Edgar Filing: BLACKROCK MUNICIPAL INCOME QUALITY TRUST

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

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 811-21178

Name of Fund: BlackRock Municipal Income Quality Trust (BYM)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

Quality Trust, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 08/31/2019

Date of reporting period: 02/28/2019

Item 1 – Report to Stockholders

FEBRUARY 28, 2019


SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Municipal Bond Trust (BBK)

BlackRock Municipal Income Investment Quality Trust (BAF)

BlackRock Municipal Income Quality Trust (BYM)

BlackRock Municipal Income Trust II (BLE)

BlackRock MuniHoldings Investment Quality Fund (MFL)

BlackRock MuniVest Fund, Inc. (MVF)

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Trust’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 February 28, 2019, concerns about a variety of political risks and a modest slowdown in global growth led to modest positive returns for the U.S. equity and bond markets. Though the market’s appetite for risk remained healthy for most of the reporting period, risk taking declined sharply in late 2018.

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 declined slightly. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Investment-grade and high-yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

The U.S. Federal Reserve (the “Fed”) increased short-term interest rates four times during the reporting period. At its most recent 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 and modest economic growth give 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 because the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. We expect profit margins to continue to contract, which tends to happen late in the business cycle.

In addition, trade frictions look more baked into asset prices than a year ago, but markets may be overlooking European political risks. As Brexit moves forward, the U.K. and the European Union may face significant obstacles. Most recently, Britain’s Parliament voted to extend the deadline for the separation, as policy makers continue to seek the least disruptive ways to disentangle Europe’s second-largest economy from the European Union. 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.

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 February 28, 2019
	6-month	12-month
U.S. large cap equities (S&P 500^® Index)	(3.04)%	4.68%
U.S. small cap equities (Russell 2000^® Index)	(8.86)	5.58
International equities (MSCI Europe, Australasia, Far East Index)	(3.58)	(6.04)
Emerging market equities (MSCI Emerging Markets Index)	0.33	(9.89)
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	1.10	2.04
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	2.57	4.02
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	1.99	3.17
Tax-exempt municipal bonds (S&P Municipal Bond Index)	2.21	4.03
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	2.00	4.31
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
Trust Summaries		6
Financial Statements:
Schedules of Investments		18
Statements of Assets and Liabilities		56
Statements of Operations		58
Statements of Changes in Net Assets		60
Statements of Cash Flows		63
Financial Highlights		65
Notes to Financial Statements		71
Trustee and Officer Information		81
Additional Information		82
Glossary of Terms Used in this Report		84


			3

Municipal Market Overview For the Reporting Period Ended February 28, 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 stronger 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 it 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 February 28, 2019, municipal bond funds experienced net inflows of approximately $14.4 billion (based on data from the Investment Company Institute).



For the same 12-month period, total new issuance underwhelmed from a historical perspective at $323 billion (below the $389 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 February 28, 2019
			6 months: 2.21%
			12 months: 4.03%

A Closer Look at Yields

LOGO

From February 28, 2018 to February 28, 2019, yields on AAA-rated 30-year municipal bonds decreased by eight basis points (“bps”) from 3.06% to 2.98%, while ten-year rates decreased by 37 bps from 2.47% to 2.10% and five-year rates decreased by 30 bps from 1.97% to 1.67% (as measured by Thomson Municipal Market Data). The municipal yield curve flattened modestly over the 12-month period with the spread between two- and 30-year maturities flattening by 14 bps, led by 43 bps of flattening between two- and ten-year maturities. Notably, the municipal yield curve remains nearly 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 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 February 28, 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 Trusts 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 Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trusts (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts’ shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) is reflected in the per share NAV.

To illustrate these concepts, assume a Trust’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 Trust’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 Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Trust’s financing cost of leverage is significantly lower than the income earned on a Trust’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 Trusts’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trusts had not used leverage. Furthermore, the value of the Trusts’ 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 amount of the Trusts’ 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 Trusts’ 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 Trusts’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Trust’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 Trust’s Common Shares than if the Trust were not leveraged. In addition, each Trust 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 Trust to incur losses. The use of leverage may limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust 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 Trusts’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trusts’ investment adviser will be higher than if the Trusts did not use leverage.

To obtain leverage, each Trust has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “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 Trust 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 Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust 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 Trust segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Trust’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 Trusts 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 Trusts’ 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 Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ 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


Trust Summary as of February 28, 2019		BlackRock Municipal Bond Trust

Trust Overview

BlackRock Municipal Bond Trust’s (BBK) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from regular U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade quality or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on New York Stock Exchange (“NYSE”)		BBK
Initial Offering Date		April 30, 2002
Yield on Closing Market Price as of February 28, 2019 ($14.31)^(a)		5.32%
Tax Equivalent Yield^(b)		8.99%
Current Monthly Distribution per Common Share^(c)		$0.0635
Current Annualized Distribution per Common Share^(c)		$0.7620
Economic Leverage as of February 28, 2019^(d)		39%

^(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 40.8%, 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 $.0545 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 VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5.

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BBK^(a)(b)		2.84	%		1.82	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		3.68			1.64

^(a)

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

^(b)

The Trust’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 Trust’s absolute performance based on NAV:

After performing poorly in September and October, municipal bonds recovered to post a positive total return for the full six-month period. 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 Trust benefited from its positions in the school district, utilities and health care sectors. Conversely, its exposure to the tobacco sector was a modest detractor due to the Food and Drug Administration’s announcement of its intention to ban menthol cigarettes, which could lead to a larger-than-expected decline in consumption and reduced payments in accordance to the Master Settlement Agreement. After initially selling off on the news, tobacco issues regained much of the lost ground by the close of the period. The Trust maintained its position in the sector in an effort to capitalize on its above-average yields.

Bonds with maturities of three to ten years significantly outpaced longer-term issues. In this environment, the Trust’s positions in pre-refunded bonds outperformed due to their short-dated maturities. The Trust’s allocation to zero-coupon bonds in this part of the yield curve was also a notable outperformer.

Positions in higher-quality AA and A rated bonds, which outperformed the lower-rated categories, were a further plus.

Portfolio income, enhanced by leverage, was a key contributor to absolute returns over the last six months. The use of leverage further aided results by augmenting the effect of rising bond prices.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.

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


6		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock Municipal Bond Trust

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	14.31	$	14.35		(0.28	)%	$	14.37	$	13.06
Net Asset Value		15.58		15.78		(1.27	)		15.78		15.18

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

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


	02/28/19			08/31/18
County/City/Special District/School District		22	%		20	%
Health		17			18
Transportation		15			17
Utilities		13			12
Education		11			13
State		10			7
Corporate		5			5
Tobacco		5			5
Housing		2			3

For Trust compliance purposes, the Trust’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	7	%
2020	6
2021	11
2022	10
2023	10

^(c)

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

CREDIT QUALITY ALLOCATION^(a)


	02/28/19			08/31/18
AAA/Aaa		4	%		3	%
AA/Aa		36			36
A		26			26
BBB/Baa		15			17
BB/Ba		5			6
B		4			3
NR^(b)		10			9

^(a)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings (“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.

^(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 February 28, 2019 and August 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Trust’s total investments.

Excludes short-term securities.


TRUST SUMMARY			7


Trust Summary as of February 28, 2019		BlackRock Municipal Income Investment Quality Trust

Trust Overview

BlackRock Municipal Income Investment Quality Trust’s (BAF) (the “Trust”) investment objective is to provide current income exempt from U.S. federal income tax, including the alternative minimum tax and Florida intangible property tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its managed assets in municipal bonds exempt from U.S. federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular U.S. federal income tax would now satisfy the foregoing objective and policy.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		BAF
Initial Offering Date		October 31, 2002
Yield on Closing Market Price as of February 28, 2019 ($13.63)^(a)		5.15%
Tax Equivalent Yield^(b)		8.70%
Current Monthly Distribution per Common Share^(c)		$0.0585
Current Annualized Distribution per Common Share^(c)		$0.7020
Economic Leverage as of February 28, 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)

^(c)

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

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BAF^(a)(b)		3.39	%		1.94	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		3.68			1.64

^(a)

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

^(b)

The Trust’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 Trust’s absolute performance based on NAV:

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices. However, the rising cost of leverage — which was a result of the Fed’s interest rate increases — reduced some of the benefit.

Seasoned positions, including pre-refunded bonds (which typically have yields well above current market rates), added to performance as yields fell the most for bonds with maturities of ten years and below. Conversely, positions in longer-dated maturities produced smaller gains.

At the sector level, positions in transportation and health care issues helped performance.

The Trust benefited from its higher-quality mandate, as its holdings in the AA and A rated categories performed well relative to lower-rated securities.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.

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


8		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock Municipal Income Investment Quality Trust

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	13.63	$	13.54		0.66	%	$	13.63	$	12.44
Net Asset Value		14.75		14.86		(0.74	)		14.86		14.41

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

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


	02/28/19			08/31/18
Transportation		27	%		25	%
County/City/Special District/School District		27			26
Utilities		16			16
Health		15			11
State		5			6
Education		5			5
Tobacco		3			1
Housing		1			2
Corporate		1			1
Health Care		—			3
Financing & Development		—			3
General Government		—			1

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	10	%
2020	2
2021	27
2022	5
2023	19

^(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)


	02/28/19			08/31/18
AAA/Aaa		2	%		3	%
AA/Aa		57			62
A		26			21
BBB/Baa		10			8
BB/Ba		—			1
N/R^(b)		5			5

^(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)


TRUST SUMMARY			9


Trust Summary as of February 28, 2019		BlackRock Municipal Income Quality Trust

Trust Overview

BlackRock Municipal Income Quality Trust’s (BYM) (the “Trust”) investment objective is to provide current income exempt from U.S. federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its managed assets in municipal bonds exempt from U.S. federal income taxes, including the U.S. federal alternative minimum tax. The Trust also invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		BYM
Initial Offering Date		October 31, 2002
Yield on Closing Market Price as of February 28, 2019 ($13.32)^(a)		4.68%
Tax Equivalent Yield^(b)		7.91%
Current Monthly Distribution per Common Share^(c)		$0.0520
Current Annualized Distribution per Common Share^(c)		$0.6240
Economic Leverage as of February 28, 2019^(d)		39%

^(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)

^(c)

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

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BYM^(a)(b)		4.36	%		2.14	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		3.68			1.64

^(a)

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

^(b)

The Trust’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 Trust’s absolute performance based on NAV:

Positions in higher-quality AA and A rated bonds, which outperformed the lower-rated categories, were a further plus.

Portfolio income, enhanced by leverage, was a key contributor to absolute returns. The use of leverage further aided results by augmenting the effect of rising bond prices.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.


10		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock Municipal Income Quality Trust

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	13.32	$	13.09		1.76	%	$	13.35	$	12.17
Net Asset Value		14.64		14.70		(0.41	)		14.70		14.15

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

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


	02/28/19			08/31/18
Transportation		22	%		23	%
County/City/Special District/School District		15			15
Health		15			15
Utilities		12			14
Education		9			9
State		6			6
Health Care		6			5
Financing & Development		4			3
General Government		4			3
Tobacco		3			3
Housing		2			2
Corporate		2			2

CALL/MATURITY SCHEDULE^(b)


Calendar Year Ended December 31,
2019	7	%
2020	7
2021	9
2022	9
2023	15

^(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)


	02/28/19			08/31/18
AAA/Aaa		10	%		10	%
AA/Aa		43			46
A		24			21
BBB/Baa		16			16
N/R		7			7

^(a)


TRUST SUMMARY			11


Trust Summary as of February 28, 2019		BlackRock Municipal Income Trust II

Trust Overview

BlackRock Municipal Income Trust II’s (BLE) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		BLE
Initial Offering Date		July 30, 2002
Yield on Closing Market Price as of February 28, 2019 ($14.05)^(a)		4.95%
Tax Equivalent Yield^(b)		8.36%
Current Monthly Distribution per Common Share^(c)		$0.0580
Current Annualized Distribution per Common Share^(c)		$0.6960
Economic Leverage as of February 28, 2019^(d)		39%

^(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)

^(c)

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

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
BLE^(a)(b)		4.73	%		1.80	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		3.68			1.64

^(a)

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

^(b)

The Trust’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 Trust’s absolute performance based on NAV:

Portfolio income, enhanced by leverage, was a key contributor to absolute returns over the last six months. The use of leverage further aided results by augmenting the effect of rising bond prices.

Allocations to the health care, transportation and utilities sectors added value, as did positions in state and local tax-backed issues.

Higher-rated portfolio holdings generally outperformed positions in lower-rated issues, as investment-grade bonds in the AA, A and BBB rated categories outpaced non-investment grade securities.

The Trust’s low exposure to bonds with intermediate maturities in the five- to ten-year range detracted from performance. The municipal curve steepened, with intermediate-term debt outperforming longer-dated securities.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on the Trust’s return.


12		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock Municipal Income Trust II

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	14.05	$	13.77		2.03	%	$	14.10	$	12.35
Net Asset Value		14.43		14.55		(0.82	)		14.56		14.16

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

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


	02/28/19			08/31/18
Transportation		22	%		25	%
Utilities		16			17
Health		13			14
County/City/Special District/School District		12			14
State		12			10
Corporate		10			7
Tobacco		8			5
Education		5			6
Housing		2			2

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	18	%
2020	13
2021	15
2022	10
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)


	02/28/19			08/31/18
AAA/Aaa		6	%		6	%
AA/Aa		33			36
A		22			19
BBB/Baa		21			22
BB/Ba		8			7
B		5			5
N/R		5			5	^(b)

^(a)

^(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 August 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Trust’s total investments.


TRUST SUMMARY			13


Trust Summary as of February 28, 2019		BlackRock MuniHoldings Investment Quality Fund

Trust Overview

BlackRock MuniHoldings Investment Quality Fund’s (MFL) (the “Trust”) investment objective is to provide shareholders with current income exempt from U.S. federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade (as rated or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment) municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular U.S. federal income tax would now satisfy the foregoing objective and policy.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		MFL
Initial Offering Date		September 26, 1997
Yield on Closing Market Price as of February 28, 2019 ($13.02)^(a)		5.21%
Tax Equivalent Yield^(b)		8.80%
Current Monthly Distribution per Common Share^(c)		$0.0565
Current Annualized Distribution per Common Share^(c)		$0.6780
Economic Leverage as of February 28, 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)

^(c)

The monthly distribution per Common Share, declared on March 1, 2019, was decreased to $.0525 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 Trust, 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 Trust, please see The Benefits and Risks of Leveraging on page 5.

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
MFL^(a)(b)		5.07	%		1.92	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		3.68			1.64

^(a)

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

^(b)

The Trust’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 Trust’s absolute performance based on NAV:

Portfolio income, enhanced by leverage, was a key contributor to absolute returns.

The Trust benefited from its positions in higher-quality bonds, which outpaced lower-rated securities.

Positions in longer-maturity bonds, which outperformed in the environment of falling rates, also aided results. The Trust further benefited from the strong returns of its holdings in the six- to seven-year maturity range. Conversely, shorter-term issues lagged.

All sectors produced positive returns in the period, with utilities leading the way and tobacco finishing as the most notable underperformer.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on returns.


14		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock MuniHoldings Investment Quality Fund

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	13.02	$	12.73		2.28	%	$	13.17	$	11.79
Net Asset Value		13.98		14.09		(0.78	)		14.10		13.66

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

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


	02/28/19			08/31/18
Transportation		37	%		37	%
State		20			15
Health		14			14
County/City/Special District/School District		11			15
Utilities		10			13
Education		4			4
Corporate^(a)		2			—
Housing		1			1
Tobacco		1			1

^(a)

Represents less than 1% of total investments.

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	14	%
2020	4
2021	15
2022	1
2023	20

^(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^(b)


	02/28/19			08/31/18
AAA/Aaa		6	%		6	%
AA/Aa		58			62
A		28			24
BBB/Baa		5			4
N/R		3			4

^(b)


TRUST SUMMARY			15


Trust Summary as of February 28, 2019		BlackRock MuniVest Fund, Inc.

Trust Overview

BlackRock MuniVest Fund, Inc.’s (MVF) (the “Trust”) 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 Trust seeks to achieve its investment objective by investing at least 80% of an aggregate of the Trust’s net assets (including proceeds from the issuance of any preferred shares) and the proceeds of any borrowing for investment purposes, in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). Under normal market conditions, the Trust primarily invests in long term municipal obligations rated investment grade at the time of investment (or, if unrated, are considered by the Trust’s investment adviser to be of comparable quality at the time of investment) and in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

Trust Information


Symbol on NYSE		MVF
Initial Offering Date		September 29, 1988
Yield on Closing Market Price as of February 28, 2019 ($8.94)^(a)		5.17%
Tax Equivalent Yield^(b)		8.73%
Current Monthly Distribution per Common Share^(c)		$0.0385
Current Annualized Distribution per Common Share^(c)		$0.4620
Economic Leverage as of February 28, 2019^(d)		36%

^(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)

^(c)

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

^(d)

Performance

Returns for the six months ended February 28, 2019 were as follows:


	Returns Based On
	Market Price			NAV
MVF^(a)(b)		4.32	%		1.38	%
Lipper General & Insured Municipal Debt Funds (Leveraged)^(c)		3.68			1.64

^(a)

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

^(b)

The Trust’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 Trust’s absolute performance based on NAV:

Portfolio income was a key contributor to absolute returns over the last six months. At the sector level, the Trust’s positions in transportation, state tax-backed and health care issues made the largest contribution to performance. The Trust’s allocation to higher-rated securities, which outperformed lower-quality bonds, also aided results.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy had a small, negative effect on the Trust’s return.

Positions in the tobacco sector further detracted from performance due to the Food and Drug Administration’s announcement of its intention to ban menthol cigarettes. Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.


16		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary as of February 28, 2019 (continued)		BlackRock MuniVest Fund, Inc.

Market Price and Net Asset Value Per Share Summary


	02/28/19		08/31/18		Change			High		Low
Market Price	$	8.94	$	8.81		1.48	%	$	9.00	$	8.08
Net Asset Value		9.22		9.35		(1.39	)		9.35		9.04

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

LOGO

Overview of the Trust’s Total Investments*

SECTOR ALLOCATION


	02/28/19			08/31/18
Transportation		24	%		24	%
Health		21			22
County/City/Special District/School District		11			11
Education		11			11
Corporate		9			9
State		7			6
Tobacco		7			7
Utilities		6			6
Housing		4			4

CALL/MATURITY SCHEDULE^(c)


Calendar Year Ended December 31,
2019	22	%
2020	14
2021	5
2022	6
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)


	02/28/19			08/31/18
AAA/Aaa		4	%		6	%
AA/Aa		30			33
A		24			18
BBB/Baa		23			23
BB/Ba		3			4
B		4			3
N/R^(b)		12			13

^(a)

^(b)


TRUST SUMMARY			17

Schedule of Investments (unaudited)

February 28, 2019

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 138.1%

Alabama — 0.6%
Opelika Utilities Board, Refunding RB, 4.00%, 06/01/41	$	960	$	985,258


Arizona — 7.6%
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 02/01/42		2,200		2,318,008
City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, 5.00%, 07/01/45^(a)		460		465,686
County of Pinal Arizona Electric District No.3, Refunding RB:
4.75%, 07/01/21^(b)		680		728,355
4.75%, 07/01/31		3,070		3,247,354
Salt Verde Financial Corp., RB, Senior:
5.00%, 12/01/32		1,500		1,777,260
5.00%, 12/01/37		2,065		2,439,446
University Medical Center Corp., RB, 6.50%, 07/01/19^(b)		500		507,925
University Medical Center Corp., Refunding RB, 6.00%, 07/01/21^(b)		900		986,319

				12,470,353

Arkansas — 2.3%
City of Benton Arkansas, RB, 4.00%, 06/01/39		505		522,731
City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40		840		864,142
City of Little Rock Arkansas, RB, 4.00%, 07/01/41		1,835		1,877,388
County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42		465		502,451

				3,766,712

California — 22.0%
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 08/15/20^(b)		1,900		2,020,251
California Municipal Finance Authority, RB, Orange County Civic Center Infrastructure Improvement Program, 5.00%, 06/01/43		500		571,380
California Statewide Communities Development Authority, Refunding RB, Adventist Health System, Series A, 4.00%, 03/01/48		1,345		1,353,837
Carlsbad California Unified School District, GO, Election of 2006, Series B, 6.00%, 05/01/34^(c)		1,000		1,197,110
City & County of San Francisco Public Utilities Commission Wastewater Revenue, Refunding RB, Sewer System, Series B, 4.00%, 10/01/42		500		511,465
City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT, 5.75%, 03/01/34		2,000		2,130,200
County of San Diego Regional Airport Authority, ARB, Subordinate, Series B, AMT, 5.00%, 07/01/47		1,405		1,557,667
Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/47		525		505,297
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 7.00%, 08/01/34^(c)		1,650		1,773,436
Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 08/01/38^(d)		8,000		3,708,400
Palomar Community College District, GO, CAB, Election of 2006, Series B:
0.00%, 08/01/30^(d)		1,500		1,092,750
0.00%, 08/01/33^(d)		4,000		1,664,480
6.20%, 08/01/39^(c)		2,605		2,625,710
San Diego Community College District, GO, CAB, Election of 2002, 6.00%, 08/01/33^(c)		2,800		3,351,348
State of California, GO, Refunding, Various Purpose, 5.00%, 02/01/38		3,000		3,284,550
State of California, GO, Various Purposes:
6.50%, 04/01/19^(b)		1,055		1,059,062


Security	Par (000)		Value

California (continued)
5.75%, 04/01/31	$	2,000	$	2,006,120
6.00%, 03/01/33		1,000		1,043,120
6.50%, 04/01/33		895		898,267
5.50%, 03/01/40		2,350		2,425,881
Visalia Unified School District, COP, (AGM), 4.00%, 05/01/48		1,225		1,233,403

				36,013,734

Colorado — 0.7%
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33		1,070		1,074,055


Connecticut — 1.0%
Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence & Memorial Hospital, Series F, 5.00%, 07/01/21^(b)		550		589,628
State of Connecticut, GO, Series E, 5.00%, 09/15/37		970		1,073,421

				1,663,049

Delaware — 2.2%
County of Kent Delaware, RB, CHF-Dover, LLC-Delaware State University Project, Series A:
5.00%, 07/01/40		330		351,074
5.00%, 07/01/48		900		950,796
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40		1,200		1,265,892
Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55		950		1,038,464

				3,606,226

Florida — 3.4%
County of Miami-Dade Florida, RB, AMT, Seaport Department, Series B, 6.00%, 10/01/31		4,135		4,719,152
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 06/01/36		125		129,031
Stevens Plantation Community Development District, RB, Special Assessment, Series A, 7.10%, 05/01/35^(e)(f)		860		688,000

				5,536,183

Georgia — 1.7%
City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/40		1,500		1,672,035
County of Georgia Housing & Finance Authority, RB, S/F Housing, Series A:
3.95%, 12/01/43		295		297,027
4.00%, 12/01/48		210		211,741
Main Street Natural Gas, Inc., RB, Series A:
5.00%, 05/15/38		255		289,417
5.00%, 05/15/43		330		357,627

				2,827,847

Hawaii — 0.3%
State of Hawaii Department of Budget & Finance, Refunding RB, Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37		400		435,312


Idaho — 0.3%
Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 03/01/39		500		536,590


Illinois — 7.6%
Chicago Board of Education, GO, Refunding Dedicated Revenues, Series D:
Dedicated Revenues, Series H, 5.00%, 12/01/36		235		242,713
Project, Series C, 5.25%, 12/01/35		775		803,667
Chicago Board of Education, GO, Refunding, Dedicated Revenues, Series C, 5.00%, 12/01/34		235		244,433
Chicago Board of Education, GO:
5.00%, 12/01/46		280		283,643


18		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Illinois (continued)
5.00%, 12/01/46	$	725	$	730,111
Series C, 5.00%, 12/01/25		425		453,981
Series F, 5.00%, 12/01/23		310		327,692
Refunding Series C, 5.00%, 12/01/25		335		357,844
City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 01/01/29		1,600		1,635,088
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41		870		938,608
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40		665		699,214
County of Will Illinois, GO, 5.00%, 11/15/45		600		660,096
Illinois Finance Authority, RB, Chicago LLC, University of Illinois at Chicago Project, Series A:
5.00%, 02/15/37		300		325,572
5.00%, 02/15/47		205		218,507
5.00%, 02/15/50		100		106,369
Illinois Finance Authority, Refunding RB:
OSF Health Care System, Series A, 5.00%, 11/15/45		1,205		1,289,507
OSF Healthcare System, 6.00%, 05/15/39		205		211,417
Roosevelt University Project, 6.50%, 10/01/19^(b)		395		405,890
Roosevelt University Project, 6.50%, 10/01/19^(b)		605		621,680
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21^(b)		1,150		1,257,743
State of Illinois, GO, Series D, 5.00%, 11/01/28		645		695,555

				12,509,330

Iowa — 0.2%
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project, Series B, 5.25%, 12/01/50^(g)		250		266,053


Kansas — 2.7%
County of Seward Kansas Unified School District No. 480 Liberal, GO, Refunding:
5.00%, 09/01/22^(b)		3,280		3,645,425
5.00%, 09/01/39		720		794,289

				4,439,714

Kentucky — 3.8%
County of Boyle Kentucky, Refunding RB, Centre College of Kentucky, 5.00%, 06/01/37		2,500		2,736,400
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 01/01/40		1,830		1,955,776
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C^(c):
6.75%, 07/01/34		500		495,030
6.60%, 07/01/39		830		808,088
6.75%, 07/01/43		270		262,926

				6,258,220

Louisiana — 1.5%
City of Alexandria Louisiana Utilities, RB, 5.00%, 05/01/39		860		956,707
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35		1,050		1,115,404
Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 05/01/31		400		419,844

				2,491,955

Maryland — 0.4%
County of Anne Arundel Maryland Consolidated, RB, Special Taxing District, Villages at Two Rivers Project:
5.13%, 07/01/36		170		170,813
5.25%, 07/01/44		170		170,542


Security	Par (000)		Value

Maryland (continued)
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38	$	315	$	323,634

