UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-06728

 

Name of Fund: BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Quality Fund II, Inc., 55 East 52nd Street, New York, NY 10055

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 04/30/2012

 

Date of reporting period: 07/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments July 31, 2011 (Unaudited)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 0.8%

 

 

 

 

 

 

 

Birmingham Special Care Facilities
Financing Authority, RB, Children’s
Hospital (AGC), 6.00%, 6/01/39

 

$

650

 

$

695,416

 

County of Jefferson Alabama, RB,
Series A, 4.75%, 1/01/25

 

 

2,000

 

 

1,671,600

 

 

 

 

 

 

 

2,367,016

 

Arizona — 1.5%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,789,462

 

State of Arizona, COP, Department of
Administration, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

1,300

 

 

1,343,953

 

5.00%, 10/01/29

 

 

925

 

 

947,376

 

 

 

 

 

 

 

4,080,791

 

California — 17.9%

 

 

 

 

 

 

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A (AMBAC),
5.45%, 10/01/25 (a)

 

 

7,150

 

 

5,848,700

 

Cabrillo Community College District
California, GO, CAB, Election of 2004,
Series B (NPFGC) (b):

 

 

 

 

 

 

 

5.18%, 8/01/37

 

 

2,100

 

 

354,963

 

4.87%, 8/01/38

 

 

4,800

 

 

756,336

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

500

 

 

505,675

 

Sutter Health, Series B,
5.88%, 8/15/31

 

 

1,000

 

 

1,068,260

 

California State University, RB, System
Wide, Series A, 5.50%, 11/01/39

 

 

1,000

 

 

1,023,340

 

City of San Jose California, RB,
Series A-1, AMT, 5.75%, 3/01/34

 

 

700

 

 

693,840

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM),
5.00%, 8/01/13 (a)

 

 

1,800

 

 

1,579,752

 

East Side Union High School District,
GO, CAB (AGM), 4.92%, 8/01/29 (b)

 

 

15,000

 

 

4,643,100

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

El Monte Union High School District
California, GO, Election of 2002,
Series C (AGM), 5.25%, 6/01/28

 

$

4,000

 

$

4,195,800

 

Fairfield-Suisun Unified School District
California, GO, Election of 2002
(NPFGC), 5.50%, 8/01/28

 

 

2,770

 

 

2,898,195

 

Fresno Unified School District California,
GO, Election of 2001, Series E (AGM),
5.00%, 8/01/30

 

 

800

 

 

805,624

 

Los Angeles Community College District
California, GO, Election of 2001,
Series A (AGM), 5.00%, 8/01/32

 

 

2,200

 

 

2,255,000

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,600

 

 

2,654,522

 

5.00%, 10/01/36

 

 

1,475

 

 

1,487,272

 

Monterey Peninsula Community College
District, GO, CAB, Series C (AGM),
5.08%, 8/01/28 (b)

 

 

11,975

 

 

4,163,468

 

Palm Springs Financing Authority,
Refunding RB, Convention Center
Project, Series A (NPFGC), 5.50%,
11/01/29

 

 

2,900

 

 

2,947,299

 

Port of Oakland, RB, Series K, AMT
(NPFGC), 5.75%, 11/01/29

 

 

2,000

 

 

2,000,400

 

Poway Redevelopment Agency
California, Tax Allocation Bonds,
Refunding, Paguay Redevelopment
Project (AMBAC), 5.13%, 6/15/33

 

 

1,250

 

 

1,061,037

 

Sacramento Unified School District
California, GO, Election of 2002
(NPFGC), 5.00%, 7/01/30

 

 

1,600

 

 

1,624,960

 

San Diego County Water Authority, COP,
Refunding, Series 2008-A (AGM),
5.00%, 5/01/38

 

 

2,015

 

 

2,035,553

 

San Diego Unified School District
California, GO, CAB, Election of 2008,
Series C, 6.85%, 7/01/38 (b)

 

 

1,400

 

 

251,468

 

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

 

 

575

 

 

629,815

 

San Marcos Unified School District, GO,
Election of 2010, Series A:

 

 

 

 

 

 

 

5.00%, 8/01/34

 

 

600

 

 

603,756

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

Radian

Radian Group, Inc.

