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 811-06692

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 07/31/2012

 

Date of reporting period: 10/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments October 31, 2011 (Unaudited)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California — 92.1%

 

 

 

 

 

 

 

Corporate — 0.5%

 

 

 

 

 

 

 

City of Chula Vista California, Refunding
RB, San Diego Gas & Electric, Series
A, 5.88%, 2/15/34

 

$

2,435

 

$

2,687,461

 

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

 

 

 

 

 

 

 

Bay Area Governments Association,
Refunding RB, California
Redevelopment Agency Pool, Series A
(AGM), 6.00%, 12/15/24

 

 

255

 

 

256,433

 

California State Public Works Board, RB,
Various Capital Projects,
Sub-Series I-1, 6.13%, 11/01/29

 

 

1,945

 

 

2,125,340

 

County of Kern California, COP, Capital
Improvements Projects, Series A
(AGC), 6.00%, 8/01/35

 

 

2,000

 

 

2,224,180

 

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

 

 

2,500

 

 

2,657,550

 

Fremont Unified School District Alameda
County California, GO, Series A
(NPFGC), 5.50%, 8/01/26

 

 

10,755

 

 

11,140,782

 

Fresno Joint Powers Financing Authority
California, RB, Series A (AGM), 5.75%,
6/01/26

 

 

3,295

 

 

3,309,992

 

Grossmont Healthcare District, GO,
Election of 2006, Series B, 6.13%,
7/15/40

 

 

2,000

 

 

2,255,660

 

Grossmont Union High School District,
GO, Election of 2008, Series C,
5.50%, 8/01/33

 

 

1,855

 

 

2,074,521

 

Lodi Unified School District, GO, Election
of 2002 (AGM), 5.00%, 8/01/29

 

 

10,260

 

 

10,464,174

 

Los Angeles Community Redevelopment
Agency California, RB, Bunker Hill
Project, Series A (AGM), 5.00%,
12/01/27

 

 

10,000

 

 

10,339,800

 

Los Angeles County Metropolitan
Transportation Authority, Refunding
RB, Proposition A, First Tier, Senior
Series A (AMBAC):

 

 

 

 

 

 

 

5.00%, 7/01/27

 

 

5,240

 

 

5,517,248

 

5.00%, 7/01/35

 

 

6,825

 

 

7,036,439

 

Los Angeles Municipal Improvement
Corp., Refunding RB, Real Property,
Series B (AGC), 5.50%, 4/01/39

 

 

1,515

 

 

1,573,752

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

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

 

$

7,140

 

$

7,610,597

 

Orange County Sanitation District, COP,
Series A, 5.00%, 2/01/35

 

 

2,500

 

 

2,649,375

 

Orange County Water District, COP,
Refunding, 5.25%, 8/15/34

 

 

9,045

 

 

9,959,811

 

Orchard School District California, GO,
Election of 2001, Series A (AGC),
5.00%, 8/01/34

 

 

7,490

 

 

7,979,322

 

Oxnard Union High School District
California, GO, Refunding, Series A
(NPFGC), 6.20%, 8/01/30

 

 

9,645

 

 

10,373,969

 

Pittsburg Unified School District, GO,
Election of 2006, Series B (AGM):

 

 

 

 

 

 

 

5.50%, 8/01/34

 

 

2,000

 

 

2,170,880

 

5.63%, 8/01/39

 

 

4,500

 

 

4,892,490

 

Port of Oakland, Refunding RB, Series
M, AMT (NPFGC), 5.38%, 11/01/27

 

 

8,000

 

 

8,032,800

 

Redlands Unified School District
California, GO, Election of 2008
(AGM), 5.25%, 7/01/33

 

 

5,000

 

 

5,287,350

 

Sacramento Area Flood Control Agency,
Special Assessment Bonds,
Refunding, Consolidated, Capital
Assessment District, Series A
(NPFGC), 5.00%, 10/01/32

 

 