				664,989

Massachusetts — 3.5%
Massachusetts Development Finance Agency, RB:
Emerson College Issue, Series A, 5.00%, 01/01/47		630		680,362
Emerson College Issue, 5.00%, 01/01/48		1,115		1,212,674
Emerson College Issue, Series A, 5.25%, 01/01/42		565		622,195
UMass Darthmouth Student Housing Project, 5.00%, 10/01/48		830		891,362
Massachusetts Development Finance Agency, Refunding RB:
Emmanuel College Issue, Series A, 5.00%, 10/01/43		750		804,225
International Charter School, 5.00%, 04/15/40		400		417,472
Western New England University, 5.00%, 09/01/43		750		821,970
Massachusetts Housing Finance Agency, RB, M/F Housing, Series A:
3.80%, 12/01/43		160		158,189
3.85%, 06/01/46		205		202,915

				5,811,364

Michigan — 7.2%
Michigan Finance Authority, RB:
Beaumont Health Credit Group, Series A, 5.00%, 11/01/44		1,555		1,688,886
Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 07/01/44		240		253,970
Michigan Finance Authority, Refunding RB, Henry Ford Health System, 5.00%, 11/15/41		5,560		6,035,769
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32		2,100		2,166,045
Michigan State Housing Development Authority, RB, S/F Housing, Series A, 3.80%, 10/01/38		1,690		1,677,410

				11,822,080

Minnesota — 2.0%
City of Maple Grove Minnesota, Refunding RB, Maple Grove Hospital, Corp., 4.00%, 05/01/37		880		896,817
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 5.00%, 11/15/49		560		618,593
Minneapolis-St. Paul Metropolitan Airports Commission, Refunding ARB, Sub Series D, AMT, 5.00%, 01/01/41		290		321,961
Minnesota Higher Education Facilities Authority, RB:
Augsburg College, Series B, 4.25%, 05/01/40		1,075		1,057,252
College of St. Benedict, Series 8-K, 4.00%, 03/01/43		385		375,236

				3,269,859

Mississippi — 1.9%
County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35		400		429,844
Mississippi Development Bank, RB, Special Obligation:
CAB, Hinds Community College District (AGM), 5.00%, 04/01/21^(b)		845		903,220
County of Jackson Limited Tax Note (AGC), 5.50%, 07/01/32		1,750		1,771,175

				3,104,239

Missouri — 2.7%
Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41		900		962,298
Missouri State Health & Educational Facilities Authority, RB:
A.T. Still University of Health Sciences, 5.25%, 10/01/31		500		539,415
A.T. Still University of Health Sciences, 4.25%, 10/01/32		320		334,685
A.T. Still University of Health Sciences, 5.00%, 10/01/39		500		549,930
Heartland Regional Medical Center, 4.13%, 02/15/43		300		304,218
University of Central Missouri, Series C-2, 5.00%, 10/01/34		1,000		1,114,460


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Missouri (continued)
Missouri State Health & Educational Facilities Authority, Refunding RB, Kansas City University of Medicine and Biosciences, Series A, 5.00%, 06/01/42	$	540	$	599,292

				4,404,298

Nebraska — 1.1%
Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.00%, 09/01/42		600		644,028
County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist Health System, 5.00%, 11/01/45		400		427,440
Nebraska Public Power District, Refunding RB, Series A:
5.00%, 01/01/32		250		269,482
4.00%, 01/01/44		400		404,000

				1,744,950

Nevada — 1.1%
City of Las Vegas Nevada, RB, Special Assessment, No. 809 Summerlin Area, 5.65%, 06/01/23		785		790,432
County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 07/01/36		1,000		1,041,800

				1,832,232

New Hampshire — 0.2%
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project^(a):
Series B, 4.63%, 11/01/42		255		249,066
Series C, AMT, 4.88%, 11/01/42		145		144,688

				393,754

New Jersey — 13.7%
New Jersey EDA, RB:
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30		660		744,843
Goethals Bridge Replacement Project (AGM), AMT, 5.13%, 07/01/42		200		215,408
School Facilities Construction, Series UU, 5.00%, 06/15/40		425		444,469
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 04/01/28		7,500		8,610,150
New Jersey Health Care Facilities Financing Authority, Refunding RB:
Hospital Asset Transfer Program, 5.00%, 10/01/37		685		731,498
St. Barnabas Health Care System, Series A, 4.63%, 07/01/21^(b)		510		543,731
St. Barnabas Health Care System, Series A, 5.63%, 07/01/21^(b)		1,700		1,851,028
St. Barnabas Health Care System, Series A, 5.00%, 07/01/25		500		549,040
New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45		1,860		2,048,269
New Jersey Transportation Trust Fund Authority, RB:
Transportation Program Bonds, Series S, 5.25%, 06/15/43		1,070		1,161,678
CAB, Transportation System, Series A, 0.00%, 12/15/35^(d)		1,000		479,280
Transportation Program, Series AA, 5.00%, 06/15/45		900		937,485
Transportation Program, Series AA, 5.00%, 06/15/46		400		415,216
New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36		140		151,302
South Jersey Port Corp., RB, Marine Terminal, Series B, AMT, 5.00%, 01/01/35		625		687,356
Tobacco Settlement Financing Corp., Refunding RB, Series A:
5.00%, 06/01/35		760		847,408
5.25%, 06/01/46		1,810		1,953,189

				22,371,350

New Mexico — 0.3%
New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 08/01/44		450		495,148


Security	Par (000)		Value

New York — 5.1%
City of New York Industrial Development Agency, RB, PILOT (AMBAC), 5.00%, 01/01/39	$	925	$	936,683
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41^(a)		900		924,003
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through, Series A-2B, 5.00%, 06/01/45		500		509,390
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45		1,160		1,131,847
New York City Water & Sewer System, Refunding RB, 2nd Generation, Fiscal 2013, 5.00%, 06/15/47		1,000		1,091,530
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		800		829,032
3 World Trade Center Project, Class 2, 5.38%, 11/15/40^(a)		405		428,863
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31		1,295		1,342,811
State of New York Mortgage Agency, Refunding RB, Series 211, 3.75%, 10/01/43		1,190		1,180,837

				8,374,996

North Dakota — 0.3%
County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A, 5.00%, 07/01/21^(b)		480		515,150


Ohio — 4.1%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 6.50%, 06/01/47		2,000		1,987,460
City of Dayton Ohio Airport Revenue, Refunding ARB, James M. Cox Dayton International Airport, Series A (AGM), AMT, 4.00%, 12/01/32		2,000		2,039,280
Northwest Local School District/Hamilton & Butler Counties, GO, School Improvements, 4.00%, 12/01/50		1,135		1,149,517
State of Ohio, Refunding RB, University Hospitals Health System, Series A, 5.00%, 01/15/41		1,500		1,579,935


				6,756,192

Oklahoma — 0.9%
Oklahoma City Public Property Authority, Refunding RB, 5.00%, 10/01/39		720		822,319
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48		605		661,126

				1,483,445

Oregon — 1.4%
Oregon Health & Science University, RB, Series A, 4.00%, 07/01/37		675		718,544
State of Oregon State Facilities Authority, Refunding RB, University of Portland Project, Series A, 5.00%, 04/01/45		1,475		1,640,879

				2,359,423

Pennsylvania — 6.4%
Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:
5.00%, 06/01/33		335		381,619
5.00%, 06/01/34		750		850,552
(AGM), 4.00%, 06/01/39		1,365		1,397,296
County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27		1,695		1,742,138
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49		495		496,871
Delaware River Port Authority, RB:
4.50%, 01/01/32		1,500		1,617,720
Series D (AGM), 5.00%, 01/01/20^(b)		2,600		2,672,748


20		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Pennsylvania (continued)
Pottsville Hospital Authority, Refunding RB, Lehigh Valley Health Network, Series B, 5.00%, 07/01/45	$	1,250	$	1,369,500

				10,528,444

Puerto Rico — 1.3%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:
5.50%, 05/15/39		315		318,226
5.63%, 05/15/43		345		348,602
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34		15		14,981
4.75%, 07/01/53		388		356,289
5.00%, 07/01/58		1,144		1,084,569

				2,122,667

Rhode Island — 4.3%
Narragansett Bay Commission, Refunding RB, Series A, 4.00%, 09/01/43		900		913,869
Rhode Island Health & Educational Building Corp., Refunding RB, Series A (AGM), 3.75%, 05/15/32		1,155		1,184,372
Rhode Island Housing & Mortgage Finance Corp., RB, (FHA), S/F Housing, Series 3-B, 4.13%, 10/01/49		480		483,811
State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 04/01/19^(b)		900		902,601
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.00%, 06/01/40		1,000		1,037,340
Series B, 4.50%, 06/01/45		2,730		2,561,859

				7,083,852

South Carolina — 0.8%
State of South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53		1,000		1,082,080
State of South Carolina Public Service Authority, Refunding RB, Series A, 5.00%, 12/01/36		175		194,476

				1,276,556

South Dakota — 0.5%
City of Rapid City South Dakota, RB, 4.00%, 12/01/48		740		749,768


Tennessee — 3.0%
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/40		1,950		2,075,346
County of Chattanooga-Hamilton Tennessee Hospital Authority, Refunding RB, Series A, 5.00%, 10/01/44		875		930,212
County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28		275		280,979
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40		675		740,421
Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 08/15/42		800		845,520

				4,872,478

Texas — 10.9%
County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%, 11/15/41^(d)		11,690		3,873,364
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29		1,500		1,549,410
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 09/15/38^(d)		10,760		4,699,537
El Paso Independent School District, GO, (PSF-GTD), 4.00%, 08/15/43		890		924,185
Leander ISD, GO, Refunding CAB, Series D (PSF-GTD)^(d):
0.00%, 08/15/24^(b)		370		197,869


Security	Par (000)		Value

Texas (continued)
0.00%, 08/15/35	$	3,630	$	1,880,413
Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38		760		846,617
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, 4.00%, 09/15/42		1,355		1,368,984
San Jacinto College District, GOL, Series A, 5.00%, 02/15/44		345		394,542
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, 7.00%, 06/30/40		2,000		2,123,800

				17,858,721

Utah — 1.9%
Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/43		530		593,929
Utah Charter School Finance Authority, RB, Utah Charter Academies Project, 5.00%, 10/15/48		360		392,587
Utah State Charter School Finance Authority, Refunding RB, Mountainville Academy, 4.00%, 04/15/42		400		404,540
Utah Transit Authority, Refunding RB, Series A, 5.00%, 06/15/38		1,500		1,701,255

				3,092,311

Vermont — 0.7%
University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/37		500		517,260
Vermont Student Assistance Corp., RB, Series A, 4.13%, 06/15/30		570		591,079

				1,108,339

Virginia — 2.0%
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A, 5.38%, 03/01/36		490		505,234
Virginia Beach Development Authority, Refunding RB, Westminster-Canterbury on Chesapeake Bay:
5.00%, 09/01/44		585		647,987
4.00%, 09/01/48		375		379,192
Virginia HDA, RB, M/F Housing, Rental Housing, Series B, 4.00%, 06/01/53		385		386,267
Virginia Small Business Financing Authority, RB, AMT:
Covanta Project, 5.00%, 01/01/48^(a)^(g)		470		479,485
Senior Lien, Elizabeth River Crossings OpCo LLC Project, 6.00%, 01/01/37		725		791,620

				3,189,785

Washington — 0.4%
Washington State Housing Finance Commission, Refunding RB, Horizon House Project, 5.00%, 01/01/38^(a)		600		633,300


West Virginia — 0.9%
West Virginia Hospital Finance Authority, RB, Improvement, West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51		1,570		1,547,392


Wisconsin — 1.2%
Public Finance Authority, Refunding RB, National Gypsum Co., AMT, 4.00%, 08/01/35		280		270,816
Wisconsin Health & Educational Facilities Authority, Refunding RB, Milwaukee Regional Medical Center Thermal Service, 5.00%, 04/01/44		800		902,664
WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 07/01/37		665		744,793

				1,918,273


Total Municipal Bonds — 138.1% (Cost — $212,612,829)				226,265,946


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds Transferred to Tender Option Bond Trusts^(h)

California — 1.0%
Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42⁽ⁱ⁾	$	1,451	$	1,704,779


Connecticut — 1.7%
State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45		2,611		2,874,730


New Jersey — 0.9%
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36⁽ⁱ⁾		1,400		1,454,692


New York — 13.5%
City of New York, GO, Refunding Fiscal 2015, Series B, 4.00%, 08/01/32		3,990		4,201,650
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40		405		409,228
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013:
Series BB, 4.00%, 06/15/47		3,660		3,727,515
Series CC, 5.00%, 06/15/47		6,000		6,678,586
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012:⁽ⁱ⁾
5.75%, 02/15/21		1,548		1,664,410
5.75%, 02/15/47		952		1,023,895
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		2,505		2,717,362
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31		1,560		1,675,089

				22,097,735

Texas — 2.9%
City of Houston Texas Community College, GO, Limited Tax, 4.00%, 02/15/43		2,999		3,031,520
City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43		1,580		1,717,104

				4,748,624

Virginia — 1.4%
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.00%, 07/01/48		1,996		2,282,638


Washington — 2.1%
Washington Metropolitan Area Transit Authority, RB, Series B, 5.00%, 07/01/42		2,992		3,396,180


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.5% (Cost — $37,734,773)				38,559,378


Total Long-Term Investments — 161.6% (Cost — $250,347,602)				264,825,324


Security	Shares		Value

Short-Term Securities — 0.1%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%^(j)^(k)		189,753	$	189,772


Total Short-Term Securities — 0.1% (Cost — $189,772)				189,772


Total Investments — 161.7% (Cost — $250,537,374)				265,015,096

Other Assets Less Liabilities — 1.4%				2,430,599

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.4)%				(23,629,198	)

VMTP Shares, at Liquidation Value, Net of Deferred Offering Costs — (48.7)%				(79,900,000	)


Net Assets Applicable to Common Shares — 100.0%			$	163,916,497

^(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)	Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(d)	Zero-coupon bond.

^(e)	Issuer filed for bankruptcy and/or is in default.

^(f)	Non-income producing security.

^(g)	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.

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

⁽ⁱ⁾

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between June 15, 2019 to January 1, 2026, is $3,415,794. See Note 4 of the Notes to Financial Statements for details.

^(j)	Annualized 7-day yield as of period end.

^(k)	During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		2,100,576		(1,910,823	)		189,753	$	189,772	$	20,642	$	430	$	—

^(a)

Includes net capital gain distributions, if applicable.


22		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Bond Trust (BBK)

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		06/19/19	$	3,050	$	15,823
Long U.S. Treasury Bond		87		06/19/19		12,569		143,190
5-Year U.S. Treasury Note		16		06/28/19		1,833		5,475

							$	164,488

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
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	164,488	$	—	$	164,488

^(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 February 28, 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	$	—	$	—	$	—	$	—	$	(254,903	)	$	—	$	(254,903	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	136,966		$	—	$	136,966

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	15,804,254

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

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


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	264,825,324	$	—	$	264,825,324
Short-Term Securities		189,772		—		—		189,772

	$	189,772	$	264,825,324	$	—	$	265,015,096

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	164,488	$	—	$	—	$	164,488

^(a)

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

^(b)

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


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Bond Trust (BBK)

The Trust 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	$	—	$	(23,564,266	)	$	—	$	(23,564,266	)
VMTP Shares at Liquidation Value		—		(79,900,000	)		—		(79,900,000	)

	$	—	$	(103,464,266	)	$	—	$	(103,464,266	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


24		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited)

February 28, 2019

BlackRock Municipal Income Investment Quality Trust (BAF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 101.3%

Alabama — 1.9%
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC)^(a):
6.00%, 06/01/19	$	1,000	$	1,010,380
6.13%, 06/01/19		1,000		1,010,680
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35		335		359,994

				2,381,054

Arizona — 0.2%
County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38		300		307,695


California — 11.5%
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20^(a)		1,120		1,192,879
California Municipal Finance Authority, Refunding RB, Emerson College, Series B, 5.00%, 01/01/36		750		841,785
California Statewide Communities Development Authority, Refunding RB, Adventist Health System, Series A, 4.00%, 03/01/42		1,000		1,018,190
Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33		1,025		1,188,672
Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC), 5.50%, 04/01/19^(a)		1,810		1,815,647
Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 08/01/21^(a)		1,000		1,097,000
Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J:
5.25%, 05/15/23^(a)		1,835		2,111,443
5.25%, 05/15/38		520		580,653
San Diego Public Facilities Financing Authority Water, Refunding RB, Series B (AGC), 5.38%, 08/01/19^(a)		1,125		1,143,034
State of California Public Works Board, LRB, Various Capital Projects, Series I:
5.50%, 11/01/30		1,000		1,144,300
5.50%, 11/01/31		1,500		1,711,455
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33		505		567,044
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40		380		441,518

				14,853,620

Colorado — 4.3%
City & County of Denver Colorado, RB, Capital Appreciation Bonds Series, Series A-2, 0.00%, 08/01/38^(b)		915		417,386
City & County of Denver Colorado Airport System, ARB, Sub-System, Series B, 5.25%, 11/15/32		3,250		3,661,515
Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 05/15/19^(a)		1,425		1,437,412

				5,516,313

Connecticut — 0.3%
Connecticut Housing Finance Authority, Refunding RB, S/F Housing, Sub-Series B-1, 4.00%, 05/15/45		415		418,009


Florida — 9.9%
City of Jacksonville Florida, RB, Series A, 5.25%, 10/01/31		4,525		4,851,071
County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45		795		844,012
County of Miami-Dade Florida, RB, Seaport Department, Series A, 6.00%, 10/01/38		4,215		4,826,091
County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project, 5.00%, 08/01/41		1,305		1,396,037


Security	Par (000)		Value

Florida (continued)
Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 06/01/32	$	745	$	840,486

				12,757,697

Georgia — 4.0%
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C, 6.00%, 01/01/30		2,500		2,688,000
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49		2,225		2,511,491

				5,199,491

Idaho — 0.7%
Idaho Health Facilities Authority, RB, Trinity Health Credit Group, 4.00%, 12/01/43		670		676,915
Idaho State Building Authority, RB, Department of Health And Welfare Project, 4.00%, 09/01/48		230		233,974

				910,889

Illinois — 20.8%
City of Chicago Illinois, Refunding GARB, O’Hare International Airport, 3rd Lien, Series C (AGC), 5.25%, 01/01/30		1,000		1,025,770
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:
Series A, 5.75%, 01/01/21^(a)		690		741,281
Series A, 5.75%, 01/01/39		135		142,919
Series C, 6.50%, 01/01/21^(a)		3,740		4,067,512
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts:
5.25%, 12/01/36		3,185		3,366,035
5.25%, 12/01/40		3,000		3,154,350
City of Chicago Illinois Transit Authority, Refunding RB, Federal Transit Administration, Section 5309 (AGM), 5.00%, 06/01/28		3,000		3,093,510
City of Chicago Illinois Wastewater Transmission, RB, 2nd Lien, 5.00%, 01/01/42		1,480		1,548,850
County of Cook Illinois Community College District No. 508, GO, City College of Chicago:
5.50%, 12/01/38		855		894,048
5.25%, 12/01/43		1,430		1,477,705
Illinois Finance Authority, RB, Series A:
Carle Foundation, 6.00%, 08/15/41		1,885		2,046,356
Chicago LLC, University of Illinois at Chicago Project, 5.00%, 02/15/37		520		564,325
Railsplitter Tobacco Settlement Authority, RB^(a):
5.50%, 06/01/21		915		990,707
6.00%, 06/01/21		260		284,359
State of Illinois, GO:
5.25%, 02/01/31		610		639,689
5.25%, 02/01/32		1,010		1,055,036
5.50%, 07/01/33		1,000		1,055,740
5.50%, 07/01/38		270		281,966
State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/27		345		374,563

				26,804,721

Louisiana — 0.6%
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 05/15/29		790		794,764


Maryland — 0.6%
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38		710		729,461


Massachusetts — 1.0%
Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A, 5.00%, 01/01/47		695		750,558
Massachusetts Development Finance Agency, Refunding RB, Emmanuel College Issue, Series A, 5.00%, 10/01/35		500		548,500

				1,299,058


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Investment Quality Trust (BAF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Michigan — 1.3%
City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM):
6.25%, 07/01/19^(a)	$	1,695	$	1,720,273
6.25%, 07/01/36		5		5,068

				1,725,341

Minnesota — 3.2%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 4.00%, 11/15/48		395		399,408
Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A, 5.25%, 02/15/58		520		574,720
Duluth EDA, Refunding RB, Essentia Health Obligated Group, Series A, 4.25%, 02/15/48		3,050		3,090,290

				4,064,418

Mississippi — 1.8%
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40		1,000		1,185,270
Mississippi State University Educational Building Corp., Refunding RB, Mississippi State University Improvement Project, 5.25%, 08/01/23^(a)		1,000		1,150,600

				2,335,870

Nevada — 1.6%
County of Clark Nevada Water Reclamation District, GO, Series A, 5.25%, 07/01/19^(a)		2,000		2,024,040


New Jersey — 7.3%
New Jersey Health Care Facilities Financing Authority, RB:
Inspira Health Obligated Group, 4.00%, 07/01/47		300		305,643
Virtua Health, Series A (AGC), 5.50%, 07/01/38		1,300		1,314,742
New Jersey Housing & Mortgage Finance Agency, RB, S/F, Series CC, 5.25%, 10/01/29		1,220		1,223,367
New Jersey Transportation Trust Fund Authority, RB:
Transportation Program Bonds, Series S, 5.00%, 06/15/46		2,070		2,180,973
Transportation System, Series AA, 5.50%, 06/15/39		1,620		1,719,419
New Jersey Turnpike Authority, RB, Series A, 4.00%, 01/01/48		270		276,375
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.00%, 06/01/35		580		646,706
Series A, 5.00%, 06/01/46		1,365		1,439,597
Sub-Series B, 5.00%, 06/01/46		340		344,243

				9,451,065

New York — 2.5%
Metropolitan Transportation Authority, RB:
Series A, 5.25%, 11/15/21^(a)		1,565		1,718,213
Series A-1, 5.25%, 11/15/39		1,000		1,115,780
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 4.00%, 06/01/42		420		393,935

				3,227,928

Ohio — 0.6%
Ohio Housing Finance Agency, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48		280		282,246
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31		470		523,885

				806,131

Oregon — 0.2%
County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38^(b)		510		237,558


Security	Par (000)		Value

Pennsylvania — 3.1%
Pennsylvania Housing Finance Agency, RB, S/F Housing Mortgage, Series 123-B, 4.00%, 10/01/42	$	530	$	532,523
Pennsylvania Turnpike Commission, RB, Series C, 5.00%, 12/01/43		1,720		1,854,624
Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37		1,500		1,660,080

				4,047,227

Rhode Island — 0.8%
Tobacco Settlement Financing Corp., Refunding RB, Series A, 5.00%, 06/01/40		1,050		1,089,207


South Carolina — 7.5%
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38		1,525		1,726,224
South Carolina Jobs EDA, Refunding RB:
Anmed Health Projects, 5.00%, 02/01/38		2,875		3,098,560
Prisma Health Obligated Group, Series A, 5.00%, 05/01/48		785		858,876
State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43		880		968,062
State of South Carolina Public Service Authority, RB, Series E:
5.00%, 12/01/48		440		467,971
5.50%, 12/01/53		500		541,040
State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55		1,825		1,995,455

				9,656,188

Texas — 13.0%
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 03/01/37		980		1,090,760
City of Frisco Texas ISD, GO, School Building (AGM), 5.50%, 08/15/41		3,365		3,421,667
City of Houston Texas Combined Utility System, Refunding RB, Combined 1st Lien, Series A (AGC)^(a):
6.00%, 05/15/19		2,465		2,486,372
6.00%, 05/15/19		135		136,185
City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC)^(a):
5.38%, 05/15/19		1000		1,007,455
6.00%, 05/15/19		2,215		2,234,217
Lower Colorado River Authority, Refunding RB, 5.50%, 05/15/33		1,000		1,130,970
North Texas Tollway Authority, Refunding RB:
4.25%, 01/01/49		2,555		2,640,056
1st Tier (AGM), 6.00%, 01/01/21^(a)		1,000		1,076,920
Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38		440		490,147
Texas Transportation Commission, RB, First Tier Toll Revenue:
0.00%, 08/01/39^(b)		1,000		390,650
0.00%, 08/01/43^(b)		795		247,062
5.00%, 08/01/57		340		369,022

				16,721,483

Virginia — 0.3%
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 01/01/43		370		399,045


Washington — 2.2%
City of Seattle Washington Municipal Light & Power, Refunding RB, Series A, 5.25%, 02/01/21^(a)		1,025		1,095,028
State of Washington, GO, Various Purposes, Series B, 5.25%, 02/01/21^(a)		795		849,314
Washington State Housing Finance Commission, Refunding RB, Horizon House Project, 5.00%, 01/01/43^(c)		900		940,860

				2,885,202


26		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Investment Quality Trust (BAF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

West Virginia — 0.1%
West Virginia Hospital Finance Authority, RB, Improvement, West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51	$	140	$	137,984


Total Municipal Bonds — 101.3% (Cost — $124,926,651)				130,781,459


Municipal Bonds Transferred to Tender Option Bond Trusts^(d)

California — 12.8%
Fremont Union High School District, GO, Refunding Series A, 4.00%, 08/01/46		1,640		1,711,045
Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2, Series A, 5.00%, 10/01/43		2,775		3,132,355
San Marcos Unified School District, GO, Election of 2010, Series A, 5.25%, 08/01/21^(a)		10,680		11,652,307

				16,495,707

Connecticut — 1.1%
State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45		1,306		1,437,365


District of Columbia — 0.6%
District of Columbia Housing Finance Agency, RB, M/F Housing, Series B-2 (FHA), 4.10%, 09/01/39		790		802,652


Georgia — 0.8%
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48		1,025		1,049,979


Idaho — 1.3%
Idaho State Building Authority, RB, State Office Campus Project, Series A, 4.00%, 09/01/48		1,700		1,737,102


Illinois — 5.5%
State of Illinois Toll Highway Authority, RB:
Series A, 5.00%, 01/01/40		825		919,721
Series B, 5.00%, 01/01/40		3,329		3,685,774
Series C, 5.00%, 01/01/38		2,252		2,494,806

				7,100,301

Iowa — 1.1%
Iowa Finance Authority, Refunding RB, UnityPoint Health, Series E, 4.00%, 08/15/46		1,455		1,459,937


Michigan — 2.3%
State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45		2,650		3,008,969


Nevada — 3.4%
Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 06/01/28		4,100		4,379,620


New Jersey — 6.0%
New Jersey State Turnpike Authority, RB, Series A, 5.00%, 07/01/22^(a)^(e)		6,020		6,650,670
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36^(e)		1,000		1,039,066

				7,689,736

New York — 15.3%
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 12/01/43		1,890		1,952,512
City of New York Municipal Water Finance Authority, Refunding RB, Series FF, 5.00%, 06/15/45		3,019		3,269,594
City of New York New York, GO, Sub-Series-D1, Series D, 5.00%, 12/01/43^(e)		2,620		2,999,350


Security	Par (000)		Value

New York (continued)
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	$	4,993	$	5,413,248
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012^(e):
5.75%, 02/15/21^(a)		619		665,764
5.75%, 02/15/47		381		409,558
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		2,955		3,205,511
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51^(e)		1,740		1,897,730

				19,813,267

North Carolina — 2.9%
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55		2,400		2,695,164
North Carolina Housing Finance Agency, RB, S/F Housing, Series 39-B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 01/01/48		985		989,455

				3,684,619

Pennsylvania — 3.6%
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38		1,349		1,509,286
Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42		1,094		1,254,226
Pennsylvania Turnpike Commission, Refunding RB, Sub Series B-2 (AGM), 5.00%, 06/01/35		1,640		1,852,101

				4,615,613

Rhode Island — 1.6%
Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/47		1,982		2,019,741


Texas — 5.7%
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38		4,456		4,817,859
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 09/01/21^(a)		2,310		2,522,070

				7,339,929

Utah — 0.8%
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19^(a)		1,005		1,020,064


Virginia — 1.2%
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.50%, 07/01/57^(e)		1,337		1,572,134


West Virginia — 1.2%
Morgantown Utility Board, Inc., RB, Series B, 4.00%, 12/01/48^(e)		1,511		1,537,392


Wisconsin — 2.4%
Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A:
4.10%, 11/01/43		1,342		1,359,389
4.45%, 05/01/57		1,678		1,699,267

				3,058,656


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 69.6% (Cost — $86,833,018)				89,822,783


Total Long-Term Investments — 170.9% (Cost — $211,759,669)				220,604,242


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Investment Quality Trust (BAF)

(Percentages shown are based on Net Assets)


Security	Shares		Value

Short-Term Securities — 0.5%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%^(f)^(g)		589,555	$	589,614


Total Short-Term Securities — 0.5% (Cost — $589,614)				589,614


Total Investments — 171.4% (Cost — $212,349,283)				221,193,856

Other Assets Less Liabilities — 1.4%				1,832,204

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (40.1)%				(51,779,752	)

VMTP Shares, at Liquidation Value — (32.7)%				(42,200,000	)


Net Assets Applicable to Common Shares — 100.0%			$	129,046,308

^(a)	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(b)	Zero-coupon bond.

