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: 07/31/2019

Date of reporting period: 01/31/2019


Item 1 – Report to Stockholders


JANUARY 31, 2019

 

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)

 

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call Computershare at (800) 699-1236 to request that you continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC or its affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

In the 12 months ended January 31, 2019, concerns about a variety of political risks and a modest slowdown in global growth worked against the equity market, while the bond market delivered modest positive returns. Though the market’s appetite for risk remained healthy for most of the reporting period, risk-taking declined sharply later in the reporting period. As a result, bonds held their value better than stocks, which posted negative returns across the globe. Shorter-term, higher-quality securities led the bond market, and U.S. equities outperformed most international stock markets.

Volatility rose in emerging market stocks, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe also led to negative performance for European equities.

Volatility in the U.S. equity market spiked in October, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil in several countries, including the United States. These risks manifested in a broad based sell-off in December, leading to the worst December performance on record since 1931.

By comparison, fixed income securities delivered modest positive returns with relatively low volatility. In fixed income markets, short-term U.S. Treasury interest rates rose the fastest, while longer-term rates were relatively unchanged. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Although the credit fundamentals in corporate markets remained relatively solid, investment-grade and high-yield bonds trailed U.S. Treasuries.

The U.S. Federal Reserve (the “Fed”) increased short-term interest rates four times during the reporting period. The Fed also continued to reduce its balance sheet, gradually reversing the unprecedented stimulus measures it enacted after the financial crisis. By our estimation, the Fed’s neutral interest rate (the theoretical rate that is neither stimulative nor restrictive to the economy) is approximately 3.5%. The Fed funds rate is currently at 2.5%, which is stimulative to the economy. At its latest meeting in late January, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Relatively low inflation gives the Fed room to maintain support for the economy until the economic data builds the case for changing interest rates.

Although fears of recession drove equity volatility higher at the end of 2018, we continue to believe the probability of recession in 2019 remains relatively low. Economic growth and global earnings are likely to slow somewhat in 2019 — the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. Trade frictions look more baked into asset prices than a year ago, but markets may be overlooking European political risks. Consequently, we are cautious on European equities, as European unity remains tenuous with a history of flare-ups. We continue to prefer to take risk in U.S. and emerging market equities. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/reward trade-off. We also favor short-term bonds over long-term bonds because they offer nearly equivalent yields with far lower volatility.

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

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of January 31, 2019
     6-month   12-month

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

  (3.00)%   (2.31)%

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

  (9.62)   (3.52)

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

  (7.80)   (12.51)

Emerging market equities
(MSCI Emerging Markets Index)

  (2.60)   (14.24)

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

  1.10   1.95

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

  4.20   3.21

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

  2.71   2.25

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

  1.86   3.08

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

  1.07   1.73
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

Semi-Annual Report:

  

Municipal Market Overview

     4  

The Benefits and Risks of Leveraging

     5  

Derivative Financial Instruments

     5  

Fund Summaries

     6  

Financial Statements:

  

Schedules of Investments

     16  

Statements of Assets and Liabilities

     39  

Statements of Operations

     40  

Statements of Changes in Net Assets

     41  

Statements of Cash Flows

     46  

Financial Highlights

     47  

Notes to Financial Statements

     52  

Director and Officer Information

     61  

Additional Information

     62  

Glossary of Terms Used in this Report

     64  

 

 

          3  


Municipal Market Overview  For the Reporting Period Ended January 31, 2019

 

Municipal Market Conditions

Municipal bonds experienced positive performance during the period, despite challenged total returns during most of 2018 as interest rates moved higher on the back of continued Fed policy normalization, fiscal stimulus, strong economic growth, and increased U.S. Treasury issuance. Performance turned particularly strong late in the year, with interest rates rallying as the Fed began to indicate a pivot from forecast based to data driven policy and the potential for a slower pace of future rate hikes. During the period, demand for the asset class remained firm, although displayed some bouts of volatility. Broadly, investors favored the tax-exempt income, diversification, quality, and value of municipal bonds given that tax reform ultimately lowered the top individual tax rate just 2.6% while eliminating deductions. During the 12 months ended January 31, 2019, municipal bond funds experienced net inflows of approximately $2.7 billion (based on data from the Investment Company Institute).

 

 
For the same 12-month period, total new issuance underwhelmed from a historical perspective at $315 billion (below the $394 billion issued in the prior 12-month period), a direct result of the elimination of advanced refundings through the 2017 Tax Cuts and Jobs Act. This shift transitioned the market from an existing net positive supply environment to a much more favorable net negative supply environment in which reinvestment income (coupons, calls, and maturities) largely outstripped gross issuance and provided a powerful technical tailwind.   S&P Municipal Bond Index
  Total Returns as of January 31, 2019
    6 months: 1.86%
  12 months: 3.08%

A Closer Look at Yields

 

LOGO

From January 31, 2018 to January 31, 2019, yields on AAA-rated 30-year municipal bonds increased by 11 basis points (“bps”) from 2.91% to 3.02%, while 10-year rates decreased by 18 bps from 2.35% to 2.17% and 5-year rates decreased by 7 bps from 1.83% to 1.76% (as measured by Thomson Municipal Market Data). The municipal yield curve was nearly unchanged over the 12-month period with the spread between 2- and 30-year maturities bear steepening just 1 bp, which is significant given that the corresponding U.S. Treasury curve bear flattened 26 bps. (Bear steepening is the widening of the yield curve caused by long-term rates increasing at a faster rate than short-term rates. Bear flattened is a yield-rate environment in which short-term interest rates are increasing at a faster rate than long-term interest rates.) The municipal yield curve is now more than 2.5 times steeper than the U.S. Treasury curve.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries, driven by the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income, incremental yield, and tax shelter in an environment where opportunities became increasingly scarce. 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 problems among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — continue to exhibit improved credit fundamentals. However, several states with the largest unfunded pension liabilities are faced with elevated borrowing costs and difficult budgetary decisions. Across the country on the local level, property values support credit stability. Standard & Poor’s recent decision to remove its “negative” outlook on New Mexico underscores the improvement in state finances as it was the only remaining state with the designation. Revenue bonds continue to drive performance as investors continue to seek higher yield bonds in the tobacco sector. 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, 2019, 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 U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

 

4    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


The Benefits and Risks of Leveraging

 

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

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of 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 such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed 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 the Funds’ intended leveraging strategy will be successful.

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

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

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

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

Derivative Financial Instruments

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

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Fund Summary  as of January 31, 2019    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 common shareholders with high current income exempt from U.S. 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 U.S. 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, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations with 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, 2019 ($12.83)(a)

  3.74%

Tax Equivalent Yield(b)

  7.42%

Current Monthly Distribution per Common Share(c)

  $0.0400

Current Annualized Distribution per Common Share(c)

  $0.4800

Economic Leverage as of January 31, 2019(d)

  41%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 49.62%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

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

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of 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, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MNE(a)(b)

    4.53      1.87

Lipper Intermediate Municipal Debt Funds(c)

    2.45        1.50  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed’s would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

The New York municipal market finished somewhat behind the national indexes due primarily to elevated new-issue supply. While New York continues to benefit from a broad and diverse economic base, a tax revenue shortfall — possibly driven by changes stemming from the federal Tax Cuts and Jobs Act — had an adverse effect on investor sentiment. In addition to making revenue forecasting more of a challenge, the tax-law changes made New York’s tax structure less competitive relative to lower-tax states.

Income, which was enhanced by leverage, was the largest contributor to performance. However, the cost of leverage became more expensive during the period due to the Fed’s two interest rate increases.

Positions in short-dated maturities were top performers on a price basis, as yields fell the most for bonds with maturities of ten years and below. (Prices and yields move in opposite directions.)

At the sector level, positions in tax-backed local and education issues aided results. In both cases, holdings in higher-quality bonds were key contributors.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy detracted from the Fund’s return.

The Fund’s allocation to lower-quality securities, which generally underperformed higher-rated securities, was an additional detractor from Fund performance.

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

 

 

6    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2019 (continued)    BlackRock Muni New York Intermediate Duration Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19     07/31/18      Change      High      Low  

Market Price

  $ 12.83     $ 12.57        2.07    $ 13.07      $ 12.01  

Net Asset Value

    14.90       14.98        (0.53      14.98        14.50  

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

 

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

Education

    24     22

County/City/Special District/School District

    23       22  

Transportation

    18       18  

State

    10       15  

Health

    10       10  

Utilities

    7       6  

Corporate

    5       4  

Tobacco

    2       2  

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

 

CALL/MATURITY SCHEDULE (b)

 

Calendar Year Ended December 31,

       

2019

    9

2020

    5  

2021

    13  

2022

    4  

2023

    14  

 

  (b) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    7     13

AA/Aa

    46       40  

A

    27       27  

BBB/Baa

    13       13  

BB/Ba

    1       1  

B/B

    1        

N/R

    5       6  

 

  (a) 

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.

 
 

 

 

FUND SUMMARY      7  


Fund Summary  as of January 31, 2019    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 U.S. 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 U.S. 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, or are considered by the Fund’s investment adviser to be of comparable 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

  MZA

Initial Offering Date

  October 29, 1993

Yield on Closing Market Price as of January 31, 2019 ($12.93)(a)

  4.36%

Tax Equivalent Yield(b)

  7.98%

Current Monthly Distribution per Common Share(c)

  $0.0470

Current Annualized Distribution per Common Share(c)

  $0.5640

Economic Leverage as of January 31, 2019(d)

  40%

 

  (a) 

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

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 45.34%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

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

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of 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, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MZA(a)(b)

    (8.40 )%       1.42

Lipper Other State Municipal Debt Funds(c)

    1.42        1.34  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

The Fund moved from a premium to NAV to a discount during the period, which accounts for the difference between performance based on market price and performance based on NAV.

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

Arizona municipal bonds slightly outperformed the national market. Issuance of Arizona municipal debt remained relatively light, which helped support performance. Arizona’s conservative debt profile and shorter average maturity further aided results. The state’s economy continued to improve on the strength of positive migration trends, as its population is projected to increase at the third-fastest pace in the country.