4,350

 

 

4,532,787

 

San Diego Community College District
California, GO, Election of 2006
(AGM), 5.00%, 8/01/32

 

 

7,115

 

 

7,533,006

 

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

 

 

4,895

 

 

5,090,311

 

San Jose Financing Authority, RB,
Convention Center Expansion &
Renovation Project:

 

 

 

 

 

 

 

5.75%, 5/01/36

 

 

2,570

 

 

2,679,379

 

5.75%, 5/01/42

 

 

4,500

 

 

4,840,875

 

San Juan Unified School District, GO,
Election of 2002 (AGM), 5.00%,
8/01/34

 

 

6,475

 

 

6,787,743

 

San Leandro Unified School District
California, GO, Election of 2010,
Series A, 5.75%, 8/01/41

 

 

3,000

 

 

3,295,590

 

Snowline Joint Unified School District,
COP, Refunding, Refining Project
(AGC), 5.75%, 9/01/38

 

 

5,600

 

 

6,092,128

 

 

 

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)

BHAC

Berkshire Hathaway Assurance Corp.

COP

Certificates of Participation

FGIC

Financial Guaranty Insurance Co.

FSA

Financial Security Assurance Inc.

GO

General Obligation Bonds

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.

OCTOBER 31, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

County/City/Special District/School District
(concluded):

 

 

 

 

 

 

 

Walnut Valley Unified School District,
GO, Election of 2007, Series B,
5.75%, 8/01/41

 

$

7,680

 

$

8,436,710

 

West Contra Costa Unified School
District California, GO, Election of
2002, Series B (AGM), 5.00%,
8/01/32

 

 

6,690

 

 

6,723,249

 

Westminster Redevelopment Agency
California, Tax Allocation Bonds,
Subordinate, Commercial
Redevelopment Project No. 1 (AGC),
6.25%, 11/01/39

 

 

4,300

 

 

4,946,333

 

 

 

 

 

 

 

180,890,576

 

Education — 7.6%

 

 

 

 

 

 

 

Anaheim City School District California,
GO,Election of 2010 (AGM), 6.25%,
8/01/40

 

 

3,750

 

 

4,291,725

 

Belmont Redwood Shores School
District California, GO, Election of
2010, Series A, 5.00%, 8/01/41

 

 

3,300

 

 

3,423,552

 

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

 

 

4,220

 

 

4,559,668

 

Gavilan Joint Community College
District, GO, Election of 2004,
Series D:

 

 

 

 

 

 

 

5.50%, 8/01/31

 

 

2,165

 

 

2,424,930

 

5.75%, 8/01/35

 

 

8,400

 

 

9,460,920

 

Riverside Community College District,
GO, Election of 2004, Series C (AGM),
5.00%, 8/01/32

 

 

8,750

 

 

9,081,100

 

University of California, RB, Limited
Project, Series D (NPFGC), 5.00%,
5/15/37

 

 

5,500

 

 

5,679,630

 

 

 

 

 

 

 

38,921,525

 

Health — 11.0%

 

 

 

 

 

 

 

ABAG Finance Authority for Nonprofit
Corps, Refunding RB, Sharp
Healthcare, Series A, 6.00%, 8/01/30

 

 

2,250

 

 

2,438,010

 

California Health Facilities Financing
Authority, RB:

 

 

 

 

 

 

 

Cedars-Sinai Medical Center,
5.00%, 8/15/34

 

 

2,550

 

 

2,515,677

 

Providence Health Services,
Series B, 5.50%, 10/01/39

 

 

4,090

 

 

4,290,287

 

Sutter Health, Series A, 5.25%,
11/15/46

 

 

2,000

 

 

1,996,120

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

Catholic Healthcare West, Series A,
6.00%, 7/01/34

 

 

2,130

 

 

2,292,178

 

Catholic Healthcare West, Series A,
6.00%, 7/01/39

 

 

5,500

 

 

5,885,990

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Health (concluded)

