UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-06692

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

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniYield California Insured Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

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

Date of fiscal year end: 07/31/2009

Date of reporting period: 08/01/2008 – 01/31/2009

 

 

Item 1 –

Report to Stockholders




EQUITIES  FIXED INCOME  REAL ESTATE  LIQUIDITY  ALTERNATIVES  BLACKROCK SOLUTIONS

 

 

Semi-Annual Report

(BLACKROCK LOGO)

 

 

JANUARY 31, 2009 | (UNAUDITED)

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)
BlackRock MuniYield California Insured Fund, Inc. (MCA)
BlackRock MuniYield Insured Fund, Inc. (MYI)
BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)
BlackRock MuniYield New York Insured Fund, Inc. (MYN)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


 


 

Table of Contents


 

 



 

Page



 

 

A Letter to Shareholders

3

Semi-Annual Report:

 

Fund Summaries

4

The Benefits and Risks of Leveraging

9

Derivative Instruments

9

Financial Statements:

 

Schedules of Investments

10

Statements of Assets and Liabilities

36

Statements of Operations

38

Statements of Changes in Net Assets

39

Statements of Cash Flows

44

Financial Highlights

45

Notes to Financial Statements

50

Officers and Directors

57

Additional Information

57


 

 

 


2

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 


 

A Letter to Shareholders

Dear Shareholder

The present time may well be remembered as one of the most tumultuous periods in financial market history. Over the past year, the bursting of the housing bubble and the resultant credit crisis swelled into an all-out global financial market meltdown that featured the collapse of storied financial firms, volatile swings in the world’s financial markets and monumental government responses, including the nearly $800 billion economic stimulus plan signed into law just after period end.

The US economy appeared relatively resilient through the first few months of 2008, when rising food and energy prices fueled inflation fears. Mid-summer ushered in dramatic changes — inflationary pressure subsided amid a plunge in commodity prices, while economic pressures intensified in the midst of a rapid deterioration in consumer spending, employment and other key indicators. By year’s end, the National Bureau of Economic Research affirmed that the United States was in a recession, which officially began in December 2007. The Federal Reserve Board (the “Fed”), after slashing interest rates aggressively early in the period, resumed that rate-cutting campaign in the fall, with the final reduction in December 2008 bringing the target federal funds rate to a record low range of between zero and 0.25%. Importantly, the central bank pledged that future policy moves to revive the global economy and financial markets would comprise primarily nontraditional and quantitative easing measures, such as capital injections, lending programs and government guarantees.

Against this backdrop, US equity markets experienced intense volatility, with the sentiment turning decisively negative toward period end. Declines were significant and broad-based, with little divergence among large- and small-cap stocks. Non-US stocks posted stronger results early on, but quickly lost ground as the credit crisis revealed itself to be global in scope and as the worldwide economic slowdown gathered pace. Overall, aggressive monetary and fiscal policy, combined with the defensiveness of the US, helped domestic equities notch better performance than their non-US counterparts.

In fixed income markets, risk aversion remained the popular theme, leading the Treasury sector to top all other asset classes. The high yield market was particularly hard hit in this environment, as economic turmoil, combined with frozen credit markets and substantial technical pressures, took a heavy toll. Meanwhile, the municipal bond market was challenged by a dearth of market participants, lack of liquidity, difficult funding environment and backlog of new-issue supply, which sent prices lower and yields well above Treasuries. By period end, however, some positive momentum had returned to the municipal space.

In all, an investor flight to safety prevailed, as evidenced in the six- and 12-month returns of the major benchmark indexes:

 

 

 

 

 

 

 

 

Total Returns as of January 31, 2009

 

6-month

 

12-month

 









US equities (S&P 500 Index)

 

 

(33.95

)%

 

(38.63

)%









Small cap US equities (Russell 2000 Index)

 

 

(37.38

)

 

(36.84

)









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

 

 

(40.75

)

 

(43.74

)









US Treasury securities (Merrill Lynch 10-Year US Treasury Index)

 

 

11.96

 

 

10.64

 









Taxable fixed income (Barclays Capital US Aggregate Bond Index*)

 

 

3.23

 

 

2.59

 









Tax-exempt fixed income (Barclays Capital Municipal Bond Index*)

 

 

0.70

 

 

(0.16

)









High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index*)

 

 

(19.07

)

 

(19.72

)









 

 

 

 

 

 

 

 

* Formerly a Lehman Brothers index.

 

 

 

 

 

 

 

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

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. We thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,
-s- Rob Kapito

 

Rob Kapito

President, BlackRock Advisors, LLC

 

 

 

 


THIS PAGE NOT PART OF YOUR FUND REPORT

 

3



 

 



 

Fund Summary as of January 31, 2009 (Unaudited)

BlackRock MuniHoldings Insured Fund II, Inc.


 


Investment Objective


BlackRock MuniHoldings Insured Fund II, Inc. (MUE) (the “Fund”) seeks to provide shareholders with current income exempt from federal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes.

 


Performance


For the six months ended January 31, 2009, the Fund returned (6.66)% based on market price and (7.33)% based on net asset value (“NAV”). For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (4.58)% on a market price basis and (6.20)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Sector allocation played an important role in determining how the Fund performed during the reporting period. A positive contributor to performance was the Fund’s significant overweight in pre-refunded bonds in the one-to five-year maturity range, as the yield curve steepened and short- and intermediate-maturity issues outperformed. Conversely, spread products, such as health care, housing and corporate-backed bonds, significantly underperformed as the economic downturn continued to add more stress on the fundamental credit quality for these sectors. The Fund’s exposure to these issues detracted from results.

 

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.

 


Fund Information


 

 

 

Symbol on New York Stock Exchange

 

MUE

Initial Offering Date

 

February 26, 1999

Yield on Closing Market Price as of January 31, 2009 ($10.23)1

 

5.87%

Tax Equivalent Yield2

 

9.03%

Current Monthly Distribution per share of Common Shares3

 

$0.05

Current Annualized Distribution per share of Common Shares3

 

$0.60

Leverage as of January 31, 20094

 

43%





 

 

 

 

1

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.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

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

 

 

 

 

4

Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 












 

 

1/31/09

 

7/31/08

 

Change

 

High

 

Low












Market Price

 

$10.23

 

$11.30

 

(9.47)%

 

$11.55

 

$7.00

Net Asset Value

 

$11.54

 

$12.84

 

(10.12)%

 

$13.11

 

$9.70












The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

1/31/09

 

7/31/08

 







County/City/Special District/School District

 

25

%

 

20

%

 

Transportation

 

25

 

 

24

 

 

Utilities — Electric & Gas

 

11

 

 

10

 

 

Hospitals/Health Care

 

9

 

 

13

 

 

Housing

 

7

 

 

7

 

 

Utilities — Water & Sewer

 

6

 

 

6

 

 

Education

 

5

 

 

4

 

 

IDA/PCR/Resource Recovery

 

5

 

 

8

 

 

State

 

3

 

 

5

 

 

Special Tax

 

2

 

 

1

 

 

Lease Obligation

 

2

 

 

2

 

 










 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

1/31/09

 

7/31/08

 







AAA/Aaa

 

43

%

 

48

%

 

AA/Aa

 

45

 

 

45

 

 

A/A

 

9

 

 

6

 

 

BBB/Baa

 

3

 

 

1

 

 










 

 

 

 

5

Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.


 

 

 




4

SEMI-ANNUAL REPORT

JANUARY 31, 2009




 

 



 

Fund Summary as of January 31, 2009 (Unaudited)

BlackRock MuniYield California Insured Fund, Inc.


 


Investment Objective


BlackRock MuniYield California Insured Fund, Inc. (MCA) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal and California income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term, investment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal and California income taxes.

 


Performance


For the six months ended January 31, 2009, the Fund returned (10.15)% based on market price and (4.81)% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (10.16)% on a market price basis and (6.34)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. A neutral duration posture and a relatively high cash equivalent reserve provided some cushion to the Fund’s NAV, as tax-exempt rates generally rose. Relative to its Lipper peers, the Fund benefited from lower exposure to poorer-rated monoline insurers. Management’s strategy is to pursue a balanced approach to returns, emphasizing income accrual and muting price volatility. Credit fundamentals warrant close monitoring in the current weak economic environment, and management will improve quality as opportunities arise.

 

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.

 


Fund Information


 

 

 

Symbol on New York Stock Exchange

 

MCA

Initial Offering Date

 

October 30, 1992

Yield on Closing Market Price as of January 31, 2009 ($10.74)1

 

5.98%

Tax Equivalent Yield2

 

9.20%

Current Monthly Distribution per share of Common Shares3

 

$0.0535

Current Annualized Distribution per share of Common Shares3

 

$0.6420

Leverage as of January 31, 20094

 

38%





 

 

 

 

1

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.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

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

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 












 

 

1/31/09

 

7/31/08

 

Change

 

High

 

Low












Market Price

 

$10.74

 

$12.33

 

(12.90)%

 

$12.54

 

$

6.95

Net Asset Value

 

$12.79

 

$13.86

 

(7.72)%

 

$14.17

 

$

10.46












The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

1/31/09

 

7/31/08

 







County/City/Special District/School District

 

46

%

 

47

%

 

Utilities — Water & Sewer

 

22

 

 

17

 

 

Transportation

 

14

 

 

13

 

 

Education

 

7

 

 

8

 

 

State

 

4

 

 

4

 

 

Utilities — Electric & Gas

 

3

 

 

3

 

 

Housing

 

2

 

 

2

 

 

Hospitals/Health Care

 

1

 

 

4

 

 

Utilities — Irrigation, Resource Recovery, Solid Waste & Other

 

1

 

 

1

 

 

Lease Obligations/COP

 

 

 

1

 

 










 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

1/31/09

 

7/31/08

 







AAA/Aaa

 

43

%

 

42

%

 

AA/Aa

 

49

 

 

46

 

 

A/A

 

8

 

 

11

 

 

Not Rated

 

 

 

1

6

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be investment grade quality. As of July 31, 2008, the market value of these securities was $6,574,300 representing 1% of the Fund’s long-term investments.


 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

5




 

 



 

Fund Summary as of January 31, 2009 (Unaudited)

BlackRock MuniYield Insured Fund, Inc.


 


Investment Objective


BlackRock MuniYield Insured Fund, Inc. (MYI) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term, investment grade municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes.

 


Performance


For the six months ended January 31, 2009, the Fund returned (11.51)% based on market price and (10.04)% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of (4.58)% on a market price basis and (6.20)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The Fund benefited from its above-average yield, but its constructive positioning during a period of generally increasing yields hurt performance. Performance was also hindered by above-average exposure to the longer end of the yield curve, where yields rose, and by above-average exposure to select monoline insurers, whose credit difficulties decreased the value of insured bonds. Fund management worked to upgrade credit quality and sell weaker credits during this very volatile and illiquid performance period.

 

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

 


Fund Information


 

 

 

Symbol on New York Stock Exchange

 

MYI

Initial Offering Date

 

March 27, 1992

Yield on Closing Market Price as of January 31, 2009 ($10.46)1

 

6.42%

Tax Equivalent Yield2

 

9.88%

Current Monthly Distribution per share of Common Shares3

 

$0.056

Current Annualized Distribution per share of Common Shares3

 

$0.672

Leverage as of January 31, 20094

 

41%





 

 

 

 

1

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.

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

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

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 












 

 

1/31/09

 

7/31/08

 

Change

 

High

 

Low












Market Price

 

$10.46

 

$12.22

 

(14.40)%

 

$12.30

 

$7.07

Net Asset Value

 

$11.19

 

$12.86

 

(12.99)%

 

$13.22

 

$9.02












The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

 

 

1/31/09

 

7/31/08

 









Transportation

 

32

%

 

33

%

 

County/City/Special District/School District

 

17

 

 

17

 

 

Hospitals/Health Care

 

9

 

 

7

 

 

Utilities — Water & Sewer

 

9

 

 

7

 

 

IDA/PCR/Resource Recovery

 

9

 

 

8

 

 

Utilities — Electric & Gas

 

7

 

 

8

 

 

Housing

 

6

 

 

5

 

 

Education

 

6

 

 

8

 

 

State

 

3

 

 

4

 

 

Utilities — Irrigation, Resource Recovery, Solid Waste & Other

 

1

 

 

2

 

 

Lease Obligations

 

1

 

 

1

 

 


















Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

 

1/31/09

 

7/31/08

 









AAA/Aaa

 

48

%

 

50

%

 

AA/Aa

 

37

 

 

37

 

 

A/A

 

12

 

 

9

 

 

BBB/Baa

 

3

 

 

4

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 




6

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Fund Summary as of January 31, 2009 (Unaudited)

BlackRock MuniYield Michigan Insured Fund II, Inc.


 


Investment Objective


BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal and Michigan income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal and Michigan income taxes.

 


Performance


For the six months ended January 31, 2009, the Fund returned (10.09)% based on market price and (3.46)% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (10.16)% on a market price basis and (6.34)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Fund performance was driven primarily by a rising yield (and correspondingly falling price) environment for intermediate and long-term municipals during the second half of 2008. Pre-refunded and escrowed issues were the best-performing municipal sectors for the period, and the Fund’s high allocation to these areas had a positive influence on results.

 

 

 

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.

 

 


Fund Information


 

 

 

Symbol on New York Stock Exchange

 

MYM

Initial Offering Date

 

February 28, 1992

Yield on Closing Market Price as of January 31, 2009 ($10.12)1

 

6.40%

Tax Equivalent Yield2

 

9.85%

Current Monthly Distribution per share of Common Shares3

 

$0.054

Current Annualized Distribution per share of Common Shares3

 

$0.648

Leverage as of January 31, 20094

 

39%



 

 

1

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.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

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

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

1/31/09

 

7/31/08

 

Change

 

High

 

Low

 


Market Price

 

$

10.12

 

$

11.63

 

 

(12.98

)%

$

11.74

 

$

7.00

 

Net Asset Value

 

$

12.37

 

$

13.24

 

 

(6.57

)%

$

13.54

 

$

10.95

 


















The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

1/31/09

 

7/31/08

 


County/City/Special District/ School District

 

25

%

 

32

%

 

Hospitals/Health Care

 

16

 

 

15

 

 

IDA/PCR/Resource Recovery

 

11

 

 

8

 

 

Transportation

 

11

 

 

11

 

 

Utilities — Water & Sewer

 

11

 

 

11

 

 

Lease Obligation

 

8

 

 

6

 

 

Education

 

7

 

 

6

 

 

Utilities — Electric & Gas

 

6

 

 

6

 

 

State

 

2

 

 

2

 

 

Special Tax

 

2

 

 

2

 

 

Housing

 

1

 

 

1

 

 



 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

1/31/09

 

7/31/08

 


AAA/Aaa

 

29

%

 

36

%

 

AA/Aa

 

47

 

 

50

 

 

A/A

 

20

 

 

10

 

 

BBB/Baa

 

2

 

 

3

 

 

Not Rated

 

2

 

 

1

 

 


 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

7



 

 


 

Fund Summary as of January 31, 2009 (Unaudited)

BlackRock MuniYield New York Insured Fund, Inc.


 


Investment Objective


BlackRock MuniYield New York Insured Fund, Inc. (MYN) (the “Fund”) seeks to provide shareholders with as high a level of current income exempt from federal income tax and New York State and New York City personal income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term municipal obligations the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income tax and New York State and New York City personal income taxes.

 


Performance


For the six months ended January 31, 2009, the Fund returned (12.46)% based on market price and (7.06)% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (10.16)% on a market price basis and (6.34)% on a NAV basis. All returns reflect reinvestment of dividends. The Fund’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Fund performance was positively influenced by its above-average distribution rate. The Fund’s overweight in longer-maturity insured bonds with weaker underlying ratings detracted overall, but benefited performance toward the end of the period. These bonds significantly underperformed during the past year due to deteriorating credits and ratings of the mono-line insurers, but they began a turnaround in early 2009. Fortunately, management avoided selling these holdings when values were distressed, which would have locked in their underperformance.

 

 

 

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.

 

 


Fund Information


 

 

 

Symbol on New York Stock Exchange

 

MYN

Initial Offering Date

 

February 28, 1992

Yield on Closing Market Price as of January 31, 2009 ($10.00)1

 

6.30%

Tax Equivalent Yield2

 

9.69%

Current Monthly Distribution per share of Common Shares3

 

$0.0525

Current Annualized Distribution per share of Common Shares3

 

$0.6300

Leverage as of January 31, 20094

 

40%



 

 

1

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.

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

3

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

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Fund, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Fund, please see The Benefits and Risks of Leveraging on page 9.

The table below summarizes the changes in the Fund’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

1/31/09

 

7/31/08

 

Change

 

High

 

Low

 


Market Price

 

$

10.00

 

$

11.80

 

 

(15.25

)%

$

12.03

 

$

6.64

 

Net Asset Value

 

$

11.84

 

$

13.16

 

 

(10.03

)%

$

13.50

 

$

9.94

 


















The following charts show the sector and credit quality allocations of the Fund’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

1/31/09

 

7/31/08

 


Transportation

 

26

%

 

29

%

 

County/City/Special District/ School District

 

25

 

 

25

 

 

IDA/PCR/Resource Recovery

 

10

 

 

10

 

 

State

 

9

 

 

8

 

 

Utilities — Water & Sewer

 

7

 

 

7

 

 

Utilities — Electric & Gas

 

5

 

 

7

 

 

Hospital/Health Care

 

5

 

 

4

 

 

Education

 

4

 

 

3

 

 

Special Tax

 

4

 

 

4

 

 

Housing

 

3

 

 

2

 

 

Tobacco

 

1

 

 

1

 

 

Utility

 

1

 

 

 

 



 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

1/31/09

 

7/31/08

 


AAA/Aaa

 

43

%

 

47

%

 

AA/Aa

 

32

 

 

39

 

 

A/A

 

21

 

 

9

 

 

BBB/Baa

 

4

 

 

4

 

 

Not Rated

 

 

 

1

6

 



 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be investment grade quality. As of July 31, 2008, the market value of these securities was $4,624,822 representing 1% of the Fund’s long-term investments.


 

 

 




8

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Funds issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of the Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Fund’s Common Shareholders will benefit from the incremental yield.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the Fund’s total portfolio of $150 million earns the income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental yield.

Conversely, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Fund pays dividends on the higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates. If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares will be reduced or eliminated completely.

Furthermore, the value of the Fund’s 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 redemption value of the Fund’s Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Fund’s NAV positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also, from time to time, leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect the Funds’ NAV per share.

The use of leverage may enhance opportunities for increased returns to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Funds’ NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Funds’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. The Funds may be required to sell portfolio securities at inopportune times or below fair market 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 Funds to incur losses. The use of leverage may limit the Funds’ ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate preferred shares issued by a Fund. The Funds will incur expenses in connection with the use of leverage, all of which are borne by the holders of the Common Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Fund anticipates that the total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of January 31, 2009, the Funds had economic leverage from Preferred Shares and TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 


 

 

Percent of
Leverage

 


BlackRock MuniHoldings Insured Fund II, Inc.

 

43

%

 

BlackRock MuniYield California Insured Fund, Inc.

 

38

%

 

BlackRock MuniYield Insured Fund, Inc.

 

41

%

 

BlackRock MuniYield Michigan Insured Fund II, Inc.

 

39

%

 

BlackRock MuniYield New York Insured Fund, Inc.

 

40

%

 







 


Derivative Instruments


The Funds may invest in various derivative instruments, including swap agreements and futures, and other instruments specified in the Notes to Financial Statements, which constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the other party to the transaction and illiquidity of the derivative instrument. A Fund’s ability to successfully use a derivative instrument depends on the Advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require a Fund to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation a Fund can realize on an investment or may cause a Fund to hold a security that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

9



 

 


 

 

Schedule of Investments January 31, 2009 (Unaudited)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 0.9%

 

 

 

 

 

 

 









Jefferson County, Alabama, Limited Obligation School Warrants, Series A, 5.50%, 1/01/22

 

$

3,580

 

$

2,367,311

 









 

 

 

 

 

 

 

 









Alaska — 0.7%

 

 

 

 

 

 

 









Anchorage, Alaska, Water Revenue Refunding Bonds, 6%, 9/01/24 (a)

 

 

1,630

 

 

1,672,331

 









 

 

 

 

 

 

 

 









Arkansas — 4.5%

 

 

 

 

 

 

 









Arkansas State Development Finance Authority, M/F Mortgage Revenue Refunding Bonds, Series C, 5.35%, 12/01/35 (b)(c)

 

 

12,215

 

 

11,597,776

 









 

 

 

 

 

 

 

 









California — 13.8%

 

 

 

 

 

 

 









California State, Veterans, GO, Refunding, AMT, Series BZ, 5.35%, 12/01/21 (b)

 

 

9,350

 

 

8,800,126

 

Dixon, California, Unified School District, GO (Election of 2002), 5.20%, 8/01/44 (d)

 

 

2,405

 

 

2,270,440

 

Eastern Municipal Water District, California, Water and Sewer, COP, Series H, 5%, 7/01/35

 

 

1,175

 

 

1,106,063

 

Modesto, California, Schools Infrastructure Financing Agency, Special Tax Bonds, 5.50%, 9/01/36 (a)

 

 

4,240

 

 

3,289,562

 

Port of Oakland, California, Revenue Bonds, AMT, Series K, 5.75%, 11/01/21 (b)(e)

 

 

3,000

 

 

2,940,570

 

Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375%, 11/01/27 (b)(e)

 

 

5,000

 

 

4,236,600

 

Roseville, California, Joint Union High School District, GO (Election of 2004), Series A, 5%, 8/01/29 (b)(e)

 

 

2,985

 

 

2,913,927

 

Sacramento, California, City Financing Authority, Capital Improvement Revenue Bonds, 5%, 12/01/27 (a)

 

 

150

 

 

145,713

 

San Diego, California, Community College District, GO (Election of 2002), 5%, 5/01/30 (d)

 

 

1,485

 

 

1,456,310

 

San Francisco, California, City and County Airport Commission, International Airport, Special Facilities Lease Revenue Bonds (SFO Fuel Company LLC), AMT, Series A, 6.10%, 1/01/20 (d)

 

 

1,250

 

 

1,257,550

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 









Stockton, California, Public Financing Revenue Bonds (Redevelopment Projects), Series A (f):

 

 

 

 

 

 

 

5.25%, 9/01/31

 

$

495

 

$

385,298

 

5.25%, 9/01/34

 

 

2,930

 

 

2,227,445

 

Vista, California, COP (Community Projects), 5%, 5/01/37 (b)

 

 

5,400

 

 

4,447,764

 

 

 

 

 

 




 

 

 

 

 

 

35,477,368

 









 

 

 

 

 

 

 

 









Colorado — 4.4%

 

 

 

 

 

 

 









Aurora, Colorado, COP, 5.75%, 12/01/10 (a)(g)

 

 

6,285

 

 

6,838,269

 

Colorado HFA, Revenue Refunding Bonds (S/F Program), AMT, Senior Series A-2, 7.50%, 4/01/31

 

 

190

 

 

204,225

 

Colorado Health Facilities Authority, Hospital Revenue Refunding Bonds (Poudre Valley Health Care), Series A, 5.75%, 12/01/09 (d)(g)

 

 

4,000

 

 

4,208,640

 

 

 

 

 

 




 

 

 

 

 

 

11,251,134

 









 

 

 

 

 

 

 

 









District of Columbia — 1.5%

 

 

 

 

 

 

 









District of Columbia, Deed Tax Revenue Bonds (Housing Production Trust Fund — New Communities Project), Series A, 5%, 6/01/32 (b)

 

 

2,500

 

 

2,159,900

 

District of Columbia, Water and Sewer Authority, Public Utility Revenue Refunding Bonds, Senior Lien, Series A, 6%, 10/01/35 (r)

 

 

1,700

 

 

1,778,506

 

 

 

 

 

 




 

 

 

 

 

 

3,938,406

 









 









Florida — 27.0%

 

 

 

 

 

 

 









Broward County, Florida, HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series E, 5.90%, 10/01/39 (h)(i)(j)

 

 

2,310

 

 

2,332,615

 

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

 

 

5,600

 

 

5,290,824

 

Hillsborough County, Florida, IDA, PCR, Refunding (Tampa Electric Company Project), Series B, 5.15%, 9/01/25

 

 

1,200

 

 

1,187,088

 

Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds (Baptist Medical Center Project), 5%, 8/15/37 (d)

 

 

7,740

 

 

6,783,723

 

Jacksonville, Florida, Port Authority Revenue Bonds, AMT, 6%, 11/01/38 (k)

 

 

6,250

 

 

5,710,562

 


 


Portfolio Abbreviations


To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the list on the right.

 

 

AMT

Alternative Minimum Tax (subject to)

CABS

Capital Appreciation Bonds

COP

Certificates of Participation

DRIVERS

Derivative Inverse Tax-Exempt Receipts

EDA

Economic Development Authority

GAN

Grant Anticipation Notes

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

IDR

Industrial Development Revenue Bonds

M/F

Multi-Family

PCR

Pollution Control Revenue Bonds

S/F

Single-Family

VRDN

Variable Rate Demand Notes


 

 

 

See Notes to Financial Statements.