Portfolio income, enhanced by leverage, made the largest contribution to the Fund’s return. The Fund’s position in bonds with five- to 10-year maturities also contributed, as yields in this area declined. In contrast, yields for both short- and long-term issues were largely unchanged. (Prices and yields move in opposite directions.)

At the sector level, positions in utilities issues were key contributors to Fund performance.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy detracted from the Fund’s return.

One of the Fund’s holdings in the corporate municipal sector detracted from the Fund’s results, as the issuer’s credit rating was downgraded. The Fund’s exposure to lower-rated bonds (generally BBB and below) was also a negative factor as yield spreads widened during the period.

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    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2019 (continued)    BlackRock MuniYield Arizona Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19      07/31/18      Change      High      Low  

Market Price

  $ 12.93      $ 14.45        (10.52 )%     $ 14.45      $ 11.90  

Net Asset Value

    13.93        14.06        (0.92      14.06        13.55  

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

 

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

Utilities

    31     27

Education

    24       22  

County/City/Special District/School District

    16       19  

Corporate

    13       12  

Health

    12       12  

State

    2       5  

Transportation

    2       2  

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

 

CALL/MATURITY SCHEDULE (b)

 

Calendar Year Ended December 31,

       

2019

    8

2020

    6  

2021

    9  

2022

    7  

2023

    7  

 

  (b) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    3     4

AA/Aa

    56       58  

A

    20       16  

BBB/Baa

    11       11  

BB/Ba

    6       7  

N/R

    4       4  

 

  (a) 

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.

 
 

 

 

FUND SUMMARY      9  


Fund Summary  as of January 31, 2019    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 U.S. 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 U.S. 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, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its total assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in 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, 2019 ($13.16)(a)

  4.74%

Tax Equivalent Yield(b)

  10.33%

Current Monthly Distribution per Common Share(c)

  $0.0520

Current Annualized Distribution per Common Share(c)

  $0.6240

Economic Leverage as of January 31, 2019(d)

  42%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.10%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

The monthly distribution per Common Share, declared on March 1, 2019, was decreased to $0.0480 per share. The current yield on closing market price, tax equivalent yield, 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.

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of 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, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYC(a)(b)

    3.36      0.98

Lipper California Municipal Debt Funds(c)

    2.77        0.80  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

California municipal bonds lagged the national market. However, the state’s debt gained a measure of support from strong demand among retail investors looking for tax-exempt income in a state with the country’s most punitive income tax regime. The credit quality of state and local authorities remained consistent, but investors were alert for any changes in fiscal responsibility demonstrated by the new governor and his administration.

In a low-return environment, income was a key contributor to the Fund’s return. The Fund’s use of leverage aided performance by augmenting the contribution from income.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy detracted from the Fund’s return.

The Fund benefited from its positions in higher-quality issues and bonds with maturities between six and seven years. Conversely, its positions in the tobacco sector detracted.

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    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2019 (continued)    BlackRock MuniYield California Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19     07/31/18      Change      High      Low  

Market Price

  $ 13.16     $ 13.19        (0.23 )%     $ 13.80      $ 12.21  

Net Asset Value

    14.73       15.11        (2.51      15.11        14.52  

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

 

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

County/City/Special District/School District

    33     31

Education

    21       24  

Health

    15       15  

Transportation

    10       11  

State

    9       8  

Utilities

    8       6  

Tobacco

    3       3  

Housing

    1       1  

Corporate

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

 

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    12

2020

    6  

2021

    9  

2022

    2  

2023

    6  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    7     6

AA/Aa

    71       70  

A

    17       16  

BBB/Baa

    2       2  

BB/Ba

    1       1  

B/B(b)

          5  

N/R(b)

    2        

 

  (a) 

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.

 
  (b) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2019 and July 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade each represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      11  


Fund Summary  as of January 31, 2019    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 U.S. 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 U.S. 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, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its total assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in 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, 2019 ($13.52)(a)

  5.50%

Tax Equivalent Yield(b)

  9.29%

Current Monthly Distribution per Common Share(c)

  $0.0620

Current Annualized Distribution per Common Share(c)

  $0.7440

Economic Leverage as of January 31, 2019(d)

  68%

 

  (a) 

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.

 
  (b) 

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.80%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.

 
  (c) 

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

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of 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, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYF(a)(b)

    1.70      0.53

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.46        0.94  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

Income, which was enhanced by leverage, was the largest contributor to Fund performance. However, the cost of leverage became more expensive during the period due to the Fed’s two interest rate increases.

The Fund’s position in the housing sector, which has an above-average sensitivity to the direction of bond yields, contributed to Fund results. Conversely, its allocation to the tobacco sector detracted.

The Fund’s yield curve positioning hurt performance, largely as a result of an underweight in the outperforming five- to ten-year maturity area.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy detracted from the Fund’s return.

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    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2019 (continued)    BlackRock MuniYield Investment Fund

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19      07/31/18      Change      High      Low  

Market Price

  $ 13.52      $ 13.69        (1.24 )%     $ 14.84      $ 12.59  

Net Asset Value

    13.95        14.29        (2.38      14.29        13.76  

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

 

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

Transportation

    25     25

Health

    19       17  

County/City/Special District/School District

    18       19  

Utilities

    11       14  

State

    8       7  

Housing

    6       3  

Tobacco

    5       5  

Education

    5       7  

Corporate

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

 

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    24

2020

    11  

2021

    16  

2022

    4  

2023

    12  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    4     8

AA/Aa

    48       47  

A

    22       21  

BBB/Baa

    11       10  

BB/Ba

    2       4  

B/B

    4       4  

N/R(b)

    9       6  

 

  (a) 

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.

 
  (b) 

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2019, and July 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and less than 1%, respectively, of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      13  


Fund Summary  as of January 31, 2019    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 U.S. 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 U.S. 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, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of investment. The Fund may invest up to 20% of its total assets in securities that are rated below investment grade, or are considered by the Fund’s investment adviser to be of comparable quality, at the time of purchase. The Fund may invest directly in 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, 2019 ($13.60)(a)

  5.34%

Tax Equivalent Yield(b)

  11.02%

Current Monthly Distribution per Common Share(c)

  $0.0605

Current Annualized Distribution per Common Share(c)

  $0.7260

Economic Leverage as of January 31, 2019(d)

  40%

 

  (a) 

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

 
  (b) 

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

 
  (c) 

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

 
  (d) 

Represents VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to VRDP Shares and TOB Trusts, minus the sum of 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, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

MYJ(a)(b)

    3.46      1.65

Lipper New Jersey Municipal Debt Funds(c)

    4.02        1.61  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

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

 

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

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

The credit ratings and yield spreads on New Jersey’s debt continued to reflect the state’s high unfunded pension liabilities. In addition, slowing revenues created challenges in balancing the state’s budget for the 2020 fiscal year.

The Fund’s positions in the state tax-backed, local tax-backed and transportation sectors contributed to Fund performance. Its allocation to the tobacco sector, while limited, detracted.

The Fund’s allocation to higher-rated issues, which outpaced lower-quality bonds, were contributors.

Income made a meaningful contribution to performance relative to price appreciation. The Fund’s use of leverage augmented the contribution from income.

The Fund sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy detracted from the Fund’s return.

Reinvestment had an adverse effect on the Fund’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.

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    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Fund Summary  as of January 31, 2019 (continued)    BlackRock MuniYield New Jersey Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19      07/31/18      Change      High      Low  

Market Price

  $ 13.60      $ 13.51        0.67    $ 13.64      $ 12.54  

Net Asset Value

    15.40        15.57        (1.09      15.57        15.09  

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

 

LOGO

Overview of the Fund’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

Transportation

    36     37

County/City/Special District/School District

    19       18  

Education

    17       15  

State

    8       10  

Corporate

    7       7  

Health

    7       6  

Housing

    3       3  

Tobacco

    2       3  

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

 

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    10

2020

    6  

2021

    17  

2022

    11  

2023

    7  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    7     4

AA/Aa

    29       33  

A

    22       24  

BBB/Baa

    31       30  

BB/Ba

    6       6  

N/R (b)

    5       3  

 

  (a) 

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.

 
  (b) 

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2019 and July 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Fund’s total investments.

 
 

 

 

FUND SUMMARY      15  


Schedule of Investments  (unaudited)

January 31, 2019

  

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

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 129.3%

 

New York — 129.3%

 

Corporate — 7.9%  

Build NYC Resource Corp., Refunding RB:

 

Manhattan College Project, 5.00%, 08/01/33

  $ 275     $ 315,293  

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

    500       536,675  

City of New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT, 5.00%, 07/01/22

    850       928,013  

New York Transportation Development Corp., ARB, Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, AMT, 5.00%, 01/01/33

    1,000       1,125,330  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/26

    1,000       1,046,690  

Niagara Area Development Corp., Refunding RB, Covanta Project, Series B, 3.50%, 11/01/24(a)

    1,000       989,700  
   

 

 

 
      4,941,701  
County/City/Special District/School District — 23.0%  

City of Glen Cove New York, GO:

   

Series A, 5.00%, 01/01/25

    195       220,816  

Series A, 5.00%, 01/01/26

    105       119,982  

Refunding, 5.00%, 01/15/25

    980       1,110,546  

Refunding, 5.00%, 01/15/26

    520       594,584  

City of New York, GO, Refunding, Series E, 5.00%, 08/01/30

    1,250       1,386,588  

City of New York, GO:

   

Sub-Series A-1, 5.00%, 08/01/33

    700       781,802  

Sub-Series I-1, 5.50%, 04/01/19(b)

    1,500       1,509,465  

Sub-Series I-1, 5.13%, 04/01/25

    750       753,998  

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

    1,000       1,002,880  

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

   