 

 

 

 

 

 

 

California Health Facilities Financing
Authority, Refunding RB (concluded):

 

 

 

 

 

 

 

Sutter Health, Series A, 5.00%,
11/15/42

 

$

3,500

 

$

3,429,650

 

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

 

 

7,715

 

 

8,412,282

 

California Statewide Communities
Development Authority, RB:

 

 

 

 

 

 

 

Health Facility, Memorial
Health Services, Series A,
6.00%, 10/01/23

 

 

3,685

 

 

3,843,897

 

Kaiser Permanente, Series B,
5.25%, 3/01/45

 

 

3,800

 

 

3,806,992

 

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

 

 

4,050

 

 

4,416,039

 

California Statewide Communities
Development Authority,
Refunding RB:

 

 

 

 

 

 

 

Catholic Healthcare West,
Series D (BHAC), 5.50%,
7/01/31

 

 

865

 

 

901,633

 

Trinity Health Credit Group,
5.00%, 12/01/41

 

 

10,000

 

 

9,938,000

 

City of Newport Beach California, RB,
Hoag Memorial Hospital Presbyterian,
6.00%, 12/01/40

 

 

1,820

 

 

2,039,255

 

 

 

 

 

 

 

56,206,010

 

Housing — 0.1%

 

 

 

 

 

 

 

California Rural Home Mortgage Finance
Authority, RB, AMT, Mortgage-Backed
Securities Program, AMT (Ginnie
Mae):

 

 

 

 

 

 

 

Series A, 6.35%, 12/01/29

 

 

80

 

 

82,368

 

Series B, 6.25%, 12/01/31

 

 

55

 

 

55,598

 

County of San Bernardino California,
Refunding RB, Home Mortgage-
Backed Securities, Series A-1, AMT
(Ginnie Mae), 6.25%, 12/01/31

 

 

110

 

 

116,433

 

 

 

 

 

 

 

254,399

 

State — 3.1%

 

 

 

 

 

 

 

California State Public Works Board, RB,
Department of Education, Riverside
Campus Project, Series B, 6.50%,
4/01/34

 

 

3,670

 

 

4,045,661

 

State of California, GO, Various
Purpose:

 

 

 

 

 

 

 

6.00%, 3/01/33

 

 

5,000

 

 

5,627,000

 

6.00%, 4/01/38

 

 

2,000

 

 

2,213,880

 

6.00%, 11/01/39

 

 

3,375

 

 

3,757,523

 

 

 

 

 

 

 

15,644,064

 

Transportation — 12.6%

 

 

 

 

 

 

 

City of San Jose California, RB:

 

 

 

 

 

 

 

Series A-1, AMT, 6.25%,
3/01/34

 

 

1,400

 

 

1,512,868

 

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

 

 

5,000

 

 

5,426,250

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.

OCTOBER 31, 2011

2


 

 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Transportation (concluded)

 

 

 

 

 

 

 

County of Sacramento California, RB:

 

 

 

 

 

 

 

Senior-Series B, AMT (AGM), 5.25%,
7/01/33

 

$

7,500

 

$

7,642,950

 

Subordinated and Passenger
Facility Charges/Grant, Series C
(AGC), 5.75%, 7/01/39

 

 

5,455

 

 

5,792,010

 

Los Angeles Department of Airports,
Refunding RB, Series A, 5.25%,
5/15/29

 

 

3,760

 

 

4,048,016

 

Los Angeles Harbor Department, RB,
Series B:

 

 

 

 

 

 

 

5.25%, 8/01/39

 

 

2,480

 

 

2,664,165

 

5.25%, 8/01/34

 

 

5,530

 

 

5,982,575

 

San Diego County Regional Airport
Authority, RB, Series B, 5.00%,
7/01/40

 

 

6,350

 

 

6,456,807

 

San Francisco City & County Airports
Commission, RB:

 

 

 

 

 

 

 