 


10

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 









Lee Memorial Health System, Florida, Hospital Revenue Bonds, Series A, 5%, 4/01/32 (a)

 

$

5,000

 

$

3,665,900

 

Miami, Florida, Special Obligation Revenue Bonds (Street and Sidewalk Improvement Program), 5%, 1/01/37 (b)

 

 

2,900

 

 

2,491,854

 

Miami-Dade County, Florida, Aviation Revenue Bonds, AMT, Series A, 5%, 10/01/33 (d)

 

 

6,730

 

 

5,385,144

 

Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, Series A (d):

 

 

 

 

 

 

 

5.25%, 10/01/41

 

 

13,800

 

 

11,154,402

 

5.50%, 10/01/41

 

 

6,700

 

 

5,636,375

 

Miami-Dade County, Florida, School Board, COP, Refunding, Series B, 5.25%, 5/01/31 (k)

 

 

3,600

 

 

3,431,700

 

Miami-Dade County, Florida, Special Obligation Revenue Bonds, Sub-Series A, 5.24%, 10/01/37 (b)(l)

 

 

3,670

 

 

476,109

 

Orlando, Florida, Senior Tourist Development Tax Revenue Bonds (6th Cent Contract Payments), Series A, 5.25%, 11/01/38 (k)

 

 

4,000

 

 

3,732,320

 

Pasco County, Florida, Half-Cent Sales Tax Revenue Bonds, 5.125%, 12/01/28 (a)

 

 

6,300

 

 

5,189,184

 

Saint Johns County, Florida, Water and Sewer Revenue Bonds, CABS, 5.36%, 6/01/31 (a)(l)

 

 

5,065

 

 

1,276,127

 

Seminole County, Florida, Water and Sewer Revenue Bonds, 5%, 10/01/31

 

 

6,250

 

 

5,948,438

 

 

 

 

 

 




 

 

 

 

 

 

69,692,365

 









 

 

 

 

 

 

 

 









Idaho — 0.1%

 

 

 

 

 

 

 









Idaho Housing and Finance Association, S/F Mortgage Revenue Bonds, AMT, Series E, 6%, 1/01/32

 

 

330

 

 

323,512

 









 

 

 

 

 

 

 

 









Illinois — 3.2%

 

 

 

 

 

 

 









Chicago, Illinois, O’Hare International Airport, General Airport Revenue Refunding Bonds, Third Lien, Series A (b):

 

 

 

 

 

 

 

AMT, 5.75%, 1/01/19

 

 

3,125

 

 

3,149,000

 

5%, 1/01/31

 

 

1,430

 

 

1,274,387

 

Chicago, Illinois, Transit Authority, Capital Grant Receipts Revenue Bonds (Federal Transit Administration Section 5309 Formula Funds), Series A, 6%, 6/01/26 (k)

 

 

3,400

 

 

3,721,130

 

Lake, Cook, Kane and McHenry Counties, Illinois, Community Unit School District Number 220, GO, 6%, 12/01/20 (e)

 

 

125

 

 

132,683

 

 

 

 

 

 




 

 

 

 

 

 

8,277,200

 









 

 

 

 

 

 

 

 









Indiana — 5.5%

 

 

 

 

 

 

 









Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series A (b):

 

 

 

 

 

 

 

5%, 1/01/37

 

 

8,000

 

 

7,099,680

 

5%, 1/01/42

 

 

8,000

 

 

6,969,600

 

 

 

 

 

 




 

 

 

 

 

 

14,069,280

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









Kansas — 2.3%

 

 

 

 

 

 

 









Kansas State Development Finance Authority, Health Facilities Revenue Bonds (Sisters of Charity Leavenworth), Series J, 6.125%, 12/01/20

 

$

3,510

 

$

3,592,555

 

Sedgwick and Shawnee Counties, Kansas, S/F Mortgage Revenue Bonds, AMT, Series A-2, 6.20%, 12/01/33 (h)(j)

 

 

2,250

 

 

2,286,518

 

 

 

 

 

 




 

 

 

 

 

 

5,879,073

 









 

 

 

 

 

 

 

 









Kentucky — 0.4%

 

 

 

 

 

 

 









Kentucky Economic Development Financing Authority, Louisville Arena Project Revenue Bonds (Louisville Arena Authority, Inc.), Sub-Series A-1, 6%, 12/01/38 (k)

 

 

1,150

 

 

1,143,560

 









 

 

 

 

 

 

 

 









Michigan — 8.6%

 

 

 

 

 

 

 









Detroit, Michigan, Sewer Disposal Revenue Refunding Bonds, Senior Lien, Series B, 5.25%, 7/01/22

 

 

9,235

 

 

9,026,012

 

Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount Clemens), Series A, 6%, 5/15/09 (b)(g)

 

 

1,000

 

 

1,025,260

 

Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), AMT (m):

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

2,000

 

 

1,626,380

 

Series C, 5.65%, 9/01/29

 

 

5,000

 

 

4,178,900

 

Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (William Beaumont Hospital), 8.25%, 9/01/39

 

 

3,115

 

 

3,182,782

 

Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.40%, 8/01/24 (a)

 

 

3,000

 

 

3,067,620

 

 

 

 

 

 




 

 

 

 

 

 

22,106,954

 









 

 

 

 

 

 

 

 









Minnesota — 6.1%

 

 

 

 

 

 

 









Minneapolis, Minnesota, Health Care System, Revenue Refunding Bonds (Fairview Health Services), Series B, 6.50%, 11/15/38 (k)

 

 

1,975

 

 

2,086,035

 

Prior Lake, Minnesota, Independent School District Number 719, GO (d):

 

 

 

 

 

 

 

5.50%, 2/01/16

 

 

2,555

 

 

2,648,053

 

5.50%, 2/01/17

 

 

1,830

 

 

1,896,649

 

5.50%, 2/01/18

 

 

3,570

 

 

3,700,019

 

5.50%, 2/01/19

 

 

2,840

 

 

2,943,433

 

Sauk Rapids, Minnesota, Independent School District Number 47, GO, Series A, 5.625%, 2/01/18 (b)

 

 

2,185

 

 

2,332,619

 

 

 

 

 

 




 

 

 

 

 

 

15,606,808

 









 

 

 

 

 

 

 

 









Nevada — 4.6%

 

 

 

 

 

 

 









Clark County, Nevada, Airport Revenue Bonds (Jet Aviation Fuel Tax), AMT, Series C, 5.375%, 7/01/20 (a)

 

 

1,200

 

 

1,163,124

 

Clark County, Nevada, Water Reclamation District, Limited Tax, GO, 6%, 7/01/38

 

 

10,000

 

 

10,597,000

 


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

11



 

 



 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Nevada (concluded)

 

 

 

 

 

 

 









Nevada Housing Division, S/F Mortgage Revenue Bonds, AMT, Series A-2, 6.30%, 4/01/22 (b)

 

$

95

 

$

96,568

 

 

 

 

 

 




 

 

 

 

 

 

11,856,692

 









 

 

 

 

 

 

 

 









New Jersey — 5.2%

 

 

 

 

 

 

 









New Jersey EDA, Motor Vehicle Surcharge Revenue Bonds, Series A,
5.25%, 7/01/33 (b)

 

 

11,000

 

 

10,296,220

 

New Jersey State Transportation Trust Fund Authority, Transportation System Revenue Bonds, Series A, 5.625%, 12/15/28

 

 

2,930

 

 

3,043,391

 

 

 

 

 

 




 

 

 

 

 

 

13,339,611

 









 

 

 

 

 

 

 

 









New York — 1.6%

 

 

 

 

 

 

 









New York City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds, Series S-3, 5.25%, 1/15/39

 

 

2,300

 

 

2,193,280

 

Tobacco Settlement Financing Corporation of New York Revenue Bonds, Series
A-1, 5.25%, 6/01/21 (a)

 

 

2,000

 

 

2,024,580

 

 

 

 

 

 




 

 

 

 

 

 

4,217,860

 









 

 

 

 

 

 

 

 









North Carolina — 0.5%

 

 

 

 

 

 

 









North Carolina HFA, Home Ownership Revenue Bonds, AMT, Series 14-A, 5.35%, 1/01/22 (a)

 

 

1,235

 

 

1,236,606

 









 

 

 

 

 

 

 

 









Ohio — 1.1%

 

 

 

 

 

 

 









Aurora, Ohio, City School District, COP, 6.10%, 12/01/09 (b)(g)

 

 

1,745

 

 

1,844,151

 

Kent State University, Ohio, University Revenue Bonds, 6%, 5/01/24 (a)

 

 

1,000

 

 

1,031,780

 

 

 

 

 

 




 

 

 

 

 

 

2,875,931

 









 

 

 

 

 

 

 

 









Oklahoma — 1.1%

 

 

 

 

 

 

 









Claremore, Oklahoma, Public Works Authority, Capital Improvement Revenue Refunding Bonds, Series A, 5.25%, 6/01/14 (d)(g)

 

 

2,385

 

 

2,833,141

 









 

 

 

 

 

 

 

 









Pennsylvania — 0.1%

 

 

 

 

 

 

 









Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds (Capital Projects and Equipment Program), 6.15%, 12/01/29 (a)

 

 

305

 

 

248,450

 









 

 

 

 

 

 

 

 









Rhode Island — 4.0%

 

 

 

 

 

 

 









Providence, Rhode Island, Redevelopment Agency Revenue Refunding Bonds (Public Safety and Municipal Buildings), Series A, 5.75%, 4/01/10 (a)(g)

 

 

5,555

 

 

5,940,295

 

Rhode Island State Health and Educational Building Corporation Revenue Bonds (Rhode Island School of Design), Series D, 5.50%, 8/15/31 (m)

 

 

4,685

 

 

4,447,283

 

 

 

 

 

 




 

 

 

 

 

 

10,387,578

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









South Carolina — 6.0%

 

 

 

 

 

 

 









South Carolina Housing Finance and Development Authority, Mortgage Revenue Refunding Bonds, AMT, Series A-2, 6.35%, 7/01/19 (d)

 

$

1,225

 

$

1,237,189

 

South Carolina State Public Service Authority, Revenue Refunding Bonds, Series A, 5%, 1/01/42 (a)

 

 

15,000

 

 

14,346,900

 

 

 

 

 

 




 

 

 

 

 

 

15,584,089

 









 

 

 

 

 

 

 

 









Texas — 14.6%

 

 

 

 

 

 

 









Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds, AMT, Series B, 6%, 11/01/23 (b)

 

 

1,300

 

 

1,300,533

 

Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement Bonds, AMT, Series A (b)(e):

 

 

 

 

 

 

 

5.875%, 11/01/17

 

 

1,835

 

 

1,888,252

 

5.875%, 11/01/18

 

 

2,150

 

 

2,199,471

 

5.875%, 11/01/19

 

 

2,390

 

 

2,434,836

 

El Paso, Texas, Water and Sewer Revenue Refunding and Improvement Bonds, Series A (d):

 

 

 

 

 

 

 

6%, 3/01/15

 

 

115

 

 

128,058

 

6%, 3/01/16

 

 

170

 

 

189,303

 

6%, 3/01/17

 

 

180

 

 

200,439

 

Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Refunding Bonds (Memorial Hermann Healthcare System), Series B, 7.25%, 12/01/35

 

 

1,000

 

 

1,044,150

 

North Texas Tollway Authority, System Revenue Refunding Bonds (b):

 

 

 

 

 

 

 

First Tier, 5.75%, 1/01/40

 

 

14,750

 

 

13,898,483

 

First Tier, Series B, 5.75%, 1/01/40

 

 

1,000

 

 

942,270

 

Series A, 5.625%, 1/01/33

 

 

10,975

 

 

10,401,995

 

Tarrant County, Texas, Cultural Education Facilities Financing Corporation, Revenue Refunding Bonds (CHRISTUS Health), Series A, 6.50%, 7/01/37 (k)

 

 

3,000

 

 

3,135,810

 

 

 

 

 

 




 

 

 

 

 

 

37,763,600

 









 

 

 

 

 

 

 

 









Virginia — 0.9%

 

 

 

 

 

 

 









Virginia State Public School Authority, Special Obligation School Financing Bonds (Fluvanna County), 6.50%, 12/01/35

 

 

2,195

 

 

2,423,039

 









 

 

 

 

 

 

 

 









Washington — 1.9%

 

 

 

 

 

 

 









Chelan County, Washington, Public Utility District Number 001, Consolidated Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45%, 7/01/37 (a)

 

 

3,840

 

 

3,142,041

 

Lewis County, Washington, GO, Refunding, 5.75%, 12/01/24 (a)

 

 

1,640

 

 

1,676,752

 

 

 

 

 

 




 

 

 

 

 

 

4,818,793

 









 

 

 

 

 

 

 

 









Wisconsin — 0.4%

 

 

 

 

 

 

 









Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Blood Center of Southeastern Wisconsin Project), 5.75%, 6/01/34

 

 

1,250

 

 

1,065,700

 









Total Municipal Bonds — 121.0%

 

 

 

 

 

312,054,168

 










 

 

 

See Notes to Financial Statements.

 


12

SEMI-ANNUAL REPORT

JANUARY 31, 2009

 

 

 



 

 



 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (n)

 

Par
(000)

 

Value

 









California — 9.0%

 

 

 

 

 

 

 









Palomar Pomerado Health Care District, California, GO (Election of 2004), Series A, 5.125%, 8/01/37 (b)

 

$

7,360

 

$

7,224,723

 

San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5%, 9/01/30 (b)

 

 

3,805

 

 

3,740,950

 

Sequoia, California, Unified High School District, GO, Refunding, Series B, 5.50%, 7/01/35 (d)

 

 

5,189

 

 

5,258,095

 

Tustin, California, Unified School District, Senior Lien Special Tax Bonds (Community Facilities District Number 97-1), Series A (d):

 

 

 

 

 

 

 

5%, 9/01/32

 

 

2,920

 

 

2,702,810

 

5%, 9/01/38

 

 

4,620

 

 

4,202,814

 

 

 

 

 

 




 

 

 

 

 

 

23,129,392

 









 

 

 

 

 

 

 

 









Colorado — 3.1%

 

 

 

 

 

 

 









Colorado Health Facilities Authority Revenue Bonds (Catholic Health), Series C-3, 5.10%, 10/01/41 (d)

 

 

9,410

 

 

8,118,666

 









 

 

 

 

 

 

 

 









Florida — 4.2%

 

 

 

 

 

 

 









Lee County, Florida, HFA, S/F Mortgage Revenue Bonds (Multi-County Program), AMT, Series A-2, 6%, 9/01/40 (h)(i)(j)

 

 

4,500

 

 

4,807,665

 

Saint Petersburg, Florida, Public Utilities Revenue Refunding Bonds, 5%, 10/01/35 (b)

 

 

6,493

 

 

6,084,395

 

 

 

 

 

 




 

 

 

 

 

 

10,892,060

 









 

 

 

 

 

 

 

 









Georgia — 2.5%

 

 

 

 

 

 

 









Augusta, Georgia, Water and Sewer Revenue Bonds, 5.25%, 10/01/34 (d)

 

 

6,290

 

 

6,326,230

 









 

 

 

 

 

 

 

 









Illinois — 6.9%

 

 

 

 

 

 

 









Chicago, Illinois, O’Hare International Airport, General Airport Revenue Refunding Bonds, Third Lien, AMT, Series A, 5%, 1/01/38 (d)

 

 

15,000

 

 

13,851,300

 

Chicago, Illinois, Water Revenue Refunding Bonds, Second Lien, 5.25%, 11/01/33 (d)

 

 

3,969

 

 

3,957,493

 

 

 

 

 

 




 

 

 

 

 

 

17,808,793

 









 

 

 

 

 

 

 

 









Massachusetts — 4.0%

 

 

 

 

 

 

 









Massachusetts Bay Transportation Authority, Sales Tax Revenue Refunding Bonds, Senior Series A, 5%, 7/01/35

 

 

5,535

 

 

5,392,252

 

Massachusetts State School Building Authority, Dedicated Sales Tax Revenue Bonds, Series A, 5%, 8/15/30 (d)

 

 

4,994

 

 

5,004,932

 

 

 

 

 

 




 

 

 

 

 

 

10,397,184

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (n)

 

Par
(000)

 

Value

 









New York — 2.7%

 

 

 

 

 

 

 









New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5.25%, 10/15/27 (a)

 

$

6,750

 

$

6,936,908

 









 

 

 

 

 

 

 

 









Washington — 2.7%

 

 

 

 

 

 

 









Bellevue, Washington, GO, Refunding, 5.50%, 12/01/39 (b)

 

 

6,883

 

 

6,948,521

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 35.1%

 

 

 

 

 

90,557,754

 









Total Long-Term Investments
(Cost — $431,166,890) — 156.1%

 

 

 

 

 

402,611,922

 









 

 

 

 

 

 

 

 









Short-Term Securities

 

 

 

 

 

 

 









California — 1.9%

 

 

 

 

 

 

 









Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior Series A, 6%, 2/05/09 (b)(o)

 

 

5,000

 

 

5,000,000

 









 

 

 

 

 

 

 

 









Florida — 4.0%

 

 

 

 

 

 

 









Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Baptist Medical Center Project), VRDN, 0.40%, 2/02/09 (o)

 

 

10,300

 

 

10,300,000

 









 

 

 

 

 

 

 

 









Illinois — 1.4%

 

 

 

 

 

 

 









Illinois State Finance Authority, Revenue Refunding Bonds (Central DuPage Health System), VRDN, Series B, 0.45%, 2/02/09 (o)

 

 

3,500

 

 

3,500,000

 










 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market Fund — 10.1%

 

 

 

 

 

 

 









Merrill Lynch Institutional Tax-Exempt Fund, 0.60% (p)(q)

 

 

26,102,900

 

 

26,102,900

 









Total Short-Term Securities
(Cost — $44,902,900) — 17.4%

 

 

 

 

 

44,902,900

 









Total Investments (Cost — $476,069,790*) — 173.5%

 

 

 

 

 

447,514,822

 

 

Other Assets Less Liabilities — 2.7%

 

 

 

 

 

7,065,244

 

 

Liability for Trust Certificates,
Including Interest Expense and Fees Payable — (19.9)%

 

 

 

 

 

(51,324,803

)

 

Preferred Shares, at Redemption Value — (56.3)%

 

 

 

 

 

(145,312,325

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

257,942,938

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2009

13



 

 



 

Schedule of Investments (concluded)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

426,204,678

 

 

 



 

Gross unrealized appreciation

 

$

6,246,642

 

Gross unrealized depreciation

 

 

(35,799,740

)

 

 



 

Net unrealized depreciation

 

$

(29,553,098

)

 

 



 


 

 

(a)

AMBAC Insured.

 

 

(b)

MBIA Insured.

 

 

(c)

FHA Insured.

 

 

(d)

FSA Insured.

 

 

(e)

FGIC Insured.

 

 

(f)

Radian Insured.

 

 

(g)

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.

 

 

(h)

FNMA Collateralized.

 

 

(i)

FHLMC Collateralized.

 

 

(j)

GNMA Collateralized.

 

 

(k)

Assured Guaranty Insured.

 

 

(l)

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

 

 

(m)

XL Capital Insured.

 

 

(n)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(o)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

 

 

(p)

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


 

 

 

 

 

 

 

 









Affiliate

 

Net
Activity

 

Income

 









Merrill Lynch Institutional Tax-Exempt Fund

 

1,284,436

 

$111,253

 








 

 

(q)

Represents the current yield as of report date.

 

 

(r)

When issued security.


 

 

 

Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of January 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

 

Assets

 

 

 




Level 1

 

$

26,102,900

 

Level 2

 

 

421,411,922

 

Level 3

 

 

 






Total

 

$

447,514,822

 

 

 





 

 

 

See Notes to Financial Statements.

 


14

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Schedule of Investments January 31, 2009 (Unaudited)

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California — 117.3%

 

 

 

 

 

 

 









County/City/Special District/ School District — 63.8%

 

 

 

 

 

 

 

Alameda, California, GO, 5%, 8/01/33 (a)

 

$

2,350

 

$

2,278,983

 

Alameda County, California, Joint Powers Authority, Lease Revenue Refunding Bonds, 5%, 12/01/34 (e)

 

 

2,960

 

 

2,828,398

 

Anaheim, California, Union High School District, GO (Election of 2002), 5%, 8/01/27 (a)

 

 

2,400

 

 

2,332,296

 

Banning, California, Unified School District, GO (Election of 2006), Series B, 5.25%, 8/01/33 (c)

 

 

4,300

 

 

4,195,811

 

Bay Area Government Association, California, Tax Allocation Revenue Refunding Bonds (California Redevelopment Agency Pool), Series A, 6%, 12/15/24 (e)

 

 

255

 

 

257,700

 

Brentwood, California, Infrastructure Refinancing Authority, Infrastructure Revenue Refunding Bonds, Series A, 5.20%, 9/02/29 (e)

 

 

3,980

 

 

3,886,430

 

Capistrano, California, Unified School District, Community Facility District, Special Tax Refunding Bonds, 5%, 9/01/29 (a)(f)

 

 

7,000

 

 

5,536,090

 

Chabot-Las Positas, California, Community College District, GO (Election of 2004), Series B, 5.17%, 8/01/26 (b)(c)

 

 

6,705

 

 

2,490,170

 

Chino Valley, California, Unified School District, GO (Election of 2002), Series C, 5.25%, 8/01/30 (a)

 

 

3,000

 

 

2,913,450

 

Chula Vista, California, Elementary School District, COP, 5%, 9/01/29 (a)

 

 

3,910

 

 

3,257,030

 

Coachella Valley, California, Unified School District, GO (Election of 2005), Series A, 5%, 8/01/25 (a)(f)

 

 

3,275

 

 

3,264,061

 

Corona, California, COP (Clearwater Cogeneration Project), 5%, 9/01/28 (a)

 

 

6,000

 

 

4,817,940

 

Desert Sands, California, Unified School District, COP (Financing Project), 5.75%, 3/01/24 (e)

 

 

1,000

 

 

1,022,660

 

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

 

 

10,755

 

 

10,904,602

 

Fresno, California, Joint Powers Financing Authority, Lease Revenue Bonds, Series A, 5.75%, 6/01/26 (e)

 

 

3,295

 

 

3,363,800

 

Fullerton, California, Public Financing Authority, Tax Allocation Revenue Bonds, 5%, 9/01/27 (b)

 

 

6,930

 

 

5,765,136

 

Glendora, California, Unified School District, GO (Election of 2005), Series A:

 

 

 

 

 

 

 

5%, 8/01/27 (a)

 

 

1,350

 

 

1,311,917

 

5.25%, 8/01/30 (a)

 

 

2,700

 

 

2,622,105

 

Hemet, California, Unified School District, GO, Series B, 5.125%, 8/01/37 (d)

 

 

4,500

 

 

4,277,115

 

Imperial, California, Community College District, GO (Election of 2004), 5%, 8/01/29 (a)(f)

 

 

3,090

 

 

2,930,525

 

La Quinta, California, Financing Authority, Local Agency Revenue Bonds, Series A, 5.25%, 9/01/24 (b)

 

 

2,500

 

 

2,407,175

 

Lodi, California, Unified School District, GO (Election of 2002), 5%, 8/01/29 (e)

 

 

10,260

 

 

10,117,591

 

Los Angeles, California, Community Redevelopment Agency, Community Redevelopment Financing Authority Revenue Bonds (Bunker Hill Project), Series A, 5%, 12/01/27 (e)

 

 

10,000

 

 

9,154,000

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

Los Angeles, California, Unified School District, GO:

 

 

 

 

 

 

 

(Election of 2002), Series C, 5%, 7/01/32

 

$

10,000

 

$

9,522,500

 

(Election of 2004), Series C, 5%, 7/01/27 (f)

 

 

2,880

 

 

2,882,592

 

(Election of 2004), Series F, 5%, 7/01/30 (f)

 

 

5,000

 

 

4,711,400

 

Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition A, First Tier Senior-Series A (b):

 

 

 

 

 

 

 

5%, 7/01/27

 

 

5,240

 

 

5,254,043

 

5%, 7/01/35

 

 

6,500

 

 

6,224,140

 

Los Angeles County, California, Public Works Financing Authority, Lease Revenue Refunding Bonds (Master Refunding Project), Series A, 5%, 12/01/28 (a)

 

 

6,000

 

 

5,418,540

 

Los Rios, California, Community College District, GO (Election of 2002), Series B, 5%, 8/01/27 (a)

 

 

3,000

 

 

3,005,700

 

Merced, California, Community College District, GO (School Facilities District Number 1), 5%, 8/01/31 (a)

 

 

6,865

 

 

6,399,828

 

Murrieta Valley, California, Unified School District, Public Financing Authority, Special Tax Revenue Bonds, Series A, 5.125%, 9/01/26 (d)

 

 

8,000

 

 

7,543,760

 

Natomas Unified School District, California, GO (Election of 2006), 5%, 8/01/28 (a)(f)

 

 

6,015

 

 

5,769,047

 

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

 

 

9,645

 

 

9,759,390

 

Peralta, California, Community College District, GO (Election of 2007), Series B, 5%, 8/01/37 (e)

 

 

6,695

 

 

6,439,385

 

Poway, California, Unified School District, School Facilities Improvement, GO (Election of 2002), Series 1-B, 5%, 8/01/30 (e)

 

 

10,000

 

 

9,780,900

 

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

 

 

5,000

 

 

4,992,950

 

Riverside, California, COP, 5%, 9/01/28 (b)

 

 

3,000

 

 

2,711,340

 

Riverside, California, Unified School District, GO:

 

 

 

 

 

 

 

(Election of 2001), Series A, 5.25%, 2/01/23 (a)(f)

 

 

6,000

 

 

6,198,660

 

(Election of 2001), Series B, 5%, 8/01/30 (a)

 

 

7,515

 

 

7,062,597

 

Series C, 5%, 8/01/32 (d)

 

 

5,010

 

 

4,848,578

 

Sacramento, California, City Financing Authority, Capital Improvement Revenue Bonds (Community Rein Capital Program), Series A, 5%, 12/01/36 (b)

 

 

3,000

 

 

2,704,560

 

Sacramento, California, City Financing Authority, Tax Allocation Revenue Bonds (Merged Downtown and Oak Park Projects), Series A, 5.036%, 12/01/32 (a)(c)(f)

 

 

6,590

 

 

1,050,314

 

Saddleback Valley, California, Unified School District, GO, 5%, 8/01/29 (e)

 

 

2,565

 

 

2,529,398

 

San Bernardino, California, City Unified School District, GO, Series A, 5%, 8/01/28 (e)(g)(h)

 

 

5,000

 

 

4,872,350

 

San Diego, California, Redevelopment Agency, Subordinate Tax Allocation Bonds (Centre City Redevelopment Project), Series A (b):

 

 

 

 

 

 

 

5.25%, 9/01/24

 

 

2,720

 

 

2,619,006

 

5.25%, 9/01/25

 

 

2,860

 

 

2,720,003

 

San Jose, California, Financing Authority, Lease Revenue Refunding Bonds (Civic Center Project), Series B, 5%, 6/01/32 (b)

 

 

11,400

 

 

10,929,522

 


 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2009

15



 

 


 

Schedule of Investments (continued)

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

San Jose, California, GO (Libraries, Parks and Public Safety Projects), 5%, 9/01/27 (a)

 

$

7,910

 

$

7,948,284

 

San Jose, California, Redevelopment Agency, Tax Allocation Bonds (Housing Set-Aside Merged Area), AMT, Series E, 5.85%, 8/01/27 (a)

 

 

7,300

 

 

6,815,791

 

San Juan, California, Unified School District, GO (Election of 2002), 5%, 8/01/28 (a)

 

 

4,250

 

 

4,076,218

 

San Mateo County, California, Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5%, 6/01/29 (a)

 

 

4,350

 

 

4,289,622

 

Santa Rosa, California, High School District, GO (Election of 2002), 5%, 8/01/28 (a)

 

 

2,500

 

 

2,397,775

 

South Tahoe, California, Joint Powers Financing Authority, Revenue Refunding Bonds (South Tahoe Redevelopment Project Area Number 1), Series A, 5%, 10/01/29 (e)

 

 

1,645

 

 

1,555,693

 

Ventura County, California, Community College District, GO, Refunding, Series A, 5%, 8/01/27 (a)

 

 

3,395

 

 

3,401,756

 

Vista, California, COP (Community Projects), 5%, 5/01/37 (a)

 

 

6,750

 

 

5,559,705

 

Vista, California, Unified School District, GO, Series B, 5%, 8/01/28 (a)(f)

 

 

2,550

 

 

2,445,731

 

West Contra Costa, California, Unified School District, GO:

 

 

 

 

 

 

 

(Election of 2005), Series B, 5.625%, 8/01/35 (i)

 

 

7,500

 

 

7,613,025

 

(Election of 2002), Series B, 5%, 8/01/32 (e)

 

 

6,690

 

 

6,327,603

 

 

 

 

 

 




 

 

 

 

 

 

280,316,691

 









Education — 3.8%

 

 

 

 

 

 

 

California Educational Facilities Authority Revenue Bonds (University of San Diego), Series A, 5.50%, 10/01/32

 

 

5,000

 

 

5,030,900

 

California Educational Facilities Authority, Student Loan Revenue Bonds (CalEdge Loan Program), AMT, 5.55%, 4/01/28 (b)

 

 

7,355

 

 

6,587,284

 

San Diego County, California, COP (Salk Institute for Bio Studies), 5.75%, 7/01/31 (a)

 

 

5,200

 

 

4,960,592

 

 

 

 

 

 




 

 

 

 

 

 

16,578,776

 









Hospitals/Health Care — 3.7%

 

 

 

 

 

 

 

California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 6%, 10/01/23

 

 

3,685

 

 

3,729,258

 

California Statewide Communities Development Authority Revenue Bonds:

 

 

 

 

 

 

 

(Adventist), Series B, 5%, 3/01/37 (d)

 

 

5,850

 

 

5,031,760

 

(Sutter Health), Series D, 5.05%, 8/15/38 (d)

 

 

7,925

 

 

6,928,193

 

California Statewide Communities Development Authority, Revenue Refunding Bonds (Kaiser Permanente), Series A, 5%, 4/01/31

 

 

900

 

 

748,971

 

 

 

 

 

 




 

 

 

 

 

 

16,438,182

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









Housing — 3.0%

 

 

 

 

 

 

 

California Rural Home Mortgage Finance Authority, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT:

 

 

 

 

 

 

 

Series A, 6.35%, 12/01/29 (g)(h)(j)

 

$

210

 

$

216,961

 

Series B, 6.25%, 12/01/31 (g)(h)

 

 

95

 

 

96,282

 

California State Department of Veteran Affairs, Home Purchase Revenue Refunding Bonds, Series A, 5.35%, 12/01/27 (b)

 

 

12,680

 

 

12,732,495

 

San Bernardino County, California, S/F Home Mortgage Revenue Refunding Bonds, AMT, Series A-1, 6.25%, 12/01/31

 

 

155

 

 

160,620

 

 

 

 

 

 




 

 

 

 

 

 

13,206,358

 









State — 5.6%

 

 

 

 

 

 

 

California State, GO, 6.25%, 10/01/19 (a)

 

 

860

 

 

862,494

 

California State, GO, Refunding, Veterans, AMT, Series B, 5.70%, 12/01/32 (b)

 

 

19,865

 

 

17,730,307

 

California State Public Works Board, Lease Revenue Bonds (Various University Projects), Series D, 5%, 5/01/26 (a)

 

 

6,010

 

 

5,968,351

 

 

 

 

 

 




 

 

 

 

 

 

24,561,152

 









Transportation — 13.6%

 

 

 

 

 

 

 

Port of Oakland, California, Revenue Bonds, AMT, Series K (a)(f):

 

 

 

 

 

 

 

5.875%, 11/01/17

 

 

2,745

 

 

2,765,807

 

5.75%, 11/01/29

 

 

7,500

 

 

6,737,475

 

Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375%, 11/01/27 (a)(f)

 

 

19,040

 

 

16,132,973

 

San Diego, California, Unified Port District, Revenue Refunding Bonds, AMT, Series A, 5.25%, 9/01/19 (a)

 

 

5,400

 

 

5,281,038

 

San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5%, 7/01/34 (a)

 

 

10,500

 

 

10,076,535

 

San Francisco, California, City and County Airport Commission, International Airport Revenue Refunding Bonds, AMT, Second Series:

 

 

 

 

 

 

 

6.75%, 5/01/19

 

 

4,420

 

 

4,614,392

 

Issue 34E, 5.75%, 5/01/24 (e)

 

 

5,000

 

 

4,808,150

 

Issue 34E, 5.75%, 5/01/25 (e)

 

 

3,500

 

 

3,332,875

 

San Francisco, California, City and County Airport Commission, International Airport, Special Facilities Lease Revenue Bonds (SFO Fuel Company LLC), AMT, Series A (e):

 

 

 

 

 

 

 

6.10%, 1/01/20

 

 

1,000

 

 

1,006,040

 

6.125%, 1/01/27

 

 

985

 

 

960,188

 

San Jose, California, Airport Revenue Bonds, Series D, 5%, 3/01/28 (a)

 

 

4,135

 

 

3,967,822

 

 

 

 

 

 




 

 

 

 

 

 

59,683,295

 










 

 

 

See Notes to Financial Statements.