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

^(e)

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between June 15, 2019 to December 1, 2026, is $9,988,902. 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 February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		690,077		(100,522	)		589,555	$	589,614	$	8,450	$	478	$	—

^(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		13		06/19/19	$	1,586	$	8,219
Long U.S. Treasury Bond		50		06/19/19		7,223		82,293
5-Year U.S. Treasury Note		20		06/28/19		2,291		6,844

							$	97,356

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
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	97,356	$	—	$	97,356

^(a)


28		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Investment Quality Trust (BAF)

For the six months ended February 28, 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	$	—	$	—	$	—	$	—	$	(218,010	)	$	—	$	(218,010	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	86,680		$	—	$	86,680

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	10,070,953

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

Fair Value Hierarchy as of Period End

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


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	220,604,242	$	—	$	220,604,242
Short-Term Securities		589,614		—		—		589,614

	$	589,614	$	220,604,242	$	—	$	221,193,856

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	97,356	$	—	$	—	$	97,356

^(a)

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

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(51,608,191	)	$	—	$	(51,608,191	)
VMTP Shares at Liquidation Value		—		(42,200,000	)		—		(42,200,000	)

	$	—	$	(93,808,191	)	$	—	$	(93,808,191	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (unaudited)

February 28, 2019

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 116.4%

Alabama — 3.3%
City of Birmingham Alabama, GO, Convertible CAB, Series A1, 5.00%, 03/01/45	$	1,165	$	1,266,378
City of Birmingham Alabama Airport Authority, ARB, (AGM), 5.50%, 07/01/40		5,800		6,027,882
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 06/01/19^(a)		1,495		1,510,518
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20^(a)		3,800		4,059,578

				12,864,356

Alaska — 0.3%
Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41		1,070		1,150,411


Arizona — 0.8%
Arizona State University, RB, Green Bonds, Series B, 5.00%, 07/01/42		1,395		1,576,280
State of Arizona, COP, Department of Administration, Series A (AGM):
5.00%, 10/01/27		1,250		1,274,213
5.25%, 10/01/28		250		255,200

				3,105,693

California — 10.5%
California Health Facilities Financing Authority, RB, St. Joseph Health System, Series A, 5.75%, 07/01/39		625		633,044
California Health Facilities Financing Authority, Refunding RB, Kaiser Permanente, Sub-Series A-2, 5.00%, 11/01/47		1,465		1,902,068
California Infrastructure & Economic Development Bank, RB, Bay Area Toll Bridges, 1st Lien, Series A (AMBAC), 5.00%, 01/01/28^(a)		10,100		12,660,552
California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 04/01/42		1,620		1,735,927
California Statewide Communities Development Authority, Refunding RB, Adventist Health System, Series A, 4.00%, 03/01/48		3,175		3,195,860
City & County of San Francisco Public Utilities Commission Wastewater Revenue, Refunding RB, Sewer System, Series B, 4.00%, 10/01/42		1,500		1,534,395
Mount San Antonio Community College District, GO, Refunding, CAB, Election of 2008, Series A, 0.00%, 08/01/43^(b)		1,580		1,354,202
San Diego California Unified School District, GO, Election of 2008^(c):
CAB, Series C, 0.00%, 07/01/38		2,000		991,760
CAB, Series G, 0.00%, 07/01/34		725		364,030
CAB, Series G, 0.00%, 07/01/35		775		365,947
CAB, Series G, 0.00%, 07/01/36		1,155		512,912
CAB, Series G, 0.00%, 07/01/37		770		321,698
CAB, Series K-2, 0.00%, 07/01/38		1,745		839,555
CAB, Series K-2, 0.00%, 07/01/39		2,115		981,656
CAB, Series K-2, 0.00%, 07/01/40		2,715		1,205,460
San Diego California Unified School District, GO, Refunding, CAB, Series R-1, 0.00%, 07/01/31^(c)		1,400		954,338
State of California, GO, Refunding, Various Purposes, 5.00%, 10/01/41		1,100		1,180,421
State of California, GO, Various Purposes, 5.00%, 04/01/42		3,000		3,234,990
State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.50%, 11/01/33		1,415		1,609,110


Security	Par (000)		Value

California (continued)
Yosemite Community College District, GO, CAB, Election of 2004, Series D, 0.00%, 08/01/37^(c)	$	10,000	$	5,103,200

				40,681,125

Colorado — 0.6%
Regional Transportation District, COP, Refunding, Series A, 5.38%, 06/01/31		960		999,341
Regional Transportation District, COP, Series A, 5.00%, 06/01/39		1,305		1,435,656

				2,434,997

Connecticut — 1.4%
State of Connecticut, GO, Series E, 5.00%, 09/15/37		2,280		2,523,094
University of Connecticut, RB, Series A, 5.00%, 01/15/34		2,620		2,910,322

				5,433,416

Delaware — 0.8%
County of Kent Delaware, RB, CHF-Dover, LLC-Delaware State University Project, Series A:
5.00%, 07/01/40		770		819,172
5.00%, 07/01/48		2,110		2,229,089

				3,048,261

District of Columbia — 2.5%
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 05/15/40		9,500		9,806,470


Florida — 7.0%
County of Brevard Florida Health Facilities Authority, Refunding RB, Health First, Inc. Project, 5.00%, 04/01/39		1,795		1,934,956
County of Miami-Dade Florida, RB, Seaport Department, Series A, 6.00%, 10/01/38		2,770		3,171,594
County of Miami-Dade Florida Aviation, Refunding ARB^(a):
Aviation, Miami International Airport, Series A-1, 5.50%, 10/01/20		5,000		5,298,800
Series A, 5.50%, 10/01/19		5,000		5,111,100
County of Miami-Dade Florida Educational Facilities Authority, RB, University of Miami, Series A, 5.00%, 04/01/40		3,910		4,281,411
County of Miami-Dade Florida Health Facilities Authority, Refunding RB, Nicklaus Children’s Hospital Project, 5.00%, 08/01/42		685		759,706
County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project:
5.00%, 08/01/41		630		673,949
5.00%, 08/01/47		1,845		1,965,202
County of Sarasota Florida Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 07/01/19^(a)		300		303,870
Reedy Creek Improvement District, GO, Series A, 5.25%, 06/01/33		1,340		1,508,840
Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/21^(a)		2,000		2,179,700

				27,189,128

Georgia — 3.6%
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C, 6.00%, 01/01/30		7,500		8,064,000
City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/40		1,500		1,672,035
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54		545		619,605


30		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Georgia (continued)
County of Georgia Housing & Finance Authority, RB, S/F Housing, Series A:
3.95%, 12/01/43	$	685	$	689,706
4.00%, 12/01/48		500		504,145
Main Street Natural Gas, Inc., RB, Series A:
5.00%, 05/15/38		595		675,307
5.00%, 05/15/43		775		839,883
Private Colleges & Universities Authority, RB, Savannah College of Art & Design:
5.00%, 04/01/33		155		169,686
5.00%, 04/01/44		595		636,811

				13,871,178

Hawaii — 1.4%
State of Hawaii Harbor System, RB, Series A, 5.50%, 07/01/35		5,000		5,234,650


Illinois — 13.6%
City of Chicago Illinois O’Hare International Airport, GARB:
3rd Lien, 5.63%, 01/01/21^(a)		1,230		1,318,658
3rd Lien, 5.63%, 01/01/35		295		311,977
Senior Lien, Series D, 5.25%, 01/01/42		3,300		3,729,561
City of Chicago Illinois O’Hare International Airport, Refunding GARB, Senior Lien, Series D, 5.25%, 01/01/34		9,800		10,747,366
City of Chicago Illinois Transit Authority, RB:
5.25%, 12/01/49		3,500		3,832,745
Sales Tax Receipts, 5.25%, 12/01/36		650		686,946
County of Cook Illinois Community College District No. 508, GO, City College of Chicago:
5.13%, 12/01/38		7,700		7,929,383
5.50%, 12/01/38		1,000		1,045,670
County of Cook Illinois Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37		210		220,214
County of Will Illinois, GO, 5.00%, 11/15/45		1,400		1,540,224
Illinois Finance Authority, RB, Chicago LLC, University of Illinois at Chicago Project, Series A:
5.00%, 02/15/37		700		759,668
5.00%, 02/15/47		480		511,627
5.00%, 02/15/50		240		255,286
Illinois Finance Authority, Refunding RB:
OSF Health Care System, Series A, 5.00%, 11/15/45		2,815		3,012,416
Silver Cross Hospital & Medical Centers, Series C, 4.13%, 08/15/37		3,130		3,119,890
Silver Cross Hospital & Medical Centers, Series C, 5.00%, 08/15/44		390		416,692
University of Chicago Medical Center, Series B, 4.00%, 08/15/41		900		916,974
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21^(a)		710		776,520
State of Illinois, GO:
5.25%, 07/01/29		8,345		8,783,864
5.50%, 07/01/33		880		929,051
5.50%, 07/01/38		1,475		1,540,372

				52,385,104

Indiana — 0.3%
Indiana Finance Authority, RB, CWA Authority Project, 1st Lien, Series A, 5.25%, 10/01/38		1,100		1,186,427


Iowa — 2.2%
Iowa Finance Authority, RB, Iowa Health Care Facilities:
Genesis Health System, 5.50%, 07/01/33		3,000		3,381,150
Series A (AGC), 5.63%, 08/15/19^(a)		5,000		5,088,350

				8,469,500


Security	Par (000)		Value

Kentucky — 0.1%
State of Kentucky Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 02/01/29	$	170	$	170,447


Maryland — 1.7%
County of Montgomery Maryland, RB, Trinity Health Credit Group, 4.00%, 12/01/44		1,810		1,835,105
Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38		745		765,420
Maryland Health & Higher Educational Facilities Authority, RB, University of Maryland Medical System Issue, 4.00%, 07/01/48		4,000		4,063,480

				6,664,005

Massachusetts — 3.1%
Massachusetts Development Finance Agency, RB:
Emerson College Issue, Series A, 5.00%, 01/01/47		2,370		2,559,458
Emerson College Issue, 5.00%, 01/01/48		2,595		2,822,322
UMass Darthmouth Student Housing Project, 5.00%, 10/01/48		1,970		2,115,642
Massachusetts Development Finance Agency, Refunding RB:
Foxborough Regional Charter School Issue, 5.00%, 07/01/37		190		200,986
Western New England University, 5.00%, 09/01/43		1,750		1,917,930
Massachusetts Housing Finance Agency, RB, M/F Housing, Series A:
3.80%, 12/01/43		365		360,868
3.85%, 06/01/46		490		485,016
Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series A, 5.00%, 05/15/43		1,395		1,534,012

				11,996,234

Michigan — 7.2%
City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41		1,100		1,186,823
Michigan Finance Authority, RB, Beaumont Health Credit Group, Series A, 5.00%, 11/01/44		3,640		3,953,404
Michigan Finance Authority, Refunding RB:
Henry Ford Health System, 5.00%, 11/15/41		2,235		2,426,249
Hospital; Trinity Health Credit Group, 5.00%, 12/01/39		9,020		9,596,198
Trinity Health Credit Group, 5.00%, 12/01/21^(a)		30		32,623
Michigan State Housing Development Authority, RB, S/F Housing, Series A, 3.80%, 10/01/38		3,965		3,935,461
Royal Oak Hospital Finance Authority Michigan, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 09/01/39		1,560		1,685,908
State of Michigan Building Authority, Refunding RB, Facilities Program:
Series I-A, 5.38%, 10/15/36		2,000		2,167,860
Series I-A, 5.38%, 10/15/41		800		865,440
Series II-A, 5.38%, 10/15/36		1,500		1,625,895
Western Michigan University, Refunding RB, General, University and College Improvements (AGM), 5.00%, 11/15/39		430		481,320

				27,957,181

Minnesota — 0.4%
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 5.00%, 11/15/49		1,315		1,452,588


Nebraska — 1.8%
Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.25%, 09/01/37		6,345		6,863,069


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Nevada — 1.9%
County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A:
5.25%, 07/01/42	$	3,000	$	3,068,580
(AGM), 5.25%, 07/01/39		4,100		4,198,154

				7,266,734

New Jersey — 9.7%
New Jersey EDA, RB:
School Facilities Construction Bonds, Series DDD, 5.00%, 06/15/42		375		393,953
Series WW, 5.25%, 06/15/33		170		185,164
Series WW, 5.00%, 06/15/34		225		240,903
Series WW, 5.00%, 06/15/36		1,395		1,483,499
Series WW, 5.25%, 06/15/40		400		424,828
New Jersey EDA, Refunding RB, Sub-Series A, 4.00%, 07/01/32		930		932,632
New Jersey Health Care Facilities Financing Authority, Refunding RB, Hospital Asset Transfer Program, 5.00%, 10/01/37		1,605		1,713,947
New Jersey Transportation Trust Fund Authority, RB:
Transportation Program Bonds, Series S, 5.25%, 06/15/43		2,150		2,334,212
5.00%, 06/15/36		5,070		5,305,501
CAB, Transportation System, Series A, 0.00%, 12/15/38^(c)		5,845		2,352,612
Transportation Program, Series AA, 5.25%, 06/15/33		1,660		1,767,867
Transportation Program, Series AA, 5.00%, 06/15/38		945		992,250
Transportation System, Series A, 5.50%, 06/15/41		3,000		3,117,660
Transportation System, Series AA, 5.50%, 06/15/39		3,785		4,017,285
Transportation System, Series B, 5.25%, 06/15/36^(d)		5,000		5,194,150
Transportation System, Series D, 5.00%, 06/15/32		900		965,340
New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/36		340		367,448
South Jersey Port Corp., RB, Sub-Marine Terminal, Series A, 5.00%, 01/01/49		720		783,562
Tobacco Settlement Financing Corp., Refunding RB, Series A:
5.00%, 06/01/35		1,750		1,951,268
5.25%, 06/01/46		1,725		1,861,465
Tobacco Settlement Bonds, 5.00%, 06/01/33		1,000		1,129,380

				37,514,926

New Mexico — 0.1%
New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 08/01/44		405		445,634


New York — 3.0%
City of New York Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/32		1,650		1,816,667
City of New York Water & Sewer System, Refunding RB, Water and Sewer System, 2nd General Resolution, Fiscal 2013, Series BB, 4.00%, 06/15/47		2,855		2,907,675
Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:
5.75%, 02/15/21^(a)		480		518,419
5.75%, 02/15/47		290		310,874
Metropolitan Transportation Authority, Refunding RB, Series B, 5.00%, 11/15/37		1,570		1,754,271
State of New York Dormitory Authority, RB, Education, Series B, 5.75%, 03/15/19^(a)		1,300		1,301,690
State of New York Mortgage Agency, Refunding RB, Series 211, 3.75%, 10/01/43		2,810		2,788,363

				11,397,959


Security	Par (000)		Value

Ohio — 3.0%
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/21^(a)	$	610	$	686,335
Northwest Local School District/Hamilton & Butler Counties, GO, School Improvements, 4.00%, 12/01/50		2,645		2,678,830
State of Ohio, Refunding RB, University Hospitals Health System, Series A, 5.00%, 01/15/41		3,500		3,686,515
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1:
5.25%, 02/15/32		780		868,803
5.25%, 02/15/33		1,095		1,218,790
University of Akron, Refunding RB, Series A, 5.00%, 01/01/37		2,000		2,236,560

				11,375,833

Oregon — 0.4%
Counties of Washington & Multnomah Oregon School District No. 48J Beaverton, GO, Convertible CAB, Series D, 5.00%, 06/15/36		945		1,097,504
County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38^(c)		1,115		519,367

				1,616,871

Pennsylvania — 5.7%
Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:
5.00%, 06/01/33		790		899,936
5.00%, 06/01/34		1,750		1,984,623
(AGM), 4.00%, 06/01/39		3,230		3,306,422
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 4.00%, 09/01/49		1,145		1,149,328
Pennsylvania HFA, RB, S/F Housing Mortgage, Series 118-B, 4.05%, 10/01/40		1,770		1,786,443
Pennsylvania Higher Educational Facilities Authority, Refunding RB, Thomas Jefferson University, Series A, 5.25%, 09/01/50		4,245		4,768,111
Pennsylvania Turnpike Commission, RB:
Series A, 5.00%, 12/01/38		695		763,492
Series A-1, 5.00%, 12/01/41		2,730		3,000,407
Series B, 5.00%, 12/01/40		1,060		1,162,608
Series C, 5.50%, 12/01/23^(a)		630		738,914
Subordinate, Special Motor License Fund, 6.00%, 12/01/20^(a)		625		671,581
Pennsylvania Turnpike Commission, Refunding RB:
Series A-1, 5.00%, 12/01/40		850		926,730
Turnpike Subordinate Revenue, Second Series, 5.00%, 12/01/35		860		961,962

				22,120,557

Rhode Island — 2.0%
Narragansett Bay Commission, Refunding RB, Series A, 4.00%, 09/01/43		2,275		2,310,058
Tobacco Settlement Financing Corp., Refunding RB, Series B, 4.50%, 06/01/45		5,855		5,494,390

				7,804,448

South Carolina — 6.2%
South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 08/01/21^(a)		260		289,453
Spartanburg Regional Health Services District, Refunding RB, Series A, 4.00%, 04/15/43		3,500		3,451,665
State of South Carolina Ports Authority, ARB, 5.25%, 07/01/20^(a)		5,000		5,235,500
State of South Carolina Public Service Authority, RB:
Santee Cooper, Series A, 5.50%, 12/01/54		6,960		7,587,444
Series E, 5.50%, 12/01/53		1,610		1,742,149


32		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

South Carolina (continued)
State of South Carolina Public Service Authority, Refunding RB, Series B:
Santee Cooper, 5.00%, 12/01/38	$	2,360	$	2,527,985
(AGM), 5.00%, 12/01/56		2,845		3,094,108

				23,928,304

South Dakota — 0.5%
City of Rapid City South Dakota, RB, 4.00%, 12/01/48		1,760		1,783,232


Tennessee — 0.0%
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40		35		38,392


Texas — 15.4%
City of Arlington Texas, Special Tax Bonds, Sub Lien, Series C (BAM), 5.00%, 02/15/45		2,105		2,200,567
City of San Antonio Texas Electric & Gas Revenue, RB, Junior Lien, 5.00%, 02/01/38		615		672,373
Coppell Texas ISD, GO, CAB, Refunding (PSF-GTD), 0.00%, 08/15/30^(c)		10,030		7,312,372
County of Harris Texas, GO, Refunding, (NPFGC)^(c):
0.00%, 08/15/25		7,485		6,523,252
0.00%, 08/15/28		10,915		8,599,274
County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Junior Lien, Series H (NPFGC)^(c):
0.00%, 11/15/38		5,785		2,206,978
0.00%, 11/15/39		6,160		2,199,366
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 09/15/36^(c)		2,340		1,146,085
Dallas-Fort Worth International Airport, Refunding ARB, Series F, 5.25%, 11/01/33		1,090		1,212,810
El Paso Independent School District, GO, (PSF-GTD), 4.00%, 08/15/43		2,110		2,191,045
Grand Parkway Transportation Corp., RB, Series B:
Convertible CAB, 0.00%, 10/01/46^(b)		2,365		2,267,940
Subordinate Tier Toll Revenue Bonds, 5.00%, 04/01/53		465		500,419
Harris County-Houston Sports Authority, Refunding RB, 3rd Lien, Series A (NPFGC)^(c):
0.00%, 11/15/24^(a)		5,965		2,320,922
0.00%, 11/15/38		10,925		3,936,168
Leander ISD, GO, Refunding, CAB, Series D (PSF-GTD), 0.00%, 08/15/38^(c)		3,775		1,666,247
North Texas Tollway Authority, RB^(a):
CAB, Special Project System, Series B, 0.00%, 09/01/31^(c)		1,975		881,423
Convertible CAB, Series C, 0.00%, 09/01/31^(b)		2,500		3,093,475
Special Projects System, Series A, 6.00%, 09/01/21		1,000		1,103,950
North Texas Tollway Authority, Refunding RB:
1st Tier System, Series A, 6.00%, 01/01/28		115		115,346
Series B, 5.00%, 01/01/40		385		416,543
San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, 4.00%, 09/15/42		3,155		3,187,560
San Jacinto College District, GOL, Series A, 5.00%, 02/15/44		815		932,034
Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:
5.00%, 12/15/31		2,105		2,259,402
5.00%, 12/15/32		2,540		2,718,613

				59,664,164

Utah — 0.6%
Salt Lake City Corp. Airport Revenue, ARB, Series B, 5.00%, 07/01/43		2,000		2,284,020


Security	Par (000)		Value

Virginia — 1.1%
County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health, 5.50%, 05/15/19^(a)	$	260	$	261,992
County of Henrico Virginia Water & Sewer Revenue, Refunding RB, 5.00%, 05/01/42		500		566,225
Virginia Beach Development Authority, Refunding RB, Westminster-Canterbury on Chesapeake Bay:
5.00%, 09/01/44		1,375		1,523,046
4.00%, 09/01/48		885		894,894
Virginia HDA, RB, M/F Housing, Rental Housing, Series B, 4.00%, 06/01/53		895		897,945

				4,144,102

Washington — 1.1%
Washington Health Care Facilities Authority, RB:
MultiCare Health System, Remarketing, Series B, 5.00%, 08/15/44		2,000		2,148,960
Providence Health & Services, Series A, 5.25%, 10/01/39		675		696,877
Washington State Housing Finance Commission, Refunding RB, Horizon House Project, 5.00%, 01/01/38^(e)		1,400		1,477,700

				4,323,537

West Virginia — 0.9%
West Virginia Hospital Finance Authority, RB, Improvement, West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51		3,680		3,627,008


Wisconsin — 2.2%
State of Wisconsin Health & Educational Facilities Authority, RB:
Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33		1,500		1,528,230
Marshfield Clinic Health System, Inc. Series C, 4.00%, 02/15/42		5,000		4,934,400
Wisconsin Health & Educational Facilities Authority, Refunding RB, Milwaukee Regional Medical Center Thermal Service, 5.00%, 04/01/44		1,895		2,138,185

				8,600,815


Total Municipal Bonds — 116.4% (Cost — $421,869,910)				449,900,776


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

Arizona — 0.3%
City of Phoenix Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 07/01/19^(a)		1,300		1,314,235


California — 2.0%
Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42^(d)		3,432		4,032,293
San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19^(a)		449		455,856
Visalia Unified School District, COP, (AGM), 4.00%, 05/01/48		3,077		3,098,076

				7,586,225

Connecticut — 0.4%
State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45		1,561		1,718,229


District of Columbia — 0.3%
District of Columbia, RB, Series A, 5.50%, 12/01/30^(d)		1,080		1,108,345


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Florida — 5.9%
City of Miami Beach Florida, RB, 5.00%, 09/01/45	$	3,500	$	3,947,921
County of Miami-Dade Florida Transit System, Refunding RB, Sales Tax, 5.00%, 07/01/42		1,950		2,105,093
County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/20^(a)		10,101		10,625,491
County of Orange Florida School Board, COP, Series A (AGC), 5.50%, 08/01/19^(a)		6,096		6,193,187

				22,871,692

Illinois — 5.2%
Illinois Finance Authority, RB, The Carle Foundation, Series A (AGM), 6.00%, 08/15/41		2,400		2,605,392
State of Illinois, RB, Build Illinois, Series B, 5.25%, 06/15/19^(a)(d)		1,400		1,413,586
State of Illinois Toll Highway Authority, RB:
Series A, 5.00%, 01/01/38		7,714		8,377,964
Series A, 5.00%, 01/01/40		3,045		3,394,605
Series B, 5.00%, 01/01/40		1,170		1,295,002
Series C, 5.00%, 01/01/38		2,658		2,943,871

