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

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-09191

Name of Fund: BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniHoldings Insured Fund II, Inc., 55 East 52nd Street, New York, NY 10055.

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

Date of fiscal year end: 07/31/2010

Date of reporting period: 10/31/2009

Item 1 – Schedule of Investments

 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama - 2.9%

 

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

 

$

5,225

 

$

5,543,620

 

 

 

County of Jefferson Alabama, RB, Series A, 5.50%, 1/01/22

 

 

3,580

 

 

2,980,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,524,328

 

Alaska - 0.6%

 

City of Anchorage Alaska, Refunding RB (AMBAC), 6.00%, 9/01/24

 

 

1,630

 

 

1,652,086

 

Arkansas - 4.2%

 

Arkansas Development Finance Authority, Refunding RB,
Series C (MBIA), 5.35%, 12/01/35

 

 

12,165

 

 

12,250,277

 

California - 14.9%

 

City of Vista California, COP, Community Projects (MBIA), 5.00%,
5/01/37

 

 

5,400

 

 

4,990,734

 

 

 

County of Sacramento California, RB, Senior Series A (AGC), 5.50%,
7/01/41

 

 

3,500

 

 

3,670,065

 

 

 

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

 

 

2,405

 

 

2,393,288

 

 

 

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

 

 

4,240

 

 

3,748,372

 

 

 

Oceanside Unified School District, California, GO, Series A (AGC),
5.25%, 8/01/33

 

 

3,175

 

 

3,232,722

 

 

 

Port of Oakland, RB, Series K, AMT (MBIA), 5.75%, 5/01/10 (a)

 

 

25

 

 

25,581

 

 

 

Port of Oakland, RB, Series K, AMT (MBIA), 5.75%, 11/01/21

 

 

2,975

 

 

2,977,350

 

 

 

Port of Oakland, RB, Series L, AMT (MBIA), 5.38%, 11/01/27

 

 

5,000

 

 

4,906,750

 

 

 

Roseville Joint Union High School District, California, GO, Election
of 2004, Series A (MBIA), 5.00%, 8/01/29

 

 

2,985

 

 

3,056,998

 

 

 

Sacramento City Financing Authority, California, RB, Capital
Improvement (AMBAC), 5.00%, 12/01/27

 

 

150

 

 

150,764

 

 

 

San Francisco City & County Airports Commission, RB, Special
Facilities Lease, SFO Fuel, Series A, AMT (FSA), 6.10%, 1/01/20

 

 

1,250

 

 

1,252,388

 

 

 

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

 

 

9,350

 

 

9,231,722

 

 

 

Stockton Public Financing Authority, California, RB,
Redevelopment Projects, Series A (Radian), 5.25%, 9/01/34

 

 

2,930

 

 

2,478,165

 

 

 

Tustin Unified School District, California, Special Tax, Senior Lien,
Community Facilities District 97-1, Series A (FSA), 5.00%, 9/01/38

 

 

1,620

 

 

1,571,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,686,655

 

 

Portfolio Abbreviations

 

 

 

 

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

 

 

 

 

AGC

Assured Guaranty Corp.

 

AMBAC

American Municipal Bond Assurance Corp.

 

AMT

Alternative Minimum Tax (subject to)

 

CAB

Capital Appreciation Bonds

 

COP

Certificates of Participation

 

EDA

Economic Development Authority

 

EDC

Economic Development Corp.

 

FGIC

Financial Guaranty Insurance Co.

 

FSA

Financial Security Assurance Inc.

 

GNMA

Government National Mortgage Association

 

GO

General Obligation Bonds

 

HFA

Housing Finance Agency

 

ISD

Independent School District

 

MBIA

Municipal Bond Investors Assurance (National Public Finance Guaranty Corp.)