RB

Revenue Bonds

Syncora

Syncora Guarantee

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

San Marcos Unified School District, GO,
Election of 2010, Series A
(concluded):

 

 

 

 

 

 

 

5.00%, 8/01/38

 

$

490

 

$

487,124

 

State of California, GO, 5.13%, 6/01/27

 

 

20

 

 

20,011

 

Turlock Irrigation District, Refunding RB,
5.50%, 1/01/41 (c)

 

 

750

 

 

772,755

 

Ventura County Community College
District, GO, Election of 2002,
Series B (NPFGC), 5.00%, 8/01/30

 

 

2,025

 

 

2,082,652

 

Yosemite Community College District,
GO, CAB, Election of 2004, Series D,
6.55%, 8/01/36 (b)

 

 

2,000

 

 

372,980

 

 

 

 

 

 

 

49,823,657

 

Colorado — 1.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

200

 

 

188,468

 

5.50%, 12/01/33

 

 

675

 

 

612,164

 

E-470 Public Highway Authority
Colorado, Refunding RB, CAB,
Series B (NPFGC), 5.63%, 9/01/32 (b)

 

 

5,500

 

 

1,217,425

 

Regional Transportation District, COP,
Series A, 5.38%, 6/01/31

 

 

1,000

 

 

1,040,220

 

 

 

 

 

 

 

3,058,277

 

Florida — 19.5%

 

 

 

 

 

 

 

Broward County School Board Florida,
COP, Series A (AGM), 5.25%, 7/01/33

 

 

1,400

 

 

1,425,130

 

County of Duval Florida, COP, Master
Lease Program (AGM), 5.00%,
7/01/33

 

 

8,600

 

 

8,630,272

 

Florida Ports Financing Commission,
Refunding RB, State Transportation
Trust Fund, Series B, AMT, 5.38%,
10/01/29

 

 

2,400

 

 

2,434,560

 

Highlands County Health Facilities
Authority, RB, Adventist Health
System/Sunbelt, Series B, 6.00%,
11/15/37

 

 

550

 

 

582,709

 

Hillsborough County Aviation Authority
Florida, RB, Series A, AMT (AGC),
5.38%, 10/01/33

 

 

3,250

 

 

3,267,972

 

Miami-Dade County, RB:

 

 

 

 

 

 

 

Jackson Health System (AGC),
5.63%, 6/01/34

 

 

1,000

 

 

1,017,340

 

Water & Sewer System (AGM),
5.00%, 10/01/39

 

 

6,900

 

 

6,975,417

 

Miami-Dade County, Refunding RB,
Miami International Airport, AMT
(AGC), 5.00%, 10/01/40

 

 

12,550

 

 

11,306,922

 

Miami-Dade County Expressway
Authority, RB, Series A (AGC), 5.00%,
7/01/35

 

 

3,225

 

 

3,224,871

 

Miami-Dade County School Board, COP,
RB, Series B (AGC), 5.25%, 5/01/31

 

 

725

 

 

748,642

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

Orange County School Board, COP,
Series A:

 

 

 

 

 

 

 

(AGC), 5.50%, 8/01/34

 

$

3,400

 

$

3,513,288

 

(NPFGC), 5.00%, 8/01/31

 

 

9,000

 

 

9,023,670

 

Sarasota County Public Hospital District,
RB, Sarasota Memorial Hospital
Project, Series A, 5.63%, 7/01/39

 

 

250

 

 

252,613

 

South Florida Water Management
District, COP (AGC), 5.00%, 10/01/22

 

 

1,800

 

 

1,899,612

 

 

 

 

 