Subordinate Bonds, 5.00%, 02/01/34

    600       692,076  

Sub-Series A1, 5.00%, 08/01/33

    300       355,500  

County of Nassau New York, GO, Series A (AGM),
5.00%, 04/01/32

    1,000       1,167,800  

County of Nassau New York, GO, Refunding, Series C, 5.00%, 10/01/29

    500       586,980  

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

    300       336,570  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 02/15/21(b)

    615       665,399  

5.75%, 02/15/47

    385       413,505  

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

    1,000       1,073,410  

State of New York Dormitory Authority, RB, Haverstraw King’s Daughters Public Library, 5.00%, 07/01/26

    1,015       1,090,201  

Town of Oyster Bay New York, GOL, New York Public Improvement, 4.00%, 02/15/24

    1,500       1,601,340  
   

 

 

 
      15,463,442  
Education — 39.2%  

Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM),
4.00%, 10/01/20(b)

    1,000       1,038,440  

Build NYC Resource Corp., RB, Inwood Academy for Leadership Charter School Project, Series A, 4.88%, 05/01/31(a)

    750       755,775  

Build NYC Resource Corp., Refunding RB:

   

Ethical Culture Fieldston School Project, 5.00%, 06/01/30

    385       439,039  

Manhattan College Project, 5.00%, 08/01/35

    1,000       1,137,700  

The Packer Collegiate Institute Project, 5.00%, 06/01/35

    250       281,360  

City of New York Trust for Cultural Resources, Refunding RB, American Museum of Natural History, Series A,
5.00%, 07/01/32

    500       570,460  
Security   Par
(000)
    Value  
Education (continued)  

Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB:

   

Buffalo State College Foundation Housing, 6.00%, 10/01/31

  $ 1,000     $ 1,085,600  

The Charter School for Applied Technologies Project, Series A, 4.50%, 06/01/27

    1,000       1,073,880  

County of Monroe New York Industrial Development Corp., Refunding RB, Series A, 5.00%, 07/01/23(b)

    1,000       1,141,400  

County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 5.00%, 03/01/20(b)

    1,000       1,034,120  

County of Schenectady New York Capital Resource Corp., Refunding RB, Union College, 5.00%, 07/01/32

    500       544,345  

State of New York Dormitory Authority, RB:

   

Bid Group 3, Series A, 5.00%, 03/15/33

    1,000       1,178,500  

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

    120       128,753  

Fordham University, Series A, 5.25%, 07/01/21(b)

    500       543,065  

Icahn School of Medicine at Mount Sinai, Series A,
5.00%, 07/01/32

    1,000       1,131,350  

Mount Sinai School of Medicine, 5.50%, 07/01/19(b)

    1,000       1,015,660  

Mount Sinai School of Medicine, Series A (NPFGC),
5.15%, 07/01/24

    250       281,063  

State University Dormitory Facilities, Series A,
5.00%, 07/01/33

    1,000       1,180,830  

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

    1,000       985,710  

State of New York Dormitory Authority, Refunding RB:

   

Fordham University, 5.00%, 07/01/29

    375       424,575  

Fordham University, 5.00%, 07/01/30

    300       339,171  

Pace University, Series A, 5.00%, 05/01/27

    980       1,055,048  

Series B, 5.00%, 07/01/31

    1,500       1,721,700  

Series E, 5.25%, 03/15/33

    500       582,995  

Series L, 5.00%, 01/01/32

    1,750       2,065,245  

State University Dormitory Facilities, Series A,
5.25%, 07/01/30

    1,050       1,187,602  

The Culinary Institute of America, 5.00%, 07/01/28

    500       539,735  

Troy Capital Resource Corp., Refunding RB, 5.00%, 08/01/32

    1,000       1,129,330  
   

 

 

 
      24,592,451  
Health — 16.3%  

Build NYC Resource Corp., Refunding RB, New York Methodist Hospital Project, 5.00%, 07/01/30

    500       554,575  

County of Dutchess New York Industrial Development Agency, RB, Vassar Brothers Medical Center (AGC), 5.00%, 04/01/21

    215       225,716  

County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A (AGM),
5.25%, 07/01/25

    1,000       1,044,460  

County of Monroe Industrial Development Corp., RB, Rochester General Hospital Project, 5.00%, 12/01/29

    660       765,904  

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

   

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

    910       970,387  

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

    580       610,444  

Series B, 6.00%, 11/01/20(b)

    205       220,094  

Series B, 6.00%, 11/01/30

    35       37,222  

County of Westchester New York Local Development Corp., Refunding RB:

   

Kendal On Hudson Project, 4.00%, 01/01/23

    250       261,027  

Kendal On Hudson Project, 5.00%, 01/01/28

    875       928,769  

Westchester Medical Center, 5.00%, 11/01/34

    500       545,295  

State of New York Dormitory Authority, RB, Series A(b):

   

New York State Association for Retarded Children, Inc.,
5.30%, 07/01/19

    450       456,682  

New York University Hospitals Center, 5.00%, 07/01/20

    1,000       1,046,570  
 

 

 

16    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

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

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Health (continued)  

State of New York Dormitory Authority, Refunding RB:

   

Mount Sinai Hospital Series A, 4.25%, 07/01/23

  $ 250     $ 257,770  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21(b)

    500       536,815  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/32

    1,270       1,425,842  

Orange Regional Medical Center, 5.00%, 12/01/27(a)

    100       115,270  

Orange Regional Medical Center, 5.00%, 12/01/28(a)

    200       229,108  
   

 

 

 
      10,231,950  
Housing — 1.9%  

City of New York Housing Development Corp., RB, M/F Housing, Series B1, 5.25%, 07/01/30

    500       554,400  

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

    625       626,688  
   

 

 

 
      1,181,088  
State — 7.2%  

City of New York Transitional Finance Authority, BARB, Fiscal 2015, Series S-1, 5.00%, 07/15/37

    1,140       1,270,553  

State of New York Thruway Authority, Refunding RB, Series A-1, 5.00%, 04/01/19(b)

    1,000       1,005,520  

State of New York Urban Development Corp., Refunding RB, Personal Income Tax, Series A, 5.00%, 03/15/35

    1,990       2,256,819  
   

 

 

 
      4,532,892  
Tobacco — 4.1%  

County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 5.25%, 05/15/34

    500       526,780  

New York Counties Tobacco Trust, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series B:

   

5.00%, 06/01/25

    845       940,637  

5.00%, 06/01/28

    90       99,141  

5.00%, 06/01/29

    105       115,165  

TSASC, Inc., Refunding RB, Series A, 5.00%, 06/01/30

    775       865,404  
   

 

 

 
      2,547,127  
Transportation — 19.0%  

Metropolitan Transportation Authority, RB:

   

Series A, 5.00%, 11/15/21(b)

    1,000       1,092,370  

Series A-1, 5.25%, 11/15/23(b)

    500       581,905  

Series B, 5.25%, 11/15/33

    1,000       1,115,800  

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

    860       883,142  

Sub-Series B-1, 5.00%, 11/15/21(b)

    460       502,490  

Sub-Series B-4, 5.00%, 11/15/21(b)

    300       327,711  

Sub-Series D-1, 5.25%, 11/15/44

    225       252,180  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8, 5.00%, 12/01/20

    685       713,572  

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

    1,000       1,111,010  

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

   

Series I, 5.00%, 01/01/37

    660       703,316  

Series K, 5.00%, 01/01/32

    1,035       1,174,456  

Triborough Bridge & Tunnel Authority, RB:

   

Series B, 5.00%, 11/15/31

    2,005       2,336,166  

Series B-3, 5.00%, 11/15/33

    500       579,530  

Triborough Bridge & Tunnel Authority, Refunding RB, Series A, 5.00%, 01/01/22(b)

    500       548,265  
   

 

 

 
      11,921,913  
Utilities — 9.0%  

Long Island Power Authority, RB, Electric System,
5.00%, 09/01/33

    1,000       1,177,200  
Security   Par
(000)
    Value  
Utilities (continued)  

Long Island Power Authority, Refunding RB, Electric System, Series A:

   

5.50%, 04/01/19(b)

  $ 500     $ 503,115  

5.00%, 09/01/34

    1,000       1,121,580  

State of New York Environmental Facilities Corp., RB, Green Bond, Series C, 5.00%, 08/15/37

    575       667,558  

State of New York Environmental Facilities Corp., Refunding RB, NYC Municipal Water Finance Authority Project, 2nd Resolution, Series B, 5.00%, 06/15/31

    1,000       1,070,580  

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

    1,000       1,125,510  
   

 

 

 
      5,665,543  
   

 

 

 

Total Municipal Bonds — 129.3%
(Cost — $78,208,130)

 

    81,078,107  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond
Trusts(c) — 37.1%

 

New York — 37.1%

 

County/City/Special District/School District — 16%  

City of New York, GO:

   

Sub-Series 1-I, 5.00%, 03/01/32

    991       1,113,148  

Sub-Series G-1, 5.00%, 04/01/29

    750       818,258  

Refunding Series E, 5.00%, 08/01/19(b)

    174       176,765  

Refunding Series E, 5.00%, 08/01/27

    426       432,475  

City of New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured, 5.00%, 11/15/32

    3,540       4,060,150  

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Future Tax Secured Subordinate Bonds, SubSeries B-1, 5.00%, 08/01/36

    3,001       3,421,123  
   

 

 

 
      10,021,919  
State — 8%  

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

    990       1,133,085  

State of New York Dormitory Authority, Refunding RB, Series A, 5.00%, 03/15/36(d)

    1,995       2,272,644  

State of New York Urban Development Corp., RB, Personal Income Tax, Series A-1, 5.00%, 03/15/32

    1,499       1,661,599  
   

 

 

 
      5,067,328  
Transportation — 10.4%  

Metropolitan Transportation Authority, RB, Sub-Series D-1,
5.00%, 11/15/39

    3,510       3,827,304  

Metropolitan Transportation Authority, Refunding RB, Series B, 5.25%, 11/15/19(b)

    749       770,491  

Port Authority of New York & New Jersey, Refunding ARB:

   

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

    991       1,099,277  

Consolidated, Series 169th, 5.00%, 10/15/26

    750       804,019  
   

 

 

 
      6,501,091  
Utilities — 2.7%  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2011, Series HH, 5.00%, 06/15/32

    1,560       1,666,725  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 37.1%
(Cost — $22,629,591)

 

    23,257,063  
   

 

 

 

Total Long-Term Investments — 166.4%
(Cost — $100,837,721)

 

    104,335,170  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      17  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

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

(Percentages shown are based on Net Assets)

 

     Shares     Value  
Short-Term Securities — 0.5%  

BlackRock Liquidity Funds New York Money Fund Portfolio, 1.13%(e)(f)

    357,604     $ 357,604  
   

 

 

 

Total Short-Term Securities — 0.5%
(Cost — $357,604)

 

    357,604  
   

 

 

 

Total Investments — 166.9%
(Cost — $101,195,325)

 

    104,692,774  

Other Assets Less Liabilities — 1.5%

 

    909,991  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (21.4)%

 

    (13,420,228

VRDP Shares at Liquidation Value, Net of Deferred Offering
Costs — (47.0)%

 

    (29,463,685
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 62,718,852  
   

 

 

 
(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) 

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) 

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 agreement, which expires on September 15, 2024, is $1,381,260. See Note 4 of the Notes to Financial Statements for details.