16

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Schedule of Investments (continued)

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (continued)

 

 

 

 

 

 

 









Utilities — Electric & Gas — 3.2%

 

 

 

 

 

 

 

Glendale, California, Electric Revenue Bonds, 5%, 2/01/32 (a)

 

$

4,390

 

$

4,061,804

 

Los Angeles, California, Water and Power Revenue Bonds (Power System), Sub-Series A-1, 5%, 7/01/37 (b)

 

 

5,000

 

 

4,787,850

 

Santa Clara, California, Subordinated Electric Revenue Bonds, Series A, 5%, 7/01/28 (a)

 

 

5,500

 

 

5,275,435

 

 

 

 

 

 




 

 

 

 

 

 

14,125,089

 









Utilities — Irrigation, Resource Recovery, Solid Waste & Other — 0.9%

 

 

 

 

 

 

 

Sacramento, California, Municipal Utility District Financing Authority Revenue Bonds (Consumers Project), 5%, 7/01/21 (a)

 

 

4,500

 

 

4,080,330

 









Utilities — Water & Sewer — 19.7%

 

 

 

 

 

 

 

Contra Costa, California, Water District, Water Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series L, 5%, 10/01/32 (e)

 

 

4,135

 

 

4,033,858

 

Series O, 5%, 10/01/24 (b)

 

 

1,735

 

 

1,787,171

 

East Bay, California, Municipal Utility District, Wastewater System Revenue Refunding Bonds, Sub-Series A (b):

 

 

 

 

 

 

 

5%, 6/01/33

 

 

4,000

 

 

3,889,960

 

5%, 6/01/37

 

 

7,985

 

 

7,703,129

 

East Bay, California, Municipal Utility District, Water System Revenue Refunding Bonds, Series A, 5%, 6/01/37 (f)

 

 

6,000

 

 

5,754,060

 

East Bay Municipal Utility District, California, Water System Revenue Bonds, Sub-Series A, 5%, 6/01/35 (a)

 

 

15,000

 

 

14,529,450

 

El Centro, California, Financing Authority, Water Revenue Bonds, Series A, 5.25%, 10/01/35 (e)

 

 

1,100

 

 

949,091

 

Hollister, California, Joint Powers Finance Authority, Wastewater Revenue Refunding Bonds (Refining and Improvement Project), Series 1 (e):

 

 

 

 

 

 

 

5%, 6/01/32

 

 

5,000

 

 

4,539,050

 

5%, 6/01/37

 

 

6,000

 

 

5,320,500

 

Madera, California, Public Financing Authority, Water and Wastewater Revenue Refunding Bonds, 5%, 3/01/36 (a)

 

 

2,010

 

 

1,814,367

 

Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series B-1, 5%, 10/01/33 (a)(f)

 

 

7,175

 

 

7,044,774

 

Napa, California, Water Revenue Bonds, 5%, 5/01/35 (b)

 

 

9,070

 

 

8,502,853

 

Oakland, California, Sewer Revenue Bonds, Series A, 5%, 6/15/29 (e)

 

 

4,270

 

 

4,121,618

 

Oxnard, California, Financing Authority, Wastewater Revenue Bonds (Redwood Trunk Sewer and Headworks Projects), Series A, 5.25%, 6/01/34 (a)(f)

 

 

10,000

 

 

9,438,100

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









California (continued)

 

 

 

 

 

 

 









Utilities — Water & Sewer (concluded)

 

 

 

 

 

 

 

Stockton, California, Public Financing Authority, Water Revenue Bonds (Water System Capital Improvement Projects), Series A, 5%, 10/01/31 (a)

 

$

2,600

 

$

2,422,967

 

Turlock, California, Public Finance Authority, Sewer Revenue Bonds, Series A, 5%, 9/15/33 (a)(e)

 

 

3,000

 

 

2,783,520

 

Vallecitos Water District and Wastewater Enterprise, California, COP, Refunding, Series A, 5%, 7/01/27 (e)

 

 

2,000

 

 

2,004,000

 

 

 

 

 

 




 

 

 

 

 

 

86,638,468

 









Total Municipal Bonds — 117.3%

 

 

 

 

 

515,628,341

 









 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (k)

 

 

 

 

 

 

 









County/City/Special District/ School District — 5.4%

 

 

 

 

 

 

 

Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Series A, 5%, 7/01/37

 

 

15,000

 

 

14,709,300

 

Palomar Pomerado Health Care District, California, GO (Election of 2004), Series A, 5.125%, 8/01/37 (a)

 

 

9,300

 

 

9,129,066

 

 

 

 

 

 




 

 

 

 

 

 

23,838,366

 









Education — 5.7%

 

 

 

 

 

 

 

California State University, Systemwide Revenue Bonds, Series A, 5%, 11/01/39 (e)

 

 

4,860

 

 

4,583,417

 

Fremont, California, Unified School District, Alameda County, GO (Election of 2002), Series B, 5%, 8/01/30 (e)

 

 

5,997

 

 

5,865,540

 

Los Angeles, California, Community College District, GO (Election of 2003), Series E, 5%, 8/01/31 (e)

 

 

7,497

 

 

7,290,088

 

University of California Revenue Bonds, Series L, 5%, 5/15/40

 

 

7,398

 

 

7,016,876

 

 

 

 

 

 




 

 

 

 

 

 

24,755,921

 









Transportation — 7.5%

 

 

 

 

 

 

 

Long Beach, California, Harbor Revenue Bonds, AMT, Series A, 5.375%, 5/15/24

 

 

15,150

 

 

13,985,571

 

San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Refunding Bonds, Series A, 5%, 7/01/30 (a)

 

 

19,630

 

 

19,150,243

 

 

 

 

 

 




 

 

 

 

 

 

33,135,814

 










 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2009

17



 

 



 

Schedule of Investments (continued)

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (k)

 

Par
(000)

 

Value

 









California (concluded)

 

 

 

 

 

 

 









Utilities — Electric & Gas — 0.8%

 

 

 

 

 

 

 

Anaheim, California, Public Financing Authority, Electric System Distribution Facilities Revenue Bonds, Series A, 5%, 10/01/31 (e)

 

$

3,568

 

$

3,418,448

 









Utilities — Water & Sewer — 12.4%

 

 

 

 

 

 

 

Los Angeles, California, Department of Water and Power, Power System Revenue Refunding Bonds, Series A, Sub-Series A-2, 5%, 7/01/27 (a)

 

 

16,000

 

 

15,549,120

 

Los Angeles, California, Water and Power Revenue Bonds (Power System), Sub-Series A-1, 5%, 7/01/31 (e)

 

 

5,007

 

 

4,836,955

 

Rancho, California, Water District Financing Authority, Revenue Refunding Bonds, Series A, 5%, 8/01/34 (e)

 

 

9,277

 

 

8,975,430

 

San Diego County, California, Water Authority, Water Revenue Bonds, COP, Series A (e):

 

 

 

 

 

 

 

5%, 5/01/30

 

 

7,350

 

 

7,189,403

 

5%, 5/01/31

 

 

10,000

 

 

9,711,600

 

San Diego County, California, Water Authority, Water Revenue Refunding Bonds, COP, Series A, 5%, 5/01/33 (e)

 

 

8,510

 

 

8,208,065

 

 

 

 

 

 




 

 

 

 

 

 

54,470,573

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 31.8%

 

 

 

 

 

139,619,122

 









Total Long-Term Investments
(Cost — $701,175,204) — 149.1%

 

 

 

 

 

655,247,463

 









 

 

 

 

 

 

 

 









Short-Term Securities

 

 

 

 

 

 

 









California — 5.7%

 

 

 

 

 

 

 









Utilities — Water & Sewer — 2.3%

 

 

 

 

 

 

 

East Bay Municipal Utility District, California, Water System Revenue Refunding Bonds, VRDN, Sub-Series B, 1.25%, 2/04/09 (e)(l)

 

 

10,000

 

 

10,000,000

 









Transportation — 3.4%

 

 

 

 

 

 

 

Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior Series A, 6%, 2/05/09 (a)(l)

 

 

15,000

 

 

15,000,000

 









 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market Fund — 6.8%

 

 

 

 

 

 

 









CMA California Municipal Money Fund, 0.18% (m)(n)

 

 

29,933,000

 

 

29,933,000

 









Total Short-Term Securities
(Cost — $54,933,000) — 12.5%

 

 

 

 

 

54,933,000

 









Total Investments (Cost — $756,108,204*) — 161.6%

 

 

 

 

 

710,180,463

 

 

Liabilities in Excess of Other Assets — (0.2)%

 

 

 

 

 

(724,290

)

 

Liability for Trust Certificates, Including Interest Expense
and Fees Payable — (17.6)%

 

 

 

 

 

(77,649,638

)

 

Preferred Shares, at Redemption Value — (43.8)%

 

 

 

 

 

(192,327,876

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

439,478,659

 

 

 

 

 

 



 


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

678,735,234

 

 

 



 

Gross unrealized appreciation

 

$

1,602,961

 

Gross unrealized depreciation

 

 

(47,327,555

)

 

 



 

Net unrealized depreciation

 

$

(45,724,594

)

 

 



 


 

 

(a)

MBIA Insured.

 

 

(b)

AMBAC Insured.

 

 

(c)

Represents a zero-coupon bond. Rate shown is the effective yield at the time of purchase.

 

 

(d)

Assured Guaranty Insured.

 

 

(e)

FSA Insured.

 

 

(f)

FGIC Insured.

 

 

(g)

FNMA Collateralized.

 

 

(h)

GNMA Collateralized.

 

 

(i)

BHAC Insured.

 

 

(j)

FHLMC Collateralized.

 

 

(k)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(l)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

 

 

(m)

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


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







CMA California Municipal Money Fund

 

 

29,726,747

 

$

127,654

 










 

 

(n)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.




18

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 



 

Schedule of Investments (concluded)

BlackRock MuniYield California Insured Fund, Inc. (MCA)


 

 

 

Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of January 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 


 

Level 1

 

$

29,933,000

 

Level 2

 

 

680,247,463

 

Level 3

 

 

 






Total

 

$

710,180,463

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

19



 

 



 

Schedule of Investments January 31, 2009 (Unaudited)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 0.8%

 

 

 

 

 

 

 







Alabama Special Care Facilities Financing Authority of Mobile, Revenue Refunding Bonds (Ascension Health Credit), Series D, 5%, 11/15/39 (a)

 

$

6,810

 

$

5,799,328

 









 

 

 

 

 

 

 

 









Alaska — 0.6%

 

 

 

 

 

 

 









Alaska Energy Authority, Power Revenue Refunding Bonds (Bradley Lake), Fourth Series, 6%, 7/01/18 (b)

 

 

3,495

 

 

4,215,809

 









 

 

 

 

 

 

 

 









Arizona — 3.1%

 

 

 

 

 

 

 









Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Senior Series A, 5%, 7/01/36 (c)

 

 

21,355

 

 

13,302,670

 

Maricopa County and Phoenix, Arizona, IDA, S/F Mortgage Revenue Bonds, AMT, Series A-2, 5.80%, 7/01/40 (d)(e)(f)

 

 

5,470

 

 

5,402,063

 

Salt River Project, Arizona, Agriculture Improvement and Power District, Electric System Revenue Bonds, Series A, 5%, 1/01/37

 

 

5,000

 

 

4,874,900

 

 

 

 

 

 




 

 

 

 

 

 

23,579,633

 









 

 

 

 

 

 

 

 









California — 14.3%

 

 

 

 

 

 

 









Alameda Corridor Transportation Authority, California, Capital Appreciation Revenue Refunding Bonds, Subordinate Lien, Series A, 5.40%, 10/01/24 (g)(h)

 

 

10,000

 

 

7,973,600

 

Antioch, California, Public Finance Authority, Lease Revenue Refunding Bonds (Municipal Facilities Project), Series A, 5.50%, 1/01/32 (a)

 

 

5,000

 

 

5,002,450

 

California Statewide Communities Development Authority Revenue Bonds (b):

 

 

 

 

 

 

 

(Saint Joseph Home Care), Series E, 5.25%, 7/01/47

 

 

11,800

 

 

10,395,446

 

(Sutter Health), Series D, 5.05%, 8/15/38

 

 

7,400

 

 

6,469,228

 

California State, GO, 5.50%, 4/01/30 (a)

 

 

10

 

 

9,962

 

California State Public Works Board, Lease Revenue Bonds (Department of Corrections), Series C, 5.25%, 6/01/28

 

 

5,500

 

 

5,108,400

 

California State University, Revenue Refunding Bonds, DRIVERS, Series 2646Z, 8.819%, 5/01/15 (b)(i)

 

 

3

 

 

2,273

 

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

 

 

5,800

 

 

5,882,360

 

Los Angeles, California, Municipal Improvement Corporation, Lease Revenue Bonds, Series B1, 4.75%, 8/01/37 (a)(c)

 

 

15,000

 

 

12,984,900

 

Mendocino-Lake Community College District, California, GO (Election of 2006), Series A, 5%, 8/01/31 (a)

 

 

1,485

 

 

1,384,376

 

Port of Oakland, California, Revenue Refunding Bonds, AMT, Series L, 5.375%, 11/01/27 (a)(c)

 

 

8,465

 

 

7,172,564

 

Redding, California, Electric System, COP, Series A, 5%, 6/01/30 (b)

 

 

1,900

 

 

1,758,944

 

Riverside County, California, Public Financing Authority, Tax Allocation Revenue Bonds (Redevelopment Projects), 5%, 10/01/35 (j)

 

 

10,000

 

 

7,434,900

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 







Sacramento County, California, Airport System Revenue Bonds, AMT, Senior Series A, 5%, 7/01/41 (b)

 

$

18,000

 

$

16,772,940

 

San Jose, California, Airport Revenue Refunding Bonds, AMT, Series A, 5.50%, 3/01/32 (h)

 

 

11,965

 

 

10,189,992

 

San Mateo, California, Union High School District, COP (Phase One Projects), Series B, 4.758%, 12/15/43 (g)(h)

 

 

3,250

 

 

1,482,293

 

Stockton, California, Public Financing Authority, Lease Revenue Bonds (Parking & Capital Projects), 5.25%, 9/01/34 (a)(c)

 

 

8,310

 

 

7,361,330

 

 

 

 

 

 




 

 

 

 

 

 

107,385,958

 









 

 

 

 

 

 

 

 









Colorado — 0.8%

 

 

 

 

 

 

 









Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley Health Care), Series C, 5.25%, 3/01/40 (b)

 

 

7,000

 

 

5,996,690

 









 

 

 

 

 

 

 

 









District of Columbia — 1.7%

 

 

 

 

 

 

 







District of Columbia, Water and Sewer Authority, Public Utility Revenue Refunding Bonds, Senior Lien, Series A, 6%, 10/01/35 (v)

 

 

4,280

 

 

4,477,650

 

Metropolitan Washington Airports Authority, D.C., Airport System Revenue Bonds, AMT, Series B, 5%, 10/01/32 (h)

 

 

10,000

 

 

8,035,200

 

 

 

 

 

 




 

 

 

 

 

 

12,512,850

 









 

 

 

 

 

 

 

 









Florida — 12.2%

 

 

 

 

 

 

 







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

 

 

15,000

 

 

14,171,850

 

Miami-Dade County, Florida, Aviation Revenue Refunding Bonds, DRIVERS, AMT, Series 2586Z, 7.992%, 10/01/15 (i)(j)(k)

 

 

37

 

 

22,269

 

Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT:

 

 

 

 

 

 

 

5.375%, 10/01/25 (a)(c)

 

 

10,750

 

 

9,331,645

 

5.375%, 10/01/27 (a)(c)

 

 

1,000

 

 

845,810

 

Series A, 5%, 10/01/35 (j)(k)

 

 

10,000

 

 

7,920,100

 

Series A, 5.50%, 10/01/41 (b)

 

 

15,000

 

 

12,618,750

 

Miami-Dade County, Florida, GO (Building Better Communities Program), Series B, 6.375%, 7/01/28

 

 

6,000

 

 

6,556,860

 

Miami-Dade County, Florida, School Board, COP, Refunding, Series B, 5.25%, 5/01/31 (k)

 

 

4,125

 

 

3,932,156

 

Miami-Dade County, Florida, Water and Sewer Revenue Refunding Bonds, Series C, 6%, 10/01/23 (l)

 

 

20,095

 

 

22,266,265

 

Orlando, Florida, Senior Tourist Development Tax Revenue Bonds (6th Cent Contract Payments), Series A, 5.25%, 11/01/38 (k)

 

 

15,000

 

 

13,996,200

 

 

 

 

 

 




 

 

 

 

 

 

91,661,905

 










 

 

 

See Notes to Financial Statements.




20

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Georgia — 2.0%

 

 

 

 

 

 

 









Atlanta, Georgia, Airport General Revenue Refunding Bonds, Series B, 5.25%, 1/01/33 (b)

 

$

12,500

 

$

12,482,500

 

Main Street Natural Gas, Inc., Georgia, Gas Project Revenue Bonds, Series A, 6.25%, 7/15/33 (m)(n)

 

 

13,170

 

 

2,600,943

 

 

 

 

 

 




 

 

 

 

 

 

15,083,443

 









 

 

 

 

 

 

 

 









Hawaii — 0.3%

 

 

 

 

 

 

 









Hawaii State, GO, Series CX, 5.50%, 2/01/21 (b)

 

 

2,000

 

 

2,159,280

 









 

 

 

 

 

 

 

 









Illinois — 16.8%

 

 

 

 

 

 

 









Chicago, Illinois, GO, Refunding, Series A, 5.25%, 1/01/24 (k)

 

 

11,000

 

 

11,558,910

 

Chicago, Illinois, O’Hare International Airport, General Airport Revenue Bonds, Third Lien, AMT, Series B-2 (a):

 

 

 

 

 

 

 

5.25%, 1/01/27

 

 

16,685

 

 

13,952,498

 

6%, 1/01/27

 

 

26,230

 

 

23,946,941

 

Chicago, Illinois, O’Hare International Airport Revenue Refunding Bonds, Third Lien, AMT, Series C-2, 5.25%, 1/01/30 (b)

 

 

16,400

 

 

13,956,236

 

Illinois Health Facilities Authority Revenue Bonds (Delnor Hospital) (b):

 

 

 

 

 

 

 

Series B, 5.25%, 5/15/32

 

 

6,150

 

 

5,610,583

 

Series D, 5.25%, 5/15/32

 

 

10,000

 

 

9,122,900

 

Illinois Municipal Electric Agency, Power Supply Revenue Bonds, Series A (a)(c):

 

 

 

 

 

 

 

5%, 2/01/35

 

 

25,000

 

 

22,641,750

 

5.25%, 2/01/35

 

 

15,000

 

 

14,090,400

 

Northern Illinois Municipal Power Agency, Power Project Revenue Refunding Bonds (Prairie State Project), Series A, 5%, 1/01/37 (a)

 

 

11,900

 

 

10,253,754

 

Regional Transportation Authority, Illinois, Revenue Bonds, Series C, 7.75%, 6/01/20 (a)(c)

 

 

1,000

 

 

1,293,250

 

 

 

 

 

 




 

 

 

 

 

 

126,427,222

 









 

 

 

 

 

 

 

 









Indiana — 0.9%

 

 

 

 

 

 

 









Indiana Health Facilities Financing Authority, Hospital Revenue Bonds (Deaconess Hospital Obligated Group), Series A, 5.375%, 3/01/34 (h)

 

 

2,250

 

 

1,774,080

 

Indianapolis, Indiana, Gas Utility Revenue Refunding Bonds, Second Lien, Series B, 5.25%, 8/15/27 (k)

 

 

5,000

 

 

5,029,700

 

 

 

 

 

 




 

 

 

 

 

 

6,803,780

 









 

 

 

 

 

 

 

 









Kentucky — 1.9%

 

 

 

 

 

 

 









Louisville and Jefferson Counties, Kentucky, Metropolitan Sewer District, Sewer and Drain System Revenue Bonds, Series A, 5.25%, 5/15/37 (a)(c)

 

 

15,155

 

 

14,550,315

 









 

 

 

 

 

 

 

 









Louisiana — 4.9%

 

 

 

 

 

 

 









Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds (Capital Projects and Equipment Acquisition Program), Series A, 6.30%, 7/01/30 (h)

 

 

3,750

 

 

3,121,275

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Louisiana (concluded)

 

 

 

 

 

 

 









Louisiana Public Facilities Authority, Mortgage Revenue Refunding Bonds (Baton Rouge General Medical Center Project), 5.25%, 7/01/33 (a)(o)

 

$

15,000

 

$

12,703,350

 

Louisiana State Gas and Fuels Tax Revenue Bonds, Series A, 5%, 5/01/36 (b)

 

 

10,000

 

 

9,555,300

 

New Orleans, Louisiana, Aviation Board Revenue Bonds, AMT, Series A, 5.25%, 1/01/32 (b)

 

 

14,030

 

 

11,649,109

 

 

 

 

 

 




 

 

 

 

 

 

37,029,034

 









 

 

 

 

 

 

 

 









Massachusetts — 6.0%

 

 

 

 

 

 

 









Boston, Massachusetts, Housing Authority, Capital Program Revenue Bonds (b):

 

 

 

 

 

 

 

5%, 4/01/23

 

 

1,570

 

 

1,623,929

 

5%, 4/01/28

 

 

520

 

 

512,398

 

Massachusetts State, HFA, Housing Development Revenue Refunding Bonds, Series B, 5.40%, 12/01/28 (a)

 

 

2,500

 

 

2,215,975

 

Massachusetts State, HFA, M/F Housing Revenue Bonds, Series B, 7%, 12/01/38

 

 

3,440

 

 

3,679,218

 

Massachusetts State, HFA, Rental Housing Mortgage Revenue Bonds, AMT, Series A, 5.15%, 7/01/26 (b)

 

 

11,910

 

 

12,384,613

 

Massachusetts State, HFA, S/F Housing Revenue Bonds, AMT, Series 128, 4.875%, 12/01/38 (b)

 

 

12,860

 

 

10,378,020

 

Massachusetts State Port Authority, Special Facilities Revenue Refunding Bonds (BOSFUEL Project), AMT, 5%, 7/01/38 (a)(c)

 

 

19,755

 

 

14,565,559

 

 

 

 

 

 




 

 

 

 

 

 

45,359,712

 









 

 

 

 

 

 

 

 









Michigan — 5.9%

 

 

 

 

 

 

 









Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, Senior Lien, Series D, 5%, 7/01/23 (b)

 

 

9,085

 

 

8,627,752

 

Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-Q, 5%, 3/01/31 (h)

 

 

4,325

 

 

2,962,711

 

Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program), Series I, 6.25%, 10/15/38

 

 

3,125

 

 

3,266,156

 

Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series B, 4.95%, 4/01/44 (b)

 

 

10,000

 

 

8,015,600

 

Michigan State Revenue Bonds, GAN, 5.25%, 9/15/26 (b)

 

 

6,650

 

 

6,669,219

 

Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), AMT (j):

 

 

 

 

 

 

 

Series A, 5.50%, 6/01/30

 

 

8,000

 

 

6,505,520

 

Series C, 5.65%, 9/01/29

 

 

5,000

 

 

4,178,900

 

Wayne County, Michigan, Airport Authority, Revenue Refunding Bonds, AMT, 5.375%, 12/01/32 (k)

 

 

5,000

 

 

4,253,000

 

 

 

 

 

 




 

 

 

 

 

 

44,478,858

 









 

 

 

 

 

 

 

 









Minnesota — 0.9%

 

 

 

 

 

 

 









Minneapolis, Minnesota, Health Care System, Revenue Refunding Bonds (Fairview Health Services), Series B, 6.50%, 11/15/38 (k)

 

 

6,600

 

 

6,971,052

 










 

 

 

See Notes to Financial Statements.




