

Financial futures contracts

  Net unrealized depreciation1                                    $ 66,458               $ 66,458   

1    Includes cumulative appreciation (depreciation) on financial futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

        

For the six months ended January 31, 2016, 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
Contacts
     Total  
Net Realized Gain (Loss) From:                    

Financial futures contracts

                                  $ 61,983               $ 61,983   

Net Change in Unrealized Appreciation (Depreciation) on:

                   

Financial futures contracts

                                  $ (66,458            $ (66,458

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:          

Average notional value of contracts — short

     $ 2,361,832   

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 investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

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 Investments1

            $ 107,764,885              $ 107,764,885   

Short-Term Securities

  $ 1,698,146                          1,698,146   
 

 

 

 

Total

  $ 1,698,146         $ 107,764,885              $ 109,463,031   
 

 

 

 

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

      

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments1             

Liabilities:

                

Interest rate contracts

  $ (66,458                     $ (66,458

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

      

 

See Notes to Financial Statements.

 

                
22    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (concluded)

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

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  

Assets:

                

Cash pledged for financial futures contracts

  $ 38,000                        $ 38,000   

Liabilities:

                

TOB Trust Certificates

            $ (3,330,000             (3,330,000

VRDP Shares

              (37,300,000             (37,300,000
 

 

 

 

Total

  $ 38,000         $ (40,630,000           $ (40,592,000
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    23


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

California — 88.0%

                

Corporate — 1.6%

  

 

City of Chula Vista California, Refunding RB, San Diego Gas & Electric:

    

Series A, 5.88%, 2/15/34

   $ 975      $ 1,127,734   

Series D, 5.88%, 1/01/34

     4,000        4,626,600   
    

 

 

 
               5,754,334   

County/City/Special District/School District — 31.5%

  

 

Campbell Union High School District, GO, Election of 2006, Series C, 5.75%, 8/01/40

     4,000        4,685,080   

City of Los Angeles California, COP, Senior, Sonnenblick Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31

     2,000        2,009,300   

City of Los Angeles California Municipal Improvement Corp., RB, Real Property, Series E:

    

5.75%, 9/01/34

     1,215        1,391,989   

6.00%, 9/01/34

     2,660        3,083,738   

City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:

    

6.50%, 5/01/36

     1,520        1,848,563   

6.50%, 5/01/42

     1,860        2,245,597   

County of Riverside California Public Financing Authority, RB, Capital Facility Project, 5.25%, 11/01/45

     5,000        5,912,650   

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36

     2,440        2,973,994   

County of Santa Clara California Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36

     16,000        17,411,200   

El Monte California Union High School District, GO, Election of 2002, Series C, 5.25%, 6/01/18 (a)

     6,000        6,626,700   

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/40

     5,500        6,451,170   

Grossmont California Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/21 (a)

     2,000        2,536,780   

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39

     7,485        8,729,232   

Los Rios Community College District, GO, Election of 2002, Series D, 5.38%, 8/01/34

     4,635        5,257,202   

Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33

     4,000        4,570,200   

Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41

     7,135        8,441,347   

Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39

     6,035        6,900,479   

Riverside Community Properties Development, Inc., RB, Riverside County Law Building Project, 6.00%, 10/15/38

     5,000        5,987,450   

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

     4,135        4,642,447   

Santa Ana Unified School District, GO, Election of 2008, Series A, 5.13%, 8/01/33

     6,210        6,825,660   

West Contra Costa California Unified School District, GO, Election of 2012, Series A, 5.50%, 8/01/39

     2,500        2,991,450   
    

 

 

 
               111,522,228   

Education — 4.4%

  

 

California Educational Facilities Authority, Refunding RB:

    

Pitzer College, 6.00%, 4/01/40

     2,500        2,954,675   

San Francisco University, 6.13%, 10/01/36

     1,745        2,136,194   

California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42

     2,750        3,293,455   
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

Education (continued)

  

 

California School Finance Authority, RB:

    

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.00%, 7/01/33

   $ 1,500      $ 1,696,095   

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.30%, 7/01/43

     3,000        3,420,630   

Value Schools, 6.65%, 7/01/33

     595        668,667   

Value Schools, 6.90%, 7/01/43

     1,330        1,504,203   
    

 

 

 
               15,673,919   

Health — 14.1%

  

California Health Facilities Financing Authority, RB:

    

Children’s Hospital, Series A, 5.25%, 11/01/41

     9,750        11,105,737   

St. Joseph Health System, Series A, 5.75%, 7/01/39

     1,000        1,148,470   

Sutter Health, Series A, 5.00%, 11/15/41 (b)

     4,500        5,253,795   

Sutter Health, Series B, 6.00%, 8/15/42

     7,530        9,083,063   

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     10,000        11,495,500   

California Statewide Communities Development Authority, RB, Sutter Health, Series A, 6.00%, 8/15/42