(e) 

Annualized 7-day yield as of period end.

(f) 

During the six months ended January 31, 2019, 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
07/31/18
     Net
Activity
     Shares
Held at
01/31/19
     Value at
01/31/19
     Income     

Net

Realized
Gain (Loss)
 (a)

     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds New York Money Fund Portfolio

            357,604        357,604      $ 357,604      $ 1,407      $      $  

BlackRock Liquidity Funds, MuniCash, Institutional Class

     1,061,194        (1,061,194                    1,871        9        (115
           

 

 

    

 

 

    

 

 

    

 

 

 
            $ 357,604      $ 3,278      $ 9      $ (115
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Short Contracts:

                 

10-Year U.S. Treasury Note

     25          03/20/19        $ 3,062        $ (69,058

Long U.S. Treasury Bond

     9          03/20/19          1,320          (66,537

5-Year U.S. Treasury Note

     12          03/29/19          1,378          (23,976
                 

 

 

 
        $ (159,571
                 

 

 

 

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

Derivative Financial Instruments Categorized by Risk Exposure

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

 

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

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 159,571      $      $ 159,571  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on 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.

 

 

 

18    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

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

 

Derivative Financial Instruments Categorized by Risk Exposure (continued)

 

For the six months ended January 31, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

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

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 29,621      $      $ 29,621  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (165,962    $      $ (165,962
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 4,336,203  

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 Investments(a)

   $        $ 104,335,170        $        $ 104,335,170  

Short-Term Securities

     357,604                            357,604  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 357,604        $ 104,335,170        $        $ 104,692,774  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Liabilities:

                 

Interest rate contracts

   $ (159,571      $        $        $ (159,571
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

See above Schedule of Investments for values in each sector.

 
  (b) 

Derivative financial instruments are 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  

Liabilities:

                 

TOB Trust Certificates

   $        $ (13,360,377      $        $ (13,360,377

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (42,960,377      $        $ (42,960,377
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended January 31, 2019, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      19  


Schedule of Investments  (unaudited) 

January 31, 2019

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 147.1%

 

Arizona — 146.4%

 

Corporate — 21.9%  

Chandler IDA, RB, Intel Corporation Project, AMT,
2.70%, 12/01/37(a)

  $ 2,500     $ 2,518,075  

County of Maricopa Arizona Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 06/01/35

    2,305       2,333,259  

County of Maricopa Industrial Development Authority, Refunding RB, HonorHealth, Series A:

   

4.13%, 09/01/42

    750       753,818  

5.00%, 09/01/42

    1,000       1,104,840  

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

    1,000       1,042,870  

County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 09/01/29

    1,000       1,038,070  

Salt Verde Financial Corp., RB, Senior:

   

5.50%, 12/01/29

    2,000       2,426,140  

5.00%, 12/01/37

    2,500       2,904,350  
   

 

 

 
      14,121,422  
County/City/Special District/School District — 26.1%  

City of Tucson Arizona, COP, (AGC), 5.00%, 07/01/19(b)

    1,000       1,013,600  

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

   

5.50%, 07/01/29

    480       555,816  

5.50%, 07/01/30

    400       463,180  

County of Maricopa Arizona Unified School District No. 11 Peoria, GO, (AGM), 5.00%, 07/01/35

    1,250       1,416,538  

County of Maricopa Arizona Unified School District No. 210 Phoenix, GO, School Improvement Project of 2011 & 2017,
5.00%, 07/01/37

    1,000       1,154,870  

County of Mohave Arizona Unified School District No. 20 Kingman, GO, School Improvement Project of 2006, Series C (AGC), 5.00%, 07/01/26

    1,000       1,013,600  

Gilbert Public Facilities Municipal Property Corp., RB, 5.50%, 07/01/19(b)

    2,000       2,031,660  

Phoenix-Mesa Gateway Airport Authority, RB, Mesa Project, AMT, 5.00%, 07/01/38

    3,600       3,842,352  

Town of Buckeye Arizona, RB, 5.00%, 07/01/43

    4,000       4,482,960  

Town of Queen Creek Arizona Excise Tax Revenue, RB, Series A, 5.00%, 08/01/42

    750       857,775  
   

 

 

 
      16,832,351  
Education — 39.7%  

Arizona Board of Regents, COP, Refunding, University of Arizona, Series C, 5.00%, 06/01/30

    2,595       2,821,154  

Arizona IDA, Refunding RB:

   

Academies of Math And Science, 5.00%, 07/01/37

    1,250       1,384,563  

Basis Schools, Inc. Projects, Series A,
5.13%, 07/01/37(c)

    500       514,090  

Odyssey Preparatory Academy Project, Series A, 5.50%, 07/01/52(c)

    500       477,235  

Arizona State University, Refunding RB, 5.00%, 06/01/39

    2,050       2,317,730  

City of Phoenix Arizona IDA, RB:

   

Candeo School, Inc. Project, 6.63%, 07/01/33

    500       546,205  

Great Hearts Academies — Veritas Projects,
6.30%, 07/01/21(b)

    500       553,035  

Great Hearts Academies Projects, Series A,
5.00%, 07/01/44

    2,000       2,054,220  

Legacy Traditional Schools Projects, Series A,
6.75%, 07/01/44(c)

    440       478,456  
Security   Par
(000)
    Value  
Education (continued)  

Legacy Traditional Schools Projects, Series A,
5.00%, 07/01/46(c)

  $ 500     $ 504,290  

City of Phoenix Arizona IDA, Refunding RB:

   

Basis Schools, Inc. Projects, 5.00%, 07/01/45(c)

    1,000       1,008,130  

Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/46(c)

    1,500       1,511,385  

Downtown Phoenix Student Housing, LLC — Arizona State University Project, Series A, 5.00%, 07/01/42

    1,750       1,866,235  

Great Hearts Academies Projects, 5.00%, 07/01/46

    500       515,165  

Legacy Traditional School Projects, 5.00%, 07/01/45(c)

    500       503,245  

County of Maricopa Arizona IDA, RB, Reid Traditional Schools Projects, 5.00%, 07/01/47

    1,000       1,051,740  

County of Maricopa Arizona IDA, Refunding RB, Paradise Schools Projects, 5.00%, 07/01/47(c)

    1,000       1,015,420  

County of Pima Arizona IDA, Refunding RB,
5.00%, 07/01/36(d)

    500       580,520  

McAllister Academic Village LLC, Refunding RB, Arizona State University, 5.00%, 07/01/39

    500       565,620  

Northern Arizona University, RB, Stimulus Plan for Economic and Educational Development, 5.00%, 08/01/38

    3,000       3,293,580  

Student & Academic Services LLC, RB, (BAM),
5.00%, 06/01/39

    1,400       1,544,774  

Town of Florence, Inc. Arizona, IDA, ERB, Legacy Traditional School Project, Queen Creek and Casa Grande Campuses,
6.00%, 07/01/43

    500       519,935  
   

 

 

 
      25,626,727  
Health — 20.2%  

Arizona Health Facilities Authority, RB, Catholic Healthcare West, Series B-2 (AGM), 5.00%, 03/01/41

    500       522,735  

Arizona Health Facilities Authority, Refunding RB, Series A:

   

Phoenix Children’s Hospital, 5.00%, 02/01/42

    1,000       1,053,880  

Scottsdale Lincoln Hospitals Project, 5.00%, 12/01/42

    2,785       3,015,486  

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

    500       526,320  

County of Glendale Arizona IDA, Refunding RB, Terrace of Phoenix Project, 5.00%, 07/01/48

    530       535,411  

County of Maricopa Arizona IDA, RB, Catholic Healthcare West, Series A, 6.00%, 07/01/39

    170       172,705  

County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group:

   

5.00%, 01/01/38

    1,320       1,481,872  

Series A, 4.00%, 01/01/41

    3,000       3,074,580  

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

    1,000       1,079,380  

University Medical Center Corp., RB, 6.50%, 07/01/19(b)

    500       509,710  

University Medical Center Corp., Refunding RB,
6.00%, 07/01/21(b)

    1,000       1,097,790  
   

 

 

 
      13,069,869  
State — 3.1%  

State of Arizona, RB, Lottery Revenue, Series A (AGM), 5.00%, 07/01/29

    1,930       1,985,545  
   

 

 

 
Transportation — 2.8%  

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

   

Junior Lien, Series A, 5.00%, 07/01/20(b)

    1,000       1,046,140  

Senior Lien, AMT, 5.00%, 07/01/32

    700       772,604  
   

 

 

 
      1,818,744  
Utilities — 32.6%  

City of Lake Havasu City Arizona Wastewater System Revenue, RB, Series B (AGM), 5.00%, 07/01/40

    3,500       3,933,475  
 

 

 