 

RB

Revenue Bonds

 

S/F

Single-Family

 

VRDN

Variable Rate Demand Notes

1


 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 

Colorado - 1.3%

 

Colorado Health Facilities Authority, RB, Hospital, NCMC Inc.
Project, Series B (FSA), 6.00%, 5/15/26

 

$

3,300

 

$

3,618,747

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Housing & Finance Authority, Colorado, RB, S/F Program,
Senior Series A-2, AMT, 7.50%, 4/01/31

 

 

175

 

 

187,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,805,957

 

District of Columbia - 0.8%

 

District of Columbia, RB, Deed Tax, Housing Production Trust Fund,
Series A (MBIA), 5.00%, 6/01/32

 

 

2,500

 

 

2,453,425

 

Florida - 22.3%

 

City of Miami Florida, RB, Miami Revenues (MBIA), 5.00%, 1/01/37

 

 

2,900

 

 

2,824,136

 

 

 

City of Orlando Florida, RB, Senior, 6th Cent Contract Payments,
Series A (AGC), 5.25%, 11/01/38

 

 

4,000

 

 

4,015,560

 

 

 

County of Miami-Dade Florida, RB, CAB, Sub-Series A (MBIA),
5.24%, 10/01/37 (b)

 

 

3,670

 

 

538,573

 

 

 

County of Miami-Dade Florida, RB, Miami International Airport,
Series A, AMT (FSA), 5.25%, 10/01/41

 

 

13,800

 

 

13,406,286

 

 

 

County of Miami-Dade Florida, RB, Miami International Airport,
Series A, AMT (FSA), 5.50%, 10/01/41

 

 

6,700

 

 

6,728,274

 

 

 

County of Miami-Dade Florida, RB, Series A, AMT (FSA), 5.00%,
10/01/33

 

 

6,730

 

 

6,336,093

 

 

 

County of Pasco Florida, RB, Half-Cent Sales Tax (AMBAC), 5.13%,
12/01/28

 

 

6,300

 

 

5,916,393

 

 

 

County of Saint John’s Florida, RB, CAB (AMBAC), 5.36%,
6/01/31 (b)

 

 

5,065

 

 

1,461,962

 

 

 

Jacksonville Health Facilities Authority, RB, Baptist Medical Center
(FSA), 5.00%, 8/15/37

 

 

7,740

 

 

7,513,218

 

 

 

Jacksonville Port Authority, RB, AMT (AGC), 6.00%, 11/01/38

 

 

3,625

 

 

3,682,529

 

 

 

Orange County School Board, COP, Series A (AGC), 5.50%, 8/01/34

 

 

12,375

 

 

12,882,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65,305,894

 

Georgia - 1.7%

 

Metropolitan Atlanta Rapid Transit Authority, Refunding RB, Third
Indenture, Series B (FSA), 5.00%, 7/01/34

 

 

4,830

 

 

5,013,443

 

Idaho - 0.1%

 

Idaho Housing & Finance Association, RB, S/F Mortgage,
Series E, AMT, 6.00%, 1/01/32

 

 

320

 

 

328,848

 

Illinois - 4.1%

 

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

 

 

2,080

 

 

2,276,435

 

 

 

Chicago Transit Authority, RB, Federal Transit Administration
Section 5309, Series A (AGC), 6.00%, 6/01/26

 

 

3,400

 

 

3,858,184

 

 

 

City of Chicago Illinois, Refunding RB, General Airport Third Lien,
Series A, AMT (MBIA), 5.75%, 1/01/19

 

 

3,125

 

 

3,187,812

 

 

 

City of Chicago Illinois, Refunding RB, Second Lien (MBIA), 5.50%,
1/01/30

 

 

2,270

 

 

2,449,171

 

 

 

Lake Cook-Dane & McHenry Counties Community Unit School
District 220, Illinois, GO (MBIA), 6.00%, 12/01/20

 

 

125

 

 

130,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,902,276

 

2


 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana - 3.6%

 

Indiana Municipal Power Agency, Indiana, RB, Series A (MBIA),
5.00%, 1/01/42

 

$

8,000

 

$

7,898,560

 

 

 

Indianapolis Local Public Improvement Bond Bank, RB, Waterworks
Project, Series A (AGC), 5.50%, 1/01/38

 

 

2,370

 

 

2,535,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,433,820

 

Iowa - 1.0%

 

Iowa Finance Authority, RB, Iowa Health System (AGC), 5.25%,
2/15/29

 

 

2,915

 

 

2,964,059

 

Kansas - 1.9%

 

Kansas Development Finance Authority, RB, Sisters of Charity,
Series J, 6.13%, 12/01/20

 

 

3,510

 

 

3,571,530

 

 

 

