UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-06728

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 04/30/2012

 

Date of reporting period: 01/31/2012

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2012 (Unaudited)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 0.8%

 

 

 

 

 

 

 

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

 

$

650

 

$

745,485

 

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

 

 

2,000

 

 

1,764,400

 

 

 

 

 

 

 

2,509,885

 

Alaska — 0.3%

 

 

 

 

 

 

 

Alaska Industrial Development & Export
Authority, RB, Providence Health
Services, Series A, 5.50%, 10/01/41

 

 

850

 

 

957,151

 

Arizona — 1.2%

 

 

 

 

 

 

 

Greater Arizona Development Authority,
RB, Series B (NPFGC), 5.00%,
8/01/35

 

 

1,100

 

 

1,159,543

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

1,300

 

 

1,474,655

 

5.00%, 10/01/29

 

 

925

 

 

1,017,546

 

 

 

 

 

 

 

3,651,744

 

California — 15.6%

 

 

 

 

 

 

 

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

 

 

7,150

 

 

7,026,591

 

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

 

 

 

 

 

 

 

5.18%, 8/01/37

 

 

2,100

 

 

523,173

 

4.87%, 8/01/38

 

 

4,800

 

 

1,124,544

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

500

 

 

548,265

 

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

 

 

1,000

 

 

1,184,520

 

California State University, RB,
Systemwide, Series A:

 

 

 

 

 

 

 

5.25%, 11/01/38

 

 

3,000

 

 

3,261,330

 

5.50%, 11/01/39

 

 

1,000

 

 

1,106,790

 

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

 

 

700

 

 

773,416

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM),
5.00%, 8/01/31 (a)

 

 

1,800

 

 

1,772,352

 

East Side Union High School District,
GO, CAB (AGM), 4.93%, 8/01/29 (b)

 

 

15,000

 

 

6,066,900

 

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

 

 

4,000

 

 

4,544,600

 

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

 

 

2,770

 

 

3,008,802

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

2,200

 

$

2,406,382

 

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

 

 

 

 

 

 

 

5.00%, 10/01/29

 

 

2,255

 

 

2,386,038

 

5.00%, 10/01/36

 

 

1,340

 

 

1,412,172

 

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

 

 

11,975

 

 

5,323,127

 

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

 

 

2,015

 

 

2,170,356

 

San Diego Unified School District
California, GO, CAB, Election of 2008,
Series C, 6.84%, 7/01/38 (b)

 

 

1,400

 

 

363,524

 

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

 

 

575

 

 

690,472

 

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

 

 

 

 

 

 

 

5.00%, 8/01/34

 

 

600

 

 

666,060

 

5.00%, 8/01/38

 

 

490

 

 

537,344

 

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

 

 

20

 

 

20,046

 

Tamalpais Union High School District,
GO, Election of 2001 (AGM), 5.00%,
8/01/13 (c)

 

 

1,325

 

 

1,418,611

 

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

 

 

675

 

 

746,260

 

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

 

 

2,000

 

 

564,540

 

 

 

 

 

 

 

49,646,215

 

Colorado — 0.9%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian), 5.50%, 12/01/27

 

 

200

 

 

202,128

 

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

 

 

5,500

 

 

1,543,410

 

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

 

 

1,000

 

 

1,126,000

 

 

 

 

 

 

 

2,871,538

 

Florida — 17.3%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,511,272

 

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

 

 

8,600

 

 

9,139,650

 

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

 

 

1,100

 

 

1,188,132

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

County of Miami-Dade, RB:

 

 

 

 

 

 

 

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

 

$

900

 

$

980,766

 

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

 

 

6,900

 

 

7,511,478

 

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

 

 

725

 

 

796,057

 

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

 

 

10,300

 

 

10,554,410

 

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

 

 

2,400

 

 

2,732,448

 

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

 

 

550

 

 

629,288

 

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

 

 

3,250

 

 

3,464,013

 

Lee County, Refunding RB, Series A,
AMT, 5.63%, 10/01/26

 

 

825

 

 

916,121

 

Orange County School Board, COP,
Series A:

 

 

 

 

 

 

 

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

 

 

3,400

 

 

3,785,866

 

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

 

 

9,000

 

 

9,538,380

 

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

 

 

250

 

 

267,395

 

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

 

 

1,800

 

 

2,011,122

 

 

 

 

 

 

 

55,026,398

 

Georgia — 0.6%

 

 

 

 

 

 

 

Burke County Development Authority,
RB, Oglethorpe Power-Vogtle Project,
Series C, 5.70%, 1/01/43

