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 811-06540

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 07/31/2010

 

Date of reporting period: 01/31/2010

 

Item 1 – Report to Stockholders

 


EQUITIES  FIXED INCOME  REAL ESTATE  LIQUIDITY  ALTERNATIVES  BLACKROCK SOLUTIONS


 

 

Semi-Annual Report

(BLACKROCK LOGO)

 

 

JANUARY 31, 2010 | (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




 

 

 

Dear Shareholder

 

3

Semi-Annual Report:

 

 

Fund Summaries

 

4

The Benefits and Risks of Leveraging

 

9

Derivative Financial Instruments

 

9

Financial Statements:

 

 

Schedules of Investments

 

10

Statements of Assets and Liabilities

 

33

Statements of Operations

 

34

Statements of Changes in Net Assets

 

35

Statements of Cash Flows

 

38

Financial Highlights

 

39

Notes to Financial Statements

 

44

Officers and Directors

 

52

Additional Information

 

53


 

 

 


2

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


 

Dear Shareholder

Over the past year, investors worldwide witnessed a seismic shift in market sentiment as guarded optimism replaced the fear and pessimism that had dominated since late 2007. The single most important reason for this change was the swing from a severe economic recession to an emergent global recovery.

At the start of 2009, markets were reeling from the virtually unprecedented global financial and economic meltdown. The looming threat of further collapse in global markets prompted stimulus packages and central bank interventions on an extraordinary scale. By period end, these actions had helped stabilize the financial system, and the economic contraction abated.

After reaching a trough in March 2009, stocks galloped higher as the massive, coordinated global monetary and fiscal stimulus began to re-inflate world economies. Sidelined cash poured into the markets, triggering a dramatic and steep upward rerating of stocks and other risk assets. Still, the rally has not been without interruption, as mixed economic data, global challenges regarding sovereign credit risk and proposed fees and levies on banks had begun to dampen investor conviction toward period end. The experience in international markets generally mirrored that seen in the United States; notably, emerging markets firmly reclaimed their leadership status.

The easing of investor risk aversion was notable in the fixed income markets as well, where non-Treasury assets made a robust recovery. One of the major themes over the past year was the reversal of the flight-to-quality trade. High yield finished the period as the strongest-performing fixed income sector in both the taxable and tax-exempt space. Overall, the municipal market made a strong showing as technical conditions remained supportive of the asset class. The Build America Bond program was deemed a success, adding $65 billion of taxable supply to the municipal marketplace in 2009 and $4 billion so far this year. The program continues to alleviate tax-exempt supply pressure and attract the attention of a global audience. However, fundamental concerns are moving to the fore in the municipal space, and bear close watching as the year progresses. At the same time, yields on money market securities declined throughout the reporting period and remain near all-time lows, with the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an “extended period.” Investor assets in money market funds declined from the peak registered in early 2009, but remain well above pre-crisis levels.

All told, the rebound in sentiment and global market conditions resulted in positive 6- and 12-month returns for nearly every major benchmark index, with the most dramatic improvement seen among risk assets.

 

 

 

 

 

 

 

 

Total Returns as of January 31, 2010

 

6-month

 

12-month

 







US equities (S&P 500 Index)

 

 

9.87

%

 

33.14

%









Small cap US equities (Russell 2000 Index)

 

 

8.86

 

 

37.82

 









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

 

 

6.93

 

 

39.68

 









3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index)

 

 

0.10

 

 

0.22

 









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

 

 

0.62

 

 

(3.31

)









Taxable fixed income (Barclays Capital US Aggregate Bond Index)

 

 

3.87

 

 

8.51

 









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

 

 

4.90

 

 

9.49

 









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

 

 

15.90

 

 

50.80

 









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

The market environment continues to improve, but questions about the strength and sustainability of the recovery abound. Through periods of market uncertainty, BlackRock’s full resources are dedicated to the management of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank you for entrusting BlackRock with your investments, and we look forward to your continued partnership 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, 2010

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.

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

 


Performance


For the six months ended January 31, 2010, the Fund returned 16.80% based on market price, and 10.80% 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 10.18% based on market price, and 9.18% 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. The Fund held overweight positions in health and housing bonds with maturities of 20 years and longer, which benefited performance as the municipal yield curve flattened during the last six months. Conversely, overweights in insured Florida and California holdings with weak underlying credits detracted from performance relative to the Lipper category.