Sedgwick & Shawnee Counties, Kansas, RB, Mortgage,
Series A-2, AMT (GNMA), 6.20%, 12/01/33

 

 

2,015

 

 

2,043,331

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,614,861

 

Kentucky - 1.0%

 

Kentucky Economic Development Finance Authority, Kentucky, RB,
Louisville Arena, Sub-Series A-1 (AGC), 6.00%, 12/01/38

 

 

1,150

 

 

1,218,724

 

 

 

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

 

 

1,525

 

 

1,636,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,855,659

 

Louisiana - 1.3%

 

Louisiana State Citizens Property Insurance Corp., RB, Series C-3
(AGC), 6.13%, 6/01/25

 

 

3,550

 

 

3,945,967

 

Michigan - 15.0%

 

City of Detroit Michigan, RB, Second Lien, Series B (MBIA), 5.50%,
7/01/29

 

 

4,170

 

 

4,183,469

 

 

 

City of Detroit Michigan, RB, Second Lien, Series E (FGIC), 5.75%,
7/01/31

 

 

5,060

 

 

5,438,134

 

 

 

City of Detroit Michigan, RB, Senior Lien, Series B (FSA), 7.50%,
7/01/33

 

 

1,190

 

 

1,469,412

 

 

 

City of Detroit Michigan, Refunding RB, Second Lien, Series C
(FGIC), 5.75%, 7/01/27

 

 

2,600

 

 

2,821,286

 

 

 

City of Detroit Michigan, Refunding RB, Senior Lien, Series B
(MBIA), 5.25%, 7/01/22

 

 

9,235

 

 

9,280,621

 

 

 

City of Detroit Michigan, Refunding RB, Senior Lien, Series C-1
(FSA), 7.00%, 7/01/27

 

 

4,180

 

 

5,098,221

 

 

 

City of Detroit Michigan, Refunding RB, Senior Lien, Series C-2
(FGIC), 5.25%, 7/01/29

 

 

1,860

 

 

1,936,055

 

 

 

Michigan State Building Authority, Refunding RB, Facilities
Program, Series I (AGC), 5.25%, 10/15/24

 

 

1,440

 

 

1,519,258

 

 

 

Michigan State Building Authority, Refunding RB, Facilities
Program, Series I (AGC), 5.25%, 10/15/25

 

 

750

 

 

786,263

 

 

 

Michigan Strategic Fund, Refunding RB, Detroit Edison Co. Project,
Series A, AMT (Syncora), 5.50%, 6/01/30

 

 

2,000

 

 

1,873,600

 

 

 

Michigan Strategic Fund, Refunding RB, Detroit Edison Pollution,
Series C, AMT (Syncora), 5.65%, 9/01/29

 

 

2,935

 

 

2,869,726

 

3


 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

 

Royal Oak Hospital Finance Authority, Michigan, RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

$

3,115

 

$

3,617,730

 

 

 

Saint Clair County, EDC, Michigan, Refunding RB, Detroit Edison,
Series AA (AMBAC), 6.40%, 8/01/24

 

 

3,000

 

 

3,039,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,933,675

 

Minnesota - 1.5%

 

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

 

 

1,975

 

 

2,223,514

 

 

 

Sauk Rapids ISD No. 47, Minnesota, GO, Series A (MBIA), 5.63%,
2/01/18

 

 

2,185

 

 

2,303,493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,527,007

 

Nevada - 0.4%

 

County of Clark, Nevada, RB, Jet Aviation Fuel Tax, Series C, AMT
(AMBAC), 5.38%, 7/01/20

 

 

1,200

 

 

1,150,536

 

 

 

Nevada Housing Division, Nevada, RB, S/F Mortgage, Mezzanine,
Series A-2, AMT (MBIA), 6.30%, 4/01/22

 

 

95

 

 

96,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,246,897

 

New Jersey - 7.5%

 

New Jersey EDA, RB, Motor Vehicle Surcharge, Series A (MBIA),
5.25%, 7/01/33

 

 

11,000

 

 

11,098,780

 

 

 

New Jersey Health Care Facilities Financing Authority, RB, Virtua
Health (AGC), 5.50%, 7/01/38

 

 

3,400

 

 

3,510,398

 

 

 