Series E, 6.00%, 5/01/39

 

 

9,650

 

 

10,731,379

 

Special Facility Lease, SFO Fuel,
Series A, AMT (AGM), 6.10%,
1/01/20

 

 

1,000

 

 

1,002,010

 

Special Facility Lease, SFO Fuel,
Series A, AMT (AGM), 6.13%,
1/01/27

 

 

985

 

 

986,221

 

San Francisco City & County Airports
Commission, Refunding RB, Second
Series 34E, AMT (AGM):

 

 

 

 

 

 

 

5.75%, 5/01/24

 

 

5,000

 

 

5,479,700

 

5.75%, 5/01/25

 

 

3,500

 

 

3,783,080

 

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

 

 

2,400

 

 

2,740,536

 

 

 

 

 

 

 

64,248,567

 

Utilities — 21.9%

 

 

 

 

 

 

 

Anaheim Public Financing Authority, RB,
Electric System Distribution Facilities,
Series A:

 

 

 

 

 

 

 

(AGM), 5.00%, 10/01/31

 

 

3,580

 

 

3,679,309

 

5.38%, 10/01/36

 

 

5,000

 

 

5,420,500

 

City of Los Angeles California, Refunding
RB, Sub-Series A:

 

 

 

 

 

 

 

5.00%, 6/01/28

 

 

2,000

 

 

2,163,660

 

5.00%, 6/01/32

 

 

3,000

 

 

3,209,280

 

Cucamonga Valley Water District,
Refunding RB, Water Revenue,
Series A, 5.25%, 9/01/31

 

 

3,670

 

 

3,980,666

 

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

 

 

4,000

 

 

4,417,720

 

East Bay Municipal Utility District, RB,
Series A (NPFGC), 5.00%, 6/01/37

 

 

4,000

 

 

4,196,200

 

East Bay Municipal Utility District,
Refunding RB, Sub-Series A:

 

 

 

 

 

 

 

5.00%, 6/01/30

 

 

5,000

 

 

5,462,600

 

(AMBAC), 5.00%, 6/01/33

 

 

4,125

 

 

4,346,306

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Utilities (concluded)

 

 

 

 

 

 

 

Imperial Irrigation District, Refunding
RB, Electric System:

 

 

 

 

 

 

 

Series B, 5.00%, 11/01/31

 

$

5,000

 

$

5,228,550

 

Series A, 5.13%, 11/01/38

 

 

5,500

 

 

5,674,460

 

Los Angeles County Sanitation Districts
Financing Authority, Refunding RB,
Capital Project 14 (FSA), 5.00%,
10/01/34

 

 

5,000

 

 

5,150,200

 

Los Angeles Department of Water &
Power, RB, Power System, Series A:

 

 

 

 

 

 

 

5.25%, 7/01/39

 

 

8,000

 

 

8,715,760

 

5.00%, 7/01/41

 

 

7,500

 

 

7,882,200

 

Orange County Sanitation District, COP,
Series B (AGM), 5.00%, 2/01/30

 

 

2,105

 

 

2,225,111

 

Oxnard Financing Authority, RB,
Redwood Trunk Sewer & Headworks,
Series A (NPFGC), 5.25%, 6/01/34

 

 

13,000

 

 

13,454,220

 

Sacramento Regional County Sanitation
District, RB, Sacramento Regional
County Sanitation (FGIC), 5.00%,
12/01/27

 

 

7,070

 

 

7,496,816

 

San Diego Public Facilities Financing
Authority, Refunding RB,
Senior Series A, 5.25%, 5/15/34

 

 

1,000

 

 

1,064,570

 

San Francisco City & County Public
Utilities Commission, RB,
Sub-Series A:

 

 

 

 

 

 

 

5.00%, 11/01/28

 

 

7,040

 

 

7,725,133

 

5.00%, 11/01/37

 

 

10,000

 

 

10,539,200

 

 

 

 

 

 

 

112,032,461

 