20    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utilities (continued)  

City of Mesa Arizona Utility System Revenue, RB,
5.00%, 07/01/42

  $ 3,000     $ 3,453,060  

City of Phoenix Civic Improvement Corp., ARB, AMT, Series A,
5.00%, 07/01/42

    3,000       3,332,160  

City of Phoenix Civic Improvement Corp., RB:

   

Junior Lien, Series A, 4.00%, 07/01/39

    1,300       1,361,256  

Series B (BHAC), 5.50%, 07/01/41

    100       131,250  

City of Phoenix Civic Improvement Corp., Refunding RB, Junior Lien Airport, Series D, 4.00%, 07/01/40

    1,000       1,028,040  

County of Pinal Arizona, Refunding RB, Electric District No. 3,
5.25%, 07/01/21(b)

    2,500       2,706,675  

County of Pinal Arizona IDA, RB, San Manuel Facility Project, AMT, 6.25%, 06/01/26

    500       511,630  

Salt River Project Agricultural Improvement & Power District, Refunding RB:

   

5.00%, 01/01/38

    2,000       2,325,900  

Series A, 5.00%, 12/01/41

    2,000       2,243,500  
   

 

 

 
      21,026,946  
   

 

 

 

Total Municipal Bonds in Arizona

 

    94,481,604  
   

 

 

 

Puerto Rico — 0.7%

 

Tobacco — 0.7%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43

    460       465,138  
   

 

 

 

Total Municipal Bonds in Puerto Rico

 

    465,138  
   

 

 

 

Total Municipal Bonds — 147.1%
(Cost — $91,629,629)

 

    94,946,742  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond
Trusts(e) — 16.6%

 

Arizona — 16.6%

 

Utilities — 16.6%  

City of Mesa Arizona Utility System Revenue, RB, Utility System, 5.00%, 07/01/35

    3,000       3,205,125  

City of Phoenix Civic Improvement Corp., Refunding RB:

   

Senior Lien, AMT, 5.00%, 07/01/43

    4,000       4,475,860  
Security   Par
(000)
    Value  
Utilities (continued)  

Water System, Junior Lien, Series A,
5.00%, 07/01/19(b)

  $ 3,000     $ 3,040,545  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 16.6%
(Cost — $10,380,897)

 

    10,721,530  
   

 

 

 

Total Long-Term Investments — 163.7%
(Cost — $102,010,526)

 

    105,668,272  
   

 

 

 
     Shares         

Short-Term Securities — 1.9%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.24%(f)(g)

    1,257,520       1,257,771  
   

 

 

 

Total Short-Term Securities — 1.9%
(Cost — $1,257,711)

 

    1,257,771  
   

 

 

 

Total Investments — 165.6%
(Cost — $103,268,237)

 

    106,926,043  

Liabilities in Excess of Other Assets — (0.3)%

 

    (197,241

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (7.8)%

 

    (5,006,242

VRDP Shares at Liquidation Value, Net of Deferred Offering
Costs — (57.5)%

 

    (37,155,310
   

 

 

 

Net Assets — 100.0%

 

  $ 64,567,250  
   

 

 

 

 

(a) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect 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) 

When-issued security.

(e) 

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

(f) 

Annualized 7-day yield as of period end.

 
  (g) 

During the six months ended January 31, 2019, 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
07/31/18
     Net
Activity
     Shares
Held at
01/31/19
     Value at
01/31/19
     Income     

Net

Realized
Gain (Loss)
 (a)

     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     406,896        850,624        1,257,520      $ 1,257,771      $ 5,504      $ 37      $ 20  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

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

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

Short Contracts:

 

10-Year U.S. Treasury Note

     8          03/20/19        $ 980        $ (27,298

Long U.S. Treasury Bond

     23          03/20/19          3,374          (154,729

5-Year U.S. Treasury Note

     4          03/29/19          459          (8,541
                 

 

 

 
          $ (190,568
                 

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

      Commodity
Contracts
    

Credit

Contracts

    

Equity

Contracts

     Foreign
Currency
Exchange
Contracts
    

Interest

Rate
Contracts

     Other
Contracts
     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 190,568      $      $ 190,568  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on 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, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
    

Credit

Contracts

    

Equity

Contracts

     Foreign
Currency
Exchange
Contracts
    

Interest

Rate
Contracts

     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 35,278      $      $ 35,278  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (180,152    $      $ (180,152
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 3,947,398  

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 Investments(a)

   $        $ 105,668,272        $        $ 105,668,272  

Short-Term Securities

     1,257,771                            1,257,771  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,257,771        $ 105,668,272        $        $ 106,926,043  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Liabilities:

                 

Interest rate contracts

   $ (190,568      $        $        $ (190,568
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

See above Schedule of Investments for values in each sector.

 
  (b) 

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

 

 

 

22    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield Arizona Fund, Inc. (MZA)

 

Fair Value Hierarchy as of Period End (continued)

 

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

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

                 

TOB Trust Certificates

   $        $ (5,000,000      $        $ (5,000,000

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (42,300,000      $        $ (42,300,000
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended January 31, 2019, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (unaudited)

January 31, 2019

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 86.2%

 

California — 86.2%

 

County/City/Special District/School District — 22.3%  

Anaheim California Union High School District, GO, Election of 2014, 4.00%, 08/01/42

  $ 5,725     $ 5,998,025  

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

    2,000       2,007,360  

City of Los Angeles California Municipal Improvement Corp., RB, Real Property, Series E, 6.00%, 09/01/19(a)

    2,660       2,728,096  

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

   

6.50%, 05/01/36

    1,520       1,672,319  

6.50%, 05/01/42

    1,860       2,046,391  

County of Los Angeles California Metropolitan Transportation Authority, Refunding RB, Series A, 5.00%, 07/01/42

    4,000       4,590,520  

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

    5,000       5,774,200  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A,
6.00%, 03/01/21(a)

    2,440       2,658,746  

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 08/01/40

    5,500       6,201,140  

Los Angeles California Community College District, GO, Series G,
4.00%, 08/01/39

    5,430       5,613,968  

Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42

    3,500       4,126,500  

Riverside Community Properties Development, Inc., RB, Riverside County Law Building Project, 6.00%, 10/15/23(a)

    5,000       6,001,600  

San Diego Unified School District, GO, Election of 2012, Series I, 5.00%, 07/01/47

    5,935       6,773,319  

San Francisco Bay Area Rapid Transit District, GO, Election of 2016, Green Bonds, Series A, 4.00%, 08/01/42

    7,875       8,220,949  

Tracy Community Facilities District, Special Tax Bonds, Series 1:

   

5.00%, 09/01/38

    230       251,231  

5.00%, 09/01/43

    350       381,003  

5.00%, 09/01/48

    385       418,445  

Washington Township Health Care District, GO, Election of 2004,
Series B, 5.50%, 08/01/38

    1,625       1,895,481  

West Contra Costa California Unified School District, GO, Election of 2012, Series A, 5.50%, 08/01/39

    2,500       2,867,150  
   

 

 

 
      70,226,443  
Education — 9.8%  

California Educational Facilities Authority, Refunding RB(a):

   

Pitzer College, 6.00%, 04/01/20

    2,500       2,628,050  

San Francisco University, 6.13%, 10/01/21

    855       956,463  

San Francisco University, 6.13%, 10/01/21

    890       996,853  

California Municipal Finance Authority, RB, Emerson College,
6.00%, 01/01/22(a)

    2,750       3,096,638  

California School Finance Authority, RB:

   

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.00%, 07/01/33

    1,500       1,655,130  

Alliance College-Ready Public Schools — 2023 Union LLC Project, Series A, 6.30%, 07/01/43

    3,000       3,306,780  

Value Schools, 6.65%, 07/01/33

    595       651,828  

Value Schools, 6.90%, 07/01/43

    1,330       1,451,283  

State of California University, Refunding RB, Systemwide, Series A, 5.00%, 11/01/41

    2,000       2,250,220  

University of California, Refunding RB:

   

General, Series AZ, 5.00%, 05/15/36

    4,425       5,195,835  

General, Series AZ, 5.00%, 05/15/43

    4,700       5,378,492  

Limited Project, Series O, 5.00%, 05/15/40

    3,000       3,440,880  
   

 

 

 
      31,008,452  
Security   Par
(000)
    Value  
Health — 12.4%  

California Health Facilities Financing Authority, RB:

   

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

  $ 9,700     $ 10,574,649  

Sutter Health, Series A, 5.00%, 11/15/41

    925       1,023,346  

Sutter Health, Series B, 6.00%, 08/15/20(a)

    7,530       8,038,426  

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 07/01/19(a)

    10,000       10,180,600  

California Statewide Communities Development Authority, RB:

   

Loma Linda University Medical Center, 5.50%, 12/01/58(b)

    625       679,575  

Sutter Health, Series A, 6.00%, 08/15/20(a)

    8,110       8,651,180  
   

 

 

 
      39,147,776  
Housing — 1.1%  

County of Santa Clara California Housing Authority, RB, M/F, John Burns Gardens Apartments Project, Series A, AMT,
6.00%, 08/01/41

    3,500       3,507,770  
   

 

 

 
State — 11.4%  

State of California, GO, Refunding:

   

Various Purpose, 5.00%, 09/01/35

    10,115       11,646,613  

Various Purpose, 5.25%, 10/01/39

    3,500       4,018,350  

Various Purposes, 5.00%, 11/01/36

    2,000       2,330,560  

State of California Public Works Board, LRB:

   

Department of Developmental Services, Poterville, Series C,
6.25%, 04/01/19(a)

    1,610       1,622,284  

Department of Education, Riverside Campus Project, Series B,
6.50%, 04/01/19(a)

    10,000       10,080,100  

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

    1,510       1,716,372  

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/19(a)

    4,400       4,558,136  
   

 

 

 
      35,972,415  
Tobacco — 4.3%  

County of California Tobacco Securitization Agency, Refunding RB, Asset-Backed, Merced County, Series A,
5.25%, 06/01/45