				20,030,420

Kansas — 1.6%
County of Wyandotte Kansas Unified School District, GO, Series A, 5.50%, 09/01/47		5,363		6,303,871


Maryland — 0.9%
City of Baltimore Maryland Water Utility Fund, RB, Sub-Water Projects, Series A, 5.00%, 07/01/41		3,139		3,523,668


Massachusetts — 3.4%
Commonwealth of Massachusetts, GO, Series A, 5.00%, 03/01/46		1,661		1,833,458
Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 4.00%, 07/01/35		7,070		7,399,363
Massachusetts School Building Authority, RB, Senior Series B, 5.00%, 11/15/46^(d)		3,300		3,721,872

				12,954,693

Michigan — 0.9%
Michigan Finance Authority, RB, Beaumont Health Credit Group, Series A, 5.00%, 11/01/44		2,220		2,411,644
State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 5.00%, 10/15/45		960		1,090,041

				3,501,685

Nevada — 2.7%
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19^(a)(d)		4,197		4,211,085
County of Clark Nevada Water Reclamation District, GO, Series B, 5.75%, 07/01/19^(a)		2,024		2,051,883
Las Vegas Valley Water District Nevada, GO, Refunding, Water Improvement, Series A, 5.00%, 06/01/46		3,900		4,360,863

				10,623,831

New Jersey — 0.8%
County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Technical Schools Project, 5.25%, 05/01/51		920		1,036,063
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36^(d)		2,000		2,078,131

				3,114,194


Security	Par (000)		Value

New York — 12.3%
City of New York Water & Sewer System, Refunding RB:
2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 06/15/47	$	6,240	$	6,945,730
2nd General Resolution, Series FF, 5.00%, 06/15/39		8,355		9,404,778
Series DD, 5.00%, 06/15/35		1,845		2,080,244
Metropolitan Transportation Authority, RB, Transportation, Sub-Series D-1, 5.25%, 11/15/44		3,850		4,324,724
Metropolitan Transportation Authority, Refunding RB, Series C-1, 5.25%, 11/15/56		1,698		1,877,734
New York City Transitional Finance Authority, Refunding RB, Future Tax Secured, Series B, 5.00%, 11/01/30		12,500		13,788,344
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 198th Series, 5.25%, 11/15/56		2,561		2,922,329
State of New York Urban Development Corp., RB, Personal Income Tax, General Purpose, Series A-1, 5.00%, 03/15/43		5,720		6,286,594

				47,630,477

Pennsylvania — 1.8%
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/42		1,020		1,120,393
Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42		4,997		5,727,497

				6,847,890

Texas — 3.2%
City of Houston Texas Community College, GO, Limited Tax, 4.00%, 02/15/43		7,001		7,078,599
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38		719		777,771
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Texas Health Resources System, Series A, 5.00%, 02/15/41		3,920		4,343,537

				12,199,907

Virginia — 0.6%
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.00%, 07/01/48		1,996		2,282,638


Washington — 1.0%
Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, Series B, 5.00%, 10/01/38		3,210		3,708,085


Wisconsin — 1.6%
State of Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series C, 5.25%, 04/01/19^(a)		2,500		2,506,900
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Obligated Group, Series A, 5.00%, 04/01/42		3,520		3,769,392

				6,276,292


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 44.9% (Cost — $169,884,810)				173,596,377


Total Long-Term Investments — 161.3% (Cost — $591,754,720)				623,497,153


34		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)


Security	Shares		Value

Short-Term Securities — 0.9%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%^(g)(h)		3,558,401	$	3,558,757


Total Short-Term Securities — 0.9% (Cost — $3,558,757)				3,558,757


Total Investments — 162.2% (Cost — $595,313,477)				627,055,910

Other Assets Less Liabilities — 1.6%				5,883,149

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (28.3)%				(109,240,727	)

VMTP Shares at Liquidation Value, Net of Deferred Offering Costs — (35.5)%				(137,200,000	)


Net Assets Applicable to Common Shares — 100.0%			$	386,498,332

^(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)	Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(c)	Zero-coupon bond.

^(d)

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between April, 1, 2019 to December, 1, 2030, is $10,894,055. See Note 4 of the Notes to Financial Statements for details.

^(e)	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.

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

^(g)	Annualized 7-day yield as of period end.

^(h)	During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		4,490,659		(932,258	)		3,558,401	$	3,558,757	$	33,661	$	235	$	—

^(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		83		06/19/19	$	10,126	$	52,571
Long U.S. Treasury Bond		194		06/19/19		28,027		319,298
5-Year U.S. Treasury Note		42		06/28/19		4,812		14,372

							$	386,241

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
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	386,241	$	—	$	386,241

^(a)


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Quality Trust (BYM)

For the six months ended February 28, 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	$	—	$	—	$	—	$	—	$	(663,840	)	$	—	$	(663,840	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	329,801		$	—	$	329,801

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	38,637,047

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

Fair Value Hierarchy as of Period End

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


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	623,497,153	$	—	$	623,497,153
Short-Term Securities		3,558,757		—		—		3,558,757

Total	$	3,558,757	$	623,497,153	$	—	$	627,055,910

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	386,241	$	—	$	—	$	386,241

^(a)

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

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(108,777,798	)	$	—	$	(108,777,798	)
VMTP Shares at Liquidation Value		—		(137,200,000	)		—		(137,200,000	)

	$	—	$	(245,977,798	)	$	—	$	(245,977,798	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


36		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited)

February 28, 2019

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 130.4%

Alabama — 2.1%
County of Jefferson Alabama Sewer, Refunding RB:
Senior Lien, Series A (AGM), 5.00%, 10/01/44	$	540	$	585,441
Senior Lien, Series A (AGM), 5.25%, 10/01/48		1,320		1,444,133
Sub-Lien, Series D, 7.00%, 10/01/51		3,220		3,839,721
Lower Alabama Gas District, RB, Series A, 5.00%, 09/01/46		1,170		1,365,343

				7,234,638

Arizona — 2.9%
City of Phoenix Arizona IDA, RB, Legacy Traditional Schools Projects, Series A, 5.00%, 07/01/46^(a)		1,825		1,849,455
Salt Verde Financial Corp., RB, Senior:
5.00%, 12/01/32		5,635		6,676,573
5.00%, 12/01/37		1,000		1,181,330

				9,707,358

California — 11.0%
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20^(b)		3,500		3,727,745
California Health Facilities Financing Authority, Refunding RB, St. Joseph Health System, Series A, 5.00%, 07/01/33		1,365		1,519,463
California Municipal Finance Authority, RB, Senior, Caritas Affordable Housing, Inc. Projects, S/F Housing, Series A:
5.25%, 08/15/39		160		173,443
5.25%, 08/15/49		395		425,956
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT, 5.00%, 11/21/45^(a)		1,655		1,721,647
California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, Series A, 5.00%, 12/01/46^(a)		490		514,005
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A:
Senior, 5.00%, 05/15/40		6,500		6,754,345
5.25%, 05/15/39		860		866,046
City of Stockton California Public Financing Authority, RB, Delta Water Supply Project, Series A, 6.25%, 10/01/38		380		448,142
Golden State Tobacco Securitization Corp., Refunding RB, Series A-1:
5.00%, 06/01/47		3,195		3,075,092
5.25%, 06/01/47		590		590,997
San Marcos Unified School District, GO, CAB, Election of 2010, Series B^(c):
0.00%, 08/01/33		3,000		1,857,570
0.00%, 08/01/43		2,500		979,625
State of California, GO, Various Purposes:
6.50%, 04/01/19^(b)		5,765		5,787,195
6.00%, 03/01/33		1,760		1,835,891
6.50%, 04/01/33		4,880		4,897,812
State of California Public Works Board, LRB, Various Capital Projects:
Series I, 5.00%, 11/01/38		825		911,642
Sub-Series I-1, 6.38%, 11/01/19^(b)		1,280		1,321,549

				37,408,165

Colorado — 1.4%
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 07/01/34		2,330		2,356,888
County of Arapahoe Colorado School District No. 6 Littleton, GO, Series A, 5.50%, 12/01/43		1,915		2,330,957

				4,687,845

Connecticut — 0.3%
State of Connecticut Health & Educational Facility Authority, RB, Ascension Health Senior Credit, Series A, 5.00%, 11/15/40		1,005		1,023,562


Security	Par (000)		Value

Delaware — 2.1%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40	$	1,240	$	1,308,089
Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55		1,260		1,377,331
State of Delaware EDA, RB, Exempt Facilities, Indian River Power LLC Project, 5.38%, 10/01/45		4,275		4,431,294

				7,116,714

District of Columbia — 6.4%
District of Columbia, Refunding RB:
Georgetown University, 5.00%, 04/01/35		465		530,895
Georgetown University Issue, 5.00%, 04/01/27^(b)		160		194,296
Georgetown University Issue, 5.00%, 04/01/42		380		423,970
Kipp Charter School, Series A, 6.00%, 07/01/23^(b)		820		964,902
The Catholic University of America Issue, 5.00%, 10/01/48		2,525		2,789,923
District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 05/15/40		11,500		11,870,990
Metropolitan Washington Airports Authority, Refunding ARB, Dulles Metrorail And Capital Improvement Projects, Series A, 5.00%, 10/01/53		2,195		2,268,291
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:
5.00%, 10/01/39		550		558,586
5.25%, 10/01/44		2,000		2,031,040

				21,632,893

Florida — 4.4%
City of Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38		1,665		1,788,143
County of Collier Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 05/01/45		1,450		1,539,393
County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/20^(b)		1,255		1,327,577
County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/20^(b)		5,000		5,260,100
Mid-Bay Florida Bridge Authority, RB, Springing Lien, Series A, 7.25%, 10/01/21^(b)		3,300		3,753,189
Stevens Plantation Community Development District, RB, Special Assessment, Series A, 7.10%, 05/01/35^(d)(e)		1,795		1,436,000

				15,104,402

Georgia — 1.9%
County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48		1,325		1,357,290
County of Gainesville Georgia & Hall Hospital Authority, Refunding RB, Northeast Georgia Health System, Inc. Project, Series A (GTD), 5.50%, 08/15/54		555		630,974
DeKalb Georgia Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39		915		934,434
Main Street Natural Gas, Inc., RB, Series A:
5.00%, 05/15/35		540		613,597
5.00%, 05/15/36		540		614,126
5.00%, 05/15/37		595		675,712
5.00%, 05/15/38		325		368,865
5.00%, 05/15/49		1,095		1,235,992

				6,430,990

Hawaii — 0.5%
State of Hawaii Harbor System, RB, Series A, 5.25%, 07/01/30		1,480		1,544,040


Idaho — 0.3%
Idaho Health Facilities Authority, RB, Trinity Health Credit Group, Series A, 5.00%, 12/01/46		805		892,761


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Illinois — 16.6%
Chicago Board of Education, GO, Series C:
Dedicated Revenues, Series H, 5.00%, 12/01/36	$	495	$	511,246
Project, 5.25%, 12/01/35		1,600		1,659,184
Chicago Board of Education, GO, Refunding:
Dedicated Revenues, Series D, 5.00%, 12/01/27		920		985,062
Dedicated Revenues, Series F, 5.00%, 12/01/22		675		707,117
Dedicated Revenues, Series G, 5.00%, 12/01/34		495		514,869
5.00%, 12/01/25		705		753,074
Chicago Board of Education, GO, Series D:
5.00%, 12/01/46		585		592,611
5.00%, 12/01/46		1,505		1,515,610
City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien:
Series A, 5.75%, 01/01/21^(b)		4,200		4,512,144
Series A, 5.75%, 01/01/39		800		846,928
Series C, 6.50%, 01/01/21^(b)		6,430		6,993,075
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40		1,150		1,209,168
County of Cook Illinois Community College District No. 508, GO, City College of Chicago, 5.50%, 12/01/38		845		883,591
Illinois Finance Authority, Refunding RB:
Ascension Health, Series A, 5.00%, 11/15/37		1,060		1,130,956
Central Dupage Health, Series B, 5.50%, 11/01/19^(b)		1,750		1,793,663
Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 06/15/30		7,445		7,462,719
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:
Series B (AGM), 5.00%, 06/15/50		6,725		6,876,649
Series B-2, 5.00%, 06/15/50		2,725		2,736,690
Railsplitter Tobacco Settlement Authority, RB^(b):
5.50%, 06/01/21		520		563,025
6.00%, 06/01/21		1,255		1,372,581
State of Illinois, GO:
5.00%, 02/01/39		1,640		1,664,862
Series A, 5.00%, 04/01/35		2,500		2,556,275
Series A, 5.00%, 04/01/38		3,885		3,946,189
State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/37		3,005		3,332,845
University of Illinois, RB, Auxiliary Facilities System, Series A, 5.00%, 04/01/44		1,050		1,147,293

				56,267,426

Indiana — 4.5%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT:
6.75%, 01/01/34		845		966,291
7.00%, 01/01/44		3,535		4,053,867
Indiana Finance Authority, RB, Series A:
CWA Authority Project, 1st Lien, 5.25%, 10/01/38		3,510		3,785,781
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/44		485		511,331
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.00%, 07/01/48		1,610		1,693,108
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51		435		461,096
Sisters of St. Francis Health Services, 5.25%, 11/01/19^(b)		915		936,338
Indiana Finance Authority, Refunding RB, Marquette Project, 4.75%, 03/01/32		1,180		1,195,776
Indianapolis Local Public Improvement Bond Bank, RB, Series A, 5.00%, 01/15/40		1,380		1,524,541

				15,128,129

Iowa — 1.9%
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:
Series B, 5.25%, 12/01/50^(f)		3,060		3,256,483


Security	Par (000)		Value

Iowa (continued)
Midwestern Disaster Area, 5.50%, 12/01/22	$	10	$	10,010
Midwestern Disaster Area, 5.25%, 12/01/25		500		530,045
Midwestern Disaster Area, 5.88%, 12/01/26^(a)		445		467,610
Iowa Student Loan Liquidity Corp., Refunding RB, Student Loan, Senior Series A-1, AMT, 5.15%, 12/01/22		460		478,147
Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, Series C, 5.63%, 06/01/46		1,610		1,602,723

				6,345,018

Kentucky — 0.7%
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45		1,060		1,123,505
Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C, 0.00%, 07/01/43^(g)		1,280		1,246,464

				2,369,969

Louisiana — 2.8%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35		3,650		3,877,359
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:
5.50%, 05/15/30		1,100		1,138,511
5.25%, 05/15/31		935		985,696
5.25%, 05/15/32		1,195		1,284,278
5.25%, 05/15/33		1,300		1,391,351
5.25%, 05/15/35		795		861,096

				9,538,291

Maryland — 1.2%
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25		800		822,648
Maryland Health & Higher Educational Facilities Authority, RB, Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46		455		512,594
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community Project, 6.25%, 01/01/21^(b)		2,400		2,593,080

				3,928,322

Michigan — 3.0%
City of Detroit Michigan Sewage Disposal System, Refunding RB, Senior Lien, Series A, 5.25%, 07/01/39		4,825		5,200,964
Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital:
5.50%, 05/15/20^(b)		830		866,794
5.50%, 05/15/36		670		694,321
Michigan Finance Authority, Refunding RB, Detroit Water & Sewage Department Project, Senior Lien, Series C-1, 5.00%, 07/01/44		940		994,717
Michigan State University, Refunding RB, Series B, 5.00%, 02/15/48		1,100		1,249,248
Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48		1,165		1,271,062

				10,277,106

Minnesota — 1.1%
Duluth EDA, Refunding RB, Essentia Health Obligated Group, Series A:
4.25%, 02/15/48		1,115		1,129,729
5.25%, 02/15/53		2,230		2,471,933

				3,601,662

Missouri — 1.4%
370/Missouri Bottom Road/Taussig Road Transportation Development District, RB, 7.20%, 05/01/33^(d)^(e)		6,000		3,120,000


38		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Missouri (continued)
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien, Series A, 5.00%, 10/01/44	$	275	$	302,486
State of Missouri Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Services, 5.50%, 02/01/42		1,135		1,152,252
State of Missouri Health & Educational Facilities Authority, Refunding RB, St. Louis College of Pharmacy Project, 5.50%, 05/01/43		265		281,001

				4,855,739

Multi-State — 1.9%
Centerline Equity Issuer Trust^(a):
Series A-4-2, 6.00%, 10/31/52		3,500		3,522,540
Series B-3-2, 6.30%, 10/31/52		3,000		3,020,730

				6,543,270

Nebraska — 1.6%
Central Plains Nebraska Energy Project, RB, Gas Project No. 3:
5.25%, 09/01/37		895		968,077
5.00%, 09/01/42		1,570		1,685,206
County of Lancaster Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, Health Facilities, 5.63%, 01/01/40		1,245		1,276,013
County of Sarpy Nebraska Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.63%, 01/01/40		1,635		1,675,728

				5,605,024

New Hampshire — 0.8%
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project^(a):
Series B, 4.63%, 11/01/42		1,860		1,816,718
Series C, AMT, 4.88%, 11/01/42		975		972,904

				2,789,622

New Jersey — 11.5%
Casino Reinvestment Development Authority, Refunding RB:
5.25%, 11/01/39		1,805		1,922,848
5.25%, 11/01/44		1,640		1,744,501
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45^(a)		1,165		1,169,637
New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23		2,130		2,298,547
New Jersey EDA, RB:
Continental Airlines, Inc. Project, AMT, 4.88%, 09/15/19		235		237,883
Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29		2,130		2,312,434
Series EEE, 5.00%, 06/15/48		4,020		4,220,920
New Jersey EDA, Refunding ARB, Port Network Container Terminal LLC Project, AMT, 5.00%, 10/01/47		1,570		1,656,429
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 04/01/28		7,475		8,581,449
New Jersey State Turnpike Authority, RB:
Series A, 5.00%, 07/01/22^(b)		1,355		1,502,180
Series A, 5.00%, 01/01/43		770		834,380
Series E, 5.00%, 01/01/45		2,810		3,094,428
New Jersey Transportation Trust Fund Authority, RB:
Transportation Program, Series AA, 5.00%, 06/15/44		730		760,850
Transportation Program, Series AA, 5.00%, 06/15/44		1,355		1,399,647
Transportation System, Series B, 5.25%, 06/15/36		2,690		2,794,453
Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/43		570		631,594
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.25%, 06/01/46		580		625,884
Sub-Series B, 5.00%, 06/01/46		3,170		3,209,562

				38,997,626


Security	Par (000)		Value

New York — 7.1%
City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012, Sub-Series E-1, 5.00%, 02/01/42	$	2,680	$	2,880,652
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41^(a)		2,000		2,053,340
County of Westchester New York Healthcare Corp., RB, Senior Lien, Series A, 5.00%, 11/01/44		790		841,690
Metropolitan Transportation Authority, RB, Series B:
5.25%, 11/15/38		2,555		2,840,675
5.25%, 11/15/39		910		1,010,819
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		1,335		1,383,447
3 World Trade Center Project, Class 1, 5.00%, 11/15/44^(a)		4,320		4,497,682
3 World Trade Center Project, Class 2, 5.15%, 11/15/34^(a)		365		391,747
3 World Trade Center Project, Class 2, 5.38%, 11/15/40^(a)		910		963,617
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31		1,620		1,679,810
Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, Series 8:
6.00%, 12/01/42		1,635		1,727,508
Special Project, 6.00%, 12/01/36		1,410		1,492,259
State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48		1,945		2,234,922

				23,998,168

North Carolina — 1.0%
North Carolina Capital Facilities Finance Agency, Refunding RB, Solid Waste Disposal Facility, Duke Energy Carolinas Project, Series B, 4.63%, 11/01/40		1,000		1,033,630
North Carolina Medical Care Commission, Refunding RB, 1st Mortgage:
Aldersgate, 6.25%, 07/01/35		1,530		1,671,097
Retirement Facilities Whitestone Project, Series A, 7.75%, 03/01/21^(b)		625		696,781

				3,401,508

North Dakota — 0.3%
County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58		1,035		1,140,611


Ohio — 3.3%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 6.50%, 06/01/47		3,550		3,527,742
County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20^(b)		3,405		3,551,074
County of Franklin Ohio, RB:
Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40		710		758,578
Trinity Health Credit Group, Series 2017, 5.00%, 12/01/46		435		482,424
County of Montgomery Ohio, Refunding RB, Catholic Health, Series A, 5.00%, 05/01/39		1,970		1,976,087
State of Ohio, RB, Portsmouth Bypass Project, AMT, 5.00%, 06/30/53		870		913,665

				11,209,570

Oklahoma — 1.7%
City of Oklahoma Turnpike Authority, RB, Series A, 4.00%, 01/01/48		2,230		2,296,320
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48		1,275		1,393,282
Oklahoma Turnpike Authority, RB, 2nd Series C, 4.00%, 01/01/42		2,120		2,207,450

				5,897,052


SCHEDULES OF INVESTMENTS			39

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Pennsylvania — 3.6%
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 05/01/42	$	2,500	$	2,558,100
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A, 5.63%, 07/01/42		685		726,100
Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:
5.00%, 06/01/33		115		131,003
5.00%, 06/01/34		150		170,111
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A:
5.00%, 09/01/43		1,350		1,494,301
4.00%, 09/01/49		615		617,325
Pennsylvania Economic Development Financing Authority, RB:
AMT, 5.00%, 06/30/42		3,030		3,242,494
Aqua Pennsylvania, Inc. Project, Series B, 5.00%, 11/15/40		2,065		2,104,586
Pennsylvania Turnpike Commission, RB, Series A, 5.00%, 12/01/44		1,190		1,296,160

				12,340,180

Puerto Rico — 1.3%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:
5.50%, 05/15/39		715		722,322
5.63%, 05/15/43		740		747,726
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34		30		29,962
4.75%, 07/01/53		804		738,289
5.00%, 07/01/58		2,378		2,254,463

				4,492,762

Rhode Island — 2.2%
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.00%, 06/01/35		1,690		1,780,516
Series B, 4.50%, 06/01/45		2,850		2,674,469
Series B, 5.00%, 06/01/50		3,175		3,193,351

				7,648,336

South Carolina — 4.9%
South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/48		3,340		3,654,327
State of South Carolina Ports Authority, ARB:
5.25%, 07/01/20^(b)		3,595		3,764,325
AMT, 5.25%, 07/01/55		1,390		1,513,251
State of South Carolina Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 12/01/54		3,575		3,897,286
State of South Carolina Public Service Authority, Refunding RB:
Series A, 5.00%, 12/01/50		1,545		1,667,349
Series E, 5.25%, 12/01/55		1,840		2,011,856

				16,508,394

Tennessee — 0.7%
City of Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 01/01/45		1,470		1,558,067
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40		740		811,721

				2,369,788

Texas — 14.6%
Central Texas Regional Mobility Authority, Refunding RB:
Senior Lien, 6.25%, 01/01/21^(b)		2,350		2,536,848
Sub-Lien, 5.00%, 01/01/33		390		420,915


Security	Par (000)		Value

Texas (continued)
City of Austin Texas Airport System, ARB, AMT, 5.00%, 11/15/39	$	665	$	732,365
City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29		460		503,176
City of Houston Texas Combined Utility System, Refunding RB, Combined 1st Lien, Series A (AGC)^(b):
6.00%, 05/15/19		9,145		9,224,340
City of San Antonio Texas Electric and Gas Systems Revenue, Refunding RB, Series A, 5.00%, 02/01/48		1,260		1,446,455
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23^(b)		485		576,612
County of Harris Texas Houston Sports Authority, Refunding RB, 3rd Lien, Series A (NPFGC)^(c):
0.00%, 11/15/24^(b)		2,300		1,009,194
0.00%, 11/15/36		23,075		9,396,140
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Projects, Series A, 0.00%, 09/15/37^(c)		6,055		2,796,138
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB:
Christus Health, Series B, 5.00%, 07/01/48		4,955		5,452,878
Scott & White Healthcare, 6.00%, 08/15/20^(b)		4,085		4,335,615
New Hope Cultural Education Facilities Finance Corp., RB, Jubilee Academic Center Project, Series A, 5.13%, 08/15/47^(a)		1,085		1,085,586
San Antonio Water System, Refunding RB, Junior Lien, Series A, 5.00%, 05/15/48		2,720		3,096,856
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
LBJ Infrastructure Group LLC, 7.00%, 06/30/40		3,000		3,185,700
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39		2,250		2,335,050
Texas Transportation Commission, RB, First Tier Toll Revenue, 5.00%, 08/01/57		1,270		1,378,407

				49,512,275

Utah — 0.7%
City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/47		995		1,099,326
Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/48		955		1,064,367
Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy, Series A, 3.25%, 10/15/42		390		325,552

				2,489,245

Virginia — 1.5%
County of Front Royal & Warren IDA, RB, Valley Health System Obligated Group, 4.00%, 01/01/50		865		866,418
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT:
5.25%, 01/01/32		1,755		1,868,110
6.00%, 01/01/37		2,120		2,314,807

				5,049,335

Washington — 3.9%
City of Bellingham Washington Water & Sewer, RB, 5.00%, 08/01/36		5,050		5,402,237
Grant County Public Utility District No. 2, Refunding RB, Series A, 5.00%, 01/01/43		2,335		2,594,769
Port of Seattle Washington, ARB, Series A, AMT, 5.00%, 05/01/43		1,615		1,783,008
Port of Seattle Washington, RB, Intermediate Lien, Series C, AMT, 5.00%, 04/01/40		815		895,881


40		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Trust II (BLE)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Washington (continued)
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45	$	2,445	$	2,659,451

				13,335,346

Wisconsin — 0.3%
State of Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, Series E, 5.00%, 11/15/33		910		927,126


Wyoming — 1.0%
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 07/15/26		3,355		3,406,768


Total Municipal Bonds — 130.4% (Cost — $424,136,412)				442,757,036


Municipal Bonds Transferred to Tender Option Bond Trusts^(h)

California — 5.8%
Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, 4.00%, 04/01/42⁽ⁱ⁾		3,358		3,445,990
City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19^(b)		10,335		10,573,429
Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47		3,345		3,765,985
San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19^(b)		1,840		1,869,012

				19,654,416

Colorado — 0.8%
City & County of Denver Colorado Airport System Revenue, Refunding ARB, Subordinate System, Series A, AMT, 5.25%, 12/01/48⁽ⁱ⁾		2,463		2,820,320


Illinois — 0.5%
Illinois Finance Authority, Refunding RB, Presence Health Network, Series C, 4.00%, 02/15/41		1,544		1,561,496


Massachusetts — 3.1%
Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement Program, Series A, 4.00%, 06/01/45		2,238		2,296,121
Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/47		4,979		5,471,074
Massachusetts School Building Authority, RB, Senior, Series B, 5.00%, 10/15/41		2,461		2,623,651

				10,390,846

New York — 13.1%
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40		1,710		1,727,852
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series HH, 5.00%, 06/15/31⁽ⁱ⁾		9,150		9,752,955
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012:
5.75%, 02/15/21^(b)⁽ⁱ⁾		1,083		1,165,087
5.75%, 02/15/47⁽ⁱ⁾		666		716,726
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		11,670		12,659,328
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51⁽ⁱ⁾		7,040		7,678,173
New York State Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/46		7,217		7,482,852


Security	Par (000)		Value

New York (continued)
Port Authority of New York & New Jersey, Refunding ARB, 194th Series, 5.25%, 10/15/55	$	2,790	$	3,183,762

				44,366,735

North Carolina — 0.9%
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55		2,740		3,076,979


Pennsylvania — 0.8%
Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42		2,521		2,889,548


Rhode Island — 0.5%
Narragansett Bay Commission, Refunding RB, Wastewater System, Series A, 4.00%, 09/01/43		1,695		1,721,035


Texas — 3.8%
City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/43		2,660		2,890,821
County of Harris Texas Metropolitan Transit Authority, Refunding RB, Series A, 5.00%, 11/01/41		3,720		3,988,956
Lower Colorado River Authority, Refunding RB, LCRA Transmission Services Corporation Project, 4.00%, 05/15/43		2,241		2,269,692
University of Texas, Refunding RB, Financing System, Series B, 5.00%, 08/15/43		3,347		3,655,025

				12,804,494

Utah — 1.2%
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19^(b)		3,959		4,019,356


Wisconsin — 0.9%
State of Wisconsin Health & Educational Facilities Authority, Refunding RB, The Medical College of Wisconsin, Inc., 4.00%, 12/01/46		3,072		3,112,935


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 31.4% (Cost — $103,136,777)				106,418,160


Total Long-Term Investments — 161.8% (Cost — $527,273,189)				549,175,196


	Shares

Short-Term Securities — 0.3%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%^(j)^(k)		999,494		999,594


Total Short-Term Securities — 0.3% (Cost — $999,594)				999,594


Total Investments — 162.1% (Cost — $528,272,783)				550,174,790

Other Assets Less Liabilities — 1.6%				5,333,467

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (19.1)%				(64,766,615	)

VMTP Shares at Liquidation Value, Net of Deferred Offering Costs — (44.6)%				(151,300,000	)


Net Assets Applicable to Common Shares — 100.0%			$	339,441,642


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Trust II (BLE)

^(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)	Zero-coupon bond.