 

 

54,303,018

 

Georgia — 0.3%

 

 

 

 

 

 

 

Gwinnett County Hospital Authority,
Refunding RB, Gwinnett Hospital
System, Series D (AGM), 5.50%,
7/01/41

 

 

730

 

 

737,899

 

Illinois — 20.2%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Chicago School Reform
Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

2,500

 

 

2,601,375

 

Chicago Park District, GO, Harbor
Facilities, Series C, 5.25%, 1/01/40

 

 

500

 

 

511,545

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

5,200

 

 

5,360,628

 

(Syncora), 6.00%, 1/01/29

 

 

2,200

 

 

2,245,980

 

City of Chicago Illinois, GO, CAB, City
Colleges (NPFGC), 5.90%,
1/01/31 (b)

 

 

8,370

 

 

2,457,683

 

City of Chicago Illinois, GO, Refunding,
Series A (AGM), 5.00%, 1/01/25

 

 

5,000

 

 

5,137,400

 

City of Chicago Illinois, RB, Series A:

 

 

 

 

 

 

 

(AGC), 5.00%, 1/01/38

 

 

4,000

 

 

3,994,000

 

Third Lien, O’Hare International
Airport, 5.75%, 1/01/39

 

 

2,000

 

 

2,087,080

 

County of Cook Illinois, GO, Capital,
Improvement, Series C (AMBAC),
5.50%, 11/15/12 (d)

 

 

2,460

 

 

2,624,451

 

Illinois Finance Authority, RB, Carle
Foundation, Series A, 5.75%,
8/15/34

 

 

400

 

 

393,964

 

Illinois Finance Authority, Refunding RB,
Central DuPage Health, Series B,
5.50%, 11/01/39

 

 

2,070

 

 

2,099,974

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.50%,
6/15/30

 

 

19,675

 

 

19,992,948

 

Metropolitan Pier & Exposition Authority,
RB, CAB, McCormick Place Expansion
Project, Series A (NPFGC), 6.01%,
12/15/36 (b)

 

 

10,000

 

 

2,077,000

 

Metropolitan Pier & Exposition Authority,
Refunding RB, CAB, McCormick Place
Expansion Project, Series B (AGM) (b):

 

 

 

 

 

 

 

5.83%, 6/15/27

 

 

1,125

 

 

467,336

 

6.25%, 6/15/44

 

 

2,980

 

 

373,185

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2011

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Railsplitter Tobacco Settlement
Authority, RB, 6.00%, 6/01/28

 

$

575

 

$

592,164

 

Regional Transportation Authority, RB,
Series B (NPFGC), 5.75%, 6/01/33

 

 

2,000

 

 

2,181,000

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/34

 

 

1,125

 

 

1,141,594

 

 

 

 

 

 

 

56,339,307

 

Indiana — 1.5%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Series B, 5.75%, 1/01/34

 

 

350

 

 

357,182

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB,
Waterworks Project, Series A:

 

 

 

 

 

 

 

5.75%, 1/01/38

 

 

2,000

 

 

2,105,900

 

(AGC), 5.50%, 1/01/38

 

 

1,575

 

 

1,647,104

 

 

 

 

 

 

 

4,110,186

 

Iowa — 1.8%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A
(AGC), 5.63%, 8/15/37

 

 

4,925

 

 

5,093,731

 

Kentucky — 0.8%

 

 

 

 

 

 

 

Kentucky State Property & Buildings
Commission, Refunding RB, Project
No. 93 (AGC), 5.25%, 2/01/29

 

 

2,000

 

 

2,116,840

 

Louisiana — 0.5%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority,
Refunding RB, Christus Health,
Series B (AGC), 6.50%, 7/01/30

 

 

1,150

 

 

1,276,109

 

Massachusetts — 8.6%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT, Rental
Mortgage, Series F (AGM), 5.25%,
1/01/46

 

 

15,550

 

 

15,354,070

 