    775       776,898  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/47

    9,840       9,296,045  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:

   

5.00%, 06/01/37

    3,000       3,000,000  

5.13%, 06/01/46

    605       605,000  
   

 

 

 
      13,677,943  
Transportation — 13.9%  

City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 05/01/42

    3,550       3,941,636  

City & County of San Francisco California Airports Commission, ARB, Second Series E, 6.00%, 05/01/39

    3,000       3,032,640  

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT, 5.25%, 05/01/33

    1,440       1,608,221  

City & County of San Francisco California Port Commission, RB, Series A, 5.13%, 03/01/40

    5,075       5,225,169  

City of Long Beach California Harbor Revenue, ARB, Series A, AMT, 5.00%, 05/15/40

    3,910       4,406,101  

City of Los Angeles California Department of Airports, ARB, AMT:

   

Los Angeles International Airport, Series B, 5.00%, 05/15/36

    2,365       2,655,753  

Los Angeles International Airports, Series A,
5.25%, 05/15/38

    1,670       1,938,569  

City of Los Angeles California Metropolitan Transportation Authority, Refunding RB, Green Bond, Series A,
5.00%, 07/01/41

    1,300       1,495,052  

City of San Jose California, ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT (AGM):

   

5.50%, 03/01/30

    1,000       1,066,980  

5.75%, 03/01/34

    1,000       1,067,810  
 

 

 

24    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield California Fund, Inc. (MYC)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Transportation (continued)  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT,
6.25%, 03/01/34

  $ 1,400     $ 1,511,986  

County of Sacramento California Airport System Revenue, Refunding RB, Series C, AMT, 5.00%, 07/01/37

    3,000       3,409,530  

County of Sacramento California Airport System Revenue, Refunding ARB, Senior Series A, 5.00%, 07/01/41

    8,290       9,255,454  

County of Sacramento California Airport System Revenue, Refunding RB, Series C, AMT, 5.00%, 07/01/36

    750       856,290  

County of San Diego Regional Airport Authority, ARB, Subordinate, Series B, AMT, 5.00%, 07/01/42

    2,000       2,221,440  
   

 

 

 
      43,692,631  
Utilities — 11.0%  

City of Los Angeles California Department of Water & Power, RB, Power System, Series A, 5.00%, 07/01/42

    3,440       3,905,535  

City of Los Angeles California Department of Water & Power, Refunding RB:

   

Series B, 5.00%, 07/01/43

    6,000       6,929,280  

Water System, Series A, 5.25%, 07/01/39

    4,000       4,250,680  

City of Petaluma California Wastewater Revenue, Refunding RB,
6.00%, 05/01/21(a)

    2,645       2,906,353  

City of Richmond California Wastewater Revenue, Refunding RB,
Series A, 5.00%, 08/01/42

    5,185       5,948,906  

Dublin-San Ramon Services District Water Revenue, Refunding RB, 6.00%, 02/01/21(a)

    2,420       2,633,396  

Eastern Municipal Water District, Refunding RB, Series A, 5.00%, 07/01/42

    3,000       3,400,110  

Oceanside Public Financing Authority, Refunding RB, Series A:

   

5.25%, 05/01/30

    1,245       1,419,611  

5.25%, 05/01/33

    2,810       3,186,877  
   

 

 

 
      34,580,748  
   

 

 

 

Total Municipal Bonds in California

 

    271,814,178  
   

 

 

 

Puerto Rico — 0.0%

 

Tobacco — 0.0%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.50%, 05/15/39

    145       146,620  
   

 

 

 

Total Municipal Bonds in Puerto Rico

 

    146,620  
   

 

 

 

Total Municipal Bonds — 86.2%
(Cost — $262,939,738)

 

    271,960,798  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond
Trusts(c) — 83.5%

 

California — 83.5%

 

County/City/Special District/School District — 32.9%  

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

   

5.00%, 12/01/39

    17,850       20,279,474  

5.00%, 12/01/44

    14,095       15,932,225  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(a)(d)

    9,681       10,206,800  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 08/01/19(a)

    3,829       3,912,627  

Palomar Community College District, GO, Election of 2006,
Series C, 5.00%, 08/01/44

    15,140       17,196,088  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(a)

    7,734       7,877,746  
Security   Par
(000)
    Value  
County/City/Special District/School District (continued)  

San Marcos Unified School District, GO, Election of 2010, Series A, 5.00%, 08/01/21(a)

  $ 15,520     $ 16,849,210  

Santa Monica Community College District, GO, Election of 2016,
Series A, 5.00%, 08/01/43

    10,000       11,614,450  
   

 

 

 
      103,868,620  
Education — 26.5%  

California State University, Refunding RB, Systemwide, Series A:

   

5.00%, 11/01/41

    9,775       10,997,718  

5.00%, 11/01/42(d)

    13,430       15,251,780  

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

    11,950       13,458,030  

University of California, Refunding RB:

   

Series A, 5.00%, 11/01/43

    5,001       5,631,072  

Series AZ, 5.00%, 05/15/43(d)

    12,000       13,732,320  

Series I, 5.00%, 05/15/40

    21,875       24,527,393  
   

 

 

 
      83,598,313  
Health — 13.3%  

California Health Facilities Financing Authority, RB, Sutter Health,
Series A, 5.00%, 11/15/41

    11,000       12,169,520  

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

    26,870       29,669,048  
   

 

 

 
      41,838,568  
State — 4.1%            

State of California, GO, Refunding, Go, Refunding, Various Purpose, Bid Group, 5.00%, 08/01/37

    10,975       12,854,267  
   

 

 

 
Transportation — 3.5%            

City of Los Angeles California Department of Airports, ARB, Series A, AMT, 5.00%, 05/15/45

    10,045       11,190,695  
   

 

 

 
Utilities — 3.2%            

City of Los Angeles California Wastewater System Revenue, Refunding RB, Series A, 5.00%, 06/01/19(a)

    9,870       9,982,271  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 83.5%
(Cost — $258,836,637)

 

    263,332,734  
   

 

 

 

Total Long-Term Investments — 169.7%
(Cost — $521,776,375)

 

  $ 535,293,532  
   

 

 

 

Other Assets Less Liabilities — 1.9%

 

    6,057,458  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (38.1)%

 

    (120,165,064

VRDP Shares at Liquidation Value, Net of Deferred Offering
Costs — (33.5)%

 

    (105,703,144
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 315,482,782  
   

 

 

 

 

(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) 

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.

(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 May 18, 2020 to May 15, 2026, is $18,469,609. See Note 4 of the Notes to Financial Statements for details.

 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield California Fund, Inc. (MYC)

 

(e) 

During the six months ended January 31, 2019, 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
07/31/18
     Net
Activity
     Shares
Held at
01/31/19
     Value at
01/31/19
     Income     

Net

Realized
Gain (Loss)
 (a)

     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds California Money Fund, Institutional Class*

                        $      $ 5,891      $      $  

BlackRock Liquidity Funds, MuniCash, Institutional Class*

     5,452,423        (5,452,423                    3,973        (331      (214
           

 

 

    

 

 

    

 

 

    

 

 

 
            $      $ 9,864      $ (331    $ (214
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  *

No longer held by the fund as of period end.

 
  (a) 

Includes net capital gain distributions, if applicable.

 

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

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

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

10-Year U.S. Treasury Note

     95        03/20/19      $ 11,635      $ (247,096

Long U.S. Treasury Bond

     126        03/20/19        18,483        (874,153

5-Year U.S. Treasury Note

     22        03/29/19        2,527        (43,682
           

 

 

 
         $ (1,164,931
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

     

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a) . . . . . . . . . . . . . .. . . .

   $      $      $      $      $ 1,164,931      $      $ 1,164,931  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative appreciation (depreciation) on 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, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
    

Interest

Rate

Contracts

     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 293,787      $      $ 293,787  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (1,180,678    $      $ (1,180,678
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 24,248,086  

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

 

 

26    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

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 Investments(a)

   $        $ 535,293,532        $        $ 535,293,532  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

                 

Liabilities:

                 

Interest rate contracts

   $ (1,164,931      $        $        $ (1,164,931
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

See above Schedule of Investments for values in each sector.

 
  (b) 

Derivative financial instruments are 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  

Liabilities:

                 

TOB Trust Certificates

   $        $ (119,600,027      $        $ (119,600,027

VRDP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (225,500,027      $        $ (225,500,027
  

 

 

      

 

 

      

 

 

      

 

 

 

During the six months ended January 31, 2019, there were no transfers between levels.