 

 

1,000

 

 

1,076,300

 

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

 

 

630

 

 

688,842

 

 

 

 

 

 

 

1,765,142

 

Illinois — 19.6%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Series A, 5.50%, 12/01/39

 

 

2,050

 

 

2,322,814

 

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

 

 

 

 

 

 

 

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

 

 

5,200

 

 

5,503,212

 

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

 

 

2,200

 

 

2,343,594

 

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

 

 

2,500

 

 

3,046,625

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

City of Chicago Illinois, GO:

 

 

 

 

 

 

 

CAB, City Colleges (NPFGC), 4.91%,
1/01/31 (b)

 

$

8,370

 

$

3,343,648

 

Park District, Harbor Facilities,
Series C, 5.25%, 1/01/37

 

 

4,000

 

 

4,422,320

 

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

 

 

500

 

 

551,600

 

City of Chicago Illinois, RB, Series A,
(AGC), 5.00%, 1/01/38

 

 

4,000

 

 

4,202,320

 

City of Chicago Illinois, RB, O’Hare
International Airport, O’Hare
International Airport, Third Lien,
Series A, 5.75%, 1/01/39

 

 

2,000

 

 

2,282,800

 

City of Chicago Illinois, Refunding RB,
ARB, O’Hare International Airport,
General, Third Lien, Series C-2, AMT
(AGM), 5.25%, 1/01/30

 

 

2,000

 

 

2,037,840

 

City of Chicago Illinois, Transit Authority,
RB, Transit Authority, 5.25%,
12/01/36

 

 

515

 

 

575,770

 

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

 

 

2,460

 

 

2,562,508

 

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

 

 

400

 

 

430,704

 

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

 

 

2,070

 

 

2,263,483

 

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

 

 

18,175

 

 

19,907,259

 

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

 

 

10,000

 

 

2,709,300

 

Metropolitan Pier & Exposition Authority,
Refunding RB, CAB, McCormick Place
Expansion Project, Series B (AGM),
6.25%, 6/15/44 (b)

 

 

2,980

 

 

514,527

 

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

 

 

575

 

 

644,759

 

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

 

 

2,000

 

 

2,552,760

 

 

 

 

 

 

 

62,217,843

 

Indiana — 1.7%

 

 

 

 

 

 

 

Indiana Finance Authority, RB,
Wastewater Utility, CWA Authority,
First Lien, RB, Series A, 5.25%,
10/01/38

 

 

1,000

 

 

1,118,060

 

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

 

 

350

 

 

374,279

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB,
Waterworks Project, Series A:
5.75%, 1/01/38

 

 

2,000

 

 

2,258,540

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

2


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 

Indiana (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

$

1,575

 

$

1,765,953

 

 

 

 

 

 

 

5,516,832

 

Iowa — 3.3%

 

 

 

 

 

 

 

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

 

 

4,925

 

 

5,431,241

 

Iowa Student Loan Liquidity Corp., RB,
Senior, Series A-2, AMT:

 

 

 

 

 

 

 

5.60%, 12/01/26

 

 

1,440

 

 

1,542,183

 

5.70%, 12/01/27

 

 

1,440

 

 

1,530,086

 

5.80%, 12/01/29

 

 

970

 

 

1,024,989

 

5.85%, 12/01/30

 

 

1,010

 

 

1,064,732

 

 

 

 

 

 

 

10,593,231

 

Kentucky — 0.7%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,274,120

 

Louisiana — 1.1%

 

 

 

 

 

 

 

Jefferson Parish Hospital Service District
No. 1, Refunding RB, Jefferson
Medical Center, Series A, 6.00%,
1/01/39

 

 

1,230

 

 

1,368,055

 

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

 

 

1,150

 

 

1,357,943

 

Parish of Saint John the Baptist
Louisiana, RB, Marathon Oil Corp.,
Series A, 5.13%, 6/01/37

 

 

600

 

 

608,310

 

 

 

 

 

 

 

3,334,308

 

Massachusetts — 7.3%

 

 

 

 

 

 

 

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

 

 

14,000

 

 

14,030,800

 

Massachusetts HFA, Refunding RB,
Series C, AMT:

 

 

 

 

 

 

 

5.00%, 12/01/30

 

 

5,000

 

 

5,116,000

 

5.35%, 12/01/42

 

 

975

 

 

1,024,871

 

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

 

 

2,700

 

 

2,957,580

 

 

 

 

 

 

 

23,129,251

 