^(d)	Non-income producing security.

^(e)	Issuer filed for bankruptcy and/or is in default.

^(f)	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.

^(g)	Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

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

⁽ⁱ⁾

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between June 15, 2019 to June 1, 2026, is $15,290,307. See Note 4 of the Notes to Financial Statements for details.

^(j)	Annualized 7-day yield as of period end.

^(k)	During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		4,902,849		(3,903,355	)		999,494	$	999,594	$	25,441	$	94	$	(227	)

^(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		31		06/19/19	$	3,782	$	19,624
Long U.S. Treasury Bond		123		06/19/19		17,770		202,442
5-Year U.S. Treasury Note		23		06/28/19		2,635		7,870

							$	229,936

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
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	229,936	$	—	$	229,936

^(a)

For the six months ended February 28, 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	$	—	$	—	$	—	$	—	$	(359,851	)	$	—	$	(359,851	)

Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	194,037		$	—	$	194,037


42		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock Municipal Income Trust II (BLE)

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	22,681,289

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

Fair Value Hierarchy as of Period End

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


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	549,175,196	$	—	$	549,175,196
Short-Term Securities		999,594		—		—		999,594

	$	999,594	$	549,175,196	$	—	$	550,174,790

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	229,936	$	—	$	—	$	229,936

	$	229,936	$	—	$	—	$	229,936

^(a)

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

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(64,522,879	)	$	—	$	(64,522,879	)
VRDP Shares at Liquidation Value		—		(151,300,000	)		—		(151,300,000	)

	$	—	$	(215,822,879	)	$	—	$	(215,822,879	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (unaudited)

February 28, 2019

BlackRock MuniHoldings Investment Quality Fund (MFL)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 133.7%

Alabama — 3.4%
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC)^(a):
6.00%, 06/01/19	$	10,995	$	11,109,128
6.13%, 06/01/19		4,980		5,033,186
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35		1,745		1,875,195

				18,017,509

Arizona — 1.1%
County of Maricopa Arizona IDA, Refunding RB, Banner Health Obligation Group, 5.00%, 01/01/38		3,000		3,373,530
University of Arizona Board of Regents, Refunding RB, Series A, 5.00%, 06/01/40		2,300		2,588,857

				5,962,387

California — 18.3%
Anaheim California Union High School District, GO, Election of 2014, 4.00%, 08/01/42		4,000		4,117,520
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 08/15/20^(a)		5,370		5,719,426
City & County of San Francisco California Airports Commission, Refunding ARB:
2nd Series A, AMT, 5.50%, 05/01/28		3,330		3,754,142
2nd Series A, AMT, 5.25%, 05/01/33		6,370		7,051,717
San Francisco City Country Airport, Series E, 5.00%, 05/01/48		5,000		5,690,450
Series A, AMT, 5.00%, 05/01/44		3,430		3,715,822
City of Manteca California Financing Authority, RB, Manteca Sewer (AGC), 5.75%, 12/01/36		3,285		3,386,014
City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT, 5.75%, 03/01/34		4,450		4,739,695
County of Sacramento California Airport System Revenue, Refunding RB, AMT, Series C, 5.00%, 07/01/39		3,410		3,878,193
Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33		4,365		5,062,003
Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J, 5.25%, 05/15/38		2,705		3,020,511
State of California, GO, Various Purposes (AGC), 5.50%, 11/01/39		15,000		15,370,200
State of California Public Works Board, LRB, Various Capital Projects, SeriesI:
5.50%, 11/01/30		4,500		5,149,350
5.50%, 11/01/31		2,615		2,983,637
5.50%, 11/01/33		2,000		2,274,360
State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33		3,240		3,638,066
State of California University, Refunding RB, Systemwide, Series A, 5.00%, 11/01/42		3,500		3,979,010
Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40		1,685		1,957,785
University of California, Refunding RB, Series AR, 5.00%, 05/15/38		10,000		11,371,000

				96,858,901

Colorado — 2.1%
City & County of Denver Colorado Airport System, ARB, Series A, AMT:
5.50%, 11/15/28		2,700		3,062,691
5.50%, 11/15/30		1,040		1,173,307
5.50%, 11/15/31		1,250		1,407,275
City & County of Denver School District No.1, GO, Series A, 5.50%, 12/01/36		500		606,115


Security	Par (000)		Value

Colorado (continued)
Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 05/15/19^(a)	$	4,925	$	4,967,897

				11,217,285

Florida — 7.7%
County of Hillsborough Florida Aviation Authority, Refunding ARB, Tampa International Airport, Series A, AMT:
5.50%, 10/01/29		5,360		6,074,167
5.25%, 10/01/30		3,255		3,632,710
County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32		7,100		7,578,398
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		260		261,448
County of Manatee Florida HFA, RB, S/F Housing, Series A, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 5.90%, 09/01/40		125		126,194
County of Miami-Dade Florida, RB, Seaport Department:
Series A, 5.38%, 10/01/33		3,145		3,522,494
Series B, AMT, 6.25%, 10/01/38		1,405		1,612,631
Series B, AMT, 6.00%, 10/01/42		1,885		2,140,851
County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series B, 5.25%, 10/01/29		2,870		3,254,781
County of Miami-Dade Florida Aviation, Refunding ARB, Series A, AMT, 5.00%, 10/01/31		5,465		5,905,261
Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 06/01/32		3,225		3,638,348
South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida Obligated Group, 5.00%, 08/15/42		2,965		3,310,096

				41,057,379

Georgia — 0.7%
County of Fulton Development Authority, Refunding RB, Piedmont Healthcare, Series A, 4.00%, 07/01/35		3,500		3,634,015


Hawaii — 2.1%
State of Hawaii Airports System, ARB, Series A, AMT, 5.00%, 07/01/45		5,985		6,601,694
State of Hawaii Airports System, COP, AMT:
5.25%, 08/01/25		1,350		1,510,205
5.25%, 08/01/26		2,500		2,783,400

				10,895,299

Idaho — 1.9%
Idaho Health Facilities Authority, RB, Trinity Health Credit Group, 4.00%, 12/01/43		10,000		10,103,200


Illinois — 18.2%
Chicago Housing Authority, RB, M/F Housing, Series A (HUD), 5.00%, 01/01/38		2,150		2,412,214
City of Chicago Illinois Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT:
5.50%, 01/01/30		6,500		7,172,230
5.50%, 01/01/32		6,275		6,902,312
City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/41		8,020		8,652,457
City of Chicago Illinois O’Hare International Airport, GARB:
3rd Lien, Series A, 5.75%, 01/01/21^(a)		5,000		5,371,600
3rd Lien, Series A, 5.75%, 01/01/39		1,185		1,254,512
3rd Lien, Series C, 6.50%, 01/01/21^(a)		16,800		18,271,176
Senior Lien, Series D, 5.25%, 01/01/42		2,630		2,972,347
City of Chicago Illinois O’Hare International Airport, Refunding RB, Senior Lien, Series B, 5.00%, 01/01/35		4,300		4,858,570
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40		10,960		11,523,892


44		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings Investment Quality Fund (MFL)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Illinois (continued)
City of Chicago Illinois Transit Authority, Refunding RB, Federal Transit Administration, Section 5309 (AGM), 5.00%, 06/01/28	$	7,735	$	7,976,100
Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 08/15/41		4,000		4,342,400
Railsplitter Tobacco Settlement Authority, RB^(a):
5.50%, 06/01/21		4,365		4,726,160
6.00%, 06/01/21		1,245		1,361,644
State of Illinois, GO:
5.00%, 11/01/27		200		215,466
Series C, 5.00%, 11/01/29		5,000		5,351,000
State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 01/01/37		2,700		3,078,378

				96,442,458

Indiana — 0.2%
State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 07/01/40		1,240		1,312,032


Kansas — 0.9%
County of Wyandotte Kansas Unified School District, GO, Series A, 5.50%, 09/01/47		4,000		4,708,600


Kentucky^(b) — 3.0%
Kentucky Public Energy Authority, RB:
Gas Supply, Series C-1, 4.00%, 12/01/49		10,000		10,675,700
Series A, 4.00%, 04/01/48		5,000		5,305,400

				15,981,100

Maryland — 3.2%
Maryland Stadium Authority, RB, Baltimore City Public School, 5.00%, 05/01/41		15,000		16,750,500


Massachusetts — 5.9%
Commonwealth of Massachusetts, GO, Series G, 4.00%, 09/01/42		15,000		15,466,500
Massachusetts Development Finance Agency, Refunding RB, Partners Healthcare System, 5.00%, 07/01/41		4,710		5,220,658
Massachusetts Educational Financing Authority, RB, Education Loan, Issue I, AMT, 5.00%, 01/01/27		1,000		1,117,790
Massachusetts Housing Finance Agency, Refunding RB, Series G, 3.45%, 12/01/30		3,100		3,156,203
Massachusetts School Building Authority, RB, Sub Series B, 4.00%, 02/15/42		6,200		6,337,206

				31,298,357

Michigan — 1.5%
City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM):
6.25%, 07/01/19^(a)		6,310		6,404,082
6.25%, 07/01/36		10		10,136
Michigan Finance Authority, Refunding RB, Henry Ford Health System, 5.00%, 11/15/41		1,525		1,655,495

				8,069,713

Mississippi — 2.8%
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM):
6.88%, 12/01/40		6,405		7,591,654
Special Obligation, 6.75%, 12/01/31		3,775		4,497,988
Special Obligation, 6.75%, 12/01/33		2,350		2,790,813

				14,880,455

Nevada — 2.2%
County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 07/01/39		11,175		11,442,529


Security	Par (000)		Value

New Jersey — 8.3%
New Jersey EDA, RB, Goethals Bridge Replacement Project, AMT, Private Activity Bond:
5.38%, 01/01/43	$	7,000	$	7,610,120
(AGM), 5.00%, 01/01/31		2,425		2,646,960
New Jersey EDA, Refunding RB, Series B, 5.50%, 06/15/30		4,080		4,653,974
New Jersey Health Care Facilities Financing Authority, RB, Virtua Health, Series A (AGC), 5.50%, 07/01/38		6,500		6,573,710
New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT, 5.75%, 12/01/28		2,015		2,150,831
New Jersey Transportation Trust Fund Authority, RB:
Transportation Program Bonds, Series S, 5.25%, 06/15/43		4,295		4,662,996
Transportation System, Series AA, 5.50%, 06/15/39		8,175		8,676,700
New Jersey Turnpike Authority, Refunding RB, Series A, 5.00%, 01/01/34		1,685		1,910,386
State of New Jersey, GO, 4.00%, 06/01/29		5,000		5,243,200

				44,128,877

New York — 14.7%
City of New York, GO:
Subseries F-1, 5.00%, 04/01/38		10,000		11,568,900
Sub-Series F-1, 5.00%, 04/01/40		4,850		5,553,153
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series EE, 5.38%, 06/15/43		3,475		3,669,565
City of New York New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2009, Series EE, 5.25%, 06/15/40		7,500		7,571,775
City of New York Transitional Finance Authority, RB, Future Tax Secured Subordinate, Subseries B-1, 5.00%, 08/01/40		5,000		5,652,250
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40		4,000		4,041,760
Metropolitan Transportation Authority, RB, Series A-1, 5.25%, 11/15/39		4,490		5,009,852
Metropolitan Transportation Authority, Refunding RB:
Series B, 5.00%, 11/15/37		6,140		6,860,652
Series D, 4.00%, 11/15/42		2,500		2,530,650
Port Authority of New York & New Jersey, Refunding ARB, Consolidated:
166th Series, 5.25%, 07/15/36		10,000		10,587,300
205th Series, 5.25%, 11/15/39		6,000		7,069,140
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 205th Series, 5.25%, 05/15/42		900		1,053,540
Triborough Bridge & Tunnel Authority, Refunding RB, Series B, 5.00%, 11/15/38		5,660		6,507,925

				77,676,462

Ohio — 1.6%
State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1:
5.25%, 02/15/31		5,145		5,734,874
5.25%, 02/15/32		2,250		2,506,163

				8,241,037

Pennsylvania — 6.4%
Pennsylvania State University, RB, Series A, 5.00%, 09/01/42		2,945		3,380,301
Pennsylvania Turnpike Commission, RB:
Series A, 5.25%, 12/01/44		5,000		5,798,300
Sub-Series A, 5.50%, 12/01/46		18,570		21,248,351
Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37		3,000		3,320,160

				33,747,112


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings Investment Quality Fund (MFL)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

South Carolina — 6.7%
County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38	$	6,735	$	7,623,683
County of Charleston South Carolina Airport District, ARB, Series A, AMT:
5.25%, 07/01/25		4,490		5,083,264
5.50%, 07/01/38		3,000		3,342,990
6.00%, 07/01/38		5,270		6,002,530
5.50%, 07/01/41		4,170		4,635,914
South Carolina Jobs-Economic Development Authority, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/37		4,480		5,037,760
State of South Carolina Ports Authority, RB, AMT, 5.25%, 07/01/50		3,445		3,766,797

				35,492,938

Texas — 17.5%
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 03/01/37		4,190		4,663,554
City of Houston Texas Combined Utility System, Refunding RB, Combined 1st Lien, Series A (AGC)^(a):
6.00%, 05/15/19		12,030		12,134,300
6.00%, 05/15/19		670		675,883
City of Houston Texas Combined Utility System Revenue, Refunding RB, Combined 1st Lien, Series A (AGC)^(a):
6.00%, 05/15/19		8,940		9,017,510
6.00%, 05/15/19		495		499,346
Dallas-Fort Worth Texas International Airport, ARB, Joint Improvement, AMT:
Series A, 5.00%, 11/01/38		5,580		5,787,576
Series H, 5.00%, 11/01/37		4,575		4,818,939
Lower Colorado River Authority, Refunding RB, 5.50%, 05/15/33		3,735		4,224,173
North Texas Tollway Authority, Refunding RB, 1st Tier (AGM), 6.00%, 01/01/21^(a)		5,555		5,982,290
Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38		7,170		7,987,165
State of Texas, GO:
Transportation Commission Highway Improvement, 5.00%, 04/01/43		15,550		17,508,678
Water Financial Assistance, Series D, 5.00%, 05/15/40		8,000		9,009,040
Texas Water Development Board, RB:
State Water Implementation Fund, Series B, 4.00%, 10/15/43		5,000		5,223,650
State Water Implementation Revenue, 5.25%, 10/15/46		4,780		5,498,099

				93,030,203

Utah — 2.4%
County of Utah Utah, RB, IHC Health Services, Inc., Series B, 5.00%, 05/15/46		7,500		8,386,875
Utah State University, RB, Series B, 4.00%, 12/01/45		4,390		4,532,499

				12,919,374

Virginia — 0.4%
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 01/01/43		1,750		1,887,375


Washington — 0.5%
State of Washington, GO, Series C, 5.00%, 02/01/41		2,500		2,869,925



Total Municipal Bonds — 133.7% (Cost — $682,816,597)				708,625,022


Security	Par (000)		Value

Municipal Bonds Transferred to Tender Option Bond Trusts^(c)

Alabama — 8.3%
City of Birmingham Alabama Special Care Facilities Financing Authority, Refunding RB, Ascension Senior Credit Group:
Series B, 5.00%, 11/15/46	$	27,798	$	30,640,351
Series C, 5.00%, 11/15/46		11,920		13,138,641

				43,778,992

California — 0.5%
Los Angeles California Unified School District, GO, Series I, 5.00%, 01/01/34		2,400		2,423,280


Massachusetts — 4.4%
Commonwealth of Massachusetts, GO, Consolidated Loan, Series E, 5.25%, 09/01/43		20,000		23,445,600


Nevada — 0.9%
County of Clark Nevada Water Reclamation District, GO, Series B, 5.50%, 07/01/19^(a)		5,008		5,072,646


New Jersey — 1.7%
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29		5,922		5,938,476
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36^(d)		2,961		3,075,635

				9,014,111

New York — 12.5%
City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40		4,995		5,047,148
City of New York Transitional Finance Authority, RB, Series, S-1, 5.00%, 07/15/43		11,825		13,478,795
Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012:^(d) 5.75%, 02/15/21^(a)		5,726		6,158,318
5.75%, 02/15/47		3,523		3,788,410
New York Liberty Development Corp., ARB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43		13,950		15,132,616
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51^(d)		8,200		8,943,326
State of New York Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 03/15/19^(a)		13,500		13,515,458

				66,064,071

Texas — 2.0%
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 09/01/21^(a)		9,640		10,525,000


Utah — 1.2%
City of Riverton Utah, RB, IHC Health Services, Inc., 5.00%, 08/15/19^(a)		6,373		6,470,555


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 31.5% (Cost — $165,178,077)				166,794,255


Total Long-Term Investments — 165.2% (Cost — $847,994,674)				875,419,277


46		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings Investment Quality Fund (MFL)

(Percentages shown are based on Net Assets)



Security	Shares		Value

Short-Term Securities — 0.4%
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%^(e)^(f)		2,392,755	$	2,392,995

Total Short-Term Securities — 0.4% (Cost — $2,392,995)				2,392,995


Total Investments — 165.6% (Cost — $850,387,669)				877,812,272

Other Assets Less Liabilities — 1.8%				9,422,977

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.7)%				(83,046,839	)

VRDP Shares, at Liquidation Value, Net of Deferred Offering Costs — (51.7)%				(274,221,546	)


Net Assets Applicable to Common Shares — 100.0%			$	529,966,864

^(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)	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.

^(c)	Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. 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 Trust could ultimately be required to pay under the agreements, which expire between June 15, 2019, to August 15, 2020, is $11,535,489. 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 February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity		Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class		1,018,845		1,373,910		2,392,755	$	2,392,995	$	16,874	$	634	$	—

^(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		115		06/19/19	$	14,030	$	72,882
Long U.S. Treasury Bond		216		06/19/19		31,205		355,507
5-Year U.S. Treasury Note		76		06/28/19		8,707		26,006

							$	454,395

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
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	454,395	$	—	$	454,395

^(a)


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniHoldings Investment Quality Fund (MFL)

For the six months ended February 28, 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	$	—	$	—	$	—	$	—	$	(921,207	)	$	—	$	(921,207	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	408,042		$	—	$	408,042

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short	$	46,598,238

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

Fair Value Hierarchy as of Period End

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


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	875,419,277	$	—	$	875,419,277
Short-Term Securities		2,392,995		—		—		2,392,995

	$	2,392,995	$	875,419,277	$	—	$	877,812,272

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	454,395	$	—	$	—	$	454,395

	$	454,395	$	—	$	—	$	454,395

^(a)

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

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(82,671,903	)	$	—	$	(82,671,903	)
VRDP Shares at Liquidation Value		—		(274,600,000	)		—		(274,600,000	)

	$	—	$	(357,271,903	)	$	—	$	(357,271,903	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


48		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited)

February 28, 2019

BlackRock MuniVest Fund, Inc. (MVF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds — 123.7%

Alabama — 1.9%
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A:
5.80%, 05/01/34	$	1,850	$	1,921,151
5.38%, 12/01/35		1,000		1,074,610
State of Alabama Docks Department, Refunding RB, 6.00%, 10/01/20^(a)		7,610		8,129,839

				11,125,600

Alaska — 0.6%
City of Anchorage Alaska Electric Revenue, Refunding RB, Series A, 5.00%, 12/01/41		3,000		3,315,570


Arizona — 4.9%
Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.38%, 07/01/50^(b)		2,500		2,575,275
City of Phoenix Arizona Civic Improvement Corp., Refunding RB, Junior Lien, Series A, 5.00%, 07/01/20^(a)		2,000		2,089,020
City of Phoenix Arizona IDA, RB, Candeo School, Inc. Project:
6.63%, 07/01/33		2,245		2,455,311
6.88%, 07/01/44		3,440		3,730,852
City of Phoenix Arizona IDA, Refunding RB^(b):
Basis Schools, Inc. Projects, 5.00%, 07/01/35		600		616,320
Basis Schools, Inc. Projects, 5.00%, 07/01/45		760		769,394
Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/35		1,125		1,155,600
Legacy Traditional School Projects, 5.00%, 07/01/45		700		707,511
County of Maricopa Arizona Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 06/01/35		3,300		3,362,271
Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37		9,805		11,582,941

				29,044,495

California — 7.0%
California Health Facilities Financing Authority, RB:
St. Joseph Health System, Series A, 5.75%, 07/01/39		5,000		5,064,350
Sutter Health, Series B, 6.00%, 08/15/20^(a)		5,600		5,964,392
California Health Facilities Financing Authority, Refunding RB, Dignity Health, Series A, 6.00%, 07/01/19^(a)		1,055		1,070,477
California Municipal Finance Authority, ARB, Senior Lien, Linxs APM Project, AMT, 5.00%, 12/31/43		2,800		3,100,328
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Series A, 5.25%, 05/15/39		1,200		1,208,436
Golden State Tobacco Securitization Corp., Refunding RB, Series A-1:
5.00%, 06/01/47		855		822,912
5.25%, 06/01/47		1,025		1,026,732
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 08/01/19^(a)		9,585		9,762,897
Oakland Unified School District/Alameda County, GO, Series A, 5.00%, 08/01/40		1,000		1,145,110
Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement District No. 2007-1, Election of 2008, Series B, 0.00%, 08/01/46^(c)		10,000		3,235,500
State of California, GO, Various Purposes:
6.50%, 04/01/19^(a)		5,240		5,260,174
6.50%, 04/01/33		4,435		4,451,188

				42,112,496

Colorado — 0.9%
Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47^(b)		1,025		1,028,413
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33		2,500		2,509,475


Security	Par (000)		Value

Colorado (continued)
Copperleaf Metropolitan District No. 2, GO, Refunding, 5.75%, 12/01/45	$	1,000	$	1,042,790
Serenity Ridge Metropolitan District No 2, GO, Series A, 5.13%, 12/01/43		1,000		1,010,420

				5,591,098

Connecticut — 0.6%
State of Connecticut, GO, Series A, 5.00%, 04/15/38		3,325		3,647,791


Delaware — 0.9%
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40		2,500		2,637,275
State of Delaware Health Facilities Authority, RB, Beebe Medical Center Project, 5.00%, 06/01/43		2,780		3,006,375

				5,643,650

District of Columbia — 0.2%
Metropolitan Washington Airports Authority, Refunding RB, Dulles Toll Road, 1st Senior Lien, Series A:
5.00%, 10/01/39		415		421,478
5.25%, 10/01/44		650		660,088

				1,081,566

Florida — 7.4%
Celebration Pointe Community Development District, Special Assessment Bonds, County of Alachua Florida^(b):
5.00%, 05/01/32		905		942,811
5.00%, 05/01/48		2,270		2,284,959
Central Florida Expressway Authority, Refunding RB, Senior Lien, 5.00%, 07/01/48		9,370		10,577,980
County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 07/01/42		3,750		4,049,813
County of Miami-Dade Florida Aviation, Refunding ARB, Miami International Airport, Series A-1, 5.38%, 10/01/20^(a)		10,290		10,885,071
County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, University of Miami, Series A, 5.00%, 04/01/45		4,625		5,029,780
County of Miami-Dade Florida Expressway Authority, Refunding RB, Series A (AGM), 5.00%, 07/01/35		8,900		9,248,969
Lakewood Ranch Stewardship District, Special Assessment Bonds, Lakewood National & Polo Run Projects:
4.63%, 05/01/27		255		260,327
5.25%, 05/01/37		470		486,995
5.38%, 05/01/47		770		794,825