New Jersey State Housing & Mortgage Finance Agency, RB, S/F
Housing, Series CC, 5.25%, 10/01/29

 

 

3,945

 

 

4,056,999

 

 

 

New Jersey Transportation Trust Fund Authority, New Jersey, RB,
Transportation System, Series A (AGC), 5.63%, 12/15/28

 

 

2,930

 

 

3,281,366

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,947,543

 

New York - 1.5%

 

New York City Transitional Finance Authority, RB, Fiscal 2009,
Series S-3, 5.25%, 1/15/39

 

 

2,300

 

 

2,388,274

 

 

 

Tobacco Settlement Financing Corp., New York, RB, Asset Backed,
Series A-3 (AMBAC), 5.25%, 6/01/21

 

 

2,000

 

 

2,086,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,474,414

 

North Carolina - 0.4%

 

North Carolina HFA, North Carolina, RB, Home Ownership,
Series 14, Series A, AMT (AMBAC), 5.35%, 1/01/22

 

 

1,235

 

 

1,246,671

 

Ohio - 1.0%

 

Aurora City School District, COP (MBIA), 6.10%, 12/01/09 (a)

 

 

1,745

 

 

1,771,192

 

 

 

Kent State University Revenues, RB, General Receipts (AMBAC),
6.00%, 5/01/10 (a)

 

 

1,000

 

 

1,036,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,807,882

 

Oklahoma - 1.0%

 

Claremore Public Works Authority, Oklahoma, RB, Series A (FSA),
5.25%, 6/01/14 (a)

 

 

2,385

 

 

2,763,810

 

Pennsylvania - 1.0%

 

Pennsylvania Turnpike Commission, RB, Sub-Series B (FSA), 5.25%,
6/01/39

 

 

3,000

 

 

2,984,670

 

Puerto Rico - 1.3%

 

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

 

 

3,500

 

 

3,775,030

 

4


 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 

Rhode Island - 2.0%

 

Providence Redevelopment Agency, Rhode Island, RB, Public Safety
& Municipal Buildings, Series A (AMBAC), 5.75%,
4/01/10 (a)

 

$

5,555

 

$

5,728,594

 

South Carolina - 5.6%

 

South Carolina State Housing Finance & Development Authority,
South Carolina, RB, Series A-2, AMT (FSA), 6.35%, 7/01/19

 

 

1,110

 

 

1,126,683

 

 

 

South Carolina State Public Service Authority, RB, Series A
(AMBAC), 5.00%, 1/01/42

 

 

15,000

 

 

15,115,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,242,483

 

Texas - 17.8%

 

City of Dallas Texas, Refunding RB & Improvement (AGC), 5.25%,
8/15/38

 

 

2,100

 

 

2,143,365

 

 

 

City of El Paso Texas, Refunding RB & Improvement, Series A (FSA),
6.00%, 3/01/15

 

 

115

 

 

127,535

 

 

 

City of El Paso Texas, Refunding RB & Improvement, Series A (FSA),
6.00%, 3/01/16

 

 

170

 

 

188,530

 

 

 

City of El Paso Texas, Refunding RB & Improvement, Series A (FSA),
6.00%, 3/01/17

 

 

180

 

 

199,620

 

 

 

City of Houston Texas, Refunding RB, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

6,700

 

 

7,616,291

 

 

 

Dallas-Fort Worth International Airport Facilities Improvement
Corp., Refunding RB & Improvement, Series A, AMT (MBIA), 5.88%,
11/01/18

 

 

2,150

 

 

2,222,369

 

 

 

Dallas-Fort Worth International Airport Facilities Improvement
Corp., Refunding RB & Improvement, Series A, AMT (MBIA), 5.88%,
11/01/19

 

 

2,390

 

 

2,466,026

 

 

 

Harris County Health Facilities Development Corp., Refunding RB,
Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/35

 

 

1,000

 

 

1,117,700

 

 

 

Lower Colorado River Authority, Refunding RB (AGC), 5.50%,
5/15/36

 

 

2,935

 

 

3,061,058

 

 

 

Lubbock Copper Texas ISD, GO, School Building (AGC), 5.75%,
2/15/42

 

 

1,250

 

 

1,323,563

 

 

 

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

 

 

14,750

 