SEMI-ANNUAL REPORT

JANUARY 31, 2009

21



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Missouri — 0.4%

 

 

 

 

 

 

 







Missouri State Health and Educational Facilities Authority, Health Facilities Revenue Bonds (Saint Luke’s Health System), VRDN, Series A, 5.50%,
11/15/35 (s)

 

$

3,270

 

$

3,016,379

 

Missouri State Housing Development Commission, S/F Mortgage Revenue Bonds (Homeownership Loan Program), AMT, Series C-1, 7.15%, 3/01/32 (e)(f)

 

 

95

 

 

101,269

 

 

 

 

 

 




 

 

 

 

 

 

3,117,648

 









 

 

 

 

 

 

 

 









Nevada — 5.1%

 

 

 

 

 

 

 









Clark County, Nevada, Airport System Subordinate Lien Revenue Bonds,
Series A-2, 5%, 7/01/30 (a)(c)

 

 

20,000

 

 

17,960,600

 

Clark County, Nevada, IDR (Southwest Gas Corporation Project), AMT, Series A, 5.25%, 7/01/34 (h)

 

 

12,675

 

 

8,392,751

 

Las Vegas, Nevada, Convention and Visitors Authority Revenue Bonds, 5%, 7/01/37 (h)

 

 

11,950

 

 

10,763,484

 

Reno, Nevada, Capital Improvement Revenue Bonds, 5.50%, 6/01/19 (c)

 

 

1,165

 

 

1,173,330

 

 

 

 

 

 




 

 

 

 

 

 

38,290,165

 









 

 

 

 

 

 

 

 









New Jersey — 1.6%

 

 

 

 

 

 

 









New Jersey EDA, Cigarette Tax Revenue Bonds:

 

 

 

 

 

 

 

5.75%, 6/15/29

 

 

3,060

 

 

2,277,221

 

5.75%, 6/15/34

 

 

13,960

 

 

10,055,248

 

 

 

 

 

 




 

 

 

 

 

 

12,332,469

 









 

 

 

 

 

 

 

 









New Mexico — 0.3%

 

 

 

 

 

 

 









New Mexico Educational Assistance Foundation, Student Loan Revenue Refunding Bonds (Student Loan Program), AMT, First Sub-Series A-2, 6.65%, 11/01/25

 

 

1,605

 

 

1,604,984

 

New Mexico Mortgage Finance Authority, S/F Mortgage Revenue Bonds, AMT, Series C-2, 6.95%, 9/01/31 (e)(f)

 

 

315

 

 

331,245

 

 

 

 

 

 




 

 

 

 

 

 

1,936,229

 









 

 

 

 

 

 

 

 









New York — 4.4%

 

 

 

 

 

 

 









New York City, New York, GO:

 

 

 

 

 

 

 

Series A-1, 5.25%, 8/15/24

 

 

6,650

 

 

6,754,073

 

Series J, 5.25%, 5/15/24

 

 

10,000

 

 

10,101,200

 

Series J, 5.25%, 5/15/25

 

 

550

 

 

552,552

 

Series M, 5%, 4/01/30 (k)

 

 

5,000

 

 

4,865,950

 

New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds (Presbyterian Hospital of New York), 5%, 8/15/36 (b)(o)

 

 

9,005

 

 

8,122,600

 

New York State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Services Facilities), Series B, 5%, 2/15/28 (b)

 

 

2,700

 

 

2,625,615

 

 

 

 

 

 




 

 

 

 

 

 

33,021,990

 









 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Ohio — 1.7%

 

 

 

 

 

 

 









Lorain County, Ohio, Hospital Revenue Refunding Bonds (Catholic Healthcare Partners), Series C-2, 5%, 4/01/33 (b)

 

$

14,200

 

$

12,647,656

 









 

 

 

 

 

 

 

 









Oklahoma — 0.5%

 

 

 

 

 

 

 









Tulsa County, Oklahoma, Home Finance Authority, S/F Mortgage Revenue Refunding Bonds, AMT, Series C, 5.25%, 12/01/38 (f)

 

 

4,748

 

 

3,918,278

 









 

 

 

 

 

 

 

 









Pennsylvania — 4.1%

 

 

 

 

 

 

 









Pennsylvania HFA, S/F Mortgage Revenue Bonds, AMT, Series 70A, 5.80%, 4/01/27

 

 

4,740

 

 

4,412,561

 

Pennsylvania State Turnpike Commission, Turnpike Revenue Bonds:

 

 

 

 

 

 

 

Series A, 5.50%, 12/01/31 (h)

 

 

15,600

 

 

15,831,816

 

Series A1, 5%, 6/01/38 (k)

 

 

5,000

 

 

4,828,100

 

Pennsylvania State Turnpike Commission, Turnpike Revenue Refunding Bonds, Sub-Series C, 6.25%, 6/01/38 (k)

 

 

5,695

 

 

6,154,245

 

 

 

 

 

 




 

 

 

 

 

 

31,226,722

 









 

 

 

 

 

 

 

 









Rhode Island — 0.3%

 

 

 

 

 

 

 









Rhode Island State Economic Development Corporation, Airport Revenue Bonds, AMT, Series A, 5.25%, 7/01/38 (k)

 

 

3,000

 

 

2,453,820

 









 

 

 

 

 

 

 

 









South Carolina — 1.9%

 

 

 

 

 

 

 









Charleston Educational Excellence Financing Corporation, South Carolina, Revenue Bonds (Charleston County School District) (k):

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

3,895

 

 

3,791,744

 

5.25%, 12/01/29

 

 

3,215

 

 

3,088,843

 

5.25%, 12/01/30

 

 

1,160

 

 

1,102,104

 

Kershaw County, South Carolina, Public Schools Foundation, Installment Power Revenue Refunding Bonds (o):

 

 

 

 

 

 

 

5%, 12/01/30

 

 

2,775

 

 

2,543,593

 

5%, 12/01/31

 

 

3,690

 

 

3,353,361

 

South Carolina Housing Finance and Development Authority, Mortgage Revenue Refunding Bonds, AMT, Series A-2, 6.35%, 7/01/19 (b)

 

 

645

 

 

651,418

 

 

 

 

 

 




 

 

 

 

 

 

14,531,063

 









 

 

 

 

 

 

 

 









Tennessee — 0.2%

 

 

 

 

 

 

 









Tennessee HDA, Revenue Refunding Bonds (Homeownership Program), AMT, Series A, 5.35%, 1/01/26 (b)

 

 

1,845

 

 

1,767,676

 









 

 

 

 

 

 

 

 









Texas — 21.6%

 

 

 

 

 

 

 









Canyon, Texas, Regional Water Authority, Contract Revenue Bonds (Wells Ranch Project), 5%, 8/01/32 (h)

 

 

8,185

 

 

7,561,549

 

Dallas, Texas, Independent School District, GO, 6.375%, 2/15/34

 

 

10,000

 

 

10,948,200

 


 

 

 

See Notes to Financial Statements.




22

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Texas (concluded)

 

 

 

 

 

 

 









Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds, AMT, Series A, 5%, 11/01/35 (b)

 

$

1,000

 

$

791,760

 

Dallas-Fort Worth, Texas, International Airport Revenue Refunding and Improvement Bonds, AMT, Series A, 5.625%, 11/01/26 (a)(c)

 

 

15,000

 

 

13,925,550

 

Harris County, Texas, Hospital District, Senior Lien Revenue Refunding Bonds, Series A, 5.25%, 2/15/37 (a)

 

 

10,000

 

 

8,913,700

 

Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien, Series G (a):

 

 

 

 

 

 

 

5.75%, 11/15/19

 

 

1,665

 

 

1,671,893

 

5.75%, 11/15/20

 

 

3,500

 

 

3,464,545

 

5.25%, 11/15/30

 

 

10,000

 

 

7,879,500

 

Houston, Texas, Combined Utility System, First Lien Revenue Refunding Bonds, Series A, 5%, 11/15/36 (b)

 

 

10,695

 

 

10,335,862

 

Judson, Texas, Independent School District, School Building, GO, 5%, 2/01/37 (k)

 

 

10,000

 

 

9,621,200

 

Matagorda County, Texas, Navigation District Number 1, PCR, Refunding (Central Power and Light Company Project), AMT, 5.20%, 5/01/30 (a)

 

 

6,250

 

 

4,514,688

 

North Texas Tollway Authority, System Revenue Refunding Bonds, First Tier:

 

 

 

 

 

 

 

Series A, 6%, 1/01/25

 

 

6,250

 

 

6,357,500

 

Series A, 5.125%, 1/01/28 (a)

 

 

22,000

 

 

20,259,140

 

Series B, 5.75%, 1/01/40 (a)

 

 

10,000

 

 

9,422,700

 

Texas State Department of Housing and Community Affairs, S/F Mortgage Revenue Bonds, AMT, Series A, 5.45%, 9/01/23 (a)(e)(f)

 

 

4,670

 

 

4,641,933

 

Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A (h):

 

 

 

 

 

 

 

5%, 8/15/42

 

 

10,000

 

 

8,053,500

 

5.50%, 8/15/39

 

 

10,000

 

 

8,803,600

 

Texas State University, System Financing Revenue Refunding Bonds:

 

 

 

 

 

 

 

5.25%, 3/15/24

 

 

5,000

 

 

5,268,650

 

5.25%, 3/15/25

 

 

9,000

 

 

9,396,000

 

5.25%, 3/15/26

 

 

10,000

 

 

10,364,700

 

 

 

 

 

 




 

 

 

 

 

 

162,196,170

 









 

 

 

 

 

 

 

 









Vermont — 0.4%

 

 

 

 

 

 

 









Vermont HFA, Revenue Refunding Bonds, AMT, Series C, 5.50%, 11/01/38 (b)

 

 

3,000

 

 

2,682,570

 

Vermont HFA, S/F Housing Revenue Bonds, AMT, Series 12B, 6.30%, 11/01/19 (b)

 

 

375

 

 

381,326

 

 

 

 

 

 




 

 

 

 

 

 

3,063,896

 









 

 

 

 

 

 

 

 









Virginia — 0.3%

 

 

 

 

 

 

 









Halifax County, Virginia, IDA, Exempt Facility Revenue Refunding Bonds (Old Dominion Electric Cooperative Project), AMT, 5.625%, 6/01/28 (h)

 

 

2,500

 

 

2,225,650

 









 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Washington — 7.8%

 

 

 

 

 

 

 









Chelan County, Washington, Public Utility District Number 001, Consolidated Revenue Bonds (Chelan Hydro System), AMT, Series A, 5.45%, 7/01/37 (h)

 

$

3,030

 

$

2,479,267

 

Chelan County, Washington, Public Utility District Number 001, Consolidated Revenue Refunding Bonds (Chelan Hydro System), AMT, Series C, 5.65%, 7/01/32 (a)

 

 

6,000

 

 

5,241,120

 

King County, Washington, Public Hospital District Number 001, GO, Refunding, Series A, 5%, 12/01/37 (k)

 

 

13,995

 

 

13,457,032

 

Port of Seattle, Washington, Revenue Bonds, DRIVERS, AMT, Series 2553, 8.967%, 1/01/12 (a)(i)

 

 

3

 

 

1,781

 

Radford Court Properties, Washington, Student Housing Revenue Bonds, 5.75%, 6/01/32 (a)

 

 

10,000

 

 

9,923,000

 

Seattle, Washington, Housing Authority Revenue Bonds (High Rise Rehabilitation Program — Phase 3), AMT, 5.15%, 11/01/27 (b)

 

 

6,255

 

 

5,670,533

 

Skagit County, Washington, Public Hospital District, GO, Series A (a):

 

 

 

 

 

 

 

5.25%, 12/01/25

 

 

4,945

 

 

4,999,098

 

5.25%, 12/01/26

 

 

5,450

 

 

5,479,485

 

Washington State Health Care Facilities Authority Revenue Bonds (Providence Health System), Series A, 5.25%, 10/01/21 (a)

 

 

6,150

 

 

6,215,375

 

Washington State Health Care Facilities Authority, Revenue Refunding Bonds (Catholic Health Initiatives), Series D, 6.375%, 10/01/36

 

 

5,500

 

 

5,521,010

 

 

 

 

 

 




 

 

 

 

 

 

58,987,701

 









 

 

 

 

 

 

 

 









West Virginia — 0.2%

 

 

 

 

 

 

 









Harrison County, West Virginia, County Commission for Solid Waste Disposal Revenue Bonds (Monongahela Power), AMT, Series C, 6.75%, 8/01/24 (h)

 

 

1,325

 

 

1,290,060

 









 

 

 

 

 

 

 

 









Wisconsin — 0.4%

 

 

 

 

 

 

 









Wisconsin State Health and Educational Facilities Authority Revenue Bonds (SynergyHealth Inc.), 6%, 11/15/32

 

 

3,395

 

 

3,163,325

 









 

 

 

 

 

 

 

 









Puerto Rico — 1.5%

 

 

 

 

 

 

 









Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series M-3 (a)(q):

 

 

 

 

 

 

 

6%, 7/01/26

 

 

5,240

 

 

5,005,615

 

6%, 7/01/27

 

 

4,235

 

 

3,991,911

 

6%, 7/01/28

 

 

2,750

 

 

2,573,505

 

 

 

 

 

 




 

 

 

 

 

 

11,571,031

 









Total Municipal Bonds — 125.8%

 

 

 

 

 

947,756,418

 










 

 

 

See Notes to Financial Statements.




SEMI-ANNUAL REPORT

JANUARY 31, 2009

23



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (r)

 

Par
(000)

 

Value

 


California — 10.9%

 

 

 

 

 

 

 









Alameda County, California, Joint Powers Authority, Lease Revenue Refunding Bonds, 5%, 12/01/34 (b)

 

$

6,990

 

$

6,679,225

 

California State University, Systemwide Revenue Refunding Bonds, Series A, 5%, 11/01/16 (h)

 

 

18,435

 

 

17,595,839

 

Las Virgenes, California, Unified School District, GO, Series A, 5%, 8/1/31 (b)

 

 

10,000

 

 

9,710,553

 

Orange County, California, Sanitation District, COP, Series B, 5%, 2/01/37 (b)

 

 

10,780

 

 

10,325,946

 

Riverside, California, Electric Revenue Bonds, Series D, 5%, 10/01/38 (b)

 

 

20,000

 

 

18,963,200

 

San Diego County, California, Water Authority, Water Revenue Refunding Bonds, COP, Series A, 5%, 5/01/33 (b)

 

 

9,370

 

 

9,037,552

 

San Francisco, California, Bay Area Rapid Transit District, Sales Tax Revenue Bonds, 5%, 7/01/36 (b)

 

 

10,000

 

 

9,701,849

 

 

 

 

 

 




 

 

 

 

 

 

82,014,164

 









 

 

 

 

 

 

 

 









Connecticut — 0.7%

 

 

 

 

 

 

 









Connecticut State Health and Educational Facilities Authority Revenue Bonds (Yale University), Series T-1, 4.70%, 7/01/29

 

 

5,010

 

 

5,016,713

 









 

 

 

 

 

 

 

 









Florida — 1.5%

 

 

 

 

 

 

 









Miami-Dade County, Florida, Aviation Revenue Refunding Bonds (Miami International Airport), AMT, 5%, 10/01/40 (j)(k)

 

 

15,000

 

 

11,705,071

 









 

 

 

 

 

 

 

 









Georgia — 1.3%

 

 

 

 

 

 

 









Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales Tax Revenue Refunding Bonds, Third Indenture, Series B, 5%, 7/01/37 (b)

 

 

10,000

 

 

9,820,808

 









 

 

 

 

 

 

 

 









Illinois — 2.1%

 

 

 

 

 

 

 









Illinois Finance Authority, Revenue Bonds (University of Chicago), Series B, 6.25, 7/01/38

 

 

10,000

 

 

10,742,800

 

Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Refunding Bonds (McCormick Place Expansion Project), Series B, 5.75%, 6/15/23 (a)

 

 

4,799

 

 

5,032,384

 

 

 

 

 

 




 

 

 

 

 

 

15,775,184

 









 

 

 

 

 

 

 

 









New Jersey — 1.5%

 

 

 

 

 

 

 









Garden State Preservation Trust of New Jersey, Open Space and Farmland Preservation Revenue Bonds, Series A, 5.75%, 11/01/28 (b)

 

 

10,000

 

 

11,326,900

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (r)

 

Par
(000)

 

Value

 


New York — 4.5%

 

 

 

 

 

 

 









New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds, Series DD, 5%, 6/15/37

 

$

17,567

 

$

16,649,253

 

Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 137th Series, 5.125%, 7/15/30 (b)

 

 

19,500

 

 

17,241,120

 

 

 

 

 

 




 

 

 

 

 

 

33,890,373

 









 

 

 

 

 

 

 

 









Ohio — 0.6%

 

 

 

 

 

 

 









Montgomery County, Ohio, Revenue Bonds (Catholic Health Initiatives), Series C-1, 5%, 10/01/41 (b)

 

 

4,990

 

 

4,234,664

 









 

 

 

 

 

 

 

 









Texas — 1.7%

 

 

 

 

 

 

 









Friendswood, Texas, Independent School District, GO, 5%, 2/15/37

 

 

12,955

 

 

12,705,647

 









 

 

 

 

 

 

 

 









Virginia — 0.5%

 

 

 

 

 

 

 









University of Virginia, Revenue Refunding Bonds, 5%, 6/01/40

 

 

3,950

 

 

3,958,493

 









 

 

 

 

 

 

 

 









Washington — 7.9%

 

 

 

 

 

 

 









Central Puget Sound Regional Transportation Authority, Washington, Sales and Use Tax Revenue Bonds, Series A, 5%, 11/01/34 (b)

 

 

17,000

 

 

16,566,160

 

Houston, Texas, Independent School District, GO, 5%, 2/15/33

 

 

10,000

 

 

9,916,800

 

King County, Washington, Sewer Revenue Bonds, 5%, 1/01/37 (b)

 

 

15,785

 

 

15,299,295

 

Port of Seattle, Washington, Revenue Refunding Bonds, AMT, Series B, 5.20%, 7/01/29 (a)

 

 

20,565

 

 

17,606,313

 

 

 

 

 

 




 

 

 

 

 

 

59,388,568

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 33.2%

 

 

 

 

 

249,836,585

 









Total Long-Term Investments
(Cost — $1,316,958,572) — 159.0%

 

 

 

 

 

1,197,593,003

 










 

 

 

 

 

 

 

 


Short-Term Securities

 

 

 

 

 

 

 









California — 0.5%

 

 

 

 

 

 

 









Los Angeles County, California, Metropolitan Transportation Authority, Sales Tax Revenue Refunding Bonds, Proposition C, VRDN, Second Senior Series A, 6%, 2/05/09 (a)(s)

 

 

4,000

 

 

4,000,000

 










 

 

 

See Notes to Financial Statements.




24

SEMI-ANNUAL REPORT

JANUARY 31, 2009




 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 









Pennsylvania — 1.4%

 

 

 

 

 

 

 









Philadelphia, Pennsylvania, GO, Refunding, VRDN, Series B, 3.75%, 2/05/09 (b)(s)

$

10,000

 

$

10,000,000

 









 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market Fund — 7.5%

 

 

 

 

 

 

 









Merrill Lynch Institutional Tax-Exempt Fund, 0.60% (t)(u)

 

 

56,743,907

 

 

56,743,907

 









Total Short-Term Securities
(Cost — $70,743,907) — 9.4%

 

 

 

 

 

70,743,907

 









Total Investments

 

 

 

 

 

 

 

(Cost — $1,387,702,479*) — 168.4%

 

 

 

 

 

1,268,336,910

 

 

Other Assets Less Liabilities — 0.6%

 

 

 

 

 

4,593,234

 

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (18.9)%

 

 

 

 

 

(142,645,295

)

 

Preferred Shares, at Redemption Value — (50.1)%

 

 

 

 

 

(377,256,535

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

753,028,314

 

 

 

 

 

 





 

 


 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

1,253,642,151

 

 

 



 

Gross unrealized appreciation

 

$

14,667,095

 

Gross unrealized depreciation

 

 

(141,883,016

)

 

 



 

Net unrealized depreciation

 

$

(127,215,921

)

 

 



 


 

 

(a)

MBIA Insured.

 

 

(b)

FSA Insured.

 

 

(c)

FGIC Insured.

 

 

(d)

FHLMC Collateralized.

 

 

(e)

FNMA Collateralized.

 

 

(f)

GNMA Collateralized.

 

 

(g)

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

 

 

(h)

AMBAC Insured.

 

 

(i)

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

 

 

(j)

XL Capital Insured.

 

 

(k)

Assured Guaranty Insured.

 

 

(l)

BHAC Insured.

 

 

(m)

Non-income producing security.

 

 

(n)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(o)

FHA Insured.

 

 

(p)

CIFG Insured.

 

 

(q)

Commonwealth Guaranteed.

 

 

(r)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(s)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

 

 

(t)

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


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







Merrill Lynch Institutional Tax-Exempt Fund

 

 

30,589,501

 

$

393,051

 










 

 

 

(u)

Represents the current yield as of report date.

 

 

 

(v)

When issued security.

 

 

 

Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used in determining the fair value of investments)

 

 

 

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of January 31, 2009 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 






Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1

 

$

56,743,907

 

Level 2

 

 

1,211,593,003

 

Level 3

 

 

 






Total

 

$

1,268,336,910

 

 

 





 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2009

25




 

 


 

 

Schedule of Investments January 31, 2009 (Unaudited)

BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan — 142.4%

 

 

 

 

 

 

 









County/City/Special District/School District — 34.6%

 

 

 

 

 

 

 

Adrian, Michigan, City School District, GO, 5%, 5/01/14 (a)(e)

 

$

2,400

 

$

2,794,224

 

Anchor Bay, Michigan, School District, School Building and Site, GO, Series II, 5.75%, 5/01/10 (a)(c)

 

 

3,165

 

 

3,363,857

 

Bullock Creek, Michigan, School District, GO, 5.50%, 5/01/10 (a)(d)

 

 

2,150

 

 

2,279,237

 

Detroit, Michigan, City School District, GO:

 

 

 

 

 

 

 

(School Building and Site Improvement), Series A, 5%, 5/01/13 (a)(c)

 

 

2,000

 

 

2,289,080

 

(School Building and Site Improvement), Series A, 5.375%, 5/01/13 (a)(c)

 

 

1,480

 

 

1,716,711

 

(School Building and Site Improvement), Series B, 5%, 5/01/28 (c)

 

 

1,900

 

 

1,779,312

 

Series A, 5.50%, 5/01/12 (a)(e)

 

 

1,700

 

 

1,924,315

 

East Grand Rapids, Michigan, Public School District, GO, 6%, 5/01/09 (a)(e)

 

 

6,300

 

 

6,388,326

 

Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5.25%, 5/01/23 (e)

 

 

2,000

 

 

2,077,300

 

Gibraltar, Michigan, School District, GO (School Building and Site) (c):

 

 

 

 

 

 

 

5%, 5/01/14 (a)

 

 

3,065

 

 

3,568,457

 

5%, 5/01/28

 

 

585

 

 

585,222

 

Grand Blanc, Michigan, Community Schools, GO (c)(d):

 

 

 

 

 

 

 

5.625%, 5/01/17

 

 

1,000

 

 

1,086,990

 

5.625%, 5/01/18

 

 

1,000

 

 

1,068,810

 

5.625%, 5/01/19

 

 

1,100

 

 

1,175,691

 

Harper Woods, Michigan, City School District, School Building and Site, GO, Refunding (c):

 

 

 

 

 

 

 

5%, 5/01/14 (a)

 

 

215

 

 

250,316

 

5%, 5/01/34

 

 

10

 

 

9,692

 

Hartland, Michigan, Consolidated School District, GO, 6%, 5/01/10 (a)(c)

 

 

4,500

 

 

4,798,485

 

Haslett, Michigan, Public School District, School Building and Site, GO,, 5.625%, 11/01/11 (a)(d)

 

 

1,275

 

 

1,428,370

 

Jackson, Michigan, Public Schools, GO, 5.375%, 5/01/10 (a)(c)

 

 

3,975

 

 

4,207,736

 

Lakewood, Michigan, Public Schools, GO, DRIVERS, Series 2624Z, 9.547%, 5/01/15 (e)(f)

 

 

2

 

 

2,188

 

Ludington, Michigan, Area School District, GO, 5.25%, 5/01/23 (d)

 

 

1,440

 

 

1,510,790

 

New Lothrop, Michigan, Area Public Schools, School Building and Site, GO, 5%, 5/01/35 (e)

 

 

1,200

 

 

1,170,780

 

Reed, Michigan, City Public Schools, School Building and Site, GO, 5%, 5/01/14 (a)(e)

 

 

1,000

 

 

1,164,260

 

Southfield, Michigan, Public Schools, School Building and Site, GO, Series A, 5%, 5/01/14 (a)(e)

 

 

1,000

 

 

1,162,620

 

Sparta, Michigan, Area Schools, School Building and Site, GO, 5%, 5/01/14 (a)(c)

 

 

1,000

 

 

1,164,260

 

Thornapple Kellogg School District, Michigan, GO, Refunding, 5%, 5/01/32 (d)

 

 

1,500

 

 

1,471,575

 

Zeeland, Michigan, Public Schools, School Building and Site, GO, 5%, 5/01/29 (d)

 

 

1,230

 

 

1,212,952

 

 

 

 

 

 




 

 

 

 

 

 

51,651,556

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Michigan (continued)

 

 

 

 

 

 

 









Education — 6.2%

 

 

 

 

 

 

 

Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds (Hillsdale College Project), 5%, 3/01/35

 

$

1,125

 

$

925,189

 

Michigan Higher Education Facilities Authority, Limited Obligation Revenue Refunding Bonds:

 

 

 

 

 

 

 

(College for Creative Studies), 5.85%, 6/01/12 (a)

 

 

550

 

 

625,438

 

(College for Creative Studies), 5.90%, 6/01/12 (a)

 

 

1,000

 

 

1,138,770

 

(Hope College), Series A, 5.90%, 4/01/32

 

 

1,000

 

 

817,780

 

Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-Q, 5%, 3/01/31 (b)

 

 

500

 

 

342,510

 

Michigan State Building Authority Revenue Bonds (Facilities Program), Series II, 5.10%, 10/15/09 (b)(h)

 

 

1,185

 

 

1,177,001

 

Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5%, 7/01/24 (c)(d)

 

 

1,450

 

 

1,426,989

 

South Lyon, Michigan, Community Schools, GO, Series A, 5.75%, 5/01/10 (a)(d)

 

 

2,650

 

 

2,817,533

 

 

 

 

 

 




 

 

 

 

 

 

9,271,210

 









Hospitals/Health Care — 25.3%

 

 

 

 

 

 

 

Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds, 5.80%, 11/01/24 (g)

 

 

2,170

 

 

1,744,723

 

Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley Medical Center), Series A (g):

 

 

 

 

 

 

 

5.375%, 7/01/20

 

 

385

 

 

282,451

 

6%, 7/01/20

 

 

775

 

 

605,097

 

Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health), Series A, 5.50%, 7/15/11 (a)(d)

 

 

3,000

 

 

3,331,380

 

Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan Obligation Group), Series A, 5.50%, 4/15/18 (b)

 

 

1,000

 

 

1,008,290

 

Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Crittenton Hospital), Series A, 5.625%, 3/01/27

 

 

1,300

 

 

1,096,966

 

(Oakwood Obligated Group), Series A, 5%, 7/15/25

 

 

3,110

 

 

2,541,865

 

(Oakwood Obligated Group), Series A, 5%, 7/15/37

 

 

3,340

 

 

2,378,481

 

(Sparrow Obligated Group), 5%, 11/15/31

 

 

1,595

 

 

1,174,877

 

Michigan State Hospital Finance Authority Revenue Bonds:

 

 

 

 

 

 

 

(McLaren Health Care Corporation), Series C, 5%, 8/01/35

 

 

1,585

 

 

1,128,932

 

(Mercy Health Services), Series R, 5.375%, 8/15/26 (b)(h)

 

 

2,000

 

 

2,005,960

 

(Trinity Health Credit Group), Series A, 6.125%, 12/01/23

 

 

940

 

 

988,466

 

(Trinity Health Credit Group), Series A, 6.25%, 12/01/28

 

 

570

 

 

580,836

 

(Trinity Health Credit Group), Series A, 6.50%, 12/01/33

 

 

1,400

 

 

1,433,740

 


 

 

 

See Notes to Financial Statements.