Michigan — 8.5%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second
Lien:

 

 

 

 

 

 

 

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

 

 

350

 

 

405,937

 

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

 

 

200

 

 

242,026

 

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

 

 

4,500

 

 

4,977,675

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

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

 

$

2,200

 

$

2,503,886

 

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

 

 

1,500

 

 

1,544,205

 

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

 

 

375

 

 

406,669

 

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

 

 

1,700

 

 

1,973,666

 

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

 

 

1,000

 

 

1,008,990

 

Michigan State Building Authority,
Refunding RB, Facilities Program:

 

 

 

 

 

 

 

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

 

 

600

 

 

675,294

 

Series II-A, 5.38%, 10/15/36

 

 

1,000

 

 

1,128,950

 

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

 

 

1,900

 

 

2,131,610

 

Michigan State Finance Authority,
Refunding RB, Trinity Health, 5.00%,
12/01/39

 

 

3,700

 

 

3,923,998

 

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

 

 

900

 

 

944,676

 

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

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

1,000

 

 

1,016,990

 

Series C, 5.45%, 12/15/32

 

 

3,900

 

 

3,928,470

 

 

 

 

 

 

 

26,813,042

 

Minnesota — 0.7%

 

 

 

 

 

 

 

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

 

 

1,800

 

 

2,124,864

 

Dakota County Community Development
Agency, RB, Mortgage-Backed
Securities Program, Series B, AMT
(Ginnie Mae), 5.15%, 12/01/38

 

 

—(d

)

 

4

 

 

 

 

 

 

 

2,124,868

 

Nevada — 2.8%

 

 

 

 

 

 

 

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

 

 

2,650

 

 

2,724,915

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

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

 

 

1,700

 

 

1,853,765

 

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

 

 

1,500

 

 

1,555,890

 

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

 

 

2,700

 

 

2,770,902

 

 

 

 

 

 

 

8,905,472

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 

New Jersey — 3.8%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

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

 

$

85

 

$

88,108

 

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

 

 

6,700

 

 

7,188,095

 

New Jersey Higher Education Assistance
Authority, RB, Series 1, Series 1, AMT,
5.50%, 12/01/26

 

 

350

 

 

381,143

 

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

 

 

 

 

 

 

 

5.50%, 12/01/25

 

 

500

 

 

551,935

 

5.75%, 12/01/28

 

 

200

 

 

220,846

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System:

 

 

 

 

 

 

 

Series A (NPFGC), 5.75%, 6/15/25

 

 

1,400

 

 

1,825,992

 

Series B, 5.25%, 6/15/36

 

 

1,580

 

 

1,777,737

 

 

 

 

 

 

 

12,033,856

 

New York — 2.2%

 

 

 

 

 

 

 

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

 

 

610

 

 

689,306

 

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

 

 

3,035

 

 

3,469,187

 

New York HFA, RB, Affordable Housing,
Series B, 5.30%, 11/01/37

 

 

2,835

 

 

2,932,609

 

 

 

 

 

 

 

7,091,102

 

North Carolina — 0.2%

 

 

 

 

 

 

 

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

 

 

520

 

 

527,405

 

Ohio — 0.5%

 

 

 

 

 

 

 

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

 

 

460

 

 

560,703

 

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

 

 

900

 

 

960,516

 

 

 

 

 

 

 

1,521,219

 

Pennsylvania — 1.9%

 

 

 

 

 

 

 

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

 

 

1,340

 

 

1,380,093

 

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

 

 

 

 

 

 

 

6.00%, 12/01/36

 

 

500

 

 

605,675

 

5.50%, 12/01/41

 

 

2,245

 

 

2,585,364

 

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

 

 

1,300

 

 

1,483,014

 

 

 

 

 

 

 

6,054,146

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico — 3.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, CAB, Series C (b):

 

 

 

 

 

 

 

6.09%, 8/01/38

 

$

4,070

 

$

1,001,953

 

6.11%, 8/01/39

 

 

5,000

 

 

1,164,350

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A:

 

 

 

 

 

 

 

5.75%, 8/01/37

 

 

620

 

 

693,966

 

6.38%, 8/01/39

 

 

3,000

 

 

3,502,170

 

5.50%, 8/01/42

 

 

350

 

 

383,884

 

6.00%, 8/01/42

 

 

2,500

 

 

2,828,150

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

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

 

 

10,000

 

 

1,994,700

 

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

 

 

725

 

 

830,864

 

 

 

 

 

 

 

12,400,037

 