     8,045        9,649,173   

Washington Township Health Care District, GO, Series B, 5.50%, 8/01/38

     1,625        1,971,466   
    

 

 

 
               49,707,204   

Housing — 1.0%

  

County of Santa Clara California Housing Authority, RB, John Burns Gardens Apartments Project, Series A, AMT, 6.00%, 8/01/41

     3,500        3,503,500   

State — 9.2%

  

State of California, GO, Various Purposes:

    

6.00%, 4/01/38

     8,000        9,234,880   

6.00%, 11/01/39

     2,000        2,361,160   

State of California Public Works Board, LRB:

    

Department of Developmental Services, Poterville, Series C, 6.25%, 4/01/34

     1,605        1,879,279   

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

     10,000        11,790,600   

Trustees of the California State University, Series D, 6.00%, 4/01/27

     215        250,176   

Various Capital Projects, Series I, 5.50%, 11/01/33

     1,510        1,870,739   

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34

     4,400        5,289,284   
    

 

 

 
               32,676,118   

Tobacco — 2.7%

  

Golden State Tobacco Securitization Corp., Refunding RB, Asset-Backed, Senior, Series A-1, 5.75%, 6/01/47

     10,050        9,597,851   

Transportation — 8.2%

  

City & County of San Francisco California Airports Commission, ARB, Series E, 6.00%, 5/01/39

     5,215        6,033,651   

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 5/01/33

     1,440        1,676,304   

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 5/15/39

     3,605        4,056,923   

City of San Jose California, RB, Series A-1, AMT (AGM):

    

5.50%, 3/01/30

     1,000        1,166,160   

5.75%, 3/01/34

     1,000        1,185,100   
 

 

See Notes to Financial Statements.

 

                
24    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (continued)

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

Transportation (continued)

  

City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34

   $ 1,400      $ 1,685,376   

County of Orange California, ARB, Series B, 5.75%, 7/01/34

     3,000        3,209,790   

County of Sacramento California, ARB:

    

PFC/Grant, Sub-Series D, 6.00%, 7/01/35

     3,000        3,339,300   

Senior Series B, 5.75%, 7/01/39

     900        996,219   

San Francisco Port Commission California, RB, Series A, 5.13%, 3/01/40

     5,075        5,704,249   
    

 

 

 
               29,053,072   

Utilities — 15.3%

  

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38

     3,035        3,333,310   

City of Los Angeles California Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39

     4,000        4,620,680   

City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36

     2,645        3,190,769   

Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41

     2,420        2,890,037   

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/35

     6,000        6,558,540   

Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37

     20,000        21,184,000   

Oceanside Public Financing Authority, Refunding RB, Series A:

    

5.25%, 5/01/30

     1,245        1,514,156   

5.25%, 5/01/33

     2,810        3,377,564   

San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, 5.38%, 5/15/34

     3,920        4,462,567   

San Francisco City & County California Public Utilities Commission, Refunding RB, Series A, 5.13%, 11/01/39

     2,480        2,811,874   
    

 

 

 
               53,943,497   
Total Municipal Bonds — 88.0%              311,431,723   
    
                  
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
       

California — 71.4%

  

County/City/Special District/School District — 35.3%

  

City of Los Angeles California, Refunding RB, Series A, 5.00%, 6/01/39

     9,870        11,023,310   

County of Los Angeles California Public Works Financing Authority, Refunding RB, Series A:

    

5.00%, 12/01/39

     17,850        20,723,315   

5.00%, 12/01/44

     14,095        16,233,471   

Los Angeles Community College District California, GO, Election of 2008:

    

Election of 2001, Series E-1, 5.00%, 8/01/18 (a)

     14,850        16,414,893   

Election of 2008, Series C, 5.25%, 8/01/19 (d)

     9,680        11,289,348   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a)

     3,828        4,508,316   

Palomar California Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/44

     15,140        17,778,599   

San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33

     7,732        8,851,720   
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
  

Par  

(000)

    Value  

California (continued)

  

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

  

San Marcos Unified School District, GO, Election of 2010, Series A, 5.00%, 8/01/38

   $ 15,520      $ 17,999,475   
    

 

 

 
               124,822,447   

Education — 18.2%

  

California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (d)

     13,845        15,451,989   

University of California, RB:

    

Series AM, 5.25%, 5/15/44

     11,950        14,122,510   

Series O, 5.75%, 5/15/19 (a)

     2,805        3,252,407   

University of California, Refunding RB:

    

Series A, 5.00%, 11/01/43

     5,001        5,887,172   

Series I, 5.00%, 5/15/40

     21,875        25,593,277   
    

 

 

 
               64,307,355   

Health — 8.7%

  

California Statewide Communities Development Authority, Refunding RB, Cottage Health System Obligation, 5.00%, 11/01/43

     26,870        30,935,162   

Transportation — 3.2%

  