26

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan (continued)

 

 

 

 

 

 

 









Hospitals/Health Care (concluded)

 

 

 

 

 

 

 

Michigan State Hospital Finance Authority, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Ascension Health Credit), Series A, 6.25%, 11/15/09 (a)(d)

 

$

3,760

 

$

3,967,101

 

(McLaren Health Care Corporation), 5.75%, 5/15/38

 

 

1,500

 

 

1,202,160

 

(Trinity Health Credit Group), Series A, 6%, 12/01/20

 

 

1,400

 

 

1,446,410

 

(Trinity Health Credit Group), Series C, 5.375%, 12/01/23

 

 

1,000

 

 

1,003,530

 

(Trinity Health Credit Group), Series A, 6%, 12/01/27 (b)

 

 

5,500

 

 

5,542,130

 

(Trinity Health Credit Group), Series C, 5.375%, 12/01/30

 

 

1,950

 

 

1,804,803

 

(Trinity Health Credit Group), Series D, 5%, 8/15/34

 

 

1,650

 

 

1,412,746

 

Royal Oak, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (William Beaumont Hospital), 8.25%, 9/01/39

 

 

1,000

 

 

1,021,760

 

 

 

 

 

 




 

 

 

 

 

 

37,702,704

 









Housing — 2.3%

 

 

 

 

 

 

 

Michigan State, HDA, Limited Obligation M/F Housing Revenue Bonds (Deaconess Towers Apartments), AMT, 5.25%, 2/20/48 (i)

 

 

1,000

 

 

842,180

 

Michigan State, HDA, Rental Housing Revenue Bonds, AMT:

 

 

 

 

 

 

 

Series A, 5.30%, 10/01/37 (d)

 

 

25

 

 

21,700

 

Series B, 4.85%, 10/01/37 (e)

 

 

1,500

 

 

1,203,900

 

Series D, 5.125%, 4/01/31 (e)

 

 

1,500

 

 

1,308,270

 

 

 

 

 

 




 

 

 

 

 

 

3,376,050

 









IDA/PCR/Resource Recovery — 17.8%

 

 

 

 

 

 

 

Delta County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25%, 4/15/12 (a)

 

 

2,420

 

 

2,770,900

 

Dickinson County, Michigan, Economic Development Corporation, Environmental Improvement Revenue Refunding Bonds (International Paper Company Project), Series A, 5.75%, 6/01/16

 

 

2,500

 

 

2,101,025

 

Michigan State, COP, Refunding (New Center Development Inc.), 5.75%, 9/01/11 (d)(h)

 

 

5,045

 

 

5,622,249

 

Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), AMT, Series A, 5.55%, 9/01/29 (d)

 

 

9,500

 

 

7,838,640

 

Monroe County, Michigan, Economic Development Corporation, Limited Obligation Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95%, 9/01/22 (c)(d)

 

 

6,500

 

 

7,568,925

 

Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds (Development Area Number 3), 5.375%, 6/01/12 (a)(g)

 

 

640

 

 

724,013

 

 

 

 

 

 




 

 

 

 

 

 

26,625,752

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan (continued)

 

 

 

 

 

 

 









Lease Obligations — 9.4%

 

 

 

 

 

 

 

Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50%, 10/01/12 (a)(b)

 

$

665

 

$

763,207

 

Michigan State Building Authority Revenue Bonds (Facilities Program), Series II, 5.20%, 10/15/10 (b)(h)

 

 

1,675

 

 

1,631,266

 

Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program):

 

 

 

 

 

 

 

Series I, 5.50%, 10/15/10 (e)

 

 

7,000

 

 

7,449,960

 

Series I, 6.25%, 10/15/38

 

 

2,350

 

 

2,456,149

 

Series II, 5%, 10/15/29 (d)

 

 

2,000

 

 

1,812,860

 

 

 

 

 

 




 

 

 

 

 

 

14,113,442

 









Special Tax — 0.7%

 

 

 

 

 

 

 

Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel, Series A, 5%, 12/01/30 (d)

 

 

1,180

 

 

1,108,303

 









State — 2.2%

 

 

 

 

 

 

 

Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds, AMT, Series XVII-B, 5.40%, 6/01/18 (b)

 

 

3,000

 

 

2,691,810

 

Oak Park, Michigan, Street Improvement, GO, 5%, 5/01/30 (d)

 

 

600

 

 

564,054

 

 

 

 

 

 




 

 

 

 

 

 

3,255,864

 









Transportation — 16.2%

 

 

 

 

 

 

 

Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne County), AMT, Series A, 5.375%, 12/01/15 (d)

 

 

6,500

 

 

6,553,495

 

Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan Wayne County Airport), AMT (d):

 

 

 

 

 

 

 

5.25%, 12/01/25

 

 

4,475

 

 

3,923,770

 

5.25%, 12/01/26

 

 

3,700

 

 

3,215,485

 

5%, 12/01/34

 

 

5,200

 

 

4,026,100

 

Wayne County, Michigan, Airport Authority, Revenue Refunding Bonds, AMT (j):

 

 

 

 

 

 

 

5.75%, 12/01/26

 

 

3,060

 

 

2,880,929

 

5.375%, 12/01/32

 

 

4,300

 

 

3,657,580

 

 

 

 

 

 




 

 

 

 

 

 

24,257,359

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

27



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







Michigan (concluded)

 

 

 

 

 

 

 







Utilities — Electric & Gas — 10.4%

 

 

 

 

 

 

 

Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Detroit Edison Company Pollution Control Project), Series AA, 6.95%, 5/01/11 (c)(d)

 

$

2,000

 

$

2,157,920

 

Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.40%, 8/01/24 (b)

 

 

13,000

 

 

13,293,020

 

 

 

 

 

 




 

 

 

 

 

 

15,450,940

 









Utilities — Water & Sewer — 17.3%

 

 

 

 

 

 

 

Detroit, Michigan, Water Supply System Revenue Bonds:

 

 

 

 

 

 

 

Second Lien, Series B, 5%, 7/01/13 (a)(d)

 

 

1,780

 

 

2,031,496

 

Second Lien, Series B, 5%, 7/01/34 (d)

 

 

2,620

 

 

2,128,619

 

Senior Lien, Series A, 5.75%, 7/01/11 (a)(c)

 

 

1,000

 

 

1,113,040

 

Senior Lien, Series A, 5%, 7/01/13 (a)(d)

 

 

1,250

 

 

1,426,612

 

Senior Lien, Series A, 5%, 7/01/25 (e)

 

 

3,460

 

 

3,155,555

 

Senior Lien, Series A, 5%, 7/01/34 (d)

 

 

4,600

 

 

3,737,270

 

Detroit, Michigan, Water Supply System, Revenue Refunding Bonds, Second Lien, Series C, 5%, 7/01/29 (e)

 

 

6,475

 

 

5,561,572

 

Grand Rapids, Michigan, Sanitation Sewer System Revenue Refunding and Improvement Bonds, Series A, 5.50%, 1/01/22 (c)(d)

 

 

1,500

 

 

1,641,060

 

Wyoming, Michigan, Sewage Disposal System Revenue Bonds, 5%, 6/01/30 (d)

 

 

5,300

 

 

4,981,841

 

 

 

 

 

 




 

 

 

 

 

 

25,777,065

 









Total Municipal Bonds in Michigan

 

 

 

 

 

212,590,245

 









 

 

 

 

 

 

 

 









Puerto Rico — 6.9%

 

 

 

 

 

 

 









Lease Obligations — 2.6%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series M-3, 6%, 7/01/27 (d)

 

 

4,200

 

 

3,958,920

 









Special Tax — 1.5%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 5.05%, 8/01/46 (d)(k)

 

 

30,000

 

 

2,205,300

 









State — 0.8%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Refunding Bonds, Series A, 5.01%, 8/01/43 (d)(k)

 

 

12,500

 

 

1,145,500

 










 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 







Puerto Rico (concluded)

 

 

 

 

 

 

 







Transportation — 2.0%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC, 5.50%, 7/01/31 (j)

 

$

3,000

 

$

3,026,880

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

10,336,600

 









Total Municipal Bonds — 149.3%

 

 

 

 

 

222,926,845

 









 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (l)

 

 

 

 

 

 

 









California — 11.3%

 

 

 

 

 

 

 









County/City/Special District/ School District — 6.2%

 

 

 

 

 

 

 

Lakewood, Michigan, Public Schools, School Building and Site, GO, 5%,
5/01/37 (e)

 

 

4,150

 

 

4,035,580

 

Portage, Michigan, Public Schools, School Building and Site, GO, 5%, 5/01/31 (e)

 

 

2,850

 

 

2,808,390

 

Saginaw Valley State University, Michigan, Revenue Refunding Bonds, 5%, 7/01/31 (e)

 

 

2,500

 

 

2,402,175

 

 

 

 

 

 




 

 

 

 

 

 

9,246,145

 









Education — 5.1%

 

 

 

 

 

 

 

Wayne State University, Michigan, University Revenue Refunding Bonds, 5%, 11/15/35 (e)

 

 

7,790

 

 

7,598,522

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 11.3%

 

 

 

 

 

16,844,667

 









Total Long-Term Investments
(Cost — $250,749,866) — 160.6%

 

 

 

 

 

239,771,512

 









 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








Money Market Fund — 2.3%

 

 

 

 

 

 

 

CMA Michigan Municipal Money Fund, 0.26% (m)(n)

 

 

3,413,904

 

 

3,413,904

 









Total Short-Term Securities
(Cost — $3,413,904) — 2.3%

 

 

 

 

 

3,413,904

 









Total Investments (Cost — $254,163,770*) — 162.9%

 

 

 

 

 

243,185,416

 

 

Other Assets Less Liabilities — 1.7%

 

 

 

 

 

2,574,610

 

 

Liability for Trust Certificates, Including Interest Expense
and Fees Payable — (6.1)%

 

 

 

 

 

(9,075,873

)

 

Preferred Shares, at Redemption Value — (58.5)%

 

 

 

 

 

(87,359,948

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

149,324,205

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.




28

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)


 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2009, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

 

 

 

 

Aggregate cost

 

$

245,177,173

 

 

 

 



 

 

Gross unrealized appreciation

 

$

8,113,712

 

 

Gross unrealized depreciation

 

 

(19,135,469

)

 

 

 



 

 

Net unrealized depreciation

 

$

(11,021,757

)

 

 

 



 


 

 

(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)

AMBAC Insured.

 

 

(c)

FGIC Insured.

 

 

(d)

MBIA Insured.

 

 

(e)

FSA Insured.

 

 

(f)

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

 

 

(g)

ACA Insured.

 

 

(h)

Security is collateralized by Municipal or U.S. Treasury Obligations.

 

 

(i)

GNMA Collateralized.

 

 

(j)

Assured Guaranty Insured.

 

 

(k)

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

 

 

(l)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(m)

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


 

 

 

 

 

 

 

 

 

 








 

 

 

Net

 

 

 

 

 

Affiliate

 

Activity

 

Income

 

 







 

CMA Michigan Municipal Money Fund

 

$

(567,373

)

$

33,262

 

 










 

 

 

(n)

Represents the current yield as of report date.

 

 

Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of January 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





 

 

Investments in

 

Valuation Inputs

 

Securities

 





 

 

Assets

 

 

 



Level 1

 

$

3,413,904

 

Level 2

 

 

239,771,512

 

Level 3

 

 

 






Total

 

$

243,185,416

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

29



 

 



 

Schedule of Investments January 31, 2009 (Unaudited)

BlackRock MuniYield New York Insured Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York — 127.1%

 

 

 

 

 

 

 







County/City/Special District/School District — 31.2%

 

 

 

 

 

 

 

Buffalo, New York, School, GO, Series D (d)(e):

 

 

 

 

 

 

 

5.50%, 12/15/14

 

$

1,250

 

$

1,343,425

 

5.50%, 12/15/16

 

 

1,500

 

 

1,594,245

 

Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project), 5.75%, 5/01/20 (a)

 

 

1,900

 

 

1,977,387

 

Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series A:

 

 

 

 

 

 

 

4.50%, 2/15/47 (d)

 

 

16,275

 

 

11,963,590

 

5%, 2/15/47 (e)

 

 

12,150

 

 

9,245,056

 

Huntington, New York, GO, Refunding (b):

 

 

 

 

 

 

 

5.50%, 4/15/11

 

 

485

 

 

527,462

 

5.50%, 4/15/12

 

 

460

 

 

515,674

 

5.50%, 4/15/13

 

 

455

 

 

520,279

 

5.50%, 4/15/14

 

 

450

 

 

523,382

 

5.50%, 4/15/15

 

 

450

 

 

531,792

 

Ilion, New York, Central School District, GO, Series B, 5.50%, 6/15/10 (e)(h)

 

 

1,675

 

 

1,803,288

 

New York City, New York, City IDA, PILOT Revenue Bonds (Queens Baseball Stadium Project), 6.375%, 1/01/39 (g)

 

 

1,000

 

 

1,014,240

 

New York City, New York, City Transit Authority, Metropolitan Transportation Authority, Triborough, COP, Series A, 5.625%, 1/01/12 (b)

 

 

1,020

 

 

1,060,555

 

New York City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds:

 

 

 

 

 

 

 

Series S-1, 5.50%, 7/15/38 (g)

 

 

6,000

 

 

5,939,340

 

Series S-2, 4.25%, 1/15/34 (d)(e)

 

 

5,980

 

 

4,774,731

 

Series S-2, 5%, 1/15/37 (a)(e)

 

 

5,000

 

 

4,754,450

 

New York City, New York, City Transitional Finance Authority, Building Aid Revenue Refunding Bonds, Series S-1, 4.50%, 1/15/38

 

 

2,000

 

 

1,676,460

 

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

 

 

 

 

 

 

 

Series C, 5%, 2/01/33 (e)

 

 

16,195

 

 

15,475,942

 

Series E, 5.25%, 2/01/22 (d)

 

 

2,500

 

 

2,596,250

 

New York City, New York, City Transitional Finance Authority, Future Tax Secured, Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series A, 5%, 11/15/26 (e)

 

 

1,000

 

 

1,004,380

 

Series D, 5.25%, 2/01/21 (d)

 

 

3,000

 

 

3,145,680

 

New York City, New York, GO, Refunding, Series B, 7%, 2/01/18 (b)

 

 

70

 

 

70,326

 

New York City, New York, GO, Series B, 5.75%, 8/01/13 (d)

 

 

1,280

 

 

1,367,309

 

New York Convention Center Development Corporation, New York, Revenue Bonds (Hotel Unit Fee Secured) (b):

 

 

 

 

 

 

 

5%, 11/15/30

 

 

1,500

 

 

1,349,070

 

5%, 11/15/35

 

 

33,750

 

 

30,098,250

 

5%, 11/15/44

 

 

13,470

 

 

11,638,484

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 







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

 

 

 

 

 

 

 

New York State Dormitory Authority, Non-State Supported Debt, Lease Revenue Bonds (Municipal Health Facilities Improvement Program), Sub-Series 2-5, 5%, 1/15/32

 

$

500

 

$

467,610

 

New York State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (School District Financing Program), Series B, 5%, 4/01/36 (a)

 

 

6,000

 

 

5,700,540

 

New York State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Services Facilities) (a):

 

 

 

 

 

 

 

AMT, Series C, 5.40%, 2/15/33

 

 

6,460

 

 

5,497,395

 

Series A, 5%, 2/15/33

 

 

5,400

 

 

5,014,980

 

North Hempstead, New York, GO, Refunding, Series B (d)(e):

 

 

 

 

 

 

 

6.40%, 4/01/13

 

 

1,745

 

 

2,035,385

 

6.40%, 4/01/17

 

 

555

 

 

684,903

 

Rochester, New York, Housing Authority, Mortgage Revenue Bonds (Andrews Terrace Apartments Project), AMT, 4.70%, 12/20/38 (l)

 

 

1,500

 

 

1,180,290

 

Syracuse, New York, IDA, PILOT Revenue Bonds (Carousel Center Project), AMT, Series A, 5%, 1/01/36 (m)

 

 

11,500

 

 

8,595,905

 

 

 

 

 

 




 

 

 

 

 

 

145,688,055

 









Education — 4.9%

 

 

 

 

 

 

 

Madison County, New York, IDA, Civic Facility Revenue Bonds (Colgate University Project), Series A (b):

 

 

 

 

 

 

 

5%, 7/01/30

 

 

5,410

 

 

5,163,412

 

5%, 7/01/35

 

 

4,250

 

 

3,966,780

 

New York City, New York, City IDA, Civic Facility Revenue Refunding Bonds (Nightingale-Bamford School), 5.25%, 1/15/18 (b)

 

 

1,275

 

 

1,361,649

 

New York City, New York, IDA, Civic Facility Revenue Refunding Bonds (Polytechnic University), 5.25%, 11/01/37 (c)

 

 

2,480

 

 

1,750,186

 

New York City, New York, Trust for Cultural Resources Revenue Refunding Bonds (American Museum of Natural History), Series A (d):

 

 

 

 

 

 

 

5%, 7/01/36

 

 

4,250

 

 

4,048,890

 

5%, 7/01/44

 

 

1,500

 

 

1,398,960

 

New York State Dormitory Authority, Non-State Supported Debt, Revenue Refunding Bonds (Mount Sinai School of Medicine of New York University), 5%, 7/01/35 (d)

 

 

2,100

 

 

1,900,437

 

New York State Dormitory Authority, Revenue Refunding Bonds (City University System), Series C, 7.50%, 7/01/10 (e)

 

 

1,740

 

 

1,824,025

 

Rensselaer County, New York, IDA, Civic Facility Revenue Bonds (Rensselaer Polytechnic Institute), Series B, 5.50%, 8/01/22 (b)

 

 

1,255

 

 

1,281,305

 

 

 

 

 

 




 

 

 

 

 

 

22,695,644

 










 

 

 

See Notes to Financial Statements.




30

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield New York Insured Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 







Hospitals/Health Care — 7.4%

 

 

 

 

 

 

 

Nassau Health Care Corporation, New York, Health System Revenue Bonds, 5.75%, 8/01/09 (a)(i)

 

$

10,830

 

$

11,317,025

 

New York City, New York, City IDA, Parking Facility Revenue Bonds (Royal Charter Properties Inc. — The New York and Pennsylvania Hospital Leasehold Project), 5.75%, 12/15/29 (a)

 

 

7,970

 

 

8,090,985

 

New York State Dormitory Authority, Mortgage Revenue Bonds (Montefiore Medical Center), 5%, 8/01/33 (d)(e)(f)

 

 

1,500

 

 

1,286,805

 

New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds (Presbyterian Hospital of New York), 5%, 8/15/36 (a)(f)

 

 

5,000

 

 

4,510,050

 

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(Eger Health Care and Rehabilitation Center), 6.10%, 8/01/37 (f)

 

 

2,905

 

 

2,924,957

 

(New York State Rehabilitation Association), Series A, 5.25%, 7/01/19 (j)

 

 

1,180

 

 

1,221,276

 

(New York State Rehabilitation Association), Series A, 5.125%, 7/01/23 (j)

 

 

1,000

 

 

1,022,150

 

Series B, 6.50%, 2/15/11 (d)(h)

 

 

1,000

 

 

1,111,410

 

New York State Dormitory Authority, State Supported Debt Revenue Bonds (Mental Health Facilities), Series B, 5.25%, 2/15/14 (i)

 

 

1,570

 

 

1,851,752

 

Oneida County, New York, IDA, Civic Facilities Revenue Bonds (Mohawk Valley), Series A, 5.20%, 2/01/13 (a)

 

 

1,365

 

 

1,390,471

 

 

 

 

 

 




 

 

 

 

 

 

34,726,881

 









Housing — 3.9%

 

 

 

 

 

 

 

Monroe County, New York, IDA, Revenue Bonds (Southview Towers Project), AMT:

 

 

 

 

 

 

 

6.125%, 2/01/20

 

 

1,295

 

 

1,317,883

 

6.25%, 2/01/31

 

 

1,125

 

 

1,091,036

 

New York City, New York, City Housing Development Corporation, M/F Housing Revenue Bonds, AMT:

 

 

 

 

 

 

 

Series C, 5%, 11/01/26

 

 

1,500

 

 

1,363,305

 

Series C, 5.05%, 11/01/36

 

 

2,000

 

 

1,612,300

 

Series H-1, 4.70%, 11/01/40

 

 

1,340

 

 

1,008,873

 

New York State Dormitory Authority Revenue Bonds, (Upstate Community Colleges), Series A, 6%, 7/01/10 (a)(i)

 

 

1,780

 

 

1,932,225

 

New York State, HFA, M/F Housing Revenue Bonds (Saint Philips Housing), AMT, Series A, 4.65%, 11/15/38 (k)

 

 

3,750

 

 

3,188,400

 

New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, AMT, Series 143, 4.90%, 10/01/37

 

 

1,000

 

 

804,040

 

New York State Mortgage Agency, Homeowner Mortgage Revenue Refunding Bonds, AMT:

 

 

 

 

 

 

 

Series 133, 4.95%, 10/01/21

 

 

1,540

 

 

1,517,116

 

Series 143, 4.85%, 10/01/27 (d)

 

 

2,485

 

 

2,168,983

 

Yonkers, New York, IDA, Revenue Bonds (Monastery Manor associates LP Project), AMT, 5.25%, 4/01/37

 

 

2,445

 

 

2,014,215

 

 

 

 

 

 




 

 

 

 

 

 

18,018,376

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 







IDA/PCR/Resource Recovery — 15.7%

 

 

 

 

 

 

 

New York City, New York, City IDA, IDR (Japan Airlines Company), AMT, 6%, 11/01/15 (a)

 

$

5,900

 

$

5,909,381

 

New York City, New York, City IDA, PILOT Revenue Bonds:

 

 

 

 

 

 

 

(Queens Baseball Stadium Project), 5%, 1/01/36 (b)

 

 

11,800

 

 

9,228,190

 

(Queens Baseball Stadium Project), 5%, 1/01/39 (b)

 

 

5,250

 

 

4,053,420

 

(Queens Baseball Stadium Project), 5%, 1/01/46 (b)

 

 

9,900

 

 

7,437,672

 

(Yankee Stadium Project), 5%, 3/01/36 (d)

 

 

4,650

 

 

3,634,254

 

(Yankee Stadium Project), 5%, 3/01/46 (e)

 

 

13,250

 

 

9,557,887

 

New York City, New York, City IDA, Special Facility Revenue Refunding Bonds (Terminal One Group Association Project), AMT, 5.50%, 1/01/24

 

 

1,500

 

 

1,276,335

 

New York State Urban Development Corporation, Personal Income Tax Revenue Bonds Series C-1, 5%, 3/15/13 (d)(i)

 

 

3,000

 

 

3,450,630

 

Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson), AMT, 5.25%, 6/01/27

 

 

4,625

 

 

3,670,585

 

Suffolk County, New York, IDA, Solid Waste Disposal Facility, Revenue Refunding Bonds (Ogden Martin System Huntington Project), AMT (b):

 

 

 

 

 

 

 

6%, 10/01/10

 

 

8,530

 

 

8,834,180

 

6.15%, 10/01/11

 

 

9,170

 

 

9,646,106

 

6.25%, 10/01/12

 

 

6,470

 

 

6,860,917

 

 

 

 

 

 




 

 

 

 

 

 

73,559,557

 









State — 10.5%

 

 

 

 

 

 

 

New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A, 5%, 10/15/32 (b)

 

 

11,200

 

 

10,955,616

 

New York State Dormitory Authority, Lease Revenue Bonds (State University Dormitory Facilities), 5%, 7/01/37 (b)

 

 

2,800

 

 

2,634,212

 

New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds (School District Financing Program) (a):

 

 

 

 

 

 

 

Series A, 5%, 10/01/35

 

 

550

 

 

522,781

 

Series C, 5%, 10/01/37

 

 

4,050

 

 

3,837,375

 

New York State Dormitory Authority Revenue Bonds (School Districts Financing Program), Series E, 5.75%, 10/01/30 (d)

 

 

6,900

 

 

6,974,244

 

New York State Dormitory Authority, Revenue Refunding Bonds (School District Financing Program), Series I, 5.75%, 10/01/18 (d)

 

 

1,370

 

 

1,514,590

 

New York State Dormitory Authority, State Personal Income Tax Revenue Bonds (Education), Series B, 5.75%, 3/15/36

 

 

7,850

 

 

8,173,498

 

New York State Thruway Authority, Highway and Bridge Trust Fund, Second Generation Revenue Bonds, Series B, 5%, 4/01/27

 

 

1,500

 

 

1,484,010

 


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

31



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield New York Insured Fund, Inc. (MYN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 







State (concluded)

 

 

 

 

 

 

 

New York State Thruway Authority, Second General Highway and Bridge Trust Fund Revenue Bonds, Series A, 5%, 4/01/26 (b)

 

$

4,380

 

$

4,379,693

 

New York State Urban Development Corporation, Personal Income Tax Revenue Bonds (State Facilities), Series A-1, 5%, 3/15/29 (d)(e)

 

 

5,000

 

 

4,924,900

 

New York State Urban Development Corporation, Revenue Refunding Bonds (Correctional Capital Facilities), Series A, 6.50%, 1/01/11 (a)

 

 

3,190

 

 

3,463,989

 

 

 

 

 

 




 

 

 

 

 

 

48,864,908

 









Tobacco — 1.9%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corporation of New York Revenue Bonds:

 

 

 

 

 

 

 

Series A-1, 5.25%, 6/01/20 (b)

 

 

5,000

 

 

5,086,800

 

Series A-1, 5.25%, 6/01/22 (b)

 

 

2,000

 

 

2,016,800

 

Series C-1, 5.50%, 6/01/22

 

 

1,900

 

 

1,934,257

 

 

 

 

 

 




 

 

 

 

 

 

9,037,857

 









Transportation — 34.0%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds, Series A, 5%, 11/15/35 (d)

 

 

5,000

 

 

4,521,750

 

Metropolitan Transportation Authority, New York, Dedicated Tax Fund, Revenue Refunding Bonds, Series A:

 

 

 

 

 

 

 

5%, 11/15/30 (d)

 

 

6,600

 

 

6,199,314

 

5%, 11/15/32 (a)

 

 

1,015

 

 

936,764

 

Metropolitan Transportation Authority, New York, Revenue Bonds, Series C, 6.50%, 11/15/28

 

 

3,200

 

 

3,443,200

 

Metropolitan Transportation Authority, New York, Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series A, 5.125%, 11/15/22 (d)(e)

 

 

1,390

 

 

1,418,815

 

Series A, 5.125%, 11/15/31 (g)

 

 

6,875

 

 

6,490,619

 

Series A, 5.25%, 11/15/31 (d)(e)

 

 

2,500

 

 

2,409,700

 

Series A, 5.75%, 11/15/32 (c)

 

 

29,300

 

 

29,544,948

 

Series B, 5%, 11/15/28 (d)

 

 

1,500

 

 

1,438,035

 

Metropolitan Transportation Authority, New York, Transit Facilities Revenue Refunding Bonds, Series C, 5.125%, 7/01/12 (a)(i)

 

 

1,640

 

 

1,854,414

 

Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series F (d):

 

 

 

 

 

 

 

5.25%, 11/15/12 (i)

 

 

6,235

 

 

7,158,154

 

5%, 11/15/31

 

 

5,000

 

 

4,658,600

 

New York State Thruway Authority, General Revenue Bonds, Series F, 5%, 1/01/30 (b)

 

 

6,000

 

 

5,636,700

 

New York State Thruway Authority, General Revenue Refunding Bonds (a):

 

 

 

 

 

 

 

Series G, 4.75%, 1/01/29

 

 

7,250

 

 

6,865,170

 

Series G, 4.75%, 1/01/30

 

 

9,000

 

 

8,389,080

 

Series H, 5%, 1/01/37 (b)

 

 

10,000

 

 

9,412,400

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 







Transportation (concluded)

 

 

 

 

 

 

 

Niagara, New York, Frontier Authority, Airport Revenue Bonds (Buffalo Niagara International Airport), Series B, 5.50%, 4/01/19 (d)

 

$

2,705

 

$

2,734,836

 

Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 141st Series, 4.50%, 9/01/35 (j)

 

 

1,000

 

 

748,430

 

Port Authority of New York and New Jersey, Special Obligation Revenue Bonds (JFK International Air Terminal LLC), AMT, Series 6 (d):

 

 

 

 

 

 

 

6.25%, 12/01/10

 

 

14,750

 

 

14,952,960

 

6.25%, 12/01/11

 

 

7,175

 

 

7,241,440

 

6.25%, 12/01/13

 

 

4,425

 

 

4,345,704

 

6.25%, 12/01/14

 

 

7,380

 

 

7,147,751

 

5.75%, 12/01/22

 

 

10,160

 

 

8,157,464

 

5.75%, 12/01/25

 

 

3,500

 

 

2,676,870

 

Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Refunding Bonds, Series Y, 6%, 1/01/12 (d)(h)

 

 

1,790

 

 

1,943,403

 

Triborough Bridge and Tunnel Authority, New York, Subordinate Revenue Bonds:

 

 

 

 

 

 

 

5%, 11/15/28 (b)

 

 

2,465

 

 

2,464,827

 

Series A, 5.25%, 11/15/30 (d)

 

 

6,000

 

 

6,014,640

 

 

 

 

 

 




 

 

 

 

 

 

158,805,988

 









Utilities — Electric & Gas — 7.2%

 

 

 

 

 

 

 

Long Island Power Authority, New York, Electric System Revenue Bonds, Series A (b):

 

 

 

 

 

 

 

5%, 9/01/29

 

 

7,000

 

 

6,466,110

 

5%, 9/01/34

 

 

7,750

 

 

6,937,645

 

Long Island Power Authority, New York, Electric System Revenue Refunding Bonds (g):

 

 

 

 

 

 

 

Series A, 6%, 5/01/33

 

 

1,500

 

 

1,556,835

 

Series A, 5.75%, 4/01/39

 

 

1,015

 

 

1,050,464

 

Series B, 5%, 12/01/35 (a)

 

 

4,000

 

 

3,801,480

 

New York State Energy Research and Development Authority, Gas Facilities Revenue Refunding Bonds (Brooklyn Union Gas Company/Keyspan), AMT, Series A, 4.70%, 2/01/24 (e)

 

 

16,250

 

 

13,829,075

 

 

 

 

 

 




 

 

 

 

 

 

33,641,609

 









Utilities — Water & Sewer — 8.9%

 

 

 

 

 

 

 

Buffalo, New York, Sewer Authority, Revenue Refunding Bonds, Series F, 6%, 7/01/13 (d)(e)

 

 

4,300

 

 

4,608,783

 

New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A:

 

 

 

 

 

 

 

5.75%, 6/15/11 (d)(i)

 

 

24,650

 

 

27,428,548

 

4.25%, 6/15/39 (a)

 

 

1,050

 

 

851,676

 

5.75%, 6/15/40

 

 

1,600

 

 

1,680,400

 


 

 

 

See Notes to Financial Statements.