				44,561,530

Georgia — 1.1%
City of Atlanta Georgia Department of Aviation, Refunding GARB, Series B, AMT, 5.00%, 01/01/29		1,070		1,120,889
DeKalb Georgia Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39		3,335		3,405,835
Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49		1,855		2,093,850

				6,620,574

Hawaii — 0.9%
State of Hawaii Harbor System, RB, Series A, 5.50%, 07/01/35		5,000		5,234,650


Illinois — 11.9%
Chicago Board of Education, GO, Series C:
Dedicated Revenues, Series H, 5.00%, 12/01/36		865		893,389
Project, 5.25%, 12/01/35		2,785		2,888,017
Chicago Board of Education, GO, Refunding:
Dedicated Revenues, 5.00%, 12/01/25		1,560		1,666,376
Dedicated Revenues, Series G, 5.00%, 12/01/34		865		899,721
5.00%, 12/01/25		1,200		1,281,828


SCHEDULES OF INVESTMENTS			49

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniVest Fund, Inc. (MVF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Illinois (continued)
Chicago Board of Education, GO, Series D:
5.00%, 12/01/46	$	995	$	1,007,945
5.00%, 12/01/46		2,575		2,593,154
Refunding Dedicated Revenues, Series F, 5.00%, 12/01/23		1,180		1,247,343
City of Chicago Illinois O’Hare International Airport, GARB, Senior Lien, Series D, AMT, 5.00%, 01/01/42		1,450		1,587,837
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/36		2,110		2,229,932
City of Chicago Illinois Wastewater Transmission, Refunding RB, 2nd Lien, Series C, 5.00%, 01/01/39		1,000		1,076,350
County of Cook Illinois Community College District No. 508, GO, University & College Improvements, 5.25%, 12/01/31		5,000		5,212,350
Illinois Finance Authority, RB, Memorial Health System, Series A, 5.25%, 07/01/44		1,785		1,926,301
Illinois Finance Authority, Refunding RB:
Northwestern Memorial Hospital, Series A, 6.00%, 08/15/19^(a)		9,000		9,173,970
OSF Healthcare System, 6.00%, 05/15/20^(a)		3,205		3,365,987
OSF Healthcare System, 6.00%, 05/15/39		1,000		1,031,300
Presence Health Network, Series C, 5.00%, 02/15/41		3,600		3,993,228
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds, Series A:
0.00%, 12/15/56^(c)		8,755		1,350,459
5.00%, 06/15/57		425		442,438
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project Bonds, Series B, 0.00%, 12/15/54^(c)		12,215		2,089,620
Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/21^(a)		2,645		2,892,810
Regional Transportation Authority, RB:
Series A (AMBAC), 7.20%, 11/01/20		850		902,606
Series C (NPFGC), 7.75%, 06/01/20		1,545		1,612,903
State of Illinois, GO, Series D, 5.00%, 11/01/28		1,965		2,119,017
State of Illinois Toll Highway Authority, RB, Series A, 5.00%, 01/01/42		7,990		8,947,761
Village of Hodgkins Illinois, RB, Metropolitan Biosolids Management LLC Project, AMT, 6.00%, 11/01/23		8,565		8,575,621

				71,008,263

Indiana — 1.7%
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 6.75%, 01/01/34		2,250		2,572,965
County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1^(b):
6.63%, 01/15/34		700		735,539
6.75%, 01/15/43		570		597,890
State of Indiana Finance Authority, RB, Private Activity Bond, Ohio River Bridges, Series A, AMT, 5.00%, 07/01/40		2,640		2,793,358
State of Indiana Finance Authority, Refunding RB, Deaconess Health System, Series A, 5.00%, 03/01/39		3,000		3,284,790

				9,984,542

Iowa — 1.6%
Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25		4,000		4,240,360
Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed, CAB, Series B, 5.60%, 06/01/34		1,000		1,004,390
State of Iowa Finance Authority, RB, Lifespace Communities, Series A, 5.00%, 05/15/48		3,950		4,104,524

				9,349,274

Kansas — 1.0%
City of Lenexa Kansas, Refunding RB, Lakeview Village, Inc., Series A, 5.00%, 05/15/43		1,965		2,003,239


Security	Par (000)		Value

Kansas (continued)
Wyandotte County-Kansas City Unified Government Utility System, RB, Series A, 5.00%, 09/01/40	$	3,700	$	4,138,857

				6,142,096

Kentucky — 2.7%
County of Owen Kentucky, RB, Kentucky American Water Co. Project, Series B, 5.63%, 09/01/39		1,000		1,016,510
Kentucky Economic Development Finance Authority, Refunding RB, Hospital Facilities, St. Elizabeth Medical Center, Inc., Series A, 5.50%, 05/01/19^(a)		8,000		8,049,040
Lexington-Fayette Urban County Airport Board, Refunding GARB, Series A, 5.00%, 07/01/19^(a)		7,000		7,078,470

				16,144,020

Louisiana — 3.4%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35		2,615		2,777,888
Parish of St. Charles Louisiana, RB, Valero Energy Corp., 4.00%, 12/01/40^(d)		2,210		2,296,411
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:
5.25%, 05/15/31		3,420		3,605,433
5.25%, 05/15/32		4,375		4,701,856
5.25%, 05/15/33		4,750		5,083,783
5.25%, 05/15/35		1,500		1,624,710

				20,090,081

Maine — 1.0%
Maine Health & Higher Educational Facilities Authority, RB, Series A:
5.00%, 07/01/19^(a)		1,560		1,576,973
5.00%, 07/01/39		3,440		3,468,724
Portland Housing Development Corp., Refunding RB, Senior Living, Retirement Facilities, Series A, 6.00%, 02/01/34		1,190		1,191,737

				6,237,434

Maryland — 4.2%
City of Baltimore Maryland, Refunding RB, East Baltimore Research Park, Series A, 4.50%, 09/01/33		545		559,710
County of Howard Maryland Housing Commission, RB, M/F Housing, Woodfield Oxford Square Apartments, 5.00%, 12/01/42		4,935		5,425,193
Maryland Health & Higher Educational Facilities Authority, Refunding RB:
Charlestown Community Project, 6.25%, 01/01/21^(a)		2,000		2,160,900
Meritus Medical Center Issue, 5.00%, 07/01/40		6,350		6,830,568
University of Maryland Medical System, 5.00%, 07/01/19^(a)		1,990		2,011,651
University of Maryland Medical System, 5.13%, 07/01/19^(a)		2,100		2,123,688
Maryland Stadium Authority, RB, Construction and Revitalization Program, 5.00%, 05/01/47		5,510		6,211,313

				25,323,023

Massachusetts — 2.4%
Massachusetts Bay Transportation Authority, Refunding RB, General Transportation System, Series A, 7.00%, 03/01/19		370		370,000
Massachusetts Development Finance Agency, RB:
Emerson College Issue, Series A, 5.00%, 01/01/47		845		912,549
Emerson College Issue, Series A, 5.25%, 01/01/42		1,895		2,086,831
UMass Dartmouth Student Housing Project, 5.00%, 10/01/43		4,480		4,829,619
Massachusetts Development Finance Agency, Refunding RB, Series A:
Emerson College, 5.00%, 01/01/40		1,620		1,777,173
4.00%, 07/01/44		965		942,245


50		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniVest Fund, Inc. (MVF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Massachusetts (continued)
Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42	$	2,120	$	2,130,833
Massachusetts Water Resources Authority, RB, Series A, 6.50%, 07/15/19^(e)		1,070		1,089,196

				14,138,446

Michigan — 0.7%
City of Detroit Michigan Water Supply System Revenue, RB, 2nd Lien, Series B (AGM), 6.25%, 07/01/19^(a)		2,495		2,532,201
Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 06/30/48		1,775		1,936,596

				4,468,797

Minnesota — 0.7%
City of Cologne Minnesota Charter School, LRB, Cologne Academy Project, Series A, 5.00%, 07/01/45		1,500		1,476,150
County of St. Paul Minnesota Housing & Redevelopment Authority, Refunding RB, Fairview Health Services, Series A, 4.00%, 11/15/43		1,940		1,972,670
Housing & Redevelopment Authority of The City of Saint Paul Minnesota, RB, Great River School Project, Series A, 5.50%, 07/01/52^(b)		695		710,512

				4,159,332

Mississippi — 5.8%
County of Lowndes Mississippi, Refunding RB, Solid Waste Disposal & Pollution Control, Weyerhaeuser Co. Project:
Series A, 6.80%, 04/01/22		9,160		10,196,454
Series B, 6.70%, 04/01/22		4,500		4,996,035
Mississippi Business Finance Corp., Refunding RB, System Energy Resource, Inc. Project, 5.88%, 04/01/22		9,305		9,322,866
Mississippi Development Bank, Refunding RB, Municipal Energy Agency Of Mississippi, Series A (AGM), 4.00%, 03/01/41		3,000		3,043,950
State of Mississippi, RB, Series A:
5.00%, 10/15/37		1,105		1,263,689
4.00%, 10/15/38		5,535		5,683,338

				34,506,332

Montana — 0.1%
Montana State Board of Housing, RB, S/F, Series B-2:
3.50%, 12/01/42		335		332,936
3.60%, 12/01/47		515		511,838

				844,774

Nebraska — 1.1%
Central Plains Nebraska Energy Project, RB, Gas Project No. 3, 5.00%, 09/01/42		6,200		6,654,956


Nevada — 1.5%
City of Carson City Nevada, Refunding RB, Carson Tahoe Regional Healthcare Project, 5.00%, 09/01/42		2,250		2,413,327
County of Clark Nevada, GO, Stadium Improvement, Series A:
5.00%, 06/01/36		4,080		4,752,262
5.00%, 06/01/37		1,500		1,739,220

				8,904,809

New Jersey — 12.0%
Casino Reinvestment Development Authority, Refunding RB, 5.25%, 11/01/44		1,400		1,489,208
New Jersey EDA, RB:
Continental Airlines, Inc. Project, Series A, AMT, 5.63%, 11/15/30		1,530		1,726,682
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43		10,000		10,871,600
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.13%, 01/01/34		1,050		1,147,020
School Facilities Construction, Series UU, 5.00%, 06/15/40		3,390		3,545,296


Security	Par (000)		Value

New Jersey (continued)
New Jersey EDA, Refunding RB, School Facilities Construction:
5.25%, 06/15/19^(a)	$	2,650	$	2,677,189
Series AA, 5.25%, 06/15/19^(a)		700		707,182
Series AA, 5.25%, 12/15/33		6,650		6,704,264
New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series BB, AMT, 3.80%, 10/01/32		4,880		4,946,270
New Jersey Transportation Trust Fund Authority, RB:
CAB, Transportation System, Series A, 0.00%, 12/15/38^(c)		7,260		2,922,150
Transportation Program, Series AA, 5.25%, 06/15/33		8,750		9,318,575
Transportation Program, Series AA, 5.25%, 06/15/41		780		830,131
Transportation Program, Series AA, 5.00%, 06/15/44		4,450		4,638,057
Transportation System, Series B, 5.50%, 06/15/31		8,000		8,410,080
New Jersey Transportation Trust Fund Authority, Refunding RB, Transportation System, Series A, 5.00%, 12/15/32		5,430		5,968,765
Tobacco Settlement Financing Corp., Refunding RB:
Series A, 5.25%, 06/01/46		4,550		4,909,950
Sub-Series B, 5.00%, 06/01/46		665		673,299

				71,485,718

New York — 5.4%
Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 01/01/35^(b)		2,145		2,279,899
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40		4,150		4,193,326
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41^(b)		3,500		3,593,345
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45		4,435		4,327,363
New York Counties Tobacco Trust IV, Refunding RB, Tobacco Settlement Pass-Through Bonds, Series A, 5.00%, 06/01/38		3,675		3,603,521
New York Liberty Development Corp., Refunding RB, 3 World Trade Center Project, Class 2^(b):
5.15%, 11/15/34		460		493,709
5.38%, 11/15/40		1,145		1,212,463
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31		3,070		3,183,345
Port Authority of New York & New Jersey, ARB, Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/36		3,165		3,349,646
TSASC, Inc., Refunding RB:
Series A, 5.00%, 06/01/41		1,785		1,891,154
Tobacco Settlement Bonds, Subordinate, Series B, 5.00%, 06/01/48		1,420		1,360,900
Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 5.13%, 06/01/51		2,740		2,760,851

				32,249,522

Ohio — 4.2%
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2:
5.75%, 06/01/34		950		885,618
5.88%, 06/01/47		2,525		2,364,082
County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20^(a)		2,875		2,998,337
County of Butler Port Authority, RB, StoryPoint Fairfield Project, Series A-1^(b):
6.38%, 01/15/43		675		692,321
6.50%, 01/15/52		390		400,819
County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities Obligation Group, Series A, 6.13%, 07/01/40		1,690		1,805,630
County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/21^(a)		1,915		2,154,643


SCHEDULES OF INVESTMENTS			51

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniVest Fund, Inc. (MVF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Ohio (continued)
County of Montgomery Ohio, RB, Catholic Health Initiatives, Series D-2, 5.45%, 10/01/38	$	7,430	$	8,110,068
County of Montgomery Ohio, Refunding RB, Catholic Health:
5.50%, 05/01/19^(a)		1,910		1,921,555
Series A, 5.50%, 05/01/34		3,560		3,579,972

				24,913,045

Oklahoma — 0.4%
Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48		2,205		2,409,558


Oregon — 0.2%
State of Oregon Health & Science University, RB, Series A, 5.00%, 07/01/42		800		907,024


Pennsylvania — 8.3%
Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/42^(b)		1,725		1,836,556
Altoona Area School District, GO, (BAM), 5.00%, 12/01/36		365		411,822
County of Delaware Pennsylvania IDA, Refunding RB, Covanta Project, 5.00%, 07/01/43		5,000		5,035,350
County of Delaware Springfield School District, GO:
5.00%, 03/01/40		2,955		3,351,000
5.00%, 03/01/43		2,145		2,419,903
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University, Series A, 5.00%, 09/01/48		3,330		3,677,186
County of Montgomery Pennsylvania IDA, Refunding RB, Whitemarsh Continuing Care Retirement Community, 5.25%, 01/01/40		4,170		4,128,008
County of Northampton Pennsylvania General Purpose Authority, Refunding RB, Lafayette College, 4.00%, 11/01/38		1,855		1,919,869
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36		4,385		4,988,508
Pennsylvania Economic Development Financing Authority, RB, Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38		2,565		2,769,174
Pennsylvania HFA, RB, S/F Housing Mortgage, Series 118-B, 4.05%, 10/01/40		3,850		3,885,766
Pennsylvania Housing Finance Agency, RB, S/F, Series 125B, 3.65%, 10/01/42		7,000		6,862,520
Pennsylvania Turnpike Commission, Refunding RB, 2nd Series, Subordinate, Special Motor License Fund, 5.00%, 12/01/41		1,700		1,887,527
Pennsylvania Turnpike Commission, RB:
Series A-1, 5.00%, 12/01/41		440		483,582
Sub-Series B-1, 5.25%, 06/01/47		5,680		6,285,942

				49,942,713

Puerto Rico — 1.3%
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds:
5.50%, 05/15/39		1,340		1,353,722
5.63%, 05/15/43		1,335		1,348,937
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, Series A-1:
4.50%, 07/01/34		51		50,936
4.75%, 07/01/53		1,362		1,250,684
5.00%, 07/01/58		4,026		3,816,849

				7,821,128

Rhode Island — 1.4%
Tobacco Settlement Financing Corp., Refunding RB, Series B:
4.50%, 06/01/45		6,820		6,399,956
5.00%, 06/01/50		2,000		2,011,560

				8,411,516


Security	Par (000)		Value

South Carolina — 1.8%
State of South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/43	$	2,690	$	2,959,188
State of South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53		750		811,560
State of South Carolina Public Service Authority, Refunding RB, Series E, 5.25%, 12/01/55		6,450		7,052,430

				10,823,178

Texas — 11.4%
Central Texas Regional Mobility Authority, RB, Senior Lien, Series A:
5.00%, 01/01/40		1,215		1,330,498
5.00%, 01/01/45		3,500		3,801,770
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien:
5.75%, 01/01/21^(a)		1,000		1,070,580
6.00%, 01/01/21^(a)		4,300		4,622,672
Series A, 5.00%, 01/01/43		6,925		7,364,045
City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29		2,665		2,915,137
City of Houston Texas Airport System Revenue, Refunding RB, Sub-Series D, 5.00%, 07/01/37		4,005		4,633,184
County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B, 7.00%, 01/01/23^(a)		850		1,010,557
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 08/15/20^(a)		4,630		4,914,050
County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, 5.00%, 10/01/44		3,500		3,663,415
La Vernia Higher Education Finance Corp., RB, KIPP, Inc., Series A, 6.25%, 08/15/19^(a)		925		943,824
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, 5.25%, 11/01/40		1,100		1,142,625
New Hope Cultural Education Facilities Corp., RB:
Collegiate Housing Tarleton State University Project, 5.00%, 04/01/35		500		528,925
Jubilee Academic Center Project, Series A, 5.00%, 08/15/37^(b)		2,000		2,005,420
New Hope Cultural Education Facilities Corp., Refunding RB, 1st Mortgage, Morningside Ministries Project, 6.25%, 01/01/33		1,600		1,732,896
North Texas Education Finance Corp., ERB, Uplift Education, Series A, 5.13%, 12/01/42		1,000		1,038,140
North Texas Tollway Authority, Refunding RB, Series A:
1st Tier System, 6.25%, 01/01/39		655		657,070
1st Tier, 5.00%, 01/01/48		5,350		5,980,123
5.00%, 01/01/38		5,000		5,514,500
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien:
LBJ Infrastructure Group LLC, 7.00%, 06/30/40		8,000		8,495,200
NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39		4,710		4,888,038

				68,252,669

Virginia — 4.3%
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A:
5.38%, 03/01/36		430		443,369
5.50%, 03/01/46		1,475		1,521,138
City of Portsmouth Virginia, GO, Refunding Series D, 5.00%, 07/15/20^(a)		3,030		3,167,107
County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health, 5.50%, 05/15/19^(a)		735		740,630
Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47		3,665		3,491,206


52		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniVest Fund, Inc. (MVF)

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Virginia (continued)
Virginia Small Business Financing Authority, RB, AMT:
Senior Lien, Elizabeth River Crossings OpCo LLC Project, 6.00%, 01/01/37	$	2,150	$	2,347,563
Senior Lien, Elizabeth River Crossings OpCo LLC Project, 5.50%, 01/01/42		5,140		5,486,385
Transform 66 P3 Project, 5.00%, 12/31/49		7,895		8,506,705

				25,704,103

Washington — 3.8%
Port of Seattle Washington, ARB, AMT:
Intermediate Lien, Series C, 5.00%, 05/01/37		4,905		5,494,875
Series A, 5.00%, 05/01/43		1,295		1,429,719
State of Washington, COP, Series B:
5.00%, 07/01/36		1,725		2,010,643
5.00%, 07/01/38		2,300		2,648,887
Washington Health Care Facilities Authority, RB, Catholic Health Initiatives, Series A, 5.75%, 01/01/45		4,010		4,361,717
Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, 6.38%, 10/01/36		7,000		7,022,610

				22,968,451

West Virginia — 0.4%
West Virginia Hospital Finance Authority, Refunding RB, Improvement, Charleston Area Medical Center, Inc., Series A, 5.63%, 09/01/32		2,500		2,538,300


Wisconsin — 1.3%
Wisconsin Health & Educational Facilities Authority, Refunding RB:
Froedtert & Community Health, Inc., Obligated Group: Series C, 5.25%, 04/01/19^(a)		3,100		3,108,556
Milwaukee Regional Medical Center Thermal Service, 5.00%, 04/01/44		4,080		4,603,586

				7,712,142

Wyoming — 1.3%
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 07/15/26		4,500		4,569,435
State of Wyoming Municipal Power Agency, Inc., Refunding RB, Series A (BAM), 5.00%, 01/01/42		1,120		1,242,595
Wyoming Community Development Authority, Refunding RB, Series 2 & 3, 4.05%, 12/01/38		2,215		2,258,060

				8,070,090


Total Municipal Bonds — 123.7% (Cost — $715,580,189)				740,144,356


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

Arizona — 0.6%
City of Phoenix Civic Improvement Corp., Refunding RB, Water System, Junior Lien, Series A, 5.00%, 07/01/19^(a)		3,500		3,538,325


California — 6.2%
Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2 Bonds, 5.00%, 10/01/47		14,998		16,887,825
University of California, RB, Series O^(a):
General, 5.25%, 05/15/19		5,675		5,723,777
Prefunded -General, 5.25%, 05/15/19		3,235		3,262,805
Unrefunded Balance-2016, General, 5.25%, 05/15/19		11,090		11,185,318

				37,059,725

Colorado — 1.3%
City & County of Denver Colorado Airport System Revenue, Refunding ARB, Sub-System, Series A, AMT, 5.25%, 12/01/43^(g)		6,504		7,484,760


Security	Par (000)		Value

Florida — 2.6%
County of Miami-Dade Florida Water & Sewer System, RB, (AGM), 5.00%, 10/01/20^(a)	$	14,747	$	15,514,006


Illinois — 2.0%
State of Illinois Toll Highway Authority, RB, Series B, 5.00%, 01/01/40		10,976		12,153,092


Kentucky — 1.6%
County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, River City, Inc., 1st Mortgage, Series A, 5.38%, 12/01/19^(a)		9,195		9,442,652


Maryland — 0.9%
City of Baltimore Maryland, RB, Wastewater Project, Series A, 5.00%, 07/01/46		4,898		5,490,269


Nevada — 2.7%
County of Clark Nevada Water Reclamation District, GO, Series B, 5.75%, 07/01/19^(a)		15,789		16,004,684


New York — 1.8%
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51^(g)		10,001		10,906,495


Oregon — 0.3%
State of Oregon Housing & Community Services Department, HRB, M/F Housing, Series A, AMT, 4.95%, 07/01/30		1,604		1,626,742


Pennsylvania — 2.0%
Commonwealth of Pennsylvania, GO, 1st Series, 4.00%, 03/01/38^(g)		7,250		7,526,588
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/38		3,925		4,392,080

				11,918,668

Texas — 5.8%
City of Houston Texas Higher Education Finance Corp., RB, Rice University Project, Series A, 5.00%, 05/15/20^(a)		10,000		10,395,462
County of Harris Texas Health Facilities Development Corp., Refunding RB, School Health Care System, Series B, 5.75%, 07/01/27^(e)		20,370		24,481,480

				34,876,942

Virginia — 2.2%
County of Fairfax Virginia EDA, RB, Metrorail Parking System Project, 5.00%, 04/01/47^(g)		6,960		7,869,150
Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40		5,002		5,176,015

				13,045,165

Washington — 1.9%
Washington Health Care Facilities Authority, Refunding RB, Seattle Children’s Hospital, Series B, 5.00%, 10/01/38		10,000		11,551,650


Total Municipal Bonds Transferred to Tender Option Bond Trusts — 31.9% (Cost — $182,818,179)				190,613,175


Total Long-Term Investments — 155.6% (Cost — $898,398,368)				930,757,531


Other Assets Less Liabilities — 1.8%				10,570,619

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (16.6)%				(99,474,489	)

VMTP Shares, at Liquidation Value — (40.8)%				(243,800,000	)


Net Assets Applicable to Common Shares — 100.0%			$	598,053,661


SCHEDULES OF INVESTMENTS			53

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniVest Fund, Inc. (MVF)

^(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)	Zero-coupon bond.

^(d)	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.

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

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

^(g)

All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between November 15, 2019 to June 1, 2026, is $16,153,828. See Note 4 of the Notes to Financial Statements for details.

During the six months ended February 28, 2019, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 08/31/18		Net Activity			Shares Held at 02/28/19		Value at 02/28/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, MuniCash, Institutional Class^(b)		159,172		(159,172	)		—	$	—	$	25,216	$	1,773	$	—

^(a)

Includes net capital gain distributions, if applicable.

^(b)

No longer held by the Trust as of period end.

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		86		06/19/19	$	10,492	$	54,490
Long U.S. Treasury Bond		260		06/19/19		37,562		427,925
5-Year U.S. Treasury Note		33		06/28/19		3,781		11,292

							$	493,707

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
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation^(a)	$	—	$	—	$	—	$	—	$	493,707	$	—	$	493,707

^(a)

For the six months ended February 28, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:


	Commodity Contract		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(1,304,252	)	$	—	$	(1,304,252	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	453,402		$	—	$	453,402


54		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (unaudited) (continued)

February 28, 2019

BlackRock MuniVest Fund, Inc. (MVF)

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — short . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$	45,093,813

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

Fair Value Hierarchy as of Period End

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


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments^(a)	$	—	$	930,757,531	$	—	$	930,757,531

Derivative Financial Instruments^(b)
Assets:
Interest rate contracts	$	493,707	$	—	$	—	$	493,707

^(a)

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

^(b)

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


	Level 1		Level 2			Level 3		Total
Liabilities:
TOB Trust Certificates	$	—	$	(99,033,917	)	$	—	$	(99,033,917	)
VMTP Shares at Liquidation Value		—		(243,800,000	)		—		(243,800,000	)

	$	—	$	(342,833,917	)	$	—	$	(342,833,917	)

During the six months ended February 28, 2019, there were no transfers between levels.

See notes to financial statements.