Massachusetts HFA, Refunding RB,
Series C, AMT:

 

 

 

 

 

 

 

5.00%, 12/01/30

 

 

5,000

 

 

4,819,550

 

5.35%, 12/01/42

 

 

975

 

 

948,929

 

Massachusetts Water Resources
Authority, Refunding RB, Series A
(NPFGC), 5.00%, 8/01/34

 

 

2,700

 

 

2,786,103

 

 

 

 

 

 

 

23,908,652

 

Michigan — 9.8%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second
Lien:

 

 

 

 

 

 

 

Series B (AGM), 6.25%, 7/01/36

 

 

350

 

 

381,178

 

Series B (AGM), 7.00%, 7/01/36

 

 

200

 

 

229,554

 

System, Series A (BHAC), 5.50%,
7/01/36

 

 

5,500

 

 

5,623,475

 

System, Series B (NPFGC), 5.00%,
7/01/36

 

 

3,000

 

 

2,759,580

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series E (BHAC),
5.75%, 7/01/31

 

 

2,200

 

 

2,312,508

 

Series D (NPFGC), 5.00%, 7/01/28

 

 

4,000

 

 

3,836,640

 

Series D (NPFGC), 5.00%, 7/01/33

 

 

1,000

 

 

946,460

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

$

375

 

$

376,804

 

Lansing Board of Water & Light, RB,
Series A, 5.50%, 7/01/41

 

 

1,700

 

 

1,801,252

 

Michigan Higher Education Student
Loan Authority, Refunding RB, Student
Loan, Series XVII-G, AMT (AMBAC),
5.20%, 9/01/20

 

 

1,000

 

 

1,005,730

 

Michigan State Building Authority,
Refunding RB, Facilities Project:

 

 

 

 

 

 

 

Series I-A, 5.38%, 10/15/41

 

 

600

 

 

604,404

 

Series II-A (AGM), 5.25%, 10/15/36

 

 

1,900

 

 

1,916,283

 

Michigan State HDA, RB, Series C, AMT,
5.50%, 12/01/28

 

 

900

 

 

903,681

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co. Project, AMT
(Syncora):

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

1,000

 

 

983,800

 

Series C, 5.45%, 12/15/32

 

 

3,900

 

 

3,761,433

 

 

 

 

 

 

 

27,442,782

 

Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota,
Refunding RB, Fairview Health
Services, Series B (AGC), 6.50%,
11/15/38

 

 

1,800

 

 

1,960,888

 

Nevada — 3.5%

 

 

 

 

 

 

 

City of Carson City Nevada, RB,
Carson-Tahoe Hospital Project,
Series A (Radian), 5.50%, 9/01/33

 

 

2,800

 

 

2,556,344

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Las Vegas-McCarran International
Airport, Series A (AGC), 5.25%,
7/01/39

 

 

1,700

 

 

1,709,112

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/30

 

 

1,500

 

 

1,507,215

 

Subordinate Lien, Series A-2
(NPFGC), 5.00%, 7/01/36

 

 

2,700

 

 

2,643,381

 

System, Subordinate Lien, Series C
(AGM), 5.00%, 7/01/26

 

 

1,275

 

 

1,325,656

 

 

 

 

 

 

 

9,741,708

 

New Jersey — 7.2%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.50%,
6/15/31

 

 

85

 

 

80,004

 

Motor Vehicle Surcharge,
Series A (NPFGC), 5.25%, 7/01/33

 

 

8,200

 

 

8,337,186

 

School Facilities Construction,
Series O, 5.13%, 3/01/28

 

 

2,650

 

 

2,701,569

 

School Facilities Construction,
Series P, 5.13%, 9/01/28

 

 

4,000

 

 

4,087,760

 

New Jersey EDA, Refunding RB, School
Facilities Construction, Series N-1
(AGM), 5.50%, 9/01/25

 

 

2,000

 

 