32

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Schedule of Investments (continued)

BlackRock MuniYield New York Insured Fund, Inc. (MYN)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 









Utilities — Water & Sewer (concluded)

 

 

 

 

 

 

 

New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series A, 5.125%, 6/15/34 (d)

 

$

1,250

 

$

1,216,188

 

Series A, 5%, 6/15/35 (d)

 

 

3,500

 

 

3,337,215

 

Series C, 5%, 6/15/35 (d)

 

 

975

 

 

929,653

 

Series F, 5%, 6/15/29 (a)

 

 

500

 

 

494,305

 

Niagara Falls, New York, GO (Water Treatment Plant), AMT, 7.25%, 11/01/10 (d)(h)

 

 

1,000

 

 

1,108,860

 

 

 

 

 

 




 

 

 

 

 

 

41,655,628

 









Utilities — Irrigation, Resource Recovery, Solid Waste & Others — 0.7%

 

 

 

 

 

 

 

Dutchess County, New York, Resource Recovery Agency Revenue Bonds (Solid Waste System-Forward), Series A, 5.40%, 1/01/13 (d)

 

 

1,700

 

 

1,787,907

 

North Country, New York, Development Authority, Solid Waste Management System, Revenue Refunding Bonds, 6%, 5/15/15 (a)

 

 

1,260

 

 

1,408,491

 

 

 

 

 

 




 

 

 

 

 

 

3,196,398

 









Utility — 0.8%

 

 

 

 

 

 

 

New York State Environmental Facilities Corporation, Special Obligation Revenue Refunding Bonds (Riverbank State Park), 6.25%, 4/01/12 (b)

 

 

3,500

 

 

3,749,515

 









Total New York Municipal Bonds — 127.1%

 

 

 

 

 

593,640,416

 









 

 

 

 

 

 

 

 









Guam — 0.8%

 

 

 

 

 

 

 









Transportation — 0.8%

 

 

 

 

 

 

 

A.B. Won Guam International Airport Authority, General Revenue Refunding Bonds, AMT, Series C (d):

 

 

 

 

 

 

 

5.25%, 10/01/21

 

 

2,240

 

 

2,062,301

 

5.25%, 10/01/22

 

 

2,050

 

 

1,844,918

 









Total Guam Municipal Bonds — 0.8%

 

 

 

 

 

3,907,219

 









 

 

 

 

 

 

 

 









Puerto Rico — 11.8%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.8%

 

 

 

 

 

 

 

Puerto Rico Commonwealth, GO, Refunding, Sub-Series C-7 (d):

 

 

 

 

 

 

 

6%, 7/01/27

 

 

2,000

 

 

1,885,200

 

6%, 7/01/28

 

 

4,775

 

 

4,468,540

 

Puerto Rico Municipal Finance Agency, GO, Series A,5%, 8/01/30 (a)

 

 

2,000

 

 

1,889,240

 

 

 

 

 

 




 

 

 

 

 

 

8,242,980

 









Housing — 0.8%

 

 

 

 

 

 

 

Puerto Rico Housing Financing Authority, Capital Funding Program, Subordinate Revenue Refunding Bonds, 5.125%, 12/01/27

 

 

4,000

 

 

3,926,280

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Puerto Rico (concluded)

 

 

 

 

 

 

 









State — 3.0%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax and Capital Appreciation Revenue Bonds, Series A (n):

 

 

 

 

 

 

 

4.62%, 7/01/31 (e)

 

$

22,030

 

$

4,090,530

 

4.67%, 7/01/35 (b)

 

 

3,900

 

 

530,127

 

5.05%, 7/01/43 (b)

 

 

8,000

 

 

599,040

 

Puerto Rico Commonwealth, Public Improvement, GO, Refunding, Series A, 5.50%, 7/01/20 (d)

 

 

2,000

 

 

1,943,800

 

Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Revenue Bonds, Series A, 5%, 7/01/31 (b)

 

 

4,000

 

 

3,252,240

 

Puerto Rico Public Buildings Authority, Government Facilities Revenue Refunding Bonds, Series M-3, 6%, 7/01/28 (d)(o)

 

 

2,850

 

 

2,667,087

 

Puerto Rico Public Finance Corporation, Commonwealth Appropriation Revenue Bonds, Series E, 5.50%, 2/01/12 (i)

 

 

700

 

 

776,615

 

 

 

 

 

 




 

 

 

 

 

 

13,859,439

 









Transportation — 4.3%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series CC (a):

 

 

 

 

 

 

 

5.50%, 7/01/31

 

 

5,000

 

 

5,044,800

 

5.25%, 7/01/33

 

 

1,000

 

 

970,500

 

5.25%, 7/01/34

 

 

4,000

 

 

3,863,760

 

5.25%, 7/01/36

 

 

3,750

 

 

3,612,750

 

Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Bonds, Series G (e):

 

 

 

 

 

 

 

5.25%, 7/01/13 (i)

 

 

655

 

 

764,536

 

5.25%, 7/01/19

 

 

2,265

 

 

2,114,695

 

5.25%, 7/01/21

 

 

345

 

 

316,883

 

Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series D, 5.75%, 7/01/12 (i)

 

 

3,000

 

 

3,393,360

 

 

 

 

 

 




 

 

 

 

 

 

20,081,284

 









Utilities — Water & Sewer — 1.9%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Aqueduct and Sewer Authority, Senior Lien Revenue Bonds, Series A, 5.125%, 7/01/47 (g)

 

 

10,980

 

 

9,098,797

 









Total Puerto Rico Municipal Bonds — 11.8%

 

 

 

 

 

55,208,780

 









Total Municipal Bonds — 139.7%

 

 

 

 

 

652,756,415

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

33



 

 


 

Schedule of Investments (continued)

BlackRock MuniYield New York Insured Fund, Inc. (MYN)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (p)

 

Par
(000)

 

Value

 









County/City/Special District/School District — 7.6%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Dedicated Tax Fund Revenue Bonds, Series A, 5%, 11/15/31 (d)

 

$

3,901

 

$

3,634,796

 

New York City, New York, GO, Series J, 5%, 5/15/23

 

 

6,750

 

 

6,789,690

 

New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds (New York University), Series A, 5%, 07/01/38

 

 

6,498

 

 

6,153,388

 

Triborough Bridge and Tunnel Authority, New York, Revenue Refunding Bonds, 5%, 11/15/32 (d)

 

 

19,678

 

 

18,985,808

 

 

 

 

 

 




 

 

 

 

 

 

35,563,682

 









Education — 0.9%

 

 

 

 

 

 

 

Erie County, New York, IDA, School Facility Revenue Bonds (City of Buffalo Project), 5.75%, 5/01/24 (a)

 

 

4,238

 

 

4,352,536

 









Special Tax — 6.3%

 

 

 

 

 

 

 

New York City, New York, Sales Tax Asset Receivable Corporation Revenue Bonds, Series A (b):

 

 

 

 

 

 

 

5.25%, 10/15/27

 

 

13,000

 

 

13,215,474

 

5%, 10/15/32

 

 

16,000

 

 

16,152,246

 

 

 

 

 

 




 

 

 

 

 

 

29,367,720

 









Transportation — 3.8%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Revenue Refunding Bonds, Series A, 5%, 11/15/30 (a)

 

 

8,460

 

 

8,039,284

 

Port Authority of New York and New Jersey, Consolidated Revenue Bonds, AMT, 137th Series, 5.125%, 7/15/30 (a)

 

 

2,500

 

 

2,210,400

 

Triborough Bridge and Tunnel Authority, New York, Revenue Refunding Bonds, 5.25%, 11/15/23 (d)

 

 

7,000

 

 

7,277,620

 

 

 

 

 

 




 

 

 

 

 

 

17,527,304

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 18.6%

 

 

 

 

 

86,811,242

 









Total Long-Term Investments
(Cost — $795,463,899) — 158.3%

 

 

 

 

 

739,567,657

 










 

 

 

 

 

 

 

 









Short-Term Securities

 

Shares

 

 

 

 









Money Market Fund — 6.2%

 

 

 

 

 

 

 

CMA New York Municipal Money Fund, 0.11% (q)(r)

 

 

28,697,315

 

 

28,697,315

 









Total Short-Term Securities
(Cost — $28,697,315) — 6.2%

 

 

 

 

 

28,697,315

 









Total Investments (Cost — $824,161,214*) — 164.5%

 

 

 

 

 

768,264,972

 

 

Other Assets Less Liabilities — 1.9%

 

 

 

 

 

8,725,634

 

 

Liability for Trust Certificates, Including Interest Expense
and Fees Payable — (10.8)%

 

 

 

 

 

(50,393,876

)

 

Preferred Shares, at Redemption Value — (55.6)%

 

 

 

 

 

(259,530,603

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

467,066,127

 

 

 

 

 

 



 


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

773,363,314

 

 

 



 

Gross unrealized appreciation

 

$

9,366,190

 

Gross unrealized depreciation

 

 

(64,564,060

)

 

 



 

Net unrealized depreciation

 

$

(55,197,870

)

 

 



 


 

 

(a)

FSA Insured.

 

 

(b)

AMBAC Insured.

 

 

(c)

ACA Insured.

 

 

(d)

MBIA Insured.

 

 

(e)

FGIC Insured.

 

 

(f)

FHA Insured.

 

 

(g)

Assured Guaranty Insured.

 

 

(h)

Security is collateralized by Municipal or U.S. Treasury Obligations.

 

 

(i)

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.

 

 

(j)

CIFG Insured.

 

 

(k)

FNMA Collateralized.

 

 

(l)

GNMA Collateralized.

 

 

(m)

XL Capital Insured.

 

 

(n)

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

 

 

(o)

Commonwealth Guaranteed.

 

 

(p)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(q)

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


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







CMA New York Municipal Money Fund

 

 

14,726,148

 

$

127,707

 










 

 

(r)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.




34

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Schedule of Investments (concluded)

BlackRock MuniYield New York Insured Fund, Inc. (MYN)


 

 

 

Effective August 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used in determining the fair value of investments)

 

 

 

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of January 31, 2009 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1

 

$

28,697,315

 

Level 2

 

 

739,567,657

 

Level 3

 

 

 






Total

 

$

768,264,972

 

 

 





 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

35



 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2009 (Unaudited)

 

BlackRock
MuniHoldings
Insured
Fund II, Inc.
(MUE)

 

BlackRock
MuniYield
California
Insured
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Insured
Fund, Inc.
(MYI)

 

BlackRock
MuniYield
Michigan
Insured
Fund II, Inc.
(MYM)

 

BlackRock
MuniYield
New York
Insured
Fund, Inc.
(MYN)

 


















Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investments at value — unaffiliated1

 

$

421,411,922

 

$

680,247,463

 

$

1,211,593,003

 

$

239,771,512

 

$

739,567,657

 

Investments at value — affiliated2

 

 

26,102,900

 

 

29,933,000

 

 

56,743,907

 

 

3,413,904

 

 

28,697,315

 

Cash

 

 

 

 

96,424

 

 

98,917

 

 

62,565

 

 

15,315

 

Investments sold receivable

 

 

21,354,775

 

 

 

 

6,139,060

 

 

 

 

4,230,644

 

Interest receivable

 

 

5,835,285

 

 

10,968,244

 

 

15,886,425

 

 

3,286,304

 

 

10,028,236

 

Dividends receivable — affiliated

 

 

 

 

591

 

 

777

 

 

 

 

280

 

Other assets

 

 

 

 

29,231

 

 

46,588

 

 

788

 

 

32,634

 

Prepaid expenses

 

 

17,771

 

 

27,661

 

 

54,307

 

 

9,539

 

 

30,291

 

 

 
















Total assets

 

 

474,722,653

 

 

721,302,614

 

 

1,290,562,984

 

 

246,544,612

 

 

782,602,372

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Bank overdraft

 

 

7,963,125

 

 

 

 

 

 

 

 

 

Income dividends payable — Common Shares

 

 

1,117,621

 

 

1,838,324

 

 

3,768,975

 

 

651,765

 

 

2,070,913

 

Investments purchased payable

 

 

10,795,512

 

 

9,544,621

 

 

13,034,589

 

 

 

 

3,012,285

 

Investment advisory fees payable

 

 

172,565

 

 

301,488

 

 

540,100

 

 

105,680

 

 

325,864

 

Interest expense and fees payable

 

 

461,561

 

 

479,815

 

 

734,615

 

 

45,873

 

 

294,348

 

Officer’s and Directors’ fees payable

 

 

557

 

 

25,302

 

 

48,101

 

 

248

 

 

27,545

 

Payable to other affiliates

 

 

2,340

 

 

3,808

 

 

25,870

 

 

1,344

 

 

3,828

 

Other accrued expenses payable

 

 

90,867

 

 

132,898

 

 

214,279

 

 

25,549

 

 

171,331

 

Other liabilities

 

 

 

 

 

 

926

 

 

 

 

 

 

 
















Total accrued liabilities

 

 

20,604,148

 

 

12,326,256

 

 

18,367,455

 

 

830,459

 

 

5,906,114

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Trust certificates3

 

 

50,863,242

 

 

77,169,823

 

 

141,910,680

 

 

9,030,000

 

 

50,099,528

 

 

 
















Total Liabilities

 

 

71,467,390

 

 

89,496,079

 

 

160,278,135

 

 

9,860,459

 

 

56,005,642

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 


















$25,000 per share liquidation preferences, plus unpaid dividends4

 

 

145,312,325

 

 

192,327,876

 

 

377,256,535

 

 

87,359,948

 

 

259,530,603

 

 

 
















Net Assets Applicable to Common Shareholders

 

$

257,942,938

 

$

439,478,659

 

$

753,028,314

 

$

149,324,205

 

$

467,066,127

 

 

 

















 

 

 

See Notes to Financial Statements.


36

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 


 

Statements of Assets and Liabilities (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2009 (Unaudited)

 

BlackRock
MuniHoldings
Insured
Fund II, Inc.
(MUE)

 

BlackRock
MuniYield
California
Insured
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Insured
Fund, Inc.
(MYI)

 

BlackRock
MuniYield
Michigan
Insured
Fund II, Inc.
(MYM)

 

BlackRock
MuniYield
New York
Insured
Fund, Inc.
(MYN)

 


















Net Assets Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Common Shares, par value $0.10 per share5

 

$

2,235,243

 

$

3,436,120

 

$

6,730,313

 

$

1,206,972

 

$

3,944,596

 

Paid-in capital in excess of par

 

 

296,180,166

 

 

494,224,666

 

 

943,024,418

 

 

162,821,380

 

 

549,677,325

 

Undistributed net investment income

 

 

2,230,547

 

 

1,392,995

 

 

2,891,434

 

 

930,629

 

 

(140,540

)

Accumulated net realized losses

 

 

(14,148,050

)

 

(13,647,381

)

 

(80,252,282

)

 

(4,656,422

)

 

(30,519,012

)

Net unrealized appreciation/depreciation

 

 

(28,554,968

)

 

(45,927,741

)

 

(119,365,569

)

 

(10,978,354

)

 

(55,896,242

)

 

 
















Net Assets Applicable to Common Shareholders

 

$

257,942,938

 

$

439,478,659

 

$

753,028,314

 

$

149,324,205

 

$

467,066,127

 

 

 
















Net asset value per Common Share

 

$

11.54

 

$

12.79

 

$

11.19

 

$

12.37

 

$

11.84

 

 

 
















1  Investments at cost — unaffiliated

 

$

449,966,890

 

$

726,175,204

 

$

1,330,958,572

 

$

250,749,866

 

$

795,463,899

 

 

 
















2  Investments at cost — affiliated

 

$

26,102,900

 

$

29,933,000

 

$

56,743,907

 

$

3,413,904

 

$

28,697,315

 

 

 
















3  Represents short-term floating rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4  Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par value $0.05 per share

 

 

 

 

 

 

 

 

1,941

 

 

10,379

 

 

 
















Par value $0.10 per share

 

 

5,812

 

 

7,692

 

 

15,087

 

 

1,553

 

 

 

 

 
















5  Common Shares outstanding

 

 

22,352,426

 

 

34,361,200

 

 

67,303,125

 

 

12,069,721

 

 

39,445,962

 

 

 

















 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2009

37



 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended January 31, 2009 (Unaudited)

 

BlackRock
MuniHoldings
Insured
Fund II, Inc.
(MUE)

 

BlackRock
MuniYield
California
Insured
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Insured
Fund, Inc.
(MYI)

 

BlackRock
MuniYield
Michigan
Insured
Fund II, Inc.
(MYM)

 

BlackRock
MuniYield
New York
Insured
Fund, Inc.
(MYN)

 


















Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Interest

 

$

11,443,218

 

$

18,297,630

 

$

33,324,224

 

$

6,536,275

 

$

20,569,046

 

Income — affiliated

 

 

111,253

 

 

129,009

 

 

395,568

 

 

33,262

 

 

129,184

 

 

 
















Total income

 

 

11,554,471

 

 

18,426,639

 

 

33,719,792

 

 

6,569,537

 

 

20,698,230

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investment advisory

 

 

1,299,560

 

 

1,872,014

 

 

3,378,896

 

 

637,076

 

 

2,033,962

 

Commission for Preferred Shares

 

 

160,710

 

 

199,844

 

 

424,646

 

 

95,080

 

 

289,971

 

Accounting services

 

 

61,946

 

 

118,688

 

 

171,419

 

 

35,208

 

 

113,945

 

Professional

 

 

58,014

 

 

60,288

 

 

92,739

 

 

44,712

 

 

76,495

 

Transfer agent

 

 

29,945

 

 

43,802

 

 

79,120

 

 

24,446

 

 

50,776

 

Officer and Directors

 

 

18,898

 

 

25,665

 

 

50,235

 

 

10,693

 

 

30,113

 

Printing

 

 

15,809

 

 

24,288

 

 

44,864

 

 

9,486

 

 

30,409

 

Custodian

 

 

14,082

 

 

18,718

 

 

33,684

 

 

8,666

 

 

21,718

 

Registration

 

 

5,064

 

 

6,062

 

 

12,886

 

 

5,020

 

 

7,586

 

Miscellaneous

 

 

46,317

 

 

53,518

 

 

70,409

 

 

38,379

 

 

53,197

 

 

 
















Total expenses excluding interest expense and fees

 

 

1,710,345

 

 

2,422,887

 

 

4,358,898

 

 

908,766

 

 

2,708,172

 

Interest expense and fees1

 

 

892,376

 

 

1,401,918

 

 

2,582,052

 

 

207,625

 

 

1,048,608

 

 

 
















Total expenses

 

 

2,602,721

 

 

3,824,805

 

 

6,940,950

 

 

1,116,391

 

 

3,756,780

 

Less fees waived by advisor

 

 

(329,510

)

 

(49,331

)

 

(53,510

)

 

(11,327

)

 

(52,696

)

Less fees paid indirectly

 

 

 

 

 

 

(338

)

 

 

 

 

 

 
















Total expenses after waiver and fees paid indirectly

 

 

2,273,211

 

 

3,775,474

 

 

6,887,102

 

 

1,105,064

 

 

3,704,084

 

 

 
















Net investment income

 

 

9,281,260

 

 

14,651,165

 

 

26,832,690

 

 

5,464,473

 

 

16,994,146

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 


















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(9,104,483

)

 

(3,489,160

)

 

(33,580,607

)

 

495,394

 

 

(2,160,076

)

Futures and forward interest rate swaps

 

 

 

 

 

 

(3,603,000

)

 

 

 

77,657

 

 

 
















 

 

 

(9,104,483

)

 

(3,489,160

)

 

(37,183,607

)

 

495,394

 

 

(2,082,419

)

 

 
















Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(20,185,654

)

 

(33,615,182

)

 

(74,925,257

)

 

(11,076,374

)

 

(49,970,534

)

Futures and forward interest rate swaps

 

 

 

 

 

 

1,951,000

 

 

 

 

 

 

 
















 

 

 

(20,185,654

)

 

(33,615,182

)

 

(72,974,257

)

 

(11,076,374

)

 

(49,970,534

)

 

 
















Total realized and unrealized loss

 

 

(29,290,137

)

 

(37,104,342

)

 

(110,157,864

)

 

(10,580,980

)

 

(52,052,953

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 


















Net investment income

 

 

(2,275,573

)

 

(3,272,982

)

 

(6,479,584

)

 

(1,408,108

)

 

(4,070,709

)

 

 
















Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

(22,284,450

)

$

(25,726,159

)

$

(89,804,758

)

$

(6,524,615

)

$

(39,129,516

)

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Related to tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

See Notes to Financial Statements.


38

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Statements of Changes in Net Assets

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)


 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets:

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
October 1,
2007
to July 31,
2008

 

Year Ended
September 30,
2007

 












Operations

 

 

 

 

 

 

 

 

 

 












Net investment income

 

$

9,281,260

 

$

17,333,246

 

$

21,591,345

 

Net realized gain (loss)

 

 

(9,104,483

)

 

(975,689

)

 

1,453,420

 

Net change in unrealized appreciation/depreciation

 

 

(20,185,654

)

 

(19,379,156

)

 

(11,297,856

)

Dividends to Preferred Shareholders from net investment income

 

 

(2,275,573

)

 

(5,637,611

)

 

(7,380,240

)

 

 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(22,284,450

)

 

(8,659,210

)

 

4,366,669

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 












Net investment income

 

 

(6,705,728

)

 

(11,176,213

)

 

(13,813,799

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 












Total decrease in net assets applicable to Common Shares

 

 

(28,990,178

)

 

(19,835,423

)

 

(9,447,130

)

Beginning of period

 

 

286,933,116

 

 

306,768,539

 

 

316,215,669

 

 

 










End of period

 

$

257,942,938

 

$

286,933,116

 

$

306,768,539

 

 

 










End of period undistributed net investment income

 

$

2,230,547

 

$

1,930,588

 

$

1,649,057

 

 

 











 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2009

39



 

 


 

Statements of Changes in Net Assets

BlackRock MuniYield California Insured Fund, Inc. (MCA)


 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets:

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

Year Ended
October 31,
2007

 












Operations

 

 

 

 

 

 

 

 

 

 












Net investment income

 

$

14,651,165

 

$

23,394,239

 

$

31,671,735

 

Net realized gain (loss)

 

 

(3,489,160

)

 

4,506,638

 

 

(691,224

)

Net change in unrealized appreciation/depreciation

 

 

(33,615,182

)

 

(30,619,927

)

 

(14,047,467

)

Dividends to Preferred Shareholders from net investment income

 

 

(3,272,982

)

 

(6,754,719

)

 

(9,517,264

)

 

 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(25,726,159

)

 

(9,473,769

)

 

7,415,780

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 












Net investment income

 

 

(11,029,945

)

 

(17,146,239

)

 

(23,228,171

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 












Total decrease in net assets applicable to Common Shares

 

 

(36,756,104

)

 

(26,620,008

)

 

(15,812,391

)

Beginning of period

 

 

476,234,763

 

 

502,854,771

 

 

518,667,162

 

 

 










End of period

 

$

439,478,659

 

$

476,234,763

 

$

502,854,771

 

 

 










End of period undistributed net investment income

 

$

1,392,995

 

$

1,044,757

 

$

1,243,580

 

 

 











 

 

 

See Notes to Financial Statements.


40

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

 

Statements of Changes in Net Assets

BlackRock MuniYield Insured Fund, Inc. (MYI)


 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets:

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

Year Ended
October 31,
2007

 









Operations

 

 

 

 

 

 

 

 

 

 












Net investment income

 

$

26,832,690

 

$

46,868,985

 

$

69,741,370

 

Net realized loss

 

 

(37,183,607

)

 

(25,129,148

)

 

(3,882,395

)

Net change in unrealized appreciation/depreciation

 

 

(72,974,257

)

 

(88,495,600

)

 

(48,971,838

)

Dividends to Preferred Shareholders from net investment income

 

 

(6,479,584

)

 

(14,617,148

)

 

(20,832,026

)

 

 










Net decrease in net assets applicable to Common Shareholders resulting from operations

 

 

(89,804,758

)

 

(81,372,911

)

 

(3,944,889

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 












Net investment income

 

 

(22,613,850

)

 

(33,920,775

)

 

(45,362,306

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 












Total decrease in net assets applicable to Common Shares

 

 

(112,418,608

)

 

(115,293,686

)

 

(49,307,195

)

Beginning of period

 

 

865,446,922

 

 

980,740,608

 

 

1,030,047,803

 

 

 










End of period

 

$

753,028,314

 

$

865,446,922

 

$

980,740,608

 

 

 










End of period undistributed net investment income

 

$

2,891,434

 

$

5,152,178

 

$

9,065,982

 

 

 











 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

41



 

 


 

 

Statements of Changes in Net Assets

BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)


 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets:

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

Year Ended
October 31,
2007

 









Operations

 

 

 

 

 

 

 

 

 

 












Net investment income

 

$

5,464,473

 

$

8,435,072

 

$

11,701,221

 

Net realized gain (loss)

 

 

495,394

 

 

(569,851

)

 

1,293,712

 

Net change in unrealized appreciation/depreciation

 

 

(11,076,374

)

 

(10,107,046

)

 

(6,941,533

)

Dividends to Preferred Shareholders from net investment income

 

 

(1,408,108

)

 

(2,523,285

)

 

(3,550,430

)

 

 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(6,524,615

)

 

(4,765,110

)

 

2,502,970

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 












Net investment income

 

 

(3,910,589

)

 

(6,034,861

)

 

(8,159,131

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 












Total decrease in net assets applicable to Common Shares

 

 

(10,435,204

)

 

(10,799,971

)

 

(5,656,161

)

Beginning of period

 

 

159,759,409

 

 

170,559,380

 

 

176,215,541

 

 

 










End of period

 

$

149,324,205

 

$

159,759,409

 

$

170,559,380

 

 

 










End of period undistributed net investment income

 

$

930,629

 

$

784,853

 

$

906,118

 

 

 











 

 

 

See Notes to Financial Statements.