Total Municipal Bonds – 92.1%

 

 

 

 

 

470,885,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

California — 75.5%

 

 

 

 

 

 

 

County/City/Special District/School District — 37.3%

 

 

 

 

 

 

 

Arcadia Unified School District
California, GO, Election of 2006,
Series A (AGM), 5.00%, 8/01/37

 

 

7,925

 

 

8,171,464

 

Desert Community College District
California, GO, Series C (AGM), 5.00%,
8/01/37

 

 

12,150

 

 

12,503,565

 

Fremont Unified School District Alameda
County California, GO, Election of
2002, Series B (AGM), 5.00%,
8/01/30

 

 

15,997

 

 

16,469,480

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

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

 

 

12,000

 

 

12,591,360

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.

OCTOBER 31, 2011

3


 

 

 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Los Angeles Community College District
California, GO (concluded):

 

 

 

 

 

 

 

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

 

$

26,438

 

$

27,740,374

 

Election of 2003, Series E (AGM),
5.00%, 8/01/31

 

 

7,497

 

 

7,818,463

 

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

 

 

9,596

 

 

10,938,542

 

Los Angeles Unified School District
California, GO, Series I, 5.00%,
1/01/34

 

 

5,000

 

 

5,283,100

 

Ohlone Community College District, GO,
Series B (AGM), 5.00%, 8/01/30

 

 

19,998

 

 

20,546,460

 

Poway Unified School District, GO,
Election of 2002, Improvement
District 02, Series 1-B (AGM), 5.00%,
8/01/30

 

 

10,000

 

 

10,331,900

 

San Bernardino Community College
District California, GO, Election of
2002, Series C (AGM), 5.00%,
8/01/31

 

 

7,550

 

 

7,764,571

 

San Diego County Water Authority, COP,
Series A (AGM), 5.00%, 5/01/30

 

 

7,350

 

 

7,582,995

 

San Francisco Bay Area Rapid Transit
District, Refunding RB, Series A
(NPFGC), 5.00%, 7/01/30

 

 

19,630

 

 

20,706,509

 

San Francisco Bay Area Transit
Financing Authority, Refunding RB,
Series A (NPFGC), 5.00%, 7/01/34

 

 

10,497

 

 

10,873,154

 

San Jose Financing Authority, Refunding
RB, Civic Center Project, Series B
(AMBAC), 5.00%, 6/01/32

 

 

11,400

 

 

11,424,852

 

 

 

 

 

 

 

190,746,789

 

Education — 11.8%

 

 

 

 

 

 

 

California State University, Refunding
RB, Systemwide, Series C (NPFGC),
5.00%, 11/01/35

 

 

20,000

 

 

20,362,400

 

Los Rios Community College District,
GO, Election of 2008, Series A,
5.00%, 8/01/35

 

 

11,000

 

 

11,490,600

 

University of California, RB:

 

 

 

 

 

 

 

Limited Project, Series D (AGM),
5.00%, 5/15/41

 

 

8,000

 

 

8,249,360

 

Series L, 5.00%, 5/15/40

 

 

7,398

 

 

7,632,408

 

Series O, 5.75%, 5/15/34

 

 

11,190

 

 

12,522,953

 

 

 

 

 

 

 

60,257,721

 

 

 

 

 

 

 

 

 

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

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Utilities — 26.4%

 

 

 

 

 

 

 

City of Napa California, RB (AMBAC),
5.00%, 5/01/35

 

$

9,070

 

$

9,427,539

 

East Bay Municipal Utility District, RB,
Sub-Series A (NPFGC), 5.00%,
6/01/35

 

 

15,000

 

 

16,105,350

 

East Bay Municipal Utility District,
Refunding RB, Sub-Series A (AMBAC),
5.00%, 6/01/37

 

 

7,990

 

 

8,373,760

 

Los Angeles Department of Water &
Power, RB:

 

 

 

 

 

 

 