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (unaudited)

January 31, 2019

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 101.7%

 

Alabama — 0.3%  

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

  $ 545     $ 585,761  
   

 

 

 
Arizona — 1.7%  

Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.38%, 07/01/50(a)

    1,645       1,686,816  

City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46(a)

    1,070       1,079,181  

County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38

    550       557,595  
   

 

 

 
      3,323,592  
California — 11.6%  

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20(b)

    1,645       1,756,070  

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 07/01/19(b)

    710       722,823  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    145       158,357  

California Statewide Communities Development Authority, RB, Series A(a):

   

Lancer Educational student Housing Project,
5.00%, 06/01/46

    1,680       1,774,735  

Loma Linda University Medical Center, 5.00%, 12/01/46

    290       302,252  

California Statewide Communities Development Authority, Refunding RB, Lancer Educational student Housing Project, Series A, 5.00%, 06/01/36(a)

    1,360       1,454,452  

City & County of San Francisco California Airports Commission, Refunding ARB, 2nd Series A, AMT:

   

5.50%, 05/01/28

    1,065       1,209,787  

5.25%, 05/01/33

    830       926,961  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT,
5.50%, 03/01/30

    1,500       1,598,895  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    655       644,474  

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

    1,620       1,878,406  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J:

   

5.25%, 05/15/23(b)

    2,905       3,341,912  

5.25%, 05/15/38

    825       921,500  

State of California, GO, Various Purposes, 6.00%, 03/01/33

    2,535       2,653,106  

State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.50%, 11/01/31

    1,000       1,140,040  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    835       936,361  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40

    625       725,175  
   

 

 

 
      22,145,306  
Colorado — 1.8%  

Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47(a)

    345       345,173  

City & County of Denver Colorado, RB, Capital Appreciation Bonds, Series A-2, 0.00%,
08/01/37(c)

    1,760       845,363  

City & County of Denver Colorado Airport System, ARB, Series A, AMT:

   

5.50%, 11/15/28

    1,000       1,133,380  

5.50%, 11/15/30

    330       371,956  

5.50%, 11/15/31

    400       449,896  

Colorado Health Facilities Authority, Refunding RB, Frasier Meadows Retirement Community Project, Series A, 5.25%, 05/15/37

    290       310,883  
   

 

 

 
      3,456,651  
Security   Par
(000)
    Value  
Connecticut — 1.2%  

Connecticut Housing Finance Authority, Refunding RB, S/F Housing:

   

Sub-Series A-1, 3.85%, 11/15/43

  $ 1,575     $ 1,567,456  

Sub-Series B-1, 4.00%, 05/15/45

    755       758,344  
   

 

 

 
      2,325,800  
Delaware — 1.2%  

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

    500       527,240  

Delaware State Health Facilities Authority, RB,
5.00%, 06/01/48

    1,605       1,724,797  
   

 

 

 
      2,252,037  
Florida — 6.8%  

County of Broward Florida Airport System, ARB, Series A, AMT, 5.00%, 10/01/45

    1,005       1,096,917  

County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT,
5.50%, 10/01/29

    1,995       2,257,502  

County of Lee Florida, Refunding ARB, Series A, AMT,
5.38%, 10/01/32

    2,000       2,136,580  

County of Lee Florida HFA, RB, S/F Housing, Multi-County Program, Series A-2, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 6.00%, 09/01/40

    115       115,815  

County of Manatee Florida HFA, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 09/01/40

    90       90,170  

County of Miami-Dade Florida, RB, Seaport Department:

   

Series A, 5.38%, 10/01/33

    1,170       1,308,809  

Series B, AMT, 6.25%, 10/01/38

    525       603,068  

Series B, AMT, 6.00%, 10/01/42

    700       797,489  

County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31

    2,440       2,635,932  

Lakewood Ranch Stewardship District, Special Assessment Bonds, Lakewood National & Polo Run Projects:

   

5.25%, 05/01/37

    240       247,922  

5.38%, 05/01/47

    260       267,561  

Reedy Creek Florida Improvement District, GO, Series A,
5.25%, 06/01/32

    1,200       1,352,820  
   

 

 

 
      12,910,585  
Georgia — 0.2%  

County of Griffin-Spalding Hospital Authority, RB, Revenue Anticipation Certificates, 4.00%, 04/01/42

    370       368,324  
   

 

 

 
Hawaii — 0.6%  

State of Hawaii Airports System, COP, AMT:

   

5.25%, 08/01/25

    485       541,988  

5.25%, 08/01/26

    525       583,852  
   

 

 

 
      1,125,840  
Illinois — 17.5%  

Chicago Board of Education, GO, Series C:

   

Dedicated Revenues, Series H, 5.00%, 12/01/36

    295       302,815  

Project, 5.25%, 12/01/35

    970       1,001,835  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, Series D, 5.00%, 12/01/25

    530       560,056  

Dedicated Revenues, Series F, 5.00%, 12/01/22

    400       416,916  

Dedicated Revenues, Series G, 5.00%, 12/01/34

    290       299,805  

5.00%, 12/01/25

    415       438,535  

Chicago Board of Education, GO, Series D:

   

5.00%, 12/01/46

    345       347,104  

5.00%, 12/01/46

    885       887,947  

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41

    1,000       1,076,890  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21(b)

    6,065       6,611,638  
 

 

 

28    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts:

   

5.25%, 12/01/36

  $ 1,000     $ 1,056,570  

5.25%, 12/01/40

    1,000       1,051,040  

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

   

5.50%, 12/01/38

    1,000       1,042,430  

5.25%, 12/01/43

    1,500       1,544,925  

Illinois Finance Authority, RB, Carle Foundation, Series A,
6.00%, 08/15/41

    4,000       4,348,400  

Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 08/15/19(b)

    4,160       4,254,058  

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds, Series A:

   

0.00%, 12/15/56(c)

    2,965       450,532  

5.00%, 06/15/57

    810       832,729  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project Bonds, Series B,
0.00%, 12/15/54(c)

    4,140       697,507  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    1,370       1,485,532  

6.00%, 06/01/21

    390       427,311  

State of Illinois, GO:

   

5.25%, 02/01/32

    2,200       2,298,010  

5.50%, 07/01/33

    1,000       1,055,070  

5.50%, 07/01/38

    415       433,094  

Series D, 5.00%, 11/01/28

    440       475,196  
   

 

 

 
      33,395,945  
Indiana — 2.1%  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 6.75%, 01/01/34

    1,350       1,539,702  

County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1(a):

   

6.63%, 01/15/34

    170       178,162  

6.75%, 01/15/43

    355       371,390  

6.88%, 01/15/52

    515       539,818  

Indiana Finance Authority, Refunding RB, Marquette Project, 4.75%, 03/01/32

    700       708,155  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 01/15/51(a)

    720       732,744  
   

 

 

 
      4,069,971  
Iowa — 1.3%  

Iowa Finance Authority, RB, Lifespace Communities, Series A, 5.00%, 05/15/43

    295       304,980  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50(d)

    1,255       1,335,044  

Midwestern Disaster Area, 5.50%, 12/01/22

    5       5,005  

Midwestern Disaster Area, 5.25%, 12/01/25

    865       916,640  
   

 

 

 
      2,561,669  
Kansas — 2.5%  

City of Lenexa Kansas, Refunding RB, Lakeview Village, Inc., Series A:

   

5.00%, 05/15/39

    660       676,705  

5.00%, 05/15/43

    655       665,604  

Kansas Development Finance Authority, Refunding RB, Adventist Health System:

   

5.50%, 11/15/19(b)

    75       77,092  

5.50%, 11/15/29

    3,200       3,285,696  
   

 

 

 
      4,705,097  
Louisiana — 3.4%  

Lake Charles Louisiana Harbor & Terminal District, RB, Series B, AMT (AGM), 5.50%, 01/01/29

    1,500       1,687,425  
Security   Par
(000)
    Value  
Louisiana (continued)  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

  $ 1,420     $ 1,511,377  

Louisiana Public Facilities Authority, Refunding RB, Ochsner Clinic Foundation Project, 5.00%, 05/15/47

    1,895       2,032,122  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 05/15/29

    1,195       1,205,086  
   

 

 

 
      6,436,010  
Maine — 0.8%  

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 07/01/32

    765       838,211  

State of Maine Housing Authority, RB, M/F Housing, Series E, 4.25%, 11/15/43

    740       755,747  
   

 

 

 
      1,593,958  
Maryland — 0.1%  

City of Baltimore Maryland, Refunding RB, East Baltimore Research Park, Series A, 4.50%, 09/01/33

    185       188,957  
   

 

 

 
Massachusetts — 1.7%  

Massachusetts Development Finance Agency, Refunding RB, Suffolk University, 4.00%, 07/01/39

    2,045       1,967,515  

Massachusetts HFA, Refunding RB, AMT:

   

Series B, 5.50%, 06/01/41

    700       705,551  

Series C, 5.35%, 12/01/42

    645       649,180  
   

 

 

 
      3,322,246  
Michigan — 2.6%  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41

    1,805       1,950,122  

Eastern Michigan University, RB, Series A, 4.00%, 03/01/47

    1,455       1,474,890  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT,
5.00%, 06/30/48

    570       618,661  

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

    860       882,704  
   

 

 

 
      4,926,377  
Montana — 0.1%  

City of Kalispell Montana, Refunding RB, Immanuel Lutheran Corporation Project, Series A, 5.25%, 05/15/37

    170       174,930  
   

 

 

 
Nevada — 3.6%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19(b)

    1,350       1,359,328  

County of Clark Nevada Airport System, ARB, Series B, 5.75%, 07/01/42

    3,375       3,481,144  

Las Vegas Convention & Visitors Authority, RB, Series B, 4.00%, 07/01/49

    2,000       2,010,860  
   

 

 

 
      6,851,332  
New Hampshire — 0.5%  

New Hampshire Housing Finance Authority, RB, Cimarron, Whittier Falls & Marshall (FHA), 4.00%, 07/01/52

    1,000       999,950  
   

 

 

 
New Jersey — 5.7%  

New Jersey EDA, RB, Private Activity Bond, Goethals Bridge Replacement Project, AMT (AGM), 5.00%, 01/01/31

    900       976,851  

New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39

    2,250       2,296,777  

New Jersey Transportation Trust Fund Authority, RB, Series AA:

   

Transportation Program Bonds, 4.13%, 06/15/39

    1,210       1,176,604  

Transportation System, 5.50%, 06/15/39

    2,475       2,624,218  

New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36

    180       193,480  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New Jersey (continued)  

Tobacco Settlement Financing Corp., Refunding RB, Sub-Series B, 5.00%, 06/01/46

  $ 3,610     $ 3,594,838  
   

 

 

 
      10,862,768  
New York — 1.7%  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 06/01/41(a)

    1,100       1,125,267  

New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3,
6.38%, 07/15/49

    1,650       1,713,244  

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT,
5.25%, 01/01/50

    475       505,025  
   

 

 

 
      3,343,536  
Ohio — 3.5%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2:

   

5.75%, 06/01/34

    310       289,698  

5.88%, 06/01/47

    1,775       1,648,425  

County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20(b)

    3,115       3,254,178  

Ohio Housing Finance Agency, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48

    310       311,336  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    1,000       1,113,340  
   

 

 

 
    6,616,977  
Oklahoma — 0.9%  

City of Oklahoma Turnpike Authority, RB, Series A,
4.00%, 01/01/48

    325       333,645  

County of Tulsa Oklahoma Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/37

    450       487,170  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48

    760       827,739  
   

 