42

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Statements of Changes in Net Assets

BlackRock MuniYield New York Insured Fund, Inc. (MYN)


 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets:

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

Year Ended
October 31,
2007

 









Operations

 

 

 

 

 

 

 

 

 

 












Net investment income

 

$

16,994,146

 

$

26,222,090

 

$

33,227,508

 

Net realized gain (loss)

 

 

(2,082,419

)

 

(2,008,655

)

 

1,647,832

 

Net change in unrealized appreciation/depreciation

 

 

(49,970,534

)

 

(28,658,722

)

 

(16,660,442

)

Dividends to Preferred Shareholders from net investment income

 

 

(4,070,709

)

 

(7,500,350

)

 

(10,460,763

)

 

 










Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(39,129,516

)

 

(11,945,637

)

 

7,754,135

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 












Net investment income

 

 

(12,716,342

)

 

(19,052,400

)

 

(25,797,659

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 












Total decrease in net assets applicable to Common Shares

 

 

(51,845,858

)

 

(30,998,037

)

 

(18,043,524

)

Beginning of period

 

 

518,911,985

 

 

549,910,022

 

 

567,953,546

 

 

 










End of period

 

$

467,066,127

 

$

518,911,985

 

$

549,910,022

 

 

 










End of period distributions in excess of net investment income

 

$

(140,540

)

$

(347,635

)

$

(51,182

)

 

 











 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

43



 

 


 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

Six Months Ended January 31, 2009 (Unaudited)

 

 

 

BlackRock
MuniYield
California
Insured
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Insured
Fund, Inc.
(MYI)

 









Cash Provided by Operating Activities

 

 

 

 

 

 

 

 

 

 












Net decrease in net assets resulting from operations excluding dividends to Preferred Shareholders

 

 

 

 

$

(22,453,177

)

$

(83,325,174

)

Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Decrease in receivables

 

 

 

 

 

827,140

 

 

317,464

 

Decrease in prepaid expenses and other assets

 

 

 

 

 

(10,927

)

 

(12,170

)

Increase in other liabilities

 

 

 

 

 

479

 

 

(379,314

)

Increase (decrease) in other liabilities

 

 

 

 

 

37,104,342

 

 

106,554,864

 

Amortization of premium and discount on investments

 

 

 

 

 

807,509

 

 

4,599,433

 

Proceeds from sales of long-term securities

 

 

 

 

 

114,822,653

 

 

365,941,044

 

Purchases of long-term securities

 

 

 

 

 

(31,589,559

)

 

(203,638,761

)

Net purchases of short-term investments

 

 

 

 

 

(32,726,747

)

 

(20,214,501

)

 

 

 

 

 







Cash provided by operating activities

 

 

 

 

 

66,781,713

 

 

169,842,885

 

 

 

 

 

 







 

 

 

 

 

 

 

 

 

 

 












Cash Used for Financing Activities

 

 

 

 

 

 

 

 

 

 












Cash receipts from trust certificates

 

 

 

 

 

33,544,140

 

 

60,872,278

 

Cash payments from trust certificates

 

 

 

 

 

(85,904,681

)

 

(206,592,706

)

Cash dividends paid to Common Shareholders

 

 

 

 

 

(11,029,945

)

 

(22,613,850

)

Cash dividends paid to Preferred Shareholders

 

 

 

 

 

(3,398,721

)

 

(6,662,933

)

 

 

 

 

 







Cash used for financing activities

 

 

 

 

 

(66,789,207

)

 

(174,997,211

)

 

 

 

 

 







 

 

 

 

 

 

 

 

 

 

 












Cash

 

 

 

 

 

 

 

 

 

 












Net decrease in cash

 

 

 

 

 

(7,494

)

 

(5,154,326

)

Cash at beginning of period

 

 

 

 

 

103,918

 

 

5,253,243

 

 

 

 

 

 







Cash at end of period

 

 

 

 

$

96,424

 

$

98,917

 

 

 

 

 

 







 

 

 

 

 

 

 

 

 

 

 












Cash Flow Information

 

 

 

 

 

 

 

 

 

 












Cash paid for interest

 

 

 

 

$

1,325,354

 

$

2,764,881

 

 

 

 

 

 








 

 

 

See Notes to Financial Statements.




44

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 



 

 

Financial Highlights

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
October 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended September 30,

 

 

 

 

 



 

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

12.84

 

$

13.72

 

$

14.15

 

$

14.23

 

$

14.41

 

$

14.37

 

$

14.48

 

 

 






















Net investment income1

 

 

0.42

 

 

0.78

 

 

0.97

 

 

0.93

 

 

0.97

 

 

1.00

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

(1.32

)

 

(0.91

)

 

(0.45

)

 

0.03

 

 

(0.09

)

 

(0.00

)2

 

(0.17

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.10

)

 

(0.25

)

 

(0.33

)

 

(0.29

)

 

(0.18

)

 

(0.09

)

 

(0.10

)

 

 






















Net increase (decrease) from investment operations

 

 

(1.00

)

 

(0.38

)

 

0.19

 

 

0.67

 

 

0.70

 

 

0.91

 

 

0.75

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.30

)

 

(0.50

)

 

(0.62

)

 

(0.75

)

 

(0.88

)

 

(0.87

)

 

(0.86

)

 

 






















Net asset value, end of period

 

$

11.54

 

$

12.84

 

$

13.72

 

$

14.15

 

$

14.23

 

$

14.41

 

$

14.37

 

 

 






















Market price, end of period

 

$

10.23

 

$

11.30

 

$

12.39

 

$

12.96

 

$

13.90

 

$

13.25

 

$

13.13

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(7.33

)%4

 

(2.41

)%4

 

1.73

%

 

5.19

%

 

5.35

%

 

7.12

%

 

5.95

%

 

 






















Based on market price

 

 

(6.66

)%4

 

(4.89

)%4

 

0.31

%

 

(1.37

)%

 

11.92

%

 

7.80

%

 

3.45

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios Based on Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5,6

 

 

1.06

%7

 

1.15

%7

 

1.17

%

 

1.16

%

 

1.15

%

 

1.12

%

 

1.14

%

 

 






















Total expenses after waiver and fees paid indirectly5

 

 

1.74

%7

 

1.45

%7

 

1.54

%

 

1.57

%

 

1.32

%

 

1.17

%

 

1.21

%

 

 






















Total expenses5

 

 

1.99

%7

 

1.55

%7

 

1.61

%

 

1.64

%

 

1.38

%

 

1.27

%

 

1.30

%

 

 






















Net investment income5

 

 

7.11

%7

 

6.74

%7

 

6.94

%

 

6.70

%

 

6.72

%

 

6.93

%

 

7.19

%

 

 






















Dividends to Preferred Shareholders

 

 

1.74

%7

 

2.19

%7

 

2.37

%

 

2.10

%

 

1.27

%

 

0.63

%

 

0.69

%

 

 






















Net investment income to Common Shareholders

 

 

5.37

%7

 

4.55

%7

 

4.57

%

 

4.60

%

 

5.45

%

 

6.30

%

 

6.50

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shareholders, end of period (000)

 

$

257,943

 

$

286,933

 

$

306,769

 

$

316,216

 

$

318,044

 

$

322,072

 

$

321,270

 

 

 






















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

145,300

 

$

145,300

 

$

204,500

 

$

204,500

 

$

204,500

 

$

204,500

 

$

204,500

 

 

 






















Portfolio turnover

 

 

14

%

 

43

%

 

43

%

 

35

%

 

46

%

 

45

%

 

50

%

 

 






















Asset coverage per Preferred Share, end of period8

 

$

69,383

 

$

74,376

 

$

62,514

 

$

63,667

 

$

63,881

 

$

64,375

 

$

64,279

 

 

 























 

 

1

Based on average shares outstanding.

 

 

2

Amount is less than $(0.01) per share.

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

4

Aggregate total investment return.

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

7

Annualized.

 

 

8

Prior period amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.


SEMI-ANNUAL REPORT

JANUARY 31, 2009

45



 

 



 

 

Financial Highlights (continued)

BlackRock MuniYield California Insured Fund, Inc. (MCA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 



 

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

13.86

 

$

14.63

 

$

15.09

 

$

14.82

 

$

15.23

 

$

15.10

 

$

15.26

 

 

 






















Net investment income1

 

 

0.43

 

 

0.68

 

 

0.92

 

 

0.96

 

 

0.95

 

 

0.94

 

 

0.95

 

Net realized and unrealized gain (loss)

 

 

(1.08

)

 

(0.75

)

 

(0.42

)

 

0.35

 

 

(0.33

)

 

0.13

 

 

(0.18

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.10

)

 

(0.20

)

 

(0.28

)

 

(0.24

)

 

(0.13

)

 

(0.06

)

 

(0.06

)

 

 






















Net increase (decrease) from investment operations

 

 

(0.75

)

 

(0.27

)

 

0.22

 

 

1.07

 

 

0.49

 

 

1.01

 

 

0.71

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.32

)

 

(0.50

)

 

(0.68

)

 

(0.80

)

 

(0.88

)

 

(0.88

)

 

(0.87

)

 

 






















Capital changes with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

(0.00

)2

 

(0.02

)

 

 

 

 

 

 






















Net asset value, end of period

 

$

12.79

 

$

13.86

 

$

14.63

 

$

15.09

 

$

14.82

 

$

15.23

 

$

15.10

 

 

 






















Market price, end of period

 

$

10.74

 

$

12.33

 

$

13.16

 

$

14.64

 

$

14.16

 

$

13.73

 

$

13.82

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(4.81

)%4

 

(1.54

)%4

 

1.76

%

 

7.57

%

 

3.55

%

 

7.54

%

 

5.29

%

 

 






















Based on market price

 

 

(10.15

)%4

 

(2.63

)%4

 

(5.65

)%

 

9.22

%

 

9.75

%

 

5.93

%

 

7.50

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses after waiver and excluding interest expense and fees5,6

 

 

1.08

%7

 

1.04

%7

 

1.03

%

 

1.03

%

 

0.96

%

 

0.95

%

 

0.94

%

 

 






















Total expenses after waiver5

 

 

1.72

%7

 

1.36

%7

 

1.53

%

 

1.59

%

 

1.27

%

 

1.08

%

 

1.08

%

 

 






















Total expenses5

 

 

1.74

%7

 

1.38

%7

 

1.53

%

 

1.60

%

 

1.27

%

 

1.08

%

 

1.08

%

 

 






















Net investment income5

 

 

6.66

%7

 

6.15

%7

 

6.22

%

 

6.46

%

 

6.29

%

 

6.29

%

 

6.20

%

 

 






















Dividends to Preferred Shareholders

 

 

1.49

%7

 

1.78

%7

 

1.87

%

 

1.62

%

 

0.84

%

 

0.43

%

 

0.37

%

 

 






















Net investment income to Common Shareholders

 

 

5.17

%7

 

4.37

%7

 

4.35

%

 

4.84

%

 

5.45

%

 

5.86

%

 

5.83

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

439,479

 

$

476,235

 

$

502,855

 

$

518,667

 

$

509,066

 

$

523,206

 

$

518,786

 

 

 






















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

192,300

 

$

192,300

 

$

275,000

 

$

275,000

 

$

275,000

 

$

230,000

 

$

230,000

 

 

 






















Portfolio turnover

 

 

6

%

 

25

%

 

25

%

 

27

%

 

39

%

 

63

%

 

47

%

 

 






















Asset coverage per Preferred Share, end of period8

 

$

82,138

 

$

86,933

 

$

70,733

 

$

72,170

 

$

71,280

 

$

81,875

 

$

81,393

 

 

 























 

 

1

Based on average shares outstanding.

 

 

2

Amount is less than $(0.01) per share.

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

4

Aggregate total investment return.

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

7

Annualized.

 

 

8

Prior period amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.


46

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Financial Highlights (continued)

BlackRock MuniYield Insured Fund, Inc. (MYI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 



 

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net asset value, beginning of period

 

$

12.86

 

$

14.57

 

$

15.30

 

$

15.27

 

$

15.59

 

$

15.36

 

$

15.15

 

 

 






















Net investment income1

 

 

0.40

 

 

0.70

 

 

1.04

 

 

0.98

 

 

1.04

 

 

1.04

 

 

1.08

 

Net realized and unrealized gain (loss)

 

 

(1.63

)

 

(1.69

)

 

(0.79

)

 

0.46

 

 

(0.22

)

 

0.25

 

 

0.16

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.10

)

 

(0.22

)

 

(0.31

)

 

(0.25

)

 

(0.16

)

 

(0.07

)

 

(0.08

)

Net realized gain

 

 

 

 

 

 

 

 

(0.04

)

 

(0.02

)

 

 

 

 

 

 






















Net increase (decrease) from investment operations

 

 

(1.33

)

 

(1.21

)

 

(0.06

)

 

1.15

 

 

0.64

 

 

1.22

 

 

1.16

 

 

 






















Less dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.34

)

 

(0.50

)

 

(0.67

)

 

(0.78

)

 

(0.95

)

 

(0.97

)

 

(0.95

)

Net realized gain

 

 

 

 

 

 

 

 

(0.34

)

 

(0.01

)

 

 

 

 

 

 






















Total dividends and distributions to Common Shareholders

 

 

(0.34

)

 

(0.50

)

 

(0.67

)

 

(1.12

)

 

(0.96

)

 

(0.97

)

 

(0.95

)

 

 






















Capital changes with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

(0.02

)

 

 

 

 






















Net asset value, end of period

 

$

11.19

 

$

12.86

 

$

14.57

 

$

15.30

 

$

15.27

 

$

15.59

 

$

15.36

 

 

 






















Market price, end of period

 

$

10.46

 

$

12.22

 

$

13.04

 

$

14.36

 

$

14.70

 

$

14.57

 

$

14.51

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Based on net asset value

 

 

(10.04

)%4

 

(8.22

)%4

 

(0.06

)%

 

8.09

%

 

4.54

%

 

8.52

%

 

8.18

%

 

 






















Based on market price

 

 

(11.51

)%4

 

(2.55

)%4

 

(4.70

)%

 

5.38

%

 

7.69

%

 

7.36

%

 

8.19

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5,6

 

 

1.13

%7

 

1.06

%7

 

1.03

%

 

1.02

%

 

1.01

%

 

0.95

%

 

0.94

%

 

 






















Total expenses after waiver and fees paid indirectly5

 

 

1.80

%7

 

1.63

%7

 

1.71

%

 

1.67

%

 

1.60

%

 

1.19

%

 

1.18

%

 

 






















Total expenses5

 

 

1.82

%7

 

1.64

%7

 

1.71

%

 

1.67

%

 

1.60

%

 

1.19

%

 

1.18

%

 

 






















Net investment income5

 

 

7.03

%7

 

6.51

%7

 

6.94

%

 

6.52

%

 

6.62

%

 

6.77

%

 

6.99

%

 

 






















Dividends to Preferred Shareholders

 

 

1.70

%7

 

2.03

%7

 

2.06

%

 

1.67

%

 

1.05

%

 

0.51

%

 

0.49

%

 

 






















Net investment income to Common Shareholders

 

 

5.33

%7

 

4.48

%7

 

4.88

%

 

4.85

%

 

5.57

%

 

6.26

%

 

6.50

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net assets applicable to Common Shareholders, end of period (000)

 

$

753,028

 

$

865,447

 

$

980,741

 

$

1,030,048

 

$

1,028,022

 

$

1,049,423

 

$

953,662

 

 

 






















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

377,175

 

$

377,175

 

$

570,000

 

$

570,000

 

$

570,000

 

$

570,000

 

$

440,000

 

 

 






















Portfolio turnover

 

 

14

%

 

70

%

 

117

%

 

95

%

 

105

%

 

122

%

 

95

%

 

 






















Asset coverage per Preferred Share, end of period8

 

$

74,918

 

$

82,381

 

$

68,039

 

$

70,198

 

$

70,099

 

$

71,032

 

$

79,188

 

 

 























 

 

1

Based on average shares outstanding.

 

 

2

Amount is less than $(0.01) per share.

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

4

Aggregate total investment return.

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

7

Annualized.

 

 

8

Prior period amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2009

47



 

 


 

Financial Highlights (continued)

BlackRock MuniYield Michigan Insured Fund II, Inc. (MYM)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 



 

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net asset value, beginning of period

 

$

13.24

 

$

14.13

 

$

14.60

 

$

14.54

 

$

15.21

 

$

15.21

 

$

14.91

 

 

 






















Net investment income1

 

 

0.45

 

 

0.70

 

 

0.97

 

 

0.97

 

 

0.99

 

 

1.00

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

(0.88

)

 

(0.88

)

 

(0.47

)

 

0.13

 

 

(0.58

)

 

(0.00

)2

 

0.24

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.12

)

 

(0.21

)

 

(0.29

)

 

(0.26

)

 

(0.15

)

 

(0.07

)

 

(0.07

)

 

 






















Net increase (decrease) from investment operations

 

 

(0.55

)

 

(0.39

)

 

0.21

 

 

0.84

 

 

0.26

 

 

0.93

 

 

1.19

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.32

)

 

(0.50

)

 

(0.68

)

 

(0.78

)

 

(0.91

)

 

(0.93

)

 

(0.89

)

 

 






















Capital changes with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

0.00

3

 

(0.02

)

 

 

 

 

 

 






















Net asset value, end of period

 

$

12.37

 

$

13.24

 

$

14.13

 

$

14.60

 

$

14.54

 

$

15.21

 

$

15.21

 

 

 






















Market price, end of period

 

$

10.12

 

$

11.63

 

$

12.61

 

$

13.97

 

$

14.41

 

$

14.54

 

$

13.75

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(3.46

)%5

 

(2.48

)%5

 

1.78

%

 

6.09

%

 

1.73

%

 

6.78

%

 

8.82

%

 

 






















Based on market price

 

 

(10.09

)%5

 

(4.01

)%5

 

(5.07

)%

 

2.42

%

 

5.47

%

 

12.91

%

 

9.06

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios Based on Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















Total expenses after waiver and excluding interest expense and fees6,7

 

 

1.19

%8

 

1.14

%8

 

1.14

%

 

1.13

%

 

1.07

%

 

1.05

%

 

1.01

%

 

 






















Total expenses after waiver6

 

 

1.47

%8

 

1.45

%8

 

1.68

%

 

1.64

%

 

1.46

%

 

1.26

%

 

1.20

%

 

 






















Total expenses6

 

 

1.48

%8

 

1.48

%8

 

1.69

%

 

1.65

%

 

1.47

%

 

1.28

%

 

1.22

%

 

 






















Net investment income6

 

 

7.26

%8

 

6.61

%8

 

6.77

%

 

6.72

%

 

6.57

%

 

6.61

%

 

6.73

%

 

 






















Dividends to Preferred Shareholders

 

 

1.87

%8

 

1.98

%8

 

2.05

%

 

1.78

%

 

0.97

%

 

0.47

%

 

0.47

%

 

 






















Net investment income to Common Shareholders

 

 

5.39

%8

 

4.63

%8

 

4.72

%

 

4.94

%

 

5.60

%

 

6.14

%

 

6.26

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

149,324

 

$

159,759

 

$

170,559

 

$

176,216

 

$

175,264

 

$

183,224

 

$

183,237

 

 

 






















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

87,350

 

$

87,350

 

$

99,000

 

$

99,000

 

$

99,000

 

$

89,000

 

$

89,000

 

 

 






















Portfolio turnover

 

 

5

%

 

20

%

 

10

%

 

14

%

 

19

%

 

35

%

 

27

%

 

 






















Asset coverage per Preferred Share, end of period9

 

$

67,740

 

$

70,730

 

$

68,076

 

$

69,507

 

$

69,269

 

$

76,471

 

$

76,474

 

 

 























 

 

1

Based on average shares outstanding.

 

 

2

Amount is less than $(0.01) per share.

 

 

3

Amount is less than $0.01 per share.

 

 

4

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

5

Aggregate total investment return.

 

 

6

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

7

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

8

Annualized.

 

 

9

Prior period amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 


48

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 

 


 

Financial Highlights (concluded)

BlackRock MuniYield New York Insured Fund, Inc. (MYN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2009
(Unaudited)

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 



 

 

 

 

2007

 

2006

 

2005

 

2004

 

2003

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

13.16

 

$

13.94

 

$

14.40

 

$

14.26

 

$

14.81

 

$

14.81

 

$

14.83

 

 

 






















Net investment income1

 

 

0.43

 

 

0.66

 

 

0.84

 

 

0.92

 

 

0.94

 

 

0.91

 

 

0.97

 

Net realized and unrealized gain (loss)

 

 

(1.33

)

 

(0.77

)

 

(0.38

)

 

0.23

 

 

(0.50

)

 

(0.01

)

 

(0.09

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.10

)

 

(0.19

)

 

(0.27

)

 

(0.24

)

 

(0.13

)

 

(0.06

)

 

(0.07

)

 

 






















Net increase (decrease) from investment operations

 

 

(1.00

)

 

(0.30

)

 

0.19

 

 

0.91

 

 

0.31

 

 

0.84

 

 

0.81

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.32

)

 

(0.48

)

 

(0.65

)

 

(0.77

)

 

(0.84

)

 

(0.84

)

 

(0.83

)

 

 






















Capital change resulting from issuance of Preferred Shares

 

 

 

 

 

 

 

 

(0.00

)2

 

(0.02

)

 

 

 

 

 

 






















Net asset value, end of period

 

$

11.84

 

$

13.16

 

$

13.94

 

$

14.40

 

$

14.26

 

$

14.81

 

$

14.81

 

 

 






















Market price, end of period

 

$

10.00

 

$

11.80

 

$

12.80

 

$

14.10

 

$

13.17

 

$

13.20

 

$

13.25

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

(7.06

)%4

 

(1.86

)%4

 

1.66

%

 

6.71

%

 

2.53

%

 

6.53

%

 

6.19

%

 

 






















Based on market price

 

 

(12.46

)%4

 

(4.16

)%4

 

(4.67

)%

 

13.13

%

 

6.24

%

 

6.13

%

 

5.45

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios Based on Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 
























Total expenses after waiver and excluding interest expense and fees5,6

 

 

1.12

%7

 

1.04

%7

 

1.04

%

 

1.03

%

 

0.96

%

 

0.94

%

 

0.94

%

 

 






















Total expenses after waiver5

 

 

1.56

%7

 

1.46

%7

 

1.63

%

 

1.56

%

 

1.31

%

 

1.13

%

 

1.15

%

 

 






















Total expenses5

 

 

1.58

%7

 

1.48

%7

 

1.64

%

 

1.56

%

 

1.31

%

 

1.13

%

 

1.16

%

 

 






















Net investment income5

 

 

7.15

%7

 

6.36

%7

 

5.96

%

 

6.50

%

 

6.37

%

 

6.23

%

 

6.49

%

 

 






















Dividends to Preferred Shareholders

 

 

1.71

%7

 

1.82

%7

 

1.88

%

 

1.68

%

 

0.87

%

 

0.42

%

 

0.50

%

 

 






















Net investment income to Common Shareholders

 

 

5.44

%7

 

4.54

%7

 

4.08

%

 

4.82

%

 

5.50

%

 

5.81

%

 

5.99

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net assets applicable to Common Shareholders, end of period (000)

 

$

467,066

 

$

518,912

 

$

549,910

 

$

567,954

 

$

562,474

 

$

584,248

 

$

584,025

 

 

 






















Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

259,475

 

$

259,475

 

$

304,000

 

$

304,000

 

$

304,000

 

$

259,000

 

$

259,000

 

 

 






















Portfolio turnover

 

 

10

%

 

17

%

 

25

%

 

43

%

 

35

%

 

18

%

 

45

%

 

 






















Asset coverage per Preferred Share, end of period8

 

$

70,006

 

$

75,011

 

$

70,242

 

$

71,725

 

$

71,259

 

$

81,397

 

$

81,375

 

 

 























 

 

1

Based on average shares outstanding.

 

 

2

Amount is less than $(0.01) per share.

 

 

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

 

 

4

Aggregate total investment return.

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

7

Annualized.

 

 

8

Prior period amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2009

49



 


 

Notes to Financial Statements (Unaudited)

1. Significant Accounting Policies:

BlackRock MuniHoldings Insured Fund II, Inc. (“MuniHoldings Insured II”), BlackRock MuniYield California Insured Fund, Inc. (“MuniYield California Insured”), BlackRock MuniYield Insured Fund, Inc. (“MuniYield Insured”), BlackRock MuniYield Michigan Insured Fund II, Inc. (“MuniYield Michigan Insured II”) and BlackRock MuniYield New York Insured Fund, Inc. (“MuniYield New York Insured”) (the “Funds” or individually as the “Fund”), are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as non-diversified, closed-end management investment companies. The Funds are organized as Maryland corporations. The Funds’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Funds determine, and make available for publication, the net asset values of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Funds:

Valuation of Investments: 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 selected under the supervision of each Fund’s Board of Directors (the “Board”). 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. Financial futures contracts traded on exchanges are valued at their last sale price. Swap agreements are valued utilizing quotes received daily by each Fund’s pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Investments in open-end investment companies are valued at net asset value each business day. Short-term securities with maturities less than 60 days are valued at amortized cost, which approximate fair value.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that the Funds might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or the sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Derivative Financial Instruments: The Funds may engage in various portfolio investment strategies both to increase the return of the Funds and to hedge, or protect, their exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract.

 

 

 

 

Financial futures contracts — Each Fund may purchase or sell financial futures contracts and options on such futures contracts for investment purposes or to manage their interest rate risk. Futures are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Fund agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of futures transactions involves the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and the underlying assets, and the possible inability of counterparties to meet the terms of their contracts.

 

 

 

 

Forward interest rate swaps — Each Fund may enter into forward interest rate swaps for investment purposes. In a forward interest rate swap, a Fund and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. These periodic payments received or made by the Funds are recorded in the accompanying Statements of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, the Funds will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Swap transactions involve, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions. The Funds generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap.

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds 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. The Funds may purchase securities under

 

 

 


50

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 


 

Notes to Financial Statements (continued)

such conditions only 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, the Funds may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed-delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which each Fund has contributed securities. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Fund include the right of the Fund (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to the Fund.

The TOB may also be terminated without the consent of the Fund upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal security, a substantial downgrade in credit quality of the municipal security, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal security or the inability to remarket the short-term floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Fund, which typically invest the cash in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown on the Statements of Assets and Liabilities as trust certificates.

Interest income from the underlying securities is recorded by the Funds on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Funds. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. As of January 31, 2009, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates were as follows:

 

 

 

 

 

 

 

 

 

 

 












 

 

Liability
for Trust
Certificates

 

Range of
Rates

 

Underlying
Municipal
Bonds
Transferred to
TOBs

 












MuniHoldings Insured II

 

$

50,863,242

 

 

1.826% – 3.390

%

$

90,557,754

 

MuniYield California Insured

 

$

77,169,823

 

 

1.904% – 2.933

%

$

139,619,122

 

MuniYield Insured

 

$

141,910,680

 

 

0.54% – 3.027

%

$

249,836,585

 

MuniYield Michigan Insured II

 

$

9,030,000

 

 

2.242% – 2.630

%

$

16,844,667

 

MuniYield New York Insured

 

$

50,099,528

 

 

1.363% – 3.279

%

$

86,811,242

 












Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds when interest rates rise, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, each Fund’s investment in TOBs may adversely affect each Fund’s investment income and distributions to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect each Fund’s net asset values per share.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Segregation: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds segregate assets in connection with certain investments (e.g., swaps and financial futures contracts), the Funds will, consistent with certain interpretive letters issued by the SEC, designate on their books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, the Funds may also be required to deliver or deposit securities as collateral for certain investments (e.g., financial futures contracts and swaps).

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual basis. The Funds amortize all premiums and discounts on debt securities.

 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2009

51



 


 

Notes to Financial Statements (continued)

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 5.

Income Taxes: It is each Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Funds file US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on MuniHoldings Insured II’s US federal tax returns remains open for the three years ended September 30, 2007 and the period ended August 31, 2008. The statute of limitations on MuniYield California Insured, MuniYield Insured, MuniYield Michigan Insured II and MuniYield New York Insured’s US federal tax returns remain open for the three years ended October 31, 2007 and the period ended August 31, 2008. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“FAS 161”), was issued and is effective for fiscal years beginning after November 15, 2008. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. FAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The impact on the Funds’ financial statement disclosures, if any, is currently being assessed.

Deferred Compensation and Blackrock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Fund’s Board, non-interested Directors (“Independent Directors”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts have been invested in common shares of other BlackRock Closed-End Funds selected by the Independent Directors. This has approximately the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Funds. The Funds may, however elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Directors in order to match their deferred compensation obligations.

Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated on the Statements of Operations.

Bank Overdraft: MuniHoldings Insured II recorded a bank overdraft which resulted from estimates of available cash.

Other: Expenses directly related to each Fund are charged to that Fund. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

Each Fund has entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory and administration services. As of January 31, 2009, The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Funds under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

The Advisor is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such services, each Fund pays the Advisor a monthly fee at an annual rate of 0.55% for MuniHoldings Insured II, and 0.50% for MuniYield California Insured, MuniYield Insured, MuniYield Michigan Insured II, and MuniYield New York Insured, of each Fund’s average daily net assets. Average daily net assets is the average daily value of the Fund’s total assets minus the sum of its accrued liabilities.

The Advisor has voluntarily agreed to waive its advisory fee on the proceeds of Preferred Shares and TOBs that exceeds 35% of the average daily net assets of MuniHoldings Insured II, which is included in fees waived by advisor on the Statements of Operations. For the six months ended January 31, 2009, the Advisor waived its fees in the amount of $14,537.

The Advisor has agreed to waive its advisory fee by the amount of investment advisory fees each Fund pays to the Advisor indirectly through its investment in affiliated money market funds, which are included in fees

 

 

 


52

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 


 

Notes to Financial Statements (continued)

waived by advisor on the Statements of Operations. For the six months ended January 31, 2009, the amounts waived were as follows:

 

 

 

 

 





 

 

Fees Waived
by Advisor

 





MuniHoldings Insured II

 

$

314,973

 

MuniYield California Insured

 

$

49,331

 

MuniYield Insured

 

$

53,510

 

MuniYield Michigan Insured II

 

$

11,327

 

MuniYield New York Insured

 

$

52,696

 






The Advisor has entered into separate sub-advisory agreements with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Advisor, with respect to each Fund, under which the Advisor pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by each Fund to the Advisor.