 

14,882,602

 

 

 

North Texas Tollway Authority, Refunding RB, System, First Tier,
Series A (MBIA), 5.63%, 1/01/33

 

 

10,975

 

 

11,193,511

 

 

 

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

 

 

1,000

 

 

1,008,990

 

 

 

North Texas Tollway Authority, Refunding RB, System, First Tier,
Series K-2 (AGC), 6.00%, 1/01/38

 

 

1,000

 

 

1,083,460

 

 

 

Tarrant County Cultural Education Facilities Finance Corp.,
Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37

 

 

3,000

 

 

3,295,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,929,700

 

Utah - 1.4%

 

City of Riverton Utah, RB, IHC Health Services Inc., 5.00%, 8/15/41

 

 

4,085

 

 

3,958,283

 

Virginia - 0.9%

 

Virginia Public School Authority, Virginia, RB, School Financing,
6.50%, 12/01/35

 

 

2,195

 

 

2,522,867

 

5


 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds

 

Par
(000)

 

Value

 

Washington - 1.8%

 

Chelan County Public Utility District No. 1, RB, Chelan Hydro
System, Series A, AMT (AMBAC), 5.45%, 7/01/37

 

$

3,840

 

$

3,686,208

 

 

 

County of Lewis Washington, GO, Refunding (AMBAC), 5.75%,
12/01/09 (a)

 

 

1,640

 

 

1,645,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,332,194

 

 

 

Total Municipal Bonds - 121.8%

 

 

 

 

 

356,159,275

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

 

 

 

 

 

 

California - 3.7%

 

City of San Jose California, GO, Libraries, Parks, Public Safety
Project (MBIA), 5.00%, 9/01/30

 

 

3,805

 

 

3,882,301

 

 

 

San Diego Community College District, California, GO,
Election of 2002 (FSA), 5.00%, 5/01/30

 

 

1,486

 

 

1,524,075

 

 

 

Sequoia Union High School District, California, GO, Refunding,
Election Series B (FSA), 5.50%, 7/01/35

 

 

5,189

 

 

5,442,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,848,560

 

Colorado - 3.3%

 

Colorado Health Facilities Authority, RB, Catholic Health, Series C3
(FSA), 5.10%, 10/01/41

 

 

9,410

 

 

9,506,923

 

District of Columbia - 0.7%

 

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

 

 

1,700

 

 

1,900,419

 

Florida - 8.3%

 

City of Saint Petersburg, Florida, Refunding RB (MBIA),
5.00%, 10/01/35

 

 

6,493

 

 

6,309,078

 

 

 

County of Miami-Dade, Florida, GO, Building Better Communities
Program, Series B-1, 6.00%, 7/01/38

 

 

12,500

 

 

13,691,875

 

 

 

Lee County HFA, RB, Multi-County Program, Series A-2,
AMT (GNMA), 6.00%, 9/01/40

 

 

3,870

 

 

4,151,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,152,844

 

Georgia - 2.2%

 

City of Augusta, Georgia, RB (FSA), 5.25%, 10/01/34

 

 

6,290

 

 

6,509,898

 

Illinois - 6.5%

 

City of Chicago, Illinois, RB, General Airport Third Lien, Series A,
(AMBAC), 5.00%, 1/01/38

 

 

15,000

 

 

14,986,350

 

 

 

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

 

 

3,969

 

 

4,154,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,140,556

 

Kentucky - 0.8%

 

Kentucky State Property & Buildings Commission, Kentucky,
Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27

 

 

2,304

 

 

2,468,318

 

Massachusetts - 3.7%

 

Massachusetts Bay Transportation Authority, Refunding RB, Senior
Series A, 5.00%, 7/01/35

 

 

5,535

 

 

5,546,568

 

 

 

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

 

 

4,994

 

 

5,158,329

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,704,897

 

Nevada - 6.8%

 

Clark County Water Reclamation District, GO, Limited Tax, 6.00%,
7/01/38

 

 

10,000

 

 

10,975,900

 

 

 

Clark County Water Reclamation District, GO, Series B,
5.50%, 7/01/29

 

 

8,247

 

 

8,962,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,937,994

 

6


 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

State

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

Par
(000)

 

Value

 

New York - 2.5%

 

Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), 5.25%,
10/15/27

 

$

6,751

 

$

7,387,072

 

Washington - 2.5%

 

City of Bellevue, Washington, GO, Refunding (MBIA),
5.50%, 12/01/39

 

 

6,883

 

 

7,295,067

 

 

 

Total Municipal Bonds transferred to Tender
Option Bond Trusts - 41.0%

 

 

 

 

 

119,852,548

 

 

 

Total Long-Term Investments (Cost - $470,233,659) - 162.8%

 

 

 

 

 

476,011,823

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

Florida - 1.1%

 

Jacksonville Health Facilities Authority, Refunding RB, VRDN,
Baptist, Series C, 0.20%, 11/02/09 (d)

 

 

3,160

 

 

3,160,000

 

 

 

 

 

Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market Fund - 3.3%

 

FFI Institutional Tax-Exempt Fund, 0.23% (e)(f)

 

 

9,589,380

 

 

9,589,380

 

 

 

Total Short-Term securities (Cost - $12,749,380) - 4.4%

 

 

 

 

 

12,749,380

 

 

 

Total Investments (Cost - $482,983,039*) - 167.2%

 

 

 

 

 

488,761,203

 

 

 

Liabilities in Excess of Other Assets - (0.8)%

 

 

 

 

 

(2,201,585

)

 

 

Liability for Trust Certificates, Including
Interest Expense & Fees Payable - (21.6)%

 

 

 

 

 

(63,185,429

)

 

 

Preferred Shares, at Redemption Value - (44.8)%

 

 

 

 

 

(131,009,173

)

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shares - 100.0%

 

 

 

 

$

292,365,016

 

 

 

 

 

 

 

 

 

 

  *

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


 

 

 

 

 

 

 

Aggregate cost

 

$

415,401,209

 

 

 

 

 

Gross unrealized appreciation

 

$

16,407,737

 

 

Gross unrealized depreciation

 

 

(6,164,571

)

 

 

 

 

Net unrealized appreciation

 

$

10,243,166

 

 

 

 

 

 

(a)

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

 

 

(b)

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

 

 

(c)

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

 

 

(d)

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

 

 

(e)

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

 

 

 

 

 

 

 

 

 

Affiliate

 

Net Activity

 

Income

 

FFI Institutional Tax-Exempt Fund

 

$

(8,003,710

)

$

7,027

 

 

 

(f)

Represents the current yield as of the report date.

7


 

 

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

Schedule of Investments October 31, 2009 (Unaudited)

 

 

 

 

 

•

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 assets and liabilities

 

 

 

 

 

 

•

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

 

 

 

 

 

•

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

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 the Fund’s most recent financial statements as contained in its annual report.

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

 

 

 

 

 

Valuation Inputs

 

Investments in
Securities

 

 

 

Assets

 

 

 

 

Level 1 - Short-Term Securities

 

$

9,589,380

 

 

 

Level 2

 

 

 

 

Long-Term Investments1

 

 

476,011,823

 

Short-Term Securities

 

 

3,160,000

 

 

 

Total Level 2

 

 

479,171,823

 

 

 

Level 3

 

 

—

 

Total

 

$

488,761,203

 

 

 

 

 

1

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

8

 

 

Item 2 – Controls and Procedures

 

 

2(a) –

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

 

 

2(b) –

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

 

 

Item 3 – Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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

 

 

 

 

BlackRock MuniHoldings Insured Fund II, Inc.

 

 

 

 

By:

/s/ Anne F. Ackerley

 

 

 

 

Anne F. Ackerley

 

 

Chief Executive Officer of

 

 

BlackRock MuniHoldings Insured Fund II, Inc.

 

 

 

 

Date: December 18, 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/ Anne F. Ackerley

 

 

 

 

Anne F. Ackerley

 

 

Chief Executive Officer (principal executive officer) of

 

 

BlackRock MuniHoldings Insured Fund II, Inc.

 

 

 

 

Date: December 18, 2009

 

 

 

 

By:

/s/ Neal J. Andrews

 

 

 

 

Neal J. Andrews

 

 

Chief Financial Officer (principal financial officer) of

 

 

BlackRock MuniHoldings Insured Fund II, Inc.

 

 

 

 

Date: December 18, 2009