2,202,520

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey (concluded)

 

 

 

 

 

 

 

New Jersey Higher Education Student
Assistance Authority, RB, Series 1,
AMT:

 

 

 

 

 

 

 

5.50%, 12/01/25

 

$

500

 

$

513,855

 

5.50%, 12/01/26

 

 

350

 

 

356,884

 

5.75%, 12/01/28

 

 

200

 

 

204,836

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A (NPFGC), 5.75%, 6/15/25

 

 

1,400

 

 

1,588,412

 

 

 

 

 

 

 

20,073,026

 

New York — 1.2%

 

 

 

 

 

 

 

New York City Transitional Finance
Authority, RB, Fiscal 2009, Series S-4,
5.50%, 1/15/33

 

 

3,035

 

 

3,229,452

 

North Carolina — 0.6%

 

 

 

 

 

 

 

North Carolina Medical Care
Commission, RB, Novant Health
Obligation, Series A, 4.75%,
11/01/43

 

 

2,020

 

 

1,717,141

 

Ohio — 0.5%

 

 

 

 

 

 

 

County of Lucas Ohio, Refunding RB,
Promedica Healthcare, Series A,
6.50%, 11/15/37

 

 

460

 

 

511,428

 

Ohio Higher Educational Facility
Commission, Refunding RB, Summa
Health System, 2010 Project (AGC),
5.25%, 11/15/40

 

 

900

 

 

884,205

 

 

 

 

 

 

 

1,395,633

 

Pennsylvania — 2.0%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB,
Series 99A, AMT, 5.25%, 10/01/32

 

 

1,340

 

 

1,344,703

 

Pennsylvania Turnpike Commission, RB,
Subordinate, Special Motor License
Fund:

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

500

 

 

557,040

 

5.50%, 12/01/41

 

 

2,245

 

 

2,374,133

 

Philadelphia School District, GO,
Series E, 6.00%, 9/01/38

 

 

1,300

 

 

1,370,382

 

 

 

 

 

 

 

5,646,258

 

Puerto Rico — 1.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

 

3,000

 

 

3,218,280

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.73%,
8/01/41 (b)

 

 

10,000

 

 

1,427,100

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico (concluded)

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB (concluded):

 

 

 

 

 

 

 

First Sub-Series C, 6.00%,
8/01/39

 

$

725

 

$

760,967

 

 

 

 

 

 

 

5,406,347

 

South Carolina — 1.3%

 

 

 

 

 

 

 

South Carolina Jobs-EDA, Refunding RB,
Palmetto Health, Series A (AGM),
6.50%, 8/01/39

 

 

100

 

 

104,178

 

South Carolina Transportation
Infrastructure Bank, RB, Series A,
5.25%, 10/01/40

 

 

3,420

 

 

3,485,732

 

 

 

 

 

 

 

3,589,910

 

Texas — 9.3%

 

 

 

 

 

 

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp., RB,
Series A, AMT (NPFGC), 5.50%,
11/01/33

 

 

5,000

 

 

4,986,800

 

Lewisville ISD Texas, GO, Refunding,
CAB, School Building (NPFGC), 4.67%,
8/15/24 (b)

 

 

3,915

 

 

2,172,003

 

Lone Star College System, GO, 5.00%,
8/15/33

 

 

3,000

 

 

3,173,100

 

Mansfield ISD Texas, GO, School
Building (PSF-GTD), 5.00%, 2/15/33

 

 

1,065

 

 

1,109,943

 

North Texas Tollway Authority, RB,
System, First Tier, Series K-1 (AGC),
5.75%, 1/01/38

 

 

3,400

 

 

3,530,730

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

Series A, 6.00%, 1/01/28

 

 

2,415

 

 

2,603,418

 

System (NPFGC), 5.75%, 1/01/40

 

 

3,600

 

 

3,626,676

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.75%,
8/15/38

 

 

4,800

 

 

4,810,416

 

 