 

 
    1,648,554  
Oregon — 0.1%  

State of Oregon Housing & Community Services Department, RB, S/F Housing, Mortgage Program, Series C, 3.95%, 07/01/43

    250       251,775  
   

 

 

 
Pennsylvania — 6.3%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/42(a)

    585       618,117  

County of Berks IDA, Refunding RB, Tower Health Projects, 5.00%, 11/01/50

    915       988,895  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49

    560       559,983  

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 04/01/39

    1,075       1,081,945  

Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44

    1,000       1,034,690  

Pennsylvania HFA, Refunding RB, S/F Housing Mortgage:

   

Series 119, 3.50%, 10/01/36

    1,490       1,462,956  

Series 128B, 3.85%, 04/01/38(e)

    1,120       1,123,226  

Pennsylvania Turnpike Commission, RB:

   

Series A, 5.63%, 12/01/20(b)

    1,470       1,572,665  

Series A, 5.63%, 12/01/20(b)

    545       583,063  

Series C, 5.00%, 12/01/39

    620       677,821  

State Public School Building Authority, Refunding RB, The School District of Philadelphia Project, Series A, 5.00%, 06/01/34

    625       695,894  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37

  $ 1,500     $ 1,658,325  
   

 

 

 
      12,057,580  
Puerto Rico — 0.6%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:

   

5.50%, 05/15/39

    670       677,484  

5.63%, 05/15/43

    445       449,971  
   

 

 

 
      1,127,455  
Rhode Island — 2.2%  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    525       550,169  

Series B, 4.50%, 06/01/45

    3,950       3,673,302  
   

 

 

 
      4,223,471  
South Carolina — 5.5%  

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

    2,505       2,830,801  

County of Charleston South Carolina Airport District, ARB, Series A, AMT:

   

6.00%, 07/01/38

    1,955       2,224,868  

5.50%, 07/01/41

    1,000       1,110,340  

South Carolina Jobs-Economic Development Authority, Refunding RB, Prisma Health Obligated Group, 4.25%, 05/01/48

    1,615       1,625,966  

State of South Carolina Ports Authority, ARB, AMT:

   

5.00%, 07/01/36

    405       458,885  

5.00%, 07/01/55

    820       887,084  

State of South Carolina Ports Authority, RB, AMT,
5.25%, 07/01/50

    1,280       1,390,707  
   

 

 

 
      10,528,651  
Texas — 7.4%  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien(b):

   

5.75%, 01/01/21

    1,000       1,072,390  

6.00%, 01/01/21

    2,600       2,800,330  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 08/15/20(b)

    3,515       3,738,519  

Dallas-Fort Worth Texas International Airport, ARB, Joint Improvement, AMT:

   

Series A, 5.00%, 11/01/38

    1,365       1,419,422  

Series H, 5.00%, 11/01/37

    1,535       1,620,960  

North Texas Tollway Authority, Refunding RB,
4.25%, 01/01/49

    720       740,974  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38

    710       789,705  

Texas Department of Housing & Community Affairs, RB, S/F Housing Mortgage, Series A (Ginnie Mae), 4.25%, 09/01/43

    230       235,476  

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39

    1,700       1,764,447  
   

 

 

 
      14,182,223  
Virginia — 3.2%  

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 01/01/43

    560       604,257  

County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health(b):

   

5.50%, 05/15/19

    610       616,527  

5.50%, 05/15/19

    1,135       1,147,144  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47

    1,395       1,316,336  

Virginia Small Business Financing Authority, RB, AMT:

   

Covanta Project, 5.00%, 01/01/48(a)(d)

    585       595,852  
 

 

 

30    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Virginia (continued)  

Senior Lien, Elizabeth River Crossings OpCo LLC Project,
6.00%, 01/01/37

  $ 1,715     $ 1,874,049  
   

 

 

 
      6,154,165  
West Virginia — 1.3%  

West Virginia Hospital Finance Authority, RB, Improvement, West Virginia University Health System Obligated Group, Series A,
4.00%, 06/01/51

    2,525       2,453,416  
   

 

 

 
Wisconsin — 1.7%  

Public Finance Authority, Refunding RB, Mery’s Wood at Marylhurst Projects, 5.25%, 05/15/52(a)

    1,015       1,044,435  

Wisconsin Housing & Economic Development Authority, RB, Series A:

   

4.30%, 11/01/53

    1,605       1,622,414  

4.45%, 05/01/57

    660       666,633  
   

 

 

 
      3,333,482  
   

 

 

 

Total Municipal Bonds — 101.7%
(Cost — $185,777,777)

 

    194,504,391  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond
Trusts(f) — 66.5%

 

Arizona — 0.6%  

County of Maricopa Industrial Development Authority, RB, Banner Health, Series A, 4.00%, 01/01/41

    1,065       1,091,401  
   

 

 

 
California — 20.4%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area:

   

Toll Bridge, 4.00%, 04/01/42(g)

    1,998       2,046,642  

Series F-1, 5.63%, 04/01/19(b)

    2,681       2,698,566  

Grossmont California Union High School District, GO, Election of 2008, Series B, 5.00%, 08/01/20(b)

    6,000       6,306,780  

Los Angeles California Unified School District, GO, Series I,
5.00%, 01/01/34

    790       799,539  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(b)(g)

    5,251       5,535,713  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 08/01/19(b)

    7,697       7,866,116  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47

    1,980       2,221,675  

San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 08/01/19(b)

    8,412       8,576,372  

University of California, RB, Series O, 5.75%, 05/15/19(b)

    3,001       3,035,837  
   

 

 

 
    39,087,240  
Colorado — 1.1%  

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A, 5.50%, 07/01/34(g)

    2,149       2,172,769  
   

 

 

 
District of Columbia — 1.8%  

District of Columbia, RB, Series A, 5.50%, 12/01/30(g)

    2,804       2,885,837  

District of Columbia Housing Finance Agency, RB, M/F Housing, Series B-2, 4.10%, 09/01/39

    610       617,900  
   

 

 

 
    3,503,737  
Florida — 1.9%  

City of Tampa Florida, RB, Baycare Health System, Series A, 4.00%, 11/15/46

    1,918       1,919,820  

South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida, 5.00%, 08/15/47

    1,575       1,749,142  
   

 

 

 
    3,668,962  
Illinois — 0.5%  

Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41

    914       922,308  
   

 

 

 
Security   Par
(000)
    Value  
Maine — 0.5%  

Maine State Housing Authority, RB, M/F Housing,
4.15%, 11/15/38

  $ 831     $ 853,872  
   

 

 

 
Michigan — 1.4%  

State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48

    2,756       2,737,220  
   

 

 

 
Nevada — 8.0%  

County of Clark Nevada, GO, Stadium Improvement, Series A, 5.00%, 05/01/48

    2,740       3,109,574  

County of Clark Nevada Water Reclamation District, GO, Series B, 5.50%, 07/01/19(b)

    5,668       5,757,947  

Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 06/01/28

    6,070       6,488,587  
   

 

 

 
      15,356,108  
New Jersey — 1.5%  

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29

    1,801       1,806,824  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%,
06/15/36(g)

    1,000       1,042,478  
   

 

 

 
      2,849,302  
New York — 16.1%  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38(e)

    1,280       1,321,703  

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

   

Series FF, 5.00%, 06/15/45

    3,859       4,176,528  

Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    2,505       2,538,567  

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series BB, 5.25%, 06/15/44

    4,408       4,791,450  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(g):

   

5.75%, 02/15/21(b)

    799       860,381  

5.75%, 02/15/47

    491       529,280  

Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56

    2,996       3,320,450  

New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

    4,365       4,738,493  

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51(g)

    2,560       2,801,138  

State of New York Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 03/15/19(b)

    5,700       5,724,111  
   

 

 

 
      30,802,101  
Pennsylvania — 1.9%  

Commonwealth of Pennsylvania, GO, 1st Series,
4.00%, 03/01/36(g)

    1,769       1,845,036  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    1,514       1,732,036  
   

 

 

 
    3,577,072  
Rhode Island — 0.4%  

Rhode Island Housing & Mortgage Finance Corp., Refunding RB, S/F Housing, Home Ownership Opportunity Bonds, Series 69-B (Ginnie Mae, Fannie Mae & Freddie Mac), 3.95%, 10/01/43

    840       841,151  
   

 

 

 
Texas — 8.4%  

City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 02/01/19(b)(g)

    3,989       3,989,079  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39

    5,400       5,502,249  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock MuniYield Investment Fund (MYF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

County of Hidalgo Texas, GOL, Certificates of Obligation, Series A, 4.00%, 08/15/43

  $ 2,703     $ 2,729,244  

North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 09/01/21(b)

    3,480       3,801,204  
   

 

 

 
    16,021,776  
Utah — 1.1%  

City of Riverton Utah, RB, IHC Health Services, Inc.,
5.00%, 08/15/19(b)

    1,994       2,029,851  
   

 

 

 
Washington — 0.9%  

Washington Health Care Facilities Authority, Refunding RB, Multicare Health System, Series B, 4.13%, 08/15/43

    1,641       1,663,227  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond
Trusts — 66.5%
(Cost — $124,404,831)

 

    127,178,097  
   

 

 

 

Total Long-Term Investments — 168.2%
(Cost — $310,182,608)

 

    321,682,488  
   

 

 

 
     Shares         

Short-Term Securities — 0.1%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.24% (h)(i)

    99,755       99,775  
   

 

 

 

Total Short-Term Securities — 0.1%
(Cost — $99,766)

 

    99,775  
   

 

 

 

Total Investments — 168.3%
(Cost — $310,282,374)

 

    321,782,263  

Other Assets Less Liabilities — 1.1%

 

    2,099,120  
         

Value

 

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (38.4)%

  $ (73,429,846

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (31.0)%

    (59,237,699
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

  $ 191,213,838  
   

 

 

 

 

(a)