For the six months ended January 31, 2009, each Fund reimbursed the Advisor for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:

 

 

 

 

 





 

 

Accounting
Services

 





MuniHoldings Insured II

 

$

4,057

 

MuniYield California Insured

 

$

6,167

 

MuniYield Insured

 

$

10,848

 

MuniYield Michigan Insured II

 

$

2,341

 

MuniYield New York Insured

 

$

6,887

 






Pursuant to the terms of the custody agreement, custodian fees may be reduced by amounts calculated on uninvested cash balances, which are shown on the Statements of Operations as fees paid indirectly.

Certain officers and/or directors of the Funds are officers and/or directors of BlackRock, Inc. or its affiliates. The Funds reimburse the Advisor for the compensation paid to the Funds’ Chief Compliance Officer.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended January 31, 2009 were as follows:

 

 

 

 

 

 

 

 







 

 

Total Purchases

 

Total Sales

 







MuniHoldings Insured II

 

$

59,649,307

 

$

103,537,476

 

MuniYield California Insured

 

$

41,134,145

 

$

124,916,173

 

MuniYield Insured Fund

 

$

179,053,280

 

$

338,893,320

 

MuniYield Michigan Insured II

 

$

12,049,288

 

$

31,147,425

 

MuniYield New York Insured

 

$

76,886,575

 

$

151,129,944

 









4. Concentration, Market and Credit Risk:

The Funds invest a substantial amount of its assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. 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 issuer will meet its obligation.

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to credit risk, the Funds may be exposed to counterparty risk, or the risk that an entity with which the Funds has unsettled or open transactions may default. Financial assets, which potentially expose the Funds to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Funds’ exposure to credit and counterparty risks with respect to these financial assets is approximated by their value recorded in the Funds’ Statements of Assets and Liabilities.

5. Capital Share Transactions:

Each Fund is authorized to issue 200,000,000 shares, including Preferred Shares all of which were initially classified as Common Shares, with a par value of $0.10 per share. Each Board is authorized, however, to reclassify any unissued shares of common shares without approval of Common Shareholders.

Common Shares

Shares issued and outstanding during the six months ended January 31, 2009, the period November 1, 2007 (October 1, 2007 for MuniHoldings Insured II) to July 31, 2008 and the year ended October 31, 2007 (September 30, 2007 for MuniHoldings Insured II) remained constant for the Funds.

Preferred Shares

The Preferred Shares are redeemable at the option of each Fund, in whole or in part, on any dividend payment date at their liquidation preference plus any accumulated or unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of each Fund, as set forth in each Fund’s Articles Supplementary, are not satisfied.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled

 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

53



 


 

Notes to Financial Statements (continued)

to elect two Directors for a Fund. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class, would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’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.

The Funds had the following series of Preferred Shares outstanding and effective yields at January 31, 2009:

 

 

 

 

 

 

 

 

 

 

 

 












 

 

Series

 

 

Shares

 

Yield

 

Reset
Frequency

 












MuniHoldings Insured II

 

A

 

 

1,4921

 

0.716%

 

7

 

 

 

 

B

 

 

1,4921

 

0.746%

 

7

 

 

 

 

C

 

 

2,8281

 

0.731%

 

7

 

 













MuniYield California Insured

 

A

 

 

1,2591

 

0.594%

 

28

 

 

 

 

B

 

 

1,2591

 

0.655%

 

7

 

 

 

 

C

 

 

1,1191

 

0.731%

 

7

 

 

 

 

D

 

 

1,3981

 

0.655%

 

28

 

 

 

 

E

 

 

1,3981

 

0.716%

 

7

 

 

 

 

F

 

 

1,2592

 

1.778%

 

7

 

 













MuniYield Insured

 

A

 

 

1,4561

 

0.868%

 

28

 

 

 

 

B

 

 

1,4561

 

0.640%

 

28

 

 

 

 

C

 

 

1,4561

 

0.655%

 

28

 

 

 

 

D

 

 

1,4561

 

0.746%

 

28

 

 

 

 

E

 

 

2,6471

 

0.746%

 

7

 

 

 

 

F

 

 

1,5881

 

0.594%

 

28

 

 

 

 

G

 

 

1,5881

 

0.655%

 

7

 

 

 

 

H

 

 

1,7202

 

1.715%

 

7

 

 

 

 

I

 

 

1,7202

 

1.695%

 

7

 

 













MuniYield Michigan Insured II

 

A

 

 

1,9411

 

0.655%

 

7

 

 

 

 

B

 

 

1,2001

 

0.731%

 

7

 

 

 

 

C

 

 

3532

 

1.778%

 

7

 

 













MuniYield New York Insured

 

A

 

 

1,4511

 

1.142%

 

28

 

 

 

 

B

 

 

1,4511

 

0.655%

 

7

 

 

 

 

C

 

 

2,3901

 

0.655%

 

7

 

 

 

 

D

 

 

1,6731

 

0.731%

 

7

 

 

 

 

E

 

 

1,8781

 

0.746%

 

28

 

 

 

 

F

 

 

1,5362

 

1.751%

 

7

 

 














 

 

 

 

1

The maximum applicable rate on this series of Preferred Stock is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

 

 

 

 

2

The maximum applicable rate on this series of Preferred Stock is the higher of 110% plus or times (i) the Telerate/BBA LIBOR or (ii) 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate.

Dividends on seven-day Preferred Shares are cumulative at a rate, which is reset every seven days based on the results of an auction. Dividends on 28-day Preferred Shares are cumulative at a rate which is reset every 28 days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the Fund is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the stock is successfully auctioned. The maximum applicable rate on the Preferred Shares is footnoted as applicable on the above chart. The low, high and average dividend rates on the Preferred Shares for each Fund for the six months ended January 31, 2009 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

Series

 

Low

 

High

 

Average

 













MuniHoldings Insured II

 

A

 

0.594

%

 

12.261

%

 

3.049

%

 

 

 

B

 

0.640

%

 

12.565

%

 

3.064

%

 

 

 

C

 

0.594

%

 

11.347

%

 

3.044

%

 














MuniYield California Insured

 

A

 

0.594

%

 

11.728

%

 

3.521

%

 

 

 

B

 

0.594

%

 

11.728

%

 

3.116

%

 

 

 

C

 

0.594

%

 

11.347

%

 

3.044

%

 

 

 

D

 

0.655

%

 

8.682

%

 

3.010

%

 

 

 

E

 

0.594

%

 

12.261

%

 

3.049

%

 

 

 

F

 

1.682

%

 

12.523

%

 

3.862

%

 














MuniYield Insured

 

A

 

0.868

%

 

5.757

%

 

2.956

%

 

 

 

B

 

0.640

%

 

12.565

%

 

3.742

%

 

 

 

C

 

0.655

%

 

8.651

%

 

3.016

%

 

 

 

D

 

0.746

%

 

7.494

%

 

2.631

%

 

 

 

E

 

0.640

%

 

12.565

%

 

3.160

%

 

 

 

F

 

0.594

%

 

10.205

%

 

3.341

%

 

 

 

G

 

0.594

%

 

10.205

%

 

3.086

%

 

 

 

H

 

1.640

%

 

12.246

%

 

3.848

%

 

 

 

I

 

0.655

%

 

11.762

%

 

3.786

%

 














MuniYield Michigan Insured II

 

A

 

0.594

%

 

10.205

%

 

3.086

%

 

 

 

B

 

0.594

%

 

11.347

%

 

3.044

%

 

 

 

C

 

1.682

%

 

12.523

%

 

3.862

%

 














MuniYield New York Insured

 

A

 

1.097

%

 

7.158

%

 

2.823

%

 

 

 

B

 

0.594

%

 

10.205

%

 

3.086

%

 

 

 

C

 

0.594

%

 

11.728

%

 

3.103

%

 

 

 

D

 

0.594

%

 

11.347

%

 

3.044

%

 

 

 

E

 

0.746

%

 

7.494

%

 

2.631

%

 

 

 

F

 

1.640

%

 

12.246

%

 

3.848

%

 














For the six months ended January 31, 2009, the Preferred Shares of each Fund failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.594% to 12.565%. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of the Preferred Shares. A failed auction occurs when there are more sellers of a fund’s auction rate preferred shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Fund’s Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

The Funds may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

Prior to December 1, 2008, the Funds paid commissions to certain broker-dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. In December 2008, commissions paid to broker-dealers on Preferred Shares that experience a failed auction were reduced to 0.15% on the aggregate principal amount. The

 

 

 




54

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 


 

Notes to Financial Statements (continued)

Funds will continue to pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, earned commissions for the period August 1, 2008 through December 31, 2008 as follows.

 

 

 

 

 





 

 

Commissions

 





MuniHoldings Insured II

 

$

176,638

 

MuniYield California Insured

 

$

201,675

 

MuniYield Insured

 

$

370,576

 

MuniYield Michigan Insured II

 

$

109,435

 

MuniYield New York Insured

 

$

353,527

 






Subsequent to that date, neither MLPF&S or Merrill Lynch are considered affiliates of the Funds.

On June 4, 2008, MuniHoldings Insured II and MuniYield Insured and on May 19, 2008 MuniYield California Insured, MuniYield Michigan Insured II and MuniYield New York Insured announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 











MuniHoldings Insured II

 

 

 

 

 

 

 

 











 

 

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 











Series A

 

6/27/08

 

608

 

 

$

15,200,000

 

Series B

 

6/26/08

 

608

 

$

15,200,000

 

Series C

 

6/25/08

 

1,152

 

 

$

28,800,000

 











 

 

 

 

 

 

 

 

 











MuniYield California Insured

 

 

 

 

 

 

 

 











 

 

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 










Series A

 

7/07/08

 

541

 

 

$

13,525,000

 

Series B

 

6/30/08

 

541

 

$

13,525,000

 

Series C

 

6/25/08

 

481

 

 

$

12,025,000

 

Series D

 

7/11/08

 

602

 

$

15,050,000

 

Series E

 

6/27/08

 

602

 

 

$

15,050,000

 

Series F

 

6/26/08

 

541

 

$

13,525,000

 











 

 

 

 

 

 

 

 

 











MuniYield Insured

 

 

 

 

 

 

 

 











 

 

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 










Series A

 

6/26/08

 

744

 

 

$

18,600,000

 

Series B

 

7/03/08

 

744

 

$

18,600,000

 

Series C

 

7/10/08

 

744

 

 

$

18,600,000

 

Series D

 

7/17/08

 

744

 

$

18,600,000

 

Series E

 

6/26/08

 

1,353

 

 

$

33,825,000

 

Series F

 

7/08/08

 

812

 

$

20,300,000

 

Series G

 

6/24/08

 

812

 

 

$

20,300,000

 

Series H

 

6/27/08

 

880

 

$

22,000,000

 

Series I

 

6/23/08

 

880

 

 

$

22,000,000

 











 

 

 

 

 

 

 

 

 











MuniYield Michigan Insured II

 

 

 

 

 

 

 

 











 

 

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 










Series A

 

6/17/08

 

259

 

 

$

6,475,000

 

Series B

 

6/25/08

 

160

 

$

4,000,000

 

Series C

 

6/26/08

 

47

 

 

$

1,175,000

 











 

 

 

 

 

 

 

 

 











MuniYield New York Insured

 

 

 

 

 

 

 

 











 

 

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 










Series A

 

6/24/08

 

249

 

 

$

6,225,000

 

Series B

 

6/17/08

 

249

 

$

6,225,000

 

Series C

 

6/23/08

 

410

 

 

$

10,250,000

 

Series D

 

6/25/08

 

287

 

$

7,175,000

 

Series E

 

7/17/08

 

322

 

 

$

8,050,000

 

Series F

 

6/27/08

 

264

 

$

6,600,000

 











The Funds financed the Preferred Share redemptions with cash received from TOBs.

Shares issued and outstanding during the six months ended January 31, 2009 and the year ended October 31, 2007 (September 30, 2007 for MuniHoldings Insured II) remained constant.

6. Income Tax Information:

As of July 31, 2008, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













Expires
July 31,

 

MuniHoldings
Insured II

 

MuniYield
California
Insured

 

MuniYield
Insured

 

MuniYield
Michigan
Insured II

 

MuniYield
New York
Insured

 













2010

 

 

 

 

 

 

 

$

1,050,253

 

$

3,007,157

 

2011

 

 

 

$

4,417,434

 

 

 

 

 

 

 

2012

 

$

306,103

 

 

2,675,948

 

 

 

 

1,288,851

 

 

16,583,200

 

2014

 

 

 

 

 

$

1,489,118

 

 

 

 

3,107,506

 

2015

 

 

 

 

1,362,395

 

 

5,979,955

 

 

 

 

 

2016

 

 

 

 

 

 

27,543,068

 

 

823,067

 

 

2,330,288

 


















Total

 

$

306,103

 

$

8,455,777

 

$

35,012,141

 

$

3,162,171

 

$

25,028,151

 

 

 

















 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2009

55



 


 

Notes to Financial Statements (concluded)

7. Restatement Information:

Subsequent to the initial issuance of MuniYield Insured’s October 31, 2006 financial statements and MuniHoldings Insured II’s September 30, 2006 financial statements, the Funds determined that the criteria for sale accounting in FAS 140 had not been met for certain transfers of municipal bonds and that these transfers should have been accounted for as secured borrowings rather than as sales. As a result, certain financial highlights for each of the three years in the period ended October 31, 2005 with respect to MuniYield Insured, and for each of the three years in the period ended September 30, 2005 with respect to MuniHoldings Insured II, have been restated to give effect to recording the transfers of the municipal bonds as secured borrowings, including recording interest on the bonds as interest income and interest on the secured borrowings as interest expense.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Financial Highlights for MuniYield Insured
For the Years Ended October 31, 2005, 2004 and 2003


 

 

 

2005

 

2004

 

2003

 

 

 


 


 



 

 

Previously
Reported

 

Restated

 

Previously
Reported

 

Restated

 

Previously
Reported

 

Restated

 















Total expenses, net of waiver1

 

 

1.01

%

 

1.60

%

 

0.95

%

 

1.19

%

 

0.94

%

 

1.18

%

Total expenses1

 

 

1.01

%

 

1.60

%

 

0.95

%

 

1.19

%

 

0.95

%

 

1.18

%

Portfolio turnover

 

 

123.85

%

 

105

%

 

144.40

%

 

122

%

 

114.05

%

 

95

%






















 

 

1

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Financial Highlights for MuniHoldings Insured II
For the Years Ended September 30, 2005, 2004 and 2003


 

 

 

2005

 

2004

 

2003

 

 

 


 


 



 

 

Previously
Reported

 

Restated

 

Previously
Reported

 

Restated

 

Previously
Reported

 

Restated

 















Total expenses, net of waiver and reimbursement1

 

 

1.15

%

 

1.32

%

 

1.12

%

 

1.17

%

 

1.14

%

 

1.21

%

Total expenses1

 

 

1.21

%

 

1.38

%

 

1.21

%

 

1.27

%

 

1.23

%

 

1.30

%

Portfolio turnover

 

 

58.19

%

 

46

%

 

45.89

%

 

45

%

 

52

%

 

50

%






















 

 

1

Do not reflect the effect of dividends to Preferred Shareholders.

8. Subsequent Events:

Each Fund paid a net investment income dividend to Common Shareholders on March 2, 2009 to shareholders of record on February 13, 2009.The amount of the net investment income dividend per share was as follows:

 

 

 

 

 





 

 

Distribution
Per Share

 





MuniHoldings Insured II

 

$

0.050000

 

MuniYield California Insured

 

$

0.053500

 

MuniYield Insured

 

$

0.056000

 

MuniYield Michigan Insured II

 

$

0.054000

 

MuniYield New York Insured

 

$

0.052500

 





The dividends declared on Preferred Shares for the period February 1, 2009 to February 28, 2009 for the Funds were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

MuniHoldings
Insured II

 

MuniYield
California
Insured

 

MuniYield
Insured

 

MuniYield
Michigan
Insured II

 

MuniYield
New York
Insured

 













Series A

 

$

21,899

 

$

15,876

 

$

18,558

 

$

24,777

 

$

20,346

 

Series B

 

$

21,951

 

$

17,918

 

$

18,960

 

$

24,948

 

$

20,495

 

Series C

 

$

39,972

 

$

15,816

 

$

20,624

 

$

20,642

 

$

34,014

 

Series D

 

 

 

$

20,039

 

$

21,625

 

$

29,783

 

$

23,647

 

Series E

 

 

 

$

20,520

 

$

38,944

 

 

 

$

27,893

 

Series F

 

 

 

$

43,389

 

$

20,024

 

 

 

$

52,935

 

Series G

 

 

 

 

 

$

22,430

 

 

 

 

 

Series H

 

 

 

 

 

$

59,276

 

 

 

 

 

Series I

 

 

 

 

 

$

58,569

 

 

 

 

 



















 

 

 


56

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 


 

Officers and Directors

 

Richard E. Cavanagh, Chairman of the Board and Director

Karen P. Robards, Vice Chair of the Board,
Chair of the Audit Committee and Director

G. Nicholas Beckwith, III, Director

Richard S. Davis, Director

Kent Dixon, Director

Frank J. Fabozzi, Director

Kathleen F. Feldstein, Director

James T. Flynn, Director

Henry Gabbay, Director

Jerrold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director

Donald C. Burke, Fund President and Chief Executive Officer

Anne F. Ackerley, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Brian P. Kindelan, Chief Compliance Officer of the Funds

Howard B. Surloff, Secretary

 


 

Effective January 1, 2009, Robert S. Salomon, Jr. retired as Director of the Funds. The Board wishes Mr. Salomon well in his retirement.

 


BlackRock MuniHoldings Insured Fund II, Inc.,
BlackRock MuniYield California Insured Fund, Inc. and
BlackRock MuniYield Insured Fund, Inc.:

Custodian
State Street Bank and
Trust Company
Boston, MA 02101

Transfer Agent
Common Stock
Computershare Trust
Company, N.A.
Providence, RI 02490

Auction Agent
Preferred Shares
BNY Mellon Shareowner Services
Jersey City, NJ 07310

BlackRock MuniYield Michigan Insured Fund II, Inc. and
BlackRock MuniYield New York Insured Fund, Inc.:

Custodian
The Bank of New York Mellon
New York, NY 10286

Transfer Agent & Auction Agent
Common and Preferred Shares
BNY Mellon Shareowner Services
Jersey City, NJ 07310

For All Funds:

Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Legal Counsel
Skadden, Arps, Slate,
Meagher & Flom LLP
New York, NY 10036

 


 

Additional Information

 


Section 19 Notices


The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Each Fund will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 







 

 

 

Total Fiscal Year-to-Date
Cumulative Distributions by Character

 

Percentage of Fiscal Year-to-Date
Cumulative Distributions by Character

 

 

 


 


 

 

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 



















BlackRock MuniYield New York Insured Fund, Inc.

 

$0.302

 

 

$0.018

 

$0.320

 

94%

 

 

6%

 

100%

 




















 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2009

57



 


 

Additional Information (continued)

 


Proxy Results


The Annual Meeting of Shareholders was held on September 12, 2008 for shareholders of record on July 14, 2008 to elect director nominees of each Fund:

Approved the Directors as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 









 

 

G. Nicholas Beckwith, III

 

Kent Dixon

 

R. Glenn Hubbard

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















BlackRock MuniHoldings Insured Fund II, Inc.

 

 

19,399,814

 

 

1,770,064

 

 

19,395,147

 

 

1,774,731

 

 

19,388,443

 

 

1,781,435

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

30,387,789

 

 

788,028

 

 

30,373,785

 

 

802,032

 

 

30,462,091

 

 

713,726

 

BlackRock MuniYield Insured Fund, Inc.

 

 

62,264,689

 

 

2,158,268

 

 

62,261,398

 

 

2,161,559

 

 

62,260,558

 

 

2,162,399

 

BlackRock MuniYield Michigan Insured Fund II, Inc.

 

 

10,966,906

 

 

574,369

 

 

10,960,187

 

 

581,088

 

 

10,962,463

 

 

578,812

 

BlackRock MuniYield New York Insured Fund, Inc.

 

 

34,928,672

 

 

1,562,530

 

 

34,920,239

 

 

1,570,963

 

 

34,917,212

 

 

1,573,990

 





















 

 

 

W. Carl Kester

 

Robert S. Salomon, Jr.

 

Richard S. Davis

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















BlackRock MuniHoldings Insured Fund II, Inc.

 

 

4,456

1

 

102

1

 

19,394,947

 

 

1,774,931

 

 

19,395,147

 

 

1,774,731

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

5,912

1

 

307

1

 

30,395,706

 

 

780,111

 

 

30,444,222

 

 

731,595

 

BlackRock MuniYield Insured Fund, Inc.

 

 

12,904

1

 

805

1

 

62,257,608

 

 

2,165,349

 

 

62,285,325

 

 

2,137,632

 

BlackRock MuniYield Michigan Insured Fund II, Inc.

 

 

2,837

1

 

558

1

 

10,965,117

 

 

576,158

 

 

10,975,379

 

 

565,896

 

BlackRock MuniYield New York Insured Fund, Inc.

 

 

8,170

1

 

2,077

1

 

34,911,937

 

 

1,579,265

 

 

34,933,464

 

 

1,557,738

 





















 

 

 

Frank J. Fabozzi

 

James T. Flynn

 

Karen P. Robards

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















BlackRock MuniHoldings Insured Fund II, Inc.

 

 

4,4561

 

 

1021

 

 

19,394,947

 

 

1,774,931

 

 

19,395,147

 

 

1,774,731

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

5,9121

 

 

3071

 

 

30,456,523

 

 

719,294

 

 

30,397,588

 

 

778,229

 

BlackRock MuniYield Insured Fund, Inc.

 

 

12,9041

 

 

8051

 

 

62,274,712

 

 

2,148,245

 

 

62,271,813

 

 

2,151,144

 

BlackRock MuniYield Michigan Insured Fund II, Inc.

 

 

2,8371

 

 

5581

 

 

10,972,636

 

 

568,639

 

 

10,974,697

 

 

566,578

 

BlackRock MuniYield New York Insured Fund, Inc.

 

 

8,1701

 

 

2,0771

 

 

34,923,564

 

 

1,567,638

 

 

34,930,074

 

 

1,561,128

 





















 

 

 

Richard E. Cavanagh

 

Kathleen F. Feldstein

 

Henry Gabbay

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















BlackRock MuniHoldings Insured Fund II, Inc.

 

 

19,400,147

 

 

1,769,731

 

 

19,395,810

 

 

1,774,068

 

 

19,395,147

 

 

1,774,731

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

30,456,814

 

 

719,003

 

 

30,395,488

 

 

780,329

 

 

30,443,791

 

 

732,026

 

BlackRock MuniYield Insured Fund, Inc.

 

 

62,261,746

 

 

2,161,211

 

 

62,243,677

 

 

2,179,280

 

 

62,291,979

 

 

2,130,978

 

BlackRock MuniYield Michigan Insured Fund II, Inc.

 

 

10,972,837

 

 

568,438

 

 

10,968,912

 

 

572,363

 

 

10,970,197

 

 

571,078

 

BlackRock MuniYield New York Insured Fund, Inc.

 

 

34,932,779

 

 

1,558,423

 

 

34,908,370

 

 

1,582,832

 

 

34,932,392

 

 

1,558,810

 





















 

 

 

Jerrold B. Harris

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes
Withheld

 

 

 

 

 

 

 

 

 

 

 

 

 



















BlackRock MuniHoldings Insured Fund II, Inc.

 

 

19,398,943

 

 

1,770,935

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

30,402,575

 

 

773,242

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniYield Insured Fund, Inc.

 

 

62,248,633

 

 

2,174,324

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniYield Michigan Insured Fund II, Inc.

 

 

10,970,647

 

 

570,628

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniYield New York Insured Fund, Inc.

 

 

34,917,191

 

 

1,574,011

 

 

 

 

 

 

 

 

 

 

 

 

 





















 

1 Voted on by holders of Preferred Shares only.

 

 

 

 

 

 

 

 

 

 

 

 


 


Dividend Policy


The Funds’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Funds 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 dividends paid by the Funds for any particular month may be more or less than the amount of net investment income earned by the Funds during such month. The Funds’ 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.

 

 

 


58

SEMI-ANNUAL REPORT

JANUARY 31, 2009



 


 

Additional Information (concluded)


 


General Information


The Funds will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it 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 contact the Funds at (800) 441-7762.

Quarterly performance, semi-annual and annual reports and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website into this report.

 


Availability of Quarterly Schedule of Investments


The Funds 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 Funds’ Forms N-Q are available on the Securities and Exchange Commissions’ (the “SEC”) website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

 


Electronic Delivery


Electronic copies of most financial reports are available on the Funds’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Funds’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

 


Board Approvals


On September 12, 2008, the Board of Directors of the Funds voted unanimously to change certain investment guidelines of the Funds. Under normal market conditions, the Funds are required to invest at least 80% of their total assets in municipal bonds either (i) insured under an insurance policy purchased by the Funds or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. Historically, the Funds have had an additional non-fundamental investment policy limiting its purchase of insured municipal bonds to those bonds insured by insurance providers with claims-paying abilities rated AAA or Aaa at the time of investment.

Following the onset of the credit and liquidity crises currently troubling the financial markets, the applicable rating agencies lowered the claims-paying ability rating of most of the municipal bond insurance providers below the highest rating category. As a result, the Advisor recommended, and the Board approved, an amended policy with respect to the purchase of insured municipal bonds that such bonds must be insured by insurance providers or other entities with claims-paying abilities rated at least investment grade. This investment grade restriction is measured at the time of investment, and the Funds will not be required to dispose of municipal bonds they hold in the event of subsequent downgrades. The approved changes do not alter the Funds’ investment objectives.

The Advisor and the Board believe the amended policy will allow the Advisor to better manage the Funds’ portfolios in the best interest of the Funds’ shareholders and to better meet the Funds’ investment objectives.

Effective September 13, 2008, following approval by the Funds’ Board and the applicable rating agencies, the Board amended the terms of the Funds’ Articles Supplementary in order to allow the Funds to enter into TOB transactions, the proceeds of which were used to redeem a portion of the Funds’ Preferred Shares. Accordingly, the definition of Inverse Floaters was amended to incorporate the Funds’ permissible ratio of floating rate instruments into inverse floating rate instruments. Additionally, conforming changes and certain formula modifications concerning inverse floaters were made to the definitions of Moody’s Discount Factor and S&P Discount Factor, as applicable, to integrate the Funds’ investments in TOBs into applicable calculations.

 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2009

59



(GO PAPERLESS LOGO)

This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Funds 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 the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

BlackRock MuniHoldings Insured Fund II, Inc.
BlackRock MuniYield California Insured Fund, Inc.
BlackRock MuniYield Insured Fund, Inc.
BlackRock MuniYield Michigan Insured Fund II, Inc.
BlackRock MuniYield New York Insured Fund, Inc.
100 Bellevue Parkway
Wilmington, DE 19809

(BLACKROCK LOGO)

#MHMYINS5—SAR-1/09


 

 

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 – Not Applicable to this semi-annual report

 

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

 

 

Item 10 –

Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.

 

 

Item 11 –

Controls and Procedures

 

 

11(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 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

11(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 –

Exhibits attached hereto

 

 

12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

 

 

12(a)(2) – Certifications – Attached hereto

 

 

12(a)(3) – Not Applicable



 

 

12(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 MuniYield California Insured Fund, Inc.

 

 

 

 

By:

/s/ Donald C. Burke

 

 


 

 

Donald C. Burke

 

 

Chief Executive Officer of

 

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

 

 

Date: March 25, 2009

 

 

 

 

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/ Donald C. Burke

 

 


 

 

Donald C. Burke

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

 

 

Date: March 25, 2009

 

 

 

 

By:

/s/ Neal J. Andrews

 

 


 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniYield California Insured Fund, Inc.

 

 

 

 

Date: March 25, 2009