SCHEDULES OF INVESTMENTS			55

Statements of Assets and Liabilities (unaudited)

February 28, 2019


	BBK		BAF		BYM		BLE

ASSETS
Investments at value — unaffiliated^(a)	$	264,825,324	$	220,604,242	$	623,497,153	$	549,175,196
Investments at value — affiliated^(b)		189,772		589,614		3,558,757		999,594
Cash		126,422		70,338		295,688		176,852
Cash pledged for futures contracts		266,050		158,800		628,050		370,800
Receivables:
Interest — unaffiliated		2,905,967		2,276,339		6,670,797		6,491,775
Dividends — affiliated		1,162		530		8,158		2,144
Variation margin on futures contracts		45,406		27,057		107,952		63,280
Prepaid expenses		9,334		9,124		11,052		9,985

Total assets		268,369,437		223,736,044		634,777,607		557,289,626


ACCRUED LIABILITIES
Payables:
Income dividend distributions — Common Shares		668,208		511,841		1,373,126		1,364,732
Investment advisory fees		133,068		93,873		265,875		234,347
Interest expense and fees		64,932		171,561		462,929		243,736
Trustees’ and Officer’s fees		31,808		23,480		73,533		67,530
Other accrued expenses		90,658		80,790		126,014		114,760

Total accrued liabilities		988,674		881,545		2,301,477		2,025,105


OTHER LIABILITIES
TOB Trust Certificates		23,564,266		51,608,191		108,777,798		64,522,879
VMTP Shares, at liquidation value of $100,000 per share^(c)(d)		79,900,000		42,200,000		137,200,000		151,300,000

Total other liabilities		103,464,266		93,808,191		245,977,798		215,822,879

Total liabilities		104,452,940		94,689,736		248,279,275		217,847,984


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$	163,916,497	$	129,046,308	$	386,498,332	$	339,441,642


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF
Paid-in capital^(e)(f)(g)	$	149,545,188	$	124,019,631	$	362,795,037	$	327,395,423
Accumulated earnings		14,371,309		5,026,677		23,703,295		12,046,219

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$	163,916,497	$	129,046,308	$	386,498,332	$	339,441,642


Net asset value per Common Share	$	15.58	$	14.75	$	14.64	$	14.43


^(a) Investments at cost — unaffiliated	$	250,347,602	$	211,759,669	$	591,754,720	$	527,273,189
^(b) Investments at cost — affiliated	$	189,772	$	589,614	$	3,558,757	$	999,594
^(c) Preferred Shares outstanding, par value $0.10 per share		799		422		1,372		1,513
^(d) Preferred Shares authorized		unlimited		unlimited		unlimited		unlimited
^(e) Par value per Common Share	$	0.001	$	0.001	$	0.001	$	0.001
^(f) Common Shares outstanding		10,522,957		8,749,418		26,406,273		23,529,861
^(g) Common Shares authorized		unlimited		unlimited		unlimited		unlimited

See notes to financial statements.


56		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (unaudited) (continued)

February 28, 2019


	MFL		MVF

ASSETS
Investments at value — unaffiliated^(a)	$	875,419,277	$	930,757,531
Investments at value — affiliated^(b)		2,392,995		—
Cash		328,775		—
Cash pledged for futures contracts		747,150		791,500
Receivables:
Interest — unaffiliated		11,109,197		11,662,920
Dividends — affiliated		1,860		361
Investments sold		85,000		1,384,950
Variation margin on futures contracts		128,561		136,429
Prepaid expenses		15,475		23,245

Total assets		890,228,290		944,756,936


ACCRUED LIABILITIES
Bank overdraft		—		221,944
Payables:
Income dividend distributions — Common Shares		2,141,136		2,496,200
Investment advisory fees		343,254		360,388
Interest expense and fees		374,936		440,572
Trustees’ and Officer’s fees		318,757		151,047
Other accrued expenses		189,894		199,207

Total accrued liabilities		3,367,977		3,869,358


OTHER LIABILITIES
TOB Trust Certificates		82,671,903		99,033,917
VMTP Shares, at liquidation value of $100,000 per share^(c)(d)		—		243,800,000
VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs^(c)(d)		274,221,546		—

Total other liabilities		356,893,449		342,833,917

Total liabilities		360,261,426		346,703,275


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS	$	529,966,864	$	598,053,661


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF
Paid-in capital^(e)(f)(g)	$	513,591,274	$	582,474,297
Accumulated earnings		16,375,590		15,579,364

Net Assets	$	529,966,864	$	598,053,661


Net asset value per Common Share	$	13.98	$	9.22


^(a) Investments at cost — unaffiliated	$	847,994,674	$	898,398,368
^(b) Investments at cost — affiliated	$	2,392,995	$	—
^(c) Preferred Shares outstanding, par value $0.10 per share		2,746		2,438
^(d) Preferred Shares authorized		1,000,000		10,000,000
^(e) Par value per Common Share .	$	0.10	$	0.10
^(f) Common Shares outstanding		37,896,208		64,836,371
^(g) Common Shares authorized		unlimited		150,000,000

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Operations (unaudited)

Six Months Ended February 28, 2019


	BBK			BAF			BYM			BLE

INVESTMENT INCOME
Interest — unaffiliated	$	5,698,291		$	4,704,014		$	13,024,752		$	12,776,220
Dividends — affiliated		20,642			8,450			33,661			25,441

Total investment income		5,718,933			4,712,464			13,058,413			12,801,661


EXPENSES
Investment advisory		856,919			599,516			1,714,828			1,512,395
Professional		29,305			26,782			40,733			37,835
Accounting services		26,741			23,489			33,821			33,821
Rating agency		21,496			21,475			21,530			21,538
Transfer agent		11,903			10,322			16,272			16,467
Trustees and Officer		8,579			6,835			19,232			18,019
Custodian		2,575			3,300			7,709			3,096
Registration		4,697			4,692			5,079			5,509
Printing		3,813			3,603			4,910			4,699
Miscellaneous		10,162			6,873			12,602			9,955

Total expenses excluding interest expense, fees and amortization of offering costs		976,190			706,887			1,876,716			1,663,334
Interest expense, fees and amortization of offering costs^(a)		1,296,487			1,095,758			3,013,244			2,681,144

Total expenses		2,272,677			1,802,645			4,889,960			4,344,478
Less fees waived and/or reimbursed by the Manager		(1,307	)		(555	)		(2,301	)		(1,688	)

Total expenses after fees waived and/or reimbursed		2,271,370			1,802,090			4,887,659			4,342,790

Net investment income		3,447,563			2,910,374			8,170,754			8,458,871


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(389,699	)		11,270			(471,831	)		(346,622	)
Investments — affiliated		194			412			235			(79	)
Futures contracts		(254,903	)		(218,010	)		(663,840	)		(359,851	)
Capital gain distributions from investment companies — affiliated		236			66			—			173

		(644,172	)		(206,262	)		(1,135,436	)		(706,379	)

Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		(595,216	)		(695,451	)		(443,211	)		(2,753,767	)
Investments — affiliated		—			—			—			(227	)
Futures contracts		136,966			86,680			329,801			194,037

		(458,250	)		(608,771	)		(113,410	)		(2,559,957	)

Net realized and unrealized loss		(1,102,422	)		(815,033	)		(1,248,846	)		(3,266,336	)

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS	$	2,345,141		$	2,095,341		$	6,921,908		$	5,192,535

^(a)	Related to TOB Trusts, VMTP Shares and/or VRDP Shares.

See notes to financial statements.


58		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (unaudited) (continued)

Six Months Ended February 28, 2019


	MFL			MVF

INVESTMENT INCOME
Interest — unaffiliated	$	18,506,644		$	21,782,362
Dividends — affiliated		16,874			25,216

Total investment income		18,523,518			21,807,578


EXPENSES
Investment advisory		2,446,825			2,342,459
Professional		52,457			53,586
Accounting services		63,681			66,203
Rating agency		21,610			21,592
Transfer agent		21,038			26,059
Trustees and Officer		39,011			30,219
Registration		7,289			15,173
Printing		5,549			5,981
Custodian		6,943			10,137
Liquidity fees		13,868			—
Remarketing fees on Preferred Shares		13,617			—
Miscellaneous		11,591			16,276

Total expenses excluding interest expense, fees and amortization of offering costs		2,703,479			2,587,685
Interest expense, fees and amortization of offering costs^(a)		4,348,136			4,336,830

Total expenses		7,051,615			6,924,515
Less fees waived and/or reimbursed by the Manager		(243,627	)		(1,762	)

Total expenses after fees waived and/or reimbursed		6,807,988			6,922,753

Net investment income		11,715,530			14,884,825


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		1,952,413			(352,589	)
Investments — affiliated		540			1,599
Futures contracts		(921,207	)		(1,304,252	)
Capital gain distributions from investment companies — affiliated		94			174

		1,031,840			(1,655,068	)

Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		(4,416,924	)		(6,121,068	)
Futures contracts		408,042			453,402

		(4,008,882	)		(5,667,666	)

Net realized and unrealized loss		(2,977,042	)		(7,322,734	)

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS	$	8,738,488		$	7,562,091

^(a)	Related to TOB Trusts, VRDP Shares and/or VMTP Shares.

See notes to financial statements.


FINANCIAL STATEMENTS			59

Statements of Changes in Net Assets


	BBK						BAF
	Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18			Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS
Net investment income	$	3,447,563		$	7,391,439		$	2,910,374		$	6,444,710
Net realized gain (loss)		(644,172	)		953,349			(206,262	)		725,071
Net change in unrealized appreciation (depreciation)		(458,250	)		(5,906,242	)		(608,771	)		(7,394,607	)

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations		2,345,141			2,438,546			2,095,341			(224,826	)


DISTRIBUTIONS TO COMMON SHAREHOLDERS^(a)(b)
Decrease in net assets resulting from distributions to Common Shareholders		(4,507,267	)		(8,064,592	)		(3,071,046	)		(7,017,033	)


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS^(b⁾
Total decrease in net assets applicable to Common Shareholders		(2,162,126	)		(5,626,046	)		(975,705	)		(7,241,859	)
Beginning of period		166,078,623			171,704,669			130,022,013			137,263,872

End of period	$	163,916,497		$	166,078,623		$	129,046,308		$	130,022,013

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(b)	Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.


60		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (continued)


	BYM						BLE
	Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18			Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS
Net investment income	$	8,170,754		$	17,739,356		$	8,458,871		$	17,822,092
Net realized gain (loss)		(1,135,436	)		1,927,259			(706,379	)		1,208,495
Net change in unrealized appreciation (depreciation)		(113,410	)		(18,246,948	)		(2,559,957	)		(15,379,159	)

Net increase in net assets applicable to Common Shareholders resulting from operations		6,921,908			1,419,667			5,192,535			3,651,428


DISTRIBUTIONS TO COMMON SHAREHOLDERS^(a)(b)
Decrease in net assets resulting from distributions to Common Shareholders		(8,572,453	)		(17,745,015	)		(8,188,392	)		(18,242,150	)


CAPITAL SHARE TRANSACTIONS
Reinvestment of common distributions		—			—			—			127,225


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS^(b)
Total decrease in net assets applicable to Common Shareholders		(1,650,545	)		(16,325,348	)		(2,995,857	)		(14,463,497	)
Beginning of period		388,148,877			404,474,225			342,437,499			356,900,996

End of period	$	386,498,332		$	388,148,877		$	339,441,642		$	342,437,499

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(b)	Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.


FINANCIAL STATEMENTS			61

Statements of Changes in Net Assets (continued)


	MFL						MVF
	Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18			Six Months Ended 02/28/19 (unaudited)			Year Ended 08/31/18

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

OPERATIONS
Net investment income	$	11,715,530		$	26,843,909		$	14,884,825		$	32,994,274
Net realized gain (loss)		1,031,840			5,357,512			(1,655,068	)		4,572,478
Net change in unrealized appreciation (depreciation)		(4,008,882	)		(33,990,948	)		(5,667,666	)		(29,636,180	)

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations		8,738,488			(1,789,527	)		7,562,091			7,930,572


DISTRIBUTIONS TO COMMON SHAREHOLDERS^(a)(b)
Decrease in net assets resulting from distributions to Common Shareholders		(12,846,815	)		(29,099,183	)		(15,480,332	)		(33,923,160	)


CAPITAL SHARE TRANSACTIONS
Reinvestment of common distributions		—			580,514			—			1,475,965


NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS^(b)
Total decrease in net assets applicable to Common Shareholders		(4,108,327	)		(30,308,196	)		(7,918,241	)		(24,516,623	)
Beginning of period		534,075,191			564,383,387			605,971,902			630,488,525

End of period	$	529,966,864		$	534,075,191		$	598,053,661		$	605,971,902

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(b)	Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.


62		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statements of Cash Flows (unaudited)

Six Months Ended February 28, 2019


	BBK			BAF			BYM			BLE

CASH PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	2,345,141		$	2,095,341		$	6,921,908		$	5,192,535
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Proceeds from sales of long-term investments		23,174,997			41,392,108			41,515,436			70,401,047
Purchases of long-term investments		(23,740,552	)		(44,169,411	)		(38,222,647	)		(71,799,831	)
Net proceeds from sales of short-term securities		1,911,208			100,944			932,586			3,903,439
Amortization of premium and accretion of discount on investments and other fees		(162,263	)		549,165			252,726			513,442
Net realized gain (gain) loss on investments		389,505			(11,682	)		471,596			346,701
Net unrealized (appreciation) depreciation on investments		595,216			695,451			443,211			2,753,994

(Increase) Decrease in Assets:
Receivables:
Interest — unaffiliated		(41,955	)		176,684			(101,670	)		249,571
Dividends — affiliated		(529	)		255			(782	)		3,806
Variation margin on futures contracts		(45,406	)		(27,057	)		(107,952	)		(63,280	)
Prepaid expenses		2,459			17,405			17,701			3,711

Increase (Decrease) in Liabilities:
Payables:
Investment advisory fees		(15,548	)		(9,625	)		(30,317	)		(26,961	)
Interest expense and fees		7,785			23,222			56,716			14,372
Trustees’ and Officer’s fees		1,253			993			2,555			3,235
Variation margin on futures contracts		(3,469	)		(3,201	)		(9,672	)		(6,773	)
Other accrued expenses		(34,479	)		(27,987	)		(46,592	)		(41,809	)

Net cash provided by operating activities		4,383,363			802,605			12,094,803			11,447,199


CASH USED FOR FINANCING ACTIVITIES
Proceeds from TOB Trust Certificates		798,979			4,160,000			516,720			8,916,923
Repayments of TOB Trust Certificates		(466,653	)		(1,744,221	)		(3,520,382	)		(11,890,878	)
Proceeds from Loan for TOB Trust Certificates		466,653			—			516,600			785,631
Repayments of Loan for TOB Trust Certificates		(466,653	)		—			(516,600	)		(785,631	)
Cash dividends paid to Common Shareholders		(4,507,267	)		(3,071,046	)		(8,572,453	)		(8,188,392	)

Net cash used for financing activities		(4,174,941	)		(655,267	)		(11,576,115	)		(11,162,347	)


CASH
Net increase in restricted and unrestricted cash and foreign currency		208,422			147,338			518,688			284,852
Restricted and unrestricted cash and foreign currency at beginning of period		184,050			81,800			405,050			262,800

Restricted and unrestricted cash and foreign currency at end of period	$	392,472		$	229,138		$	923,738		$	547,652


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest expense	$	1,288,702		$	1,072,536		$	2,956,528		$	2,666,772


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	126,422		$	70,338		$	295,688		$	176,852
Cash pledged:
Futures contracts		266,050			158,800			628,050			370,800

	$	392,472		$	229,138		$	923,738		$	547,652


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash pledged:
Futures contracts	$	184,050		$	81,800		$	405,050		$	262,800


FINANCIAL STATEMENTS			63

Statements of Cash Flows (unaudited) (continued)

Six Months Ended February 28, 2019


	MFL			MVF

CASH PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	8,738,488		$	7,562,091
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Proceeds from sales of long-term investments and principal paydowns		154,170,048			128,435,455
Purchases of long-term investments		(131,832,982	)		(109,279,196	)
Net proceeds from sales (purchases) of short-term securities		—			160,787
Net purchases of short-term securities		(1,373,508	)		—
Amortization of premium and accretion of discount on investments and other fees		3,119,394			1,548,635
Net realized (gain) loss on investments		(1,952,953	)		350,990
Net unrealized (appreciation) depreciation on investments		4,416,924			6,121,068

(Increase) Decrease in Assets:
Receivables:
Interest — unaffiliated		220,168			396,018
Dividends — affiliated		(235	)		854
Variation margin on futures contracts		(128,561	)		(136,429	)
Prepaid expenses		15,918			13,991

Increase (Decrease) in Liabilities:
Payables:
Investment advisory fees		(41,068	)		(49,683	)
Interest expense and fees		(15,441	)		32,088
Trustees’ and Officer’s fees		5,498			(6,438	)
Variation margin on futures contracts		(15,883	)		(6,344	)
Other accrued expenses		(51,791	)		(65,737	)

Net cash provided by operating activities		35,274,016			35,078,150


CASH USED FOR FINANCING ACTIVITIES
Proceeds from TOB Trust Certificates		10,003,907			—
Repayments of TOB Trust Certificates		(31,877,732	)		(19,150,830	)
Repayments of Loan for TOB Trust Certificates		—			—
Cash dividends paid to Common Shareholders		(12,846,815	)		(15,642,423	)
Increase in bank overdraft		—			221,944
Amortization of deferred offering costs		8,399			—

Net cash used for financing activities		(34,712,241	)		(34,571,309	)


CASH
Net increase in restricted and unrestricted cash and foreign currency		561,775			506,841
Restricted and unrestricted cash and foreign currency at beginning of period		514,150			284,659

Restricted and unrestricted cash and foreign currency at beginning of period	$	1,075,925		$	791,500


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest expense	$	4,355,178		$	4,304,742


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	328,775		$	—
Cash pledged:
Futures contracts		747,150			791,500

	$	1,075,925		$	791,500


RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	110,000		$	1,159
Cash pledged:
Futures contracts		404,150			283,500

	$	514,150		$	284,659


64		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)


	BBK
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	15.78		$	16.32		$	17.89		$	16.49		$	16.54		$	14.18

Net investment income^(a)		0.33			0.70			0.74			0.89			0.90			0.97
Net realized and unrealized gain (loss)		(0.10	)		(0.47	)		(1.09	)		1.42			0.03			2.43

Net increase (decrease) from investment operations		0.23			0.23			(0.35	)		2.31			0.93			3.40


Distributions to Common Shareholders^(b)
From net investment income		(0.38	)		(0.77	)		(0.83	)		(0.90	)		(0.98	)		(0.96	)
From net realized gain		(0.05	)		—			(0.39	)		(0.01	)		—			(0.08	)

Total distributions to Common Shareholders		(0.43	)		(0.77	)		(1.22	)		(0.91	)		(0.98	)		(1.04	)


Net asset value, end of period	$	15.58		$	15.78		$	16.32		$	17.89		$	16.49		$	16.54


Market price, end of period	$	14.31		$	14.35		$	15.99		$	18.22		$	15.23		$	15.59


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.82	%^(d)		1.87	%		(1.44	)%		14.53	%		5.96	%		25.27	%

Based on market price		2.84	%^(d)		(5.45	)%		(5.18	)%		26.29	%		3.83	%		24.11	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.82	%^(e)		2.49	%		2.31	%		1.78	%		1.73	%		1.84	%^(f)

Total expenses after fees waived and paid indirectly		2.82	%^(e)		2.49	%		2.31	%		1.77	%		1.73	%		1.84	%^(f)

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs^(f)		1.21	%^(e)		1.18	%		1.19	%		1.16	%		1.16	%		1.19	%

Net investment income to Common Shareholders		4.28	%^(e)		4.39	%		4.55	%		5.18	%		5.41	%		6.29	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	163,916		$	166,079		$	171,705		$	188,107		$	173,363		$	173,798

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)	$	79,900		$	79,900		$	79,900		$	79,900		$	79,900		$	79,900

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period	$	305,152		$	307,858		$	314,899		$	335,428		$	316,975		$	317,520

Borrowings outstanding, end of period (000)	$	23,564		$	23,232		$	22,404		$	25,054		$	19,495		$	19,495

Portfolio turnover rate		9	%		38	%		46	%		29	%		34	%		32	%

^(a)	Based on average Common Shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Interest expense, fees and amortization of offering costs related to TOBs and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			65

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BAF
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.86		$	15.69		$	16.56		$	15.80		$	15.97		$	13.83

Net investment income^(a)		0.33			0.74			0.79			0.83			0.83			0.83
Net realized and unrealized gain (loss)		(0.09	)		(0.77	)		(0.84	)		0.75			(0.18	)		2.13

Net increase (decrease) from investment operations		0.24			(0.03	)		(0.05	)		1.58			0.65			2.96

Distributions to Common Shareholders from net investment income^(b)		(0.35	)		(0.80	)		(0.82	)		(0.82	)		(0.82	)		(0.82	)


Net asset value, end of period	$	14.75		$	14.86		$	15.69		$	16.56		$	15.80		$	15.97


Market price, end of period	$	13.63		$	13.54		$	15.11		$	15.79		$	13.89		$	14.18


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.94	%^(d)		0.18	%		0.14	%		10.57	%		4.71	%		22.67	%

Based on market price		3.39	%^(d)		(5.22	)%		1.15	%		19.92	%		3.68	%		17.50	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.84	%^(e)		2.47	%		2.06	%		1.61	%		1.50	%		1.58	%

Total expenses after fees waived and paid indirectly		2.84	%^(e)		2.47	%		2.06	%		1.61	%		1.50	%		1.58	%

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs^(f)		1.11	%^(e)		1.08	%		1.06	%		1.01	%		1.00	%		1.03	%

Net investment income to Common Shareholders		4.59	%^(e)		4.84	%		5.06	%		5.09	%		5.16	%		5.56	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	129,046		$	130,022		$	137,264		$	144,927		$	138,203		$	139,723

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)	$	42,200		$	42,200		$	42,200		$	42,200		$	42,200		$	42,200

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period	$	405,797		$	408,109		$	425,270		$	443,429		$	427,495		$	431,097

Borrowings outstanding, end of period (000)	$	51,608		$	49,192		$	44,937		$	42,089		$	33,470		$	32,345

Portfolio turnover rate		19	%		28	%		31	%		29	%		13	%		26	%

^(a)	Based on average Common Shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Interest expense, fees and amortization of offering costs related to TOBs Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.


66		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BYM
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.70		$	15.32		$	16.22		$	15.21		$	15.56		$	13.46

Net investment income^(a)		0.31			0.67			0.75			0.82			0.84			0.86
Net realized and unrealized gain (loss)		(0.05	)		(0.62	)		(0.87	)		1.02			(0.33	)		2.16

Net increase (decrease) from investment operations		0.26			0.05			(0.12	)		1.84			0.51			3.02

Distributions to Common Shareholders from net investment income^(b)		(0.32	)		(0.67	)		(0.78	)		(0.83	)		(0.86	)		(0.92	)


Net asset value, end of period	$	14.64		$	14.70		$	15.32		$	16.22		$	15.21		$	15.56


Market price, end of period	$	13.32		$	13.09		$	14.84		$	15.55		$	13.67		$	13.96


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		2.14	%^(d)		0.80	%		(0.30	)%		12.71	%		3.85	%		23.69	%

Based on market price		4.36	%^(d)		(7.34	)%		0.74	%		20.23	%		4.03	%		18.65	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.59	%^(e)		2.23	%		1.93	%		1.56	%		1.47	%		1.55	%

Total expenses after fees waived and paid indirectly		2.59	%^(e)		2.23	%		1.93	%		1.56	%		1.47	%		1.55	%

Total expenses after fees waived and paid indirectly and excluding interest expense, fees, and amortization of offering costs^(f)		0.99	%^(e)		0.97	%		0.97	%		0.95	%		0.96	%		0.98	%

Net investment income to Common Shareholders		4.32	%^(e)		4.50	%		4.95	%		5.19	%		5.42	%		5.89	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	386,498		$	388,149		$	404,474		$	428,389		$	401,536		$	410,776

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)	$	137,200		$	137,200		$	137,200		$	137,200		$	137,200		$	137,200

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period	$	381,704		$	382,907		$	394,806		$	412,237		$	392,665		$	399,399

Borrowings outstanding, end of period (000)	$	108,778		$	111,781		$	101,288		$	100,250		$	101,818		$	93,816

Portfolio turnover rate		6	%		30	%		18	%		10	%		12	%		20	%

^(a)	Based on average Common Shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			67

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BLE
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.55		$	15.17		$	16.12		$	15.25		$	15.48		$	13.32

Net investment income^(a)		0.36			0.76			0.83			0.93			0.92			0.93
Net realized and unrealized gain (loss)		(0.13	)		(0.60	)		(0.89	)		0.87			(0.19	)		2.22

Net increase (decrease) from investment operations		0.23			0.16			(0.06	)		1.80			0.73			3.15

Distributions to Common Shareholders from net investment income^(b)		(0.35	)		(0.78	)		(0.89	)		(0.93	)		(0.96	)		(0.99	)


Net asset value, end of period	$	14.43		$	14.55		$	15.17		$	16.12		$	15.25		$	15.48


Market price, end of period	$	14.05		$	13.77		$	15.45		$	16.34		$	14.18		$	14.70


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.80	%^(d)		1.35	%		(0.18	)%		12.21	%		5.01	%		24.73	%

Based on market price		4.73	%^(d)		(5.82	)%		0.29	%		22.33	%		2.83	%		19.52	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.60	%^(e)		2.32	%		2.02	%		1.62	%		1.55	%		1.64	%

Total expenses after fees waived and paid indirectly		2.60	%^(e)		2.31	%		2.02	%		1.62	%		1.55	%		1.64	%

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs^(f)		0.99	%^(e)		0.98	%		0.99	%		0.98	%		0.98	%		1.01	%

Net investment income to Common Shareholders		5.06	%^(e)		5.12	%		5.47	%		5.90	%		5.94	%		6.49	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	339,442		$	342,437		$	356,901		$	378,572		$	357,868		$	363,038

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)	$	151,300		$	151,300		$	151,300		$	151,300		$	151,300		$	151,300

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period	$	324,350		$	326,330		$	335,890		$	350,213		$	336,529		$	339,946

Borrowings outstanding, end of period (000)	$	64,523		$	67,497		$	71,274		$	77,130		$	68,692		$	68,692

Portfolio turnover rate		13	%		7	%		9	%		7	%		10	%		16	%

^(a)	Based on average Common Shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.