City of Los Angeles California Department of Airports, ARB, Series A, AMT, 5.00%, 5/15/45

     10,045        11,444,960   

Utilities — 6.0%

    

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37

     15,098        15,997,265   

Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33

     4,748        5,190,111   
    

 

 

 
               21,187,376   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 71.4%
             252,697,300   
Total Long-Term Investments
(Cost — $515,492,676) — 159.4%
             564,129,023   
    
                  
Short-Term Securities    Shares         

BIF California Municipal Money Fund, 0.00% (e)(f)

     9,315,684        9,315,684   
Total Short-Term Securities
(Cost — $9,315,684) — 2.6%
        9,315,684   
Total Investments (Cost — $524,808,360) — 162.0%        573,444,707   
Other Assets Less Liabilities — 0.2%        857,666   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (32.3)%

   

    (114,466,126
VRDP Shares, at Liquidation Value — (29.9)%        (105,900,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 353,936,247   
    

 

 

 
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    25


Schedule of Investments (continued)

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

 

Notes to Schedule of Investments

 

(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)   When-issued security.

 

(c)   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.

 

(d)   All or a portion of 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 October 1, 2016 to August 1, 2018, is $14,709,685. See Note 4 of the Notes to Financial Statements for details.

 

(e)   During the six months ended January 31, 2016, investments in issuers considered to be an affiliate 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 July 31,
2015
       Net
Activity
       Shares Held
at January 31,
2016
       Income  

BIF California Municipal Money Fund

       3,733,443           5,582,241           9,315,684         $ 4   

 

(f)   Current yield as of period end.

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 rating group indexes, and/or as defined by the investment advisor. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts
Contracts
Short
    Issue      Expiration      Notional
Value
    Unrealized
Depreciation
           
  (43   5-Year U.S. Treasury Note      March 2016      $ 5,188,891      $ (64,781    
  (48   10-Year U.S. Treasury Note      March 2016      $ 6,219,750        (113,621    
  (24   Long U.S. Treasury Bond      March 2016      $ 3,864,750        (128,631    
  (2   Ultra U.S. Treasury Bond      March 2016      $ 332,375        (11,868        
  Total                  $ (318,901    
             

 

 

 

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
Contacts
     Total  
Liabilities — Derivative Financial Instruments                                                  

Financial futures contracts

   Net unrealized depreciation1                                    $ 318,901               $ 318,901   

1    Includes cumulative appreciation (depreciation) on financial futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

        

For the six months ended January 31, 2016, 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
Contacts
   Total  
Net Realized Gain (Loss) From:                     

Financial futures contracts

               $ (65,089       $ (65,089

Net Change in Unrealized Appreciation (Depreciation) on:

  

Financial futures contracts

               $ (286,566       $ (286,566

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:          

Average notional value of contracts — short

     $ 12,547,750   

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

 

See Notes to Financial Statements.

 

                
26    SEMI-ANNUAL REPORT    JANUARY 31, 2016   


Schedule of Investments (concluded)

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

 

Fair Value Hierarchy as of Period End

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

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 Investments1

            $ 564,129,023                   $ 564,129,023   

Short-Term Securities

  $ 9,315,684                               9,315,684   
 

 

 

 

Total

  $ 9,315,684         $ 564,129,023                   $ 573,444,707   
 

 

 

 

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

       

     Level 1        Level 2        Level 3        Total  
Derivative Financial Instruments1                 

Liabilities:

                

Interest rate contracts

  $ (318,901                          $ (318,901

1   Derivative financial instruments are financial futures contracts, which 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  

Assets:

                

Cash pledged for financial futures contracts

  $ 209,500                             $ 209,500   

Liabilities:

                

TOB Trust Certificates

            $ (114,447,027                  (114,447,027

VRDP Shares

              (105,900,000                  (105,900,000
 

 

 

 

Total

  $ 209,500         $ (220,347,027                $ (220,137,527
 

 

 

 

During the six months ended January 31, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    JANUARY 31, 2016    27


Schedule of Investments January 31, 2016 (Unaudited)

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 0.3%

  

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

   $ 545      $ 607,037   

Alaska — 0.8%

  

Alaska Municipal Bond Bank Authority, RB:

    

5.75%, 9/01/18 (a)

     975        1,098,133   

5.75%, 9/01/33

     25        27,796   

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46

     690        583,112   
    

 

 

 
               1,709,041   

California — 13.3%

  

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38

     2,740        3,058,032   

California Health Facilities Financing Authority, RB, Sutter Health:

    

Series A, 5.00%, 11/15/46 (b)

     1,035        1,202,991   

Series B, 6.00%, 8/15/42

     1,645        1,984,281   

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     710        816,180   

City & County of San Francisco California Airports Commission, Refunding ARB, AMT, Series A:

    

2nd, 5.50%, 5/01/28

     1,065