 

 

 

 

 

26,013,086

 

Vermont — 0.8%

 

 

 

 

 

 

 

Vermont HFA, Refunding RB, Multiple
Purpose, Series C, AMT (AGM), 5.50%,
11/01/38 (e)

 

 

2,155

 

 

2,197,346

 

Virginia — 0.4%

 

 

 

 

 

 

 

Virginia HDA, RB, Sub-Series H-1
(NPFGC), 5.35%, 7/01/31

 

 

1,225

 

 

1,225,453

 

Washington — 1.8%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit
Authority, RB, Series A, 5.00%,
11/01/36

 

 

1,400

 

 

1,433,866

 

Washington Health Care Facilities
Authority, RB, Providence Health &
Services, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

1,000

 

 

986,540

 

5.25%, 10/01/39

 

 

550

 

 

556,067

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2011

4


 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Washington (concluded)

 

 

 

 

 

 

 

Washington Health Care Facilities
Authority, Refunding RB, Providence
Health, Series D (AGM), 5.25%,
10/01/33

 

$

2,000

 

$

2,047,420

 

 

 

 

 

 

 

5,023,893

 

Wisconsin — 1.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit
Group, 5.00%, 11/15/33

 

 

1,200

 

 

1,211,268

 

Froedtert & Community
Health, 5.25%, 4/01/39

 

 

2,000

 

 

2,007,360

 

 

 

 

 

 

 

3,218,628

 

Total Municipal Bonds – 116.6%

 

 

 

 

 

325,097,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Arizona — 0.4%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB,
Junior Lien, Series A, 5.00%, 7/01/34

 

 

1,000

 

 

1,039,050

 

California — 6.2%

 

 

 

 

 

 

 

Anaheim Public Financing Authority
California, RB, Electric System
Distribution Facilities, Series A
(AGM), 5.00%, 10/01/31

 

 

3,808

 

 

3,817,194

 

Los Angeles Community College District
California, GO, Series A:

 

 

 

 

 

 

 

Election of 2001 (NPFGC), 5.00%
8/01/32

 

 

4,330

 

 

4,433,660

 

Election of 2008, 6.00%,
8/01/33

 

 

1,699

 

 

1,893,140

 

Orange County Sanitation District, COP
(NPFGC), 5.00%, 2/01/33

 

 

2,299

 

 

2,319,081

 

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

 

 

359

 

 

378,107

 

San Diego County Water Authority, COP,
Refunding, Series 2008-A (AGM),
5.00%, 5/01/33

 

 

3,030

 

 

3,094,175

 

Tamalpais Union High School District
California, GO, Election of 2001
(AGM), 5.00%, 8/01/28

 

 

1,320

 

 

1,360,696

 

 

 

 

 

 

 

17,296,053

 

Colorado — 0.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority,
Refunding RB, Catholic Healthcare,
Series A, 5.50%, 7/01/34

 

 

780

 

 

804,496

 

District of Columbia — 1.0%

 

 

 

 

 

 

 

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

 

 

855

 

 

953,470

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

District of Columbia (concluded)

 

 

 

 

 

 

 

District of Columbia Water & Sewer
Authority, RB, Series A, 6.00%,
10/01/35

 

$

1,580

 

$

1,812,503

 

 

 

 

 

 

 

2,765,973

 

Florida — 5.7%

 

 

 

 

 

 

 

City of Tallahassee Florida, RB (NPFGC),
5.00%, 10/01/37

 

 

4,000

 

 

4,033,520

 

County of Seminole Florida, Refunding
RB, Series B (NPFGC), 5.25%,
10/01/31

 

 

4,200

 

 

4,459,056

 

Florida State Board of Education, GO,
Series D, 5.00%, 6/01/37

 

 

1,189

 

 

1,221,981

 

Highlands County Health Facilities
Authority, RB, Adventist, Series C,
5.25%, 11/15/36

 

 

4,000

 