68		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)


	MFL
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	14.09		$	14.91		$	15.86		$	15.18		$	15.46		$	13.27

Net investment income^(a)		0.31			0.71			0.78			0.86			0.89			0.89
Net realized and unrealized gain (loss)		(0.08	)		(0.76	)		(0.87	)		0.68			(0.31	)		2.16

Net increase (decrease) from investment operations		0.23			(0.05	)		(0.09	)		1.54			0.58			3.05

Distributions to Common Shareholders from net investment income^(b)		(0.34	)		(0.77	)		(0.86	)		(0.86	)		(0.86	)		(0.86	)


Net asset value, end of period	$	13.98		$	14.09		$	14.91		$	15.86		$	15.18		$	15.46


Market price, end of period	$	13.02		$	12.73		$	15.03		$	15.86		$	14.06		$	13.92


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.92	%^(d)		(0.05	)%		(0.34	)%		10.56	%		4.29	%		24.24	%

Based on market price		5.07	%^(d)		(10.42	)%		0.46	%		19.37	%		7.28	%		17.91	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.71	%^(e)		2.51	%		2.17	%		1.65	%		1.54	%		1.64	%

Total expenses after fees waived and paid indirectly		2.61	%^(e)		2.41	%		2.08	%		1.60	%		1.49	%		1.57	%

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs^(f)(g)		0.94	%^(e)		0.94	%		0.95	%		0.94	%		0.95	%		1.19	%

Net investment income to Common Shareholders		4.50	%^(e)		4.91	%		5.22	%		5.54	%		5.73	%		6.18	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	529,967		$	534,075		$	564,383		$	599,930		$	573,885		$	584,690

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)	$	274,600		$	274,600		$	274,600		$	274,600		$	274,600		$	274,600

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period	$	292,996		$	294,492		$	305,529		$	318,474		$	308,990		$	312,924

Borrowings outstanding, end of period (000)	$	82,672		$	114,546		$	123,111		$	131,279		$	85,502		$	89,157

Portfolio turnover rate		12	%		22	%		16	%		27	%		13	%		25	%

^(a)	Based on average Common Shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Interest expense, fees and amortization of offering costs related to TOBs and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

^(g)	The total expense ratio after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees were as follows:


	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014
Expense ratios		0.94	%		0.93	%		0.94	%		0.93	%		0.94	%		0.95	%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			69

Financial Highlights (continued)

(For a share outstanding throughout each period)


	MVF
	Six Months Ended 02/28/19 (unaudited)			Year Ended August 31,
	Six Months Ended 02/28/19 (unaudited)			2018			2017			2016			2015			2014

Net asset value, beginning of period	$	9.35		$	9.75		$	10.38		$	10.04		$	10.27		$	9.14

Net investment income^(a)		0.23			0.51			0.56			0.61			0.62			0.63
Net realized and unrealized gain (loss)		(0.12	)		(0.39	)		(0.62	)		0.36			(0.21	)		1.18

Net increase (decrease) from investment operations		0.11			0.12			(0.06	)		0.97			0.41			1.81

Distributions to Common Shareholders from net investment income^(b)		(0.24	)		(0.52	)		(0.57	)		(0.63	)		(0.64	)		(0.68	)


Net asset value, end of period	$	9.22		$	9.35		$	9.75		$	10.38		$	10.04		$	10.27


Market price, end of period	$	8.94		$	8.81		$	9.84		$	10.77		$	9.65		$	9.83


Total Return Applicable to Common Shareholders^(c)
Based on net asset value		1.38	%^(d)		1.52	%		(0.38	)%		9.96	%		4.27	%		20.70	%

Based on market price		4.32	%^(d)		(5.22	)%		(3.10	)%		18.70	%		4.71	%		18.50	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses		2.35	%^(e)		2.16	%		1.92	%		1.55	%		1.43	%		1.49	%

Total expenses after fees waived and paid indirectly		2.35	%^(e)		2.16	%		1.92	%		1.55	%		1.43	%		1.49	%

Total expenses after fees waived and paid indirectly and excluding interest expense fees, and amortization of offering costs^(f)		0.88	%^(e)		0.89	%		0.91	%		0.89	%		0.89	%		0.91	%

Net investment income to Common Shareholders		5.05	%^(e)		5.35	%		5.71	%		5.95	%		6.03	%		6.53	%


Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)	$	598,054		$	605,972		$	630,489		$	667,589		$	642,889		$	656,922

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)	$	243,800		$	243,800		$	243,800		$	243,800		$	243,800		$	243,800

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period	$	345,305		$	348,553		$	358,609		$	373,827		$	363,695		$	369,451

Borrowings outstanding, end of period (000)	$	99,034		$	112,817		$	139,989		$	161,957		$	148,867		$	145,111

Portfolio turnover rate		12	%		21	%		26	%		13	%		18	%		14	%

^(a)	Based on average Common Shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

^(d)	Aggregate total return.

^(e)	Annualized.

^(f)	Interest expense, fees and amortization of offering costs related to TOBs and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.


70		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited)

1.	*ORGANIZATION*

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Trusts”, or individually as a “Trust”:


Trust Name	Herein Referred To As	Organized	Diversification Classification
BlackRock Municipal Bond Trust	BBK	Delaware	Diversified
BlackRock Municipal Income Investment Quality Trust	BAF	Delaware	Diversified
BlackRock Municipal Income Quality Trust	BYM	Delaware	Diversified
BlackRock Municipal Income Trust II	BLE	Delaware	Diversified
BlackRock MuniHoldings Investment Quality Fund	MFL	Massachusetts	Diversified
BlackRock MuniVest Fund, Inc.	MVF	Maryland	Diversified

The Boards of Trustees and Boards of Directors of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board,” and the trustees and directors thereof are collectively referred to throughout this report as “Trustees.” The Trusts determine and make available for publication the NAVs of their Common Shares on a daily basis.

The Trusts, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

2.	*SIGNIFICANT ACCOUNTING POLICIES*

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Trust is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized on an accrual basis.

Segregation and Collateralization: In cases where a Trust enters into certain investments (e.g., futures contracts) or certain borrowings (e.g. TOB Trust transactions) that would be treated as “senior securities” for 1940 Act purposes, a Trust may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Trusts may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust, as applicable. Deferred compensation liabilities are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Trusts.

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management continues to evaluate the impact of this guidance to the Trusts.

Indemnifications: In the normal course of business, a Trust enters into contracts that contain a variety of representations that provide general indemnification. A Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Trust, which cannot be predicted with any certainty.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.


NOTES TO FINANCIAL STATEMENTS			71

Notes to Financial Statements (unaudited) (continued)

3.	*INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS*

Investment Valuation Policies: The Trusts’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Trust’s assets and liabilities:

•

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

•

Investments in open-end U.S. mutual funds are valued at NAV each business day.

•

Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Trust has the ability to access

•

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

•

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.	*SECURITIES AND OTHER INVESTMENTS*

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: Certain Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A Trust may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a Trust may be required to pay more at settlement than the security is worth. In addition, a Trust is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a Trust assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a Trust’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.


72		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

Municipal Bonds Transferred to TOB Trusts: Certain trusts leverage their assets through the use of “TOB Trust” transactions. The trusts transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating trusts that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a trust provide the trust with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The trusts may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other trusts managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a trust has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the trusts ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a trust, upon the occurrence of a termination event, as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Trusts) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a trust’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a trust to borrow money for purposes of making investments. MVF’s management believes that the trust’s restrictions on borrowings do not apply to the trust’s TOB Trust transactions. Each trust’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a trust. A trust typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a trust’s Schedules of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a trust’s payable to the holder of the TOB Trust Certificates as reported in the Statements of Assets and Liabilities as TOB Trust Certificates approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a trust on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a trust incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:


	Interest Expense		Liquidity Fees		Other Expenses		Total
BBK	$	186,660	$	49,531	$	19,810	$	256,001
BAF		398,928		105,262		43,187		547,377
BYM		888,458		247,385		69,965		1,205,808
BLE		523,961		140,477		50,591		715,029
MFL		768,921		207,361		84,054		1,060,336
MVF		842,957		249,821		74,769		1,167,547

For the six months ended February 28, 2019, the following table is a summary of each Trust’s TOB Trusts:


	Underlying Municipal Bonds Transferred to TOB Trusts^(a)		Liability for TOB Trust Certificates^(b)		Range of Interest Rates on TOB Trust Certificates at Period End			Average TOB Trust Certificates Outstanding		Daily Weighted Average Rate of Interest and Other Expenses on TOB Trusts
BBK	$	38,559,378	$	23,564,266		1.75 — 1.80	%	$	23,539,716		2.19	%
BAF		89,822,783		51,608,191		1.75 — 1.95			49,744,690		2.22
BYM		173,596,377		108,777,798		1.71 — 2.02			110,167,251		2.21
BLE		106,418,160		64,522,879		1.71 — 1.95			65,951,004		2.19
MFL		166,794,255		82,671,903		1.75 — 1.80			96,774,703		2.21
MVF		190,613,175		99,033,917		1.73 — 1.90			105,769,199		2.23

^(a)

The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the trust, as a TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the trust, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts.


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (unaudited) (continued)

^(b)

TOB Trusts may be structured on a non-recourse or recourse basis. When a Trust invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a trust invests in a TOB Trust on a recourse basis, a trust enters into a reimbursement agreement with the Liquidity Provider where a trust is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a Trust invests in recourse TOB Trust, a Trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple trusts participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Trust at February 28, 2019, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a Trust at February 28, 2019.

For the six months ended February 28, 2019, the following table is a summary of each Trust’s Loan for TOB Trust Certificates:


	Loans Outstanding at Period End		Range of Interest Rates on Loans at Period End		Average Loans Outstanding		Daily Weighted Average Rate of Interest and Other Expenses on Loans
BBK		—		—	$	2,578		0.78	%
BYM		—		—		33,603		0.78
BLE		—		—		4,341		0.78

5.	*DERIVATIVE FINANCIAL INSTRUMENTS*

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”)

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk), and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

6.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Investment Advisory: Each Trust entered into an Investment Advisory Agreement with the Manager, the Trusts’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of each Trust’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Trust.

For such services, each Trust, except for MFL and MVF, pays the Manager a monthly fee at an annual rate equal to the following of the average weekly value of each Trust’s managed assets:


	BBK			BAF			BYM			BLE
Investment advisory fees		0.65	%		0.55	%		0.55	%		0.55	%

For purposes of calculating these fees, “managed assets” mean the total assets of each Trust minus the sum of its accrued liabilities (other than the aggregate indebtedness constituting financial leverage).

For such services, MFL and MVF pays the Manager a monthly fee at an annual rate equal to 0.55% and 0.50%, respectively, of the average daily value of each Trust’s net assets.

For purposes of calculating these fees, “net assets” mean the total assets of each Trust minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Trust’s net asset value.


74		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

Expense Limitations, Waivers, Reimbursements and Recoupments: The Manager, for MFL, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOB Trusts that exceed 35% of total assets minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). The voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended February 28, 2019 the waiver was $242,472.

With respect to each Trust, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended February 28, 2019, the amounts waived were as follows:


	BBK		BAF		BYM		BLE		MFL		MVF
Amounts waived	$	1,307	$	555	$	2,301	$	1,688	$	1,155	$	1,762

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Trust’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2019. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Trusts’ Independent Trustees. For the six months ended February 28, 2019, there were no fees waived by the Manager pursuant to these arrangements.

Trustees and Officers: Certain trustees and/or officers of the Trusts are trustees and/or officers of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

The Trusts may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the six months ended February 28, 2019, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:


	Purchase		Sales		Net Realized Gain (Loss)
BAF	$	—	$	562,987	$	(41,862	)

7.	*PURCHASES AND SALES*

For the six months ended February 28, 2019, purchases and sales of investments, excluding short-term securities, were as follows:


	BBK		BAF		BYM		BLE		MFL		MVF
Purchases	$	22,268,469	$	42,746,014	$	35,702,700	$	69,124,831	$	108,276,382	$	109,279,196
Sales		23,174,997		41,285,350		41,515,436		70,176,047		154,180,048		129,323,435

8.	*INCOME TAX INFORMATION*

It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Trust’s U.S. federal tax returns generally remains open for each of the four years ended August 31, 2018. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Trusts as of February 28, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Trusts’ financial statements.

As of August 31, 2018, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


Expires August 31,	BAF		BYM		BLE		MFL		MVF
No expiration date^(a)	$	3,682,816	$	5,377,520	$	7,804,136	$	13,245,637	$	8,518,168
2019		—		—		2,448,693		—		5,276,524

	$	3,682,816	$	5,377,520	$	10,252,829	$	13,245,637	$	13,794,692

^(a)

Must be utilized prior to losses subject to expiration.


NOTES TO FINANCIAL STATEMENTS			75

Notes to Financial Statements (unaudited) (continued)

As of February 28, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:


	BBK			BAF			BYM			BLE			MFL			MVF
Tax cost	$	226,981,433		$	161,216,821		$	487,910,489		$	463,698,661		$	767,857,222		$	800,803,117

Gross unrealized appreciation	$	15,269,724		$	9,101,363		$	33,734,965		$	25,523,964		$	32,103,800		$	34,538,853
Gross unrealized depreciation		(635,839	)		(635,162	)		(2,981,102	)		(3,340,778	)		(4,366,258	)		(3,124,649	)

Net unrealized appreciation	$	14,633,885		$	8,466,201		$	30,753,863		$	22,183,186		$	27,737,542		$	31,414,204

9.	*PRINCIPAL RISKS*

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Trust’s ability to buy or sell bonds. As a result, a Trust may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Trust needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, certain Trusts invest in securities or other instruments and may enter into certain transactions and such activities subject each Trust to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations.

Each Trust may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Trust to reinvest in lower yielding securities. Each Trust may also be exposed to reinvestment risk, which is the risk that income from each Trust’s portfolio will decline if each Trust invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Trust portfolio’s current earnings rate.

The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.

A Trust structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

Should short-term interest rates rise, the Trusts’ investments in the TOB Trusts may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Trusts’ NAVs per share.

The U.S. Securities and Exchange Commission (“SEC”) and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Trusts’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Trusts, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Counterparty Credit Risk: The Trusts may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Trust does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Trusts.


76		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

Concentration Risk: BBK and MFL invests a substantial amount of its assets in issuers located in a single state or limited number of states. This may subject each Trust to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Trust’s respective portfolios. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

As of period end, BAF invested a significant portion of its assets in securities in the transportation and county, city, special district and school district sectors. MFL invested a significant portion of its assets in securities in the transportation sector. Changes in economic conditions affecting such sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

Certain Trusts invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Trusts may be subject to a greater risk of rising interest rates due to the current period of historically low rates. The Federal Reserve has begun to raise the Federal Funds rate, and each increase results in more pronounced interest rate risk in the current market environment.

10.

CAPITAL SHARE TRANSACTIONS

Each of BBK, BAF, BYM, and BLE is authorized to issue an unlimited number of shares, including Preferred Shares, par value $0.001 per share, all of which were initially classified as Common Shares. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares, without the approval of Common Shareholders.

MFL is authorized to issue an unlimited number of shares, including 1 million Preferred Shares, par value $0.10 per share.

MVF is authorized to issue 160 million shares, 150 million of which were initially classified as Common Shares, par value $0.10 per share and 10 million of which were classified as Preferred Shares, par value $0.10 per share.

Common Shares

For the period shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:


	BLE		MFL		MVF
Year Ended August 31, 2018		8,405		39,363		152,734

For the six months ended February 28, 2019, shares issued and outstanding remained constant for all the Trusts. For the year ended August 31, 2018, shares issued and outstanding remained constant for BBK, BAF and BYM.

On November 15, 2018, the Board of Trustees authorized each Trust to participate in an open market share repurchase program (the “Repurchase Program”). Under the Repurchase Program, each Trust may repurchase up to 5% of its outstanding common shares through November 30, 2019, based on common shares outstanding as of the close of business on November 30, 2018, subject to certain conditions. There is no assurance that the Trusts will purchase shares in any particular amounts. For the six months ended February 28, 2019, the Trusts did not repurchase any shares.

Preferred Shares

A Trust’s Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Trust fails to maintain asset coverage of at least 200% of the liquidation preference of the Trust’s outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Trust is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Trust fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.

Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

MFL has issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as follows:

Issue
Date

Shares
Issued

Aggregate
Principal

Maturity
Date

MFL

6/30/11

2,746

274,600,000

7/01/41


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (unaudited) (continued)

Redemption Terms: MFL is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, MFL is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, MFL is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may also be redeemed, in whole or in part, at any time at the option of MFL. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.

Liquidity Feature: VRDP Shares are subject to a fee agreement between MFL and the liquidity provider that requires a per annum liquidity fee and, in some cases, an upfront or initial commitment fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. The fee agreement is set to expire, unless renewed or terminated in advance, on April 15, 2020.

In the event a fee agreement is not renewed or is terminated in advance, and MFL does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. In the event of such mandatory purchase, MFL is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, MFL is required to begin to segregate liquid assets with its custodian to fund the redemption. There is no assurance that MFL will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: MFL may incur remarketing fees on the aggregate principal amount of all its VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), MFL may incur nominal or no remarketing fees.

Ratings: As of period end, the VRDP Shares were assigned the following long-term ratings:


	Moody’s		Fitch
MFL		Aa1		AAA

Any short-term ratings on the VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s and Fitch. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.

Special Rate Period: MFL may commence a “special rate period” with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. The following VRDP Trust has commenced or is set to commence a special rate period:

Commencement
Date

Expiration Date

as of period ended

February 28, 2019

MFL

April 17, 2014

April 15, 2020

Prior to the expiration date, the VRDP Trust and the VRDP Shares holder may mutually agree to extend the special rate period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.

During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by the VRDP Trust on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Trust is required to comply with the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) the VRDP Fund will pay dividends monthly based on the sum of the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) the VRDP Trust will pay nominal or no fees to the liquidity provider and remarketing agent.

If MFL redeems the VRDP Shares prior to end of the special rate period and the VRDP Shares have long-term ratings above A1/A+ and its equivalent by all ratings agencies then rating the VRDP Shares, then such redemption may be subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

Dividends: Except during the Special Rate Period, dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed.

For the six months ended February 28, 2019, the annualized dividend rate for the MFL’s VRDP Shares was 2.41%.

For the six months ended February 28, 2019, VRDP Shares issued and outstanding of MFL remained constant.


78		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

VMTP Shares

BBK, BAF, BYM, BLE and MVF (collectively, the “VMTP Trusts”) have each issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act. The VMTP Shares are subject to certain restrictions on transfer, and a VMTP Trust may also be required to register its VMTP Shares for sale under the Securities Act under certain circumstances. As of period end, the VMTP Shares outstanding were as follows:

Issue
Date

Shares
Issued

Aggregate
Principal

Term
Redemption

Date

BBK

12/16/11

799

79,900,000

07/02/20

BAF

12/16/11

422

42,200,000

07/02/20

BYM

12/16/11

1,372

137,200,000

07/02/20

BLE

12/16/11

1,513

151,300,000

07/02/20

MVF

12/16/11

2,438

243,800,000

07/02/20

Redemption Terms: Each VMTP Trust is required to redeem its VMTP Shares on the term redemption date, unless earlier redeemed or repurchased or unless extended. There is no assurance that a term will be extended further or that any VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to the term redemption date, a VMTP Trust is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, a VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Trust. The redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends and applicable redemption premium. If a VMTP Trust redeems the VMTP Shares prior to the term redemption date and the VMTP Shares have long-term ratings above A1/A+ or its equivalent by the ratings agencies then rating the VMTP Shares, then such redemption may be subject to a prescribed redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining until the term redemption date, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the SIFMA Municipal Swap Index or to a percentage of the one-month LIBOR rate, as set forth in the VMTP Shares governing instrument. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares. As of period end, the VMTP Shares were assigned the following long-term ratings:


	Moody’s		Fitch
BBK		Aa1		AAA
BAF		Aa1		AAA
BYM		Aa1		AAA
BLE		Aa1		AAA
MVF		Aa1		AAA

The dividend rate on the VMTP Shares is subject to a step-up spread if the VMTP Trusts fail to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.

For the six months ended February 28, 2019, the average annualized dividend rates for the VMTP Shares were as follows:


	BBK			BAF			BYM			BLE			MVF
Rate		2.63	%		2.62	%		2.66	%		2.62	%		2.62	%

For the six months ended February 28, 2019, VMTP Shares issued and outstanding of each Trust remained constant.

Offering Costs: MFL and the VMTP Trusts incurred costs in connection with the issuance of VRDP and VMTP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP and VMTP Shares. With the exception of upfront fees paid to the liquidity provider which was amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

Financial Reporting: The VRDP and VMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP and VMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP and VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP and VMTP Shares are treated as equity for tax purposes. Dividends paid to


NOTES TO FINANCIAL STATEMENTS			79

Notes to Financial Statements (unaudited) (continued)

holders of the VRDP and VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP and VMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:


	Dividend Accrued		Deferred Offering Cost Amortization
BBK	$	1,040,486	$	—
BAF		548,381		—
BYM		1,807,436		—
BLE		1,966,115		—
MFL		3,287,800		8,399
MVF		3,169,283		—

11.

REGULATION S-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to Financial Statements.

Prior year distribution information and undistributed net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.

Distributions for the year ended August 31, 2018 were classified as follows:


	Net Investment Income
BBK	$	8,064,592
BAF		7,017,033
BYM		17,745,015
BLE		18,242,150
MFL		29,099,183
MVF		33,923,160

Undistributed net investment income as of August 31, 2018 is as follows:


	Undistributed Net Investment Income
BBK	$	1,157,190
BAF		728,463
BYM		2,104,597
BLE		1,959,535
MFL		3,071,045
MVF		3,464,573

12.

SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:


	Common Dividend Per Share				Preferred Shares^(c)
	Paid^(a)		Declared^(b)		Shares		Series		Declared
BBK	$	0.054500	$	0.054500		VMTP		W-7	$	180,246
BAF		0.058500		0.058500		VMTP		W-7		95,199
BYM		0.052000		0.052000		VMTP		W-7		309,510
BLE		0.058000		0.058000		VMTP		W-7		341,318
MFL		0.052500		0.052500		VRDP		W-7		582,227
MVF		0.038500		0.038500		VMTP		W-7		549,989

^(a)

Net investment income dividend paid on April 1, 2019 to Common Shareholders of record on March 15, 2019.

^(b)

Net investment income dividend declared on April 1, 2019, payable to Common Shareholders of record on April 15, 2019.

^(c)

Dividends declared for period March 1, 2019 to March 31, 2019.


80		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Trustee and Officer Information

Richard E. Cavanagh, Co-Chair of the Board and Trustee

Karen P. Robards, Co-Chair of the Board and Trustee

Michael J. Castellano, Trustee

Cynthia L. Egan, Trustee

Frank J. Fabozzi, Trustee

Henry Gabbay, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee

Catherine A. Lynch, Trustee

Robert Fairbairn, Trustee

John M. Perlowski, Trustee, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

Effective January 1, 2019, Richard E. Cavanagh and Karen P. Robards were appointed as a Co-Chair of the Board. Prior to January 1, 2019, Mr. Cavanagh served as Chair of the Board and Ms. Robards served as Vice Chair of the Board. In addition, effective January 1, 2019, Henry Gabbay was appointed as a Trustee of each Trust.

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Custodian

State Street Bank and

Trust Company

Boston, MA 02111

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

VRDP Tender and Paying Agent and VMTP Redemption and Paying Agent

The Bank of New York Mellon

New York, NY 10286

VRDP Liquidity Provider

Bank of America, N.A.

New York, NY 10036

VRDP Remarketing Agent

Merrill Lynch, Pierce, Fenner & Smith Incorporated

New York, NY 10036

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trusts

100 Bellevue Parkway

Wilmington, DE 19809


TRUSTEE AND OFFICER INFORMATION			81

Additional Information

Trust Certification

The Trusts are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Trusts filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. Except as disclosed on page xx, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

In accordance with Section 23(c) of the Investment Company Act of 1940, each Trust may from time to time purchase shares of its common stock in the open market or in private transactions.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisers, banks or brokerages may offer this service.

Householding

The Trusts will mail only one copy of shareholder documents, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at http://www.sec.gov.


82		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Additional Information (continued)

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.


ADDITIONAL INFORMATION			83

Glossary of Terms Used in this Report


Portfolio Abbreviations

AGC		Assured Guarantee Corp.

AGM		Assured Guaranty Municipal Corp.

AMBAC		American Municipal Bond Assurance Corp.

AMT		Alternative Minimum Tax (subject to)

ARB		Airport Revenue Bonds

BAM		Build America Mutual Assurance Co.

BARB		Building Aid Revenue Bonds

CAB		Capital Appreciation Bonds

COP		Certificates of Participation

EDA		Economic Development Authority

EDC		Economic Development Corp.

ERB		Education Revenue Bonds

GARB		General Airport Revenue Bonds

GO		General Obligation Bonds

GTD-PSF		Guaranteed Permanent School Fund

HDA		Housing Development Authority

HFA		Housing Finance Agency

HRB		Housing Revenue Bonds

IDA		Industrial Development Authority

IDB		Industrial Development Board

ISD		Independent School District

LRB		Lease Revenue Bonds

M/F		Multi-Family

NPFGC		National Public Finance Guarantee Corp.

PILOT		Payment in Lieu of Taxes

RB		Revenue Bonds

S/F		Single-Family


84		2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

LOGO


CEF-NTL-2/19-SAR


Item 2 –		Code of Ethics – Not Applicable to this semi-annual report

Item 3 –		Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 –		Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 –		Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

Item 6 –		Investments

		(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

		(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 –		Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

Item 8 –		Portfolio Managers of Closed-End Management Investment Companies

		(a) Not Applicable to this semi-annual report.

		(b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

Item 9 –		Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers


Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share	(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs¹
September 1 – 30, 2018	N/A	N/A	N/A	N/A
October 1 – 31, 2018	N/A	N/A	N/A	N/A
November 1- 30, 2018	N/A	N/A	N/A	N/A
December 1 – 31, 2018	0	$0	0	1,320,313
January 1 – 31, 2019	0	$0	0	1,320,313
February 1 – 28, 2019	0	$0	0	1,320,313
Total:	0	$0	0	1,320,313

¹The Fund announced an open market share repurchase program on November 15, 2018 pursuant to which the Fund was authorized to repurchase, through November 30, 2019, up to 5% of its common shares based on common shares outstanding on November 30, 2018, in open market transactions, subject to certain conditions.


Item 10 –		Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 –		Controls and Procedures

		(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.

		(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 –		Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 –		Exhibits attached hereto

		(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

		(a)(2) – Certifications – Attached hereto

		(a)(3) – Not Applicable

		(a)(4) – Not Applicable

		(b) – 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 Municipal Income Quality Trust

By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Municipal Income Quality Trust
Date: May 3, 2019 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 Municipal Income Quality Trust

Date: May 3, 2019

By:		/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock Municipal Income Quality Trust

Date: May 3, 2019