South Carolina — 1.2%

 

 

 

 

 

 

 

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

 

 

100

 

 

116,416

 

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

 

 

3,420

 

 

3,766,070

 

 

 

 

 

 

 

3,882,486

 

Tennessee — 0.4%

 

 

 

 

 

 

 

Memphis Center City Revenue Finance
Corp., RB, Subordinate, Pyramid &
Pinch District, Series B (AGM), 5.25%,
11/01/30

 

 

1,000

 

 

1,136,370

 

Texas — 7.9%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,089,600

 

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

 

 

3,000

 

 

3,388,020

 

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

 

 

1,065

 

 

1,191,916

 

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

 

 

3,400

 

 

3,819,594

 

North Texas Tollway Authority,
Refunding RB, First Tier, Series A,
6.00%, 1/01/28

 

 

2,415

 

 

2,820,092

 

North Texas Tollway Authority,
Refunding RB, First Tier System,
System (NPFGC), 5.75%, 1/01/40

 

 

3,600

 

 

3,905,208

 

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

 

 

4,800

 

 

4,889,424

 

 

 

 

 

 

 

25,103,854

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

4


 

 

 

 

Schedule of Investments(continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 

Vermont — 0.6%

 

 

 

 

 

 

 

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

 

$

1,935

 

$

2,025,365

 

Washington — 1.7%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,527,484

 

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

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

1,000

 

 

1,061,870

 

5.25%, 10/01/39

 

 

550

 

 

595,474

 

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

 

 

2,000

 

 

2,181,660

 

 

 

 

 

 

 

5,366,488

 

Wisconsin — 1.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB, Ascension
Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,200

 

 

1,302,132

 

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

 

 

 

2,000

 

 

2,128,680

 

 

 

 

 

 

 

3,430,812

 

Total Municipal Bonds – 107.8%

 

 

 

 

 

341,910,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Arizona — 1.0%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,125,000

 

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

 

 

1,750

 

 

1,916,548

 

 

 

 

 

 

 

3,041,548

 

California — 4.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

 

4,330

 

 

4,736,197

 

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

 

 

1,699

 

 

2,043,139

 

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

 

 

2,299

 

 

2,366,426

 

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

 

 

359

 

 

412,058

 

 

 

 

 

 

 

 

 

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

 

Par 
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

3,030

 

$

3,277,703

 

 

 

 

 

 

 

12,835,523

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

780

 

 

863,175

 

District of Columbia — 1.0%

 

 

 

 

 

 

 

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

 

 

855

 

 

1,033,712

 

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

 

 

1,580

 

 

1,973,852

 

 

 

 

 

 

 

3,007,564

 

Florida — 5.4%

 

 

 

 

 

 

 

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

 

 

4,000

 

 

4,278,200

 

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

 

 

4,200

 

 

5,197,500

 

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

 

 

1,189

 

 

1,296,380

 

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

 

 

4,000

 

 

4,206,800

 

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

 

 

 

2,100

 

 

 

2,283,162

 

 

 

 

 

 

 

17,262,042

 

Georgia — 6.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series B, 5.25%, 1/01/33

 

 

4,999

 

 

5,363,130

 

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

 

 

15,000

 

 

15,619,200

 

 

 

 

 

 

 

20,982,330

 

Hawaii — 1.6%

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,211,100

 

Illinois — 8.2%

 

 

 

 

 

 

 

City of Chicago Illinois, RB, Sales Tax
Revenue, Series A, 5.00%, 1/01/41

 

 

700

 

 

774,942

 

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

 

 

2,549

 

 

2,768,941

 

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

 

 

3,499

 

 

3,852,788

 

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

 

 

3,500

 

 

3,551,310

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

5


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)
 (Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

$

10,000

 

$

13,866,430

 

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

 

 

1,130

 

 

1,250,903

 

 

 

 

 

 

 

26,065,314

 

Louisiana — 1.5%

 

 

 

 

 

 

 

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

 

 

4,600

 

 

4,898,126

 

Massachusetts — 2.5%

 

 

 

 

 

 

 

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

 

 

7,195

 

 

8,033,080

 

Nevada — 1.8%

 

 

 

 

 

 

 

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

 

 

3,298

 

 

3,809,936

 

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

 

 

1,574

 

 

1,868,546

 

 

 

 

 

 

 

5,678,482

 

New York — 2.4%

 

 

 

 

 

 

 

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

 

 

1,050

 

 

1,226,650

 

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

 

 

1,005

 

 

1,185,247

 