 

3,999,680

 

Miami-Dade County Expressway
Authority, RB, Series A (AGC), 5.00%,
7/01/35

 

 

2,100

 

 

2,099,916

 

 

 

 

 

 

 

15,814,153

 

Georgia — 7.2%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General
(AGM):

 

 

 

 

 

 

 

Series B, 5.25%, 1/01/33

 

 

4,999

 

 

5,056,630

 

Subordinate Lien, Series C,
5.00%, 1/01/33

 

 

15,000

 

 

15,064,050

 

 

 

 

 

 

 

20,120,680

 

Hawaii — 1.8%

 

 

 

 

 

 

 

Honolulu City & County Board of Water
Supply, RB, Series A (NPFGC), 5.00%,
7/01/33

 

 

5,000

 

 

5,079,900

 

Illinois — 7.8%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB,
Second Lien (AGM), 5.25%, 11/01/33

 

 

2,549

 

 

2,613,876

 

Illinois State Toll Highway Authority, RB,
Series B, 5.50%, 1/01/33

 

 

3,499

 

 

3,613,773

 

Metropolitan Pier & Exposition Authority,
RB, McCormick Place Expansion
Project, Series A (NPFGC), 5.00%,
12/15/28

 

 

3,500

 

 

3,509,730

 

Regional Transportation Authority, RB
(NPFGC), 6.50%, 7/01/26

 

 

10,000

 

 

12,035,615

 

 

 

 

 

 

 

21,772,994

 

Louisiana — 1.7%

 

 

 

 

 

 

 

State of Louisiana, RB, Series A (AGM),
5.00%, 5/01/36

 

 

4,600

 

 

4,650,048

 

Massachusetts — 2.7%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Series A (AGM), 5.00%,
8/15/30

 

 

7,195

 

 

7,477,122

 

Nevada — 1.9%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited
Tax, Performing Arts Center, 6.00%,
4/01/39

 

 

3,298

 

 

3,553,757

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2011

5


 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

Nevada (concluded)

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO, Series B, 5.75%,
7/01/34

 

$

1,574

 

$

1,725,237

 

 

 

 

 

 

 

5,278,994

 

New York — 1.2%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB, Fiscal 2009, Series A,
5.75%, 6/15/40

 

 

1,050

 

 

1,153,917

 

New York State Dormitory Authority,
ERB, Series B, 5.75%, 3/15/36

 

 

1,005

 

 

1,106,405

 

Triborough Bridge & Tunnel Authority,
RB, General, Series A-2, 5.25%,
11/15/34

 

 

1,200

 

 

1,264,512

 

 

 

 

 

 

 

3,524,834

 

Ohio — 0.2%

 

 

 

 

 

 

 

State of Ohio, RB, Cleveland Clinic
Health, Series B, 5.50%, 1/01/34

 

 

500

 

 

521,300

 

South Carolina — 2.7%

 

 

 

 

 

 

 

Charleston Educational Excellence
Finance Corp., RB, Charleston County
School (AGC):

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

2,725

 

 

2,850,459

 

5.25%, 12/01/29

 

 

2,425

 

 

2,527,820

 

5.25%, 12/01/30

 

 

880

 

 

914,839

 

South Carolina State Public Service
Authority, RB, Santee Cooper,
Series A, 5.50%, 1/01/38

 

 

1,125

 

 

1,198,204

 

 

 

 

 

 

 

7,491,322

 

Texas — 4.7%

 

 

 

 

 

 

 

Clear Creek ISD Texas, GO, Refunding,
School Building (PSF-GTD), 5.00%,
2/15/33

 

 

1,900

 

 

2,020,270

 

Cypress-Fairbanks ISD, GO, Refunding,
Schoolhouse (PSF-GTD), 5.00%,
2/15/32

 

 

5,250

 

 

5,500,162

 

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

 

 

4,000

 

 

4,121,720

 