Power System, Sub-Series A-1
(AGM), 5.00%, 7/01/31

 

 

5,007

 

 

5,143,817

 

Power System, Sub-Series A-1
(AGM), 5.00%, 7/01/37

 

 

13,525

 

 

14,002,671

 

Power System, Sub-Series A-1
(AMBAC), 5.00%, 7/01/37

 

 

5,029

 

 

5,206,938

 

System, Sub-Series A-2 (AGM),
5.00%, 7/01/35

 

 

7,500

 

 

7,738,650

 

Los Angeles Department of Water &
Power, Refunding RB, Power System,
Sub-Series A-2 (NPFGC), 5.00%,
7/01/27

 

 

16,000

 

 

16,572,640

 

Metropolitan Water District of Southern
California, RB:

 

 

 

 

 

 

 

Series A, 5.00%, 7/01/37

 

 

15,000

 

 

15,799,650

 

Series B-1 (NPFGC), 5.00%,
10/01/33

 

 

7,175

 

 

7,327,179

 

Rancho Water District Financing
Authority, Refunding RB, Series A
(AGM), 5.00%, 8/01/34

 

 

9,277

 

 

9,714,118

 

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

 

 

8,510

 

 

8,923,331

 

San Diego County Water Authority, COP,
Series A (AGM), 5.00%, 5/01/31

 

 

10,000

 

 

10,297,300

 

 

 

 

 

 

 

134,632,943

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts –
75.5%

 

 

 

 

 

385,637,453

 

Total Long-Term Investments
(Cost – $829,618,329) – 167.6%

 

 

 

 

 

856,522,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

BIF California Municipal Money Fund,
0.00% (b)(c)

 

 

666,968

 

 

666,968

 

Total Short-Term Securities
(Cost – $666,968) – 0.1%

 

 

 

 

 

666,968

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.

OCTOBER 31, 2011

4


 

 

 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)


 

 

 

 

 

Total Investments
(Cost - $830,285,297*) – 167.7%

 

$

857,189,484

 

Other Assets Less Liabilities – 2.3%

 

 

11,561,566

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (37.4)%

 

 

(191,107,555

)

VRDP Shares, at Liquidation Value – (32.6)%

 

 

(166,500,000

)

Net Assets Applicable to Common Shares – 100.0%

 

$

511,143,495

 

 

 

*

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


 

 

 

 

 

Aggregate cost

 

$

639,281,024

 

Gross unrealized appreciation

 

$

27,827,160

 

Gross unrealized depreciation

 

 

(922,973

)

Net unrealized appreciation

 

$

26,904,187

 

 

 

(a)

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.

 

 

(b)

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
July 31,
2011

 

Net
Activity

 

Shares
Held at
October 31,
2011

 

Income

 

BIF California
Municipal
Money Fund

 

 

15,276,406

 

 

(14,609,438

)

 

666,968

 

$

—

 

 

 

(c)

Represents the current yield as of report date.


 

 

 

•

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

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments. 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)


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 is based on the pricing transparency of the investment 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 other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of October 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

856,522,516

 

 

—

 

$

856,522,516

 

Short-Term
Securities

 

$

666,968

 

 

—

 

 

—

 

 

666,968

 

Total

 

$

666,968

 

$

856,522,516

 

 

—

 

$

857,189,484

 

 

 

1

See above Schedule of Investments for values in each sector.

 

 

 

 

 

 

 

 

 

BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.

OCTOBER 31, 2011

5

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 California Quality Fund, Inc.

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniYield California Quality Fund, Inc.

 

 

 

Date: December 21, 2011

 

 

 

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

 

 

 

 By: /s/ John M. Perlowski

 

 

 

John M. Perlowski

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniYield California Quality Fund, Inc.

 

 

 

Date: December 21, 2011

 

 

 

 By: /s/ Neal J. Andrews

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniYield California Quality Fund, Inc.

 

 

 

 

Date: December 21, 2011