Port Authority of New York & New Jersey,
RB, Consolidated, 143rd series,
5.00%, 10/01/30

 

 

3,500

 

 

3,729,705

 

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

 

 

1,200

 

 

1,369,416

 

 

 

 

 

 

 

7,511,018

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

500

 

 

553,180

 

Puerto Rico — 0.4%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, Series C, 5.25%, 8/01/40

 

 

1,040

 

 

1,154,930

 

South Carolina — 2.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

2,725

 

 

3,027,693

 

5.25%, 12/01/29

 

 

2,425

 

 

2,689,640

 

5.25%, 12/01/30

 

 

880

 

 

974,327

 

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

 

 

1,125

 

 

1,279,148

 

 

 

 

 

 

 

7,970,808

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

South Dakota — 0.3%

 

 

 

 

 

 

 

South Dakota HDA, RB,
Homeownership, Series K, 5.05%,
5/01/36

 

$

1,000

 

$

1,008,410

 

Texas — 4.5%

 

 

 

 

 

 

 

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

 

 

1,900

 

 

2,239,635

 

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

 

 

5,250

 

 

5,904,780

 

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

 

 

4,000

 

 

4,470,920

 

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

 

 

1,400

 

 

1,548,470

 

 

 

 

 

 

 

14,163,805

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

300

 

 

335,415

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,330,136

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 44.7%

 

 

 

 

 

141,905,986

 

Total Long-Term Investments
(Cost – $447,166,231) – 152.5%

 

 

 

 

 

483,816,166

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

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

 

 

12,449,924

 

 

12,449,924

 

Total Short-Term Securities
(Cost – $12,449,924) – 3.9%

 

 

 

 

 

12,449,924

 

Total Investments (Cost - $459,616,155*) 156.4%

 

 

 

 

 

496,266,090

 

Other Assets Less Liabilities – 1.4%

 

 

 

 

 

4,388,474

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (21.1)%

 

 

 

 

 

(66,844,848

)

AMPS, at Redemption Value – (36.7)%

 

 

 

 

 

(116,500,000

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

317,309,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

6


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

 

 

*

As of January 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:


 

 

 

 

 

Tax Cost

 

$

393,623,804

 

Gross unrealized appreciation

 

$

37,765,668

 

Gross unrealized depreciation

 

 

(1,944,053

)

Net unrealized appreciation

 

$

35,821,615

 

 

 

(a)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

 

 

(b)

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

 

 

(c)

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

 

 

(d)

Amount is less than $500.

 

 

(e)

Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

 

(f)

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

 

 

(g)

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30, 2011

 

Net
Activity

 


Shares
Held at
January 31,
2012

 

Income

 

FFI Institutional Tax-Exempt Fund

 

 

3,066,084

 

 

9,383,840

 

 

12,449,924

 

$

1,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(h)

Represents the current yield as of report date.

 

 

•

Financial futures contracts sold as of January 31, 2012 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration
Date

 

Notional
Value

 

Unrealized
Depreciation

 

35

 

 

10-Year US Treasury Note

 

 

Chicago Board of Trade

 

 

March 2012

 

$

4,628,750

 

$

(61,317

)

 

Portfolio Abbreviations

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

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

Ginnie Mae

Government National Mortgage Association

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

Radian

Radian Financial Guaranty

RB

Revenue Bonds

Syncora

Syncora Guarantee

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

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

 

 

 

 

•

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

 

 

 

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

7


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund II, Inc. (MQT)

The following tables summarize the inputs used as of January 31, 2012 in determining the fair valuation of the Fund’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

483,816,166

 

 

—

 

$

483,816,166

 

Short-Term Securities

 

$

12,449,924

 

 

—

 

 

—

 

 

12,449,924

 

Total

 

$

12,449,924

 

$

483,816,166

 

 

—

 

$

496,266,090

 

 

 

1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial Instruments2:

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate contracts

 

$

(61,317

)

 

—

 

 

—

 

$

(61,317

)

Total

 

$

(61,317

)

 

—

 

 

—

 

$

(61,317

)

 

 

2

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

 

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND II, INC.

JANUARY 31, 2012

8

Item 2 –

Controls and Procedures

 

 

2(a) –

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

 

 

2(b) –

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

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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

 

 

 

BlackRock MuniYield Quality Fund II, Inc.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield Quality Fund II, Inc.
   
  Date: March 23, 2012
   
  Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield Quality Fund II, Inc.
   
  Date: March 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Quality Fund II, Inc.
     
  Date: March 23, 2012