North East ISD Texas, GO, School
Building, Series A (PSF-GTD), 5.00%,
8/01/37

 

 

1,400

 

 

1,443,904

 

 

 

 

 

 

 

13,086,056

 

Virginia — 0.1%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding
RB, Health Care, Inova Health System,
Series A, 5.50%, 5/15/35

 

 

300

 

 

311,112

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, Refunding RB,
Froedtert & Community Health Inc.,
5.25%, 4/01/39

 

 

1,250

 

 

1,254,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Value

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts –
46.0%

 

 

 

 

$

128,288,410

 

Total Long-Term Investments
(Cost – $453,961,694) – 162.6%

 

 

 

 

 

453,385,444

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (g)(h)

 

 

5,273,669

 

 

5,273,669

 

Total Short-Term Securities
(Cost – $5,273,363) – 1.9%

 

 

 

 

 

5,273,669

 

Total Investments
(Cost – $459,235,363*) – 164.5%

 

 

 

 

 

458,659,113

 

Other Assets Less Liabilities – 0.9%

 

 

 

 

 

2,449,378

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (23.6)%

 

 

 

 

 

(65,703,413

)

AMPS Shares, at Redemption Value – (41.8)%

 

 

 

 

 

(116,584,141

)

Net Assets Applicable to
Common Shareholders – 100.0%

 

 

 

 

$

278,820,937

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of July 31, 2011, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

Aggregate cost

 

$

393,556,340

 

 

 

Gross unrealized appreciation

 

$

9,061,313

 

 

Gross unrealized depreciation

 

 

(9,637,563

)

 

Net unrealized depreciation

 

$

(576,250

)

 

 

(a)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield.

 

 

(b)

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

 

 

(c)

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

 

 

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

Barclays Capital

 

$

772,755

 

$

2,040

 

 

 

(d)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(e)

Variable rate security. Rate shown is as of report date.

 

 

(f)

Securities represent bonds transferred to a TOB trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(g)

Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30, 2011

 

Net
Activity

 

Shares
Held at
July 31, 2011

 

Income

 

 

FFI Institutional
Tax-Exempt
Fund

 

 

3,066,084

 

 

2,207,585

 

 

5,273,669

 

$

798

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2011

6


 

 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

 

(h)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of July 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration
Date

 

Notional
Value

 

Unrealized
Depreciation

 

 

150

 

 

10-Year U.S.

 

 

Chicago

 

 

September

 

$

18,379,637

 

$

(473,488

)

 

 

 

 

Treasury

 

 

Board of

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

Note

 

 

Trade

 

 

 

 

 

 

 

 

 

 

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

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

 

 

 

 

•

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

The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following tables summarize the inputs used as of July 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

453,385,444

 

 

—

 

$

453,385,444

 

Short-Term Securities

 

$

5,273,669

 

 

—

 

 

—

 

 

5,273,669

 

Total

 

$

5,273,669

 

$

453,385,444

 

 

—

 

$

458,659,113

 

 

 

1

See above Schedule of Investments for values in each state or political subdivision.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(473,488

)

 

—

 

 

—

 

$

(473,488

)

 

 

2

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

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JULY 31, 2011

7

Item 2 –

Controls and Procedures

 

 

2(a) –

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

2(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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

 

 

 

BlackRock MuniYield Quality Fund II, Inc.

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski 

 

 

Chief Executive Officer (principal executive officer) of 

 

 

BlackRock MuniYield Quality Fund II, Inc. 

 

 

 

Date: September 26, 2011 

 

 

 

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

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski 

 

 

Chief Executive Officer (principal executive officer) of 

 

 

BlackRock MuniYield Quality Fund II, Inc. 

 

 

 

Date: September 26, 2011 

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews 

 

 

Chief Financial Officer (principal financial officer) of 

 

 

BlackRock MuniYield Quality Fund II, Inc. 

 

 

 

 

Date: September 26, 2011