 

 

 

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 (“NYSE”)

 

MUE

Initial Offering Date

 

February 26, 1999

Yield on Closing Market Price as of January 31, 2010 ($12.89)1

 

6.52%

Tax Equivalent Yield2

 

10.03%

Current Monthly Distribution per Common Share3

 

$0.07

Current Annualized Distribution per Common Share3

 

$0.84

Leverage as of January 31, 20104

 

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 Monthly Distribution per Share, declared on March 1, 2010, was increased to $0.0735. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

1/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

12.89

 

$

11.40

 

 

13.07

%

$

13.24

 

$

11.40

 

Net Asset Value

 

$

13.16

 

$

12.27

 

 

7.25

%

$

13.88

 

$

12.26

 


















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

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 









County/City/Special District/School District

 

29

%

 

29

%

 

Transportation

 

21

 

 

23

 

 

Utilities

 

20

 

 

21

 

 

State

 

12

 

 

10

 

 

Health

 

11

 

 

9

 

 

Housing

 

5

 

 

5

 

 

Corporate

 

2

 

 

2

 

 

Education

 

 

 

1

 

 










 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 







AAA/Aaa

 

54

%

 

50

%

 

AA/Aa

 

20

 

 

19

 

 

A

 

22

 

 

27

 

 

BBB/Baa

 

2

 

 

2

 

 

Not Rated6

 

2

 

 

2

 

 










 

 

 

 

5

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

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of January 31, 2010 and July 31, 2009, the market value of these securities was $9,626,243, representing 2% and $10,104,059, representing 2%, respectively, of the Fund’s long-term investments.


 

 

 


4

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 



 

 

Fund Summary as of January 31, 2010

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.

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

 


Performance


For the six months ended January 31, 2010, the Fund returned 6.47% based on market price, and 9.10% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.47% based on market price, and 8.71% on a NAV basis. All returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises funds representing various states and not California alone. 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 maintains a relatively generous degree of income accrual, which was a positive factor. The tightening of credit quality spreads in the uninsured basket of the Fund’s holdings also aided results. A fully-invested posture and a slightly longer relative duration posture were additive, too, as rates declined in the second half of 2009. Throughout this period, the municipal market benefited from the Build America Bond Program, which effectively moved supply to the taxable market and, thus, alleviated supply pressure in the tax-exempt space. Conversely, downgrades of monoline insurers detracted from performance in all funds investing in bonds utilizing insurance wraps. This had a particularly negative impact on California credits due to the well-publicized fiscal and budgetary challenges the state is facing. In addition, secondary market demand for insured California municipals has decreased, limiting liquidity and widening spreads on insured bonds.

 

 

 

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 NYSE

 

MCA

Initial Offering Date

 

October 30, 1992

Yield on Closing Market Price as of January 31, 2010 ($12.50)1

 

5.86%

Tax Equivalent Yield2

 

9.02%

Current Monthly Distribution per Common Share3

 

$0.061

Current Annualized Distribution per Common Share3

 

$0.732

Leverage as of January 31, 20104

 

36%





 

 

 

 

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 Monthly Distribution per Share, declared on March 1, 2010, was increased to $0.066. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

 

1/31/10

 

 

7/31/09

 

 

Change

 

 

High

 

 

Low

 


















Market Price

 

$

12.50

 

$

12.08

 

 

3.48

%

$

13.54

 

$

12.03

 

Net Asset Value

 

$

14.24

 

$

13.43

 

 

6.03

%

$

14.92

 

$

13.42

 


















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

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 









County/City/Special District/School District

 

54

%

 

44

%

 

Utilities

 

24

 

 

25

 

 

Transportation

 

9

 

 

13

 

 

Education

 

6

 

 

10

 

 

Corporate

 

3

 

 

 

 

Health

 

2

 

 

3

 

 

State

 

2

 

 

3

 

 

Housing

 

 

 

2

 

 










 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 







AAA/Aaa

 

51

%

 

44

%

 

AA/Aa

 

27

 

 

28

 

 

A

 

21

 

 

27

 

 

BBB/Baa

 

1

 

 

1

 

 










 

 

 

 

5

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


 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2010

5




 

 



 

 

Fund Summary as of January 31, 2010

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.

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

 


Performance


For the six months ended January 31, 2010, the Fund returned 6.94% based on market price, and 10.92% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 10.18% based on market price, and 9.18% 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 primary contributors to relative performance were the Fund’s positive positioning with respect to the market during a period in which yields generally declined, and its exposure to the long end of the yield curve, which outperformed as the yield curve flattened. Exposure to insured bonds with lower-rated underlying credits also aided results as yield spreads generally tightened during the period. Conversely, the Fund’s small exposure to the well-performing education sector detracted from performance. Exposure to zero-coupon bonds — which generally under-performed as spreads in this sector widened — also hindered returns.

 

 

 

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


 

 

 




Fund Information

 

 




Symbol on NYSE

 

MYI

Initial Offering Date

 

March 27, 1992

Yield on Closing Market Price as of January 31, 2010 ($12.59)1

 

5.81%

Tax Equivalent Yield2

 

8.94%

Current Monthly Distribution per Common Share3

 

$0.061

Current Annualized Distribution per Common Share3

 

$0.732

Leverage as of January 31, 20104

 

37%





 

 

 

 

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 Monthly Distribution per Share, declared on March 1, 2010, was increased to $0.066. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

1/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

12.59

 

$

12.12

 

 

3.88

%

$

13.11

 

$

11.46

 

Net Asset Value

 

$

13.22

 

$

12.27

 

 

7.74

%

$

13.88

 

$

12.25

 


















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

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 







Transportation

 

29

%

 

31

%

 

County/City/Special District/School District

 

24

 

 

24

 

 

Utilities

 

16

 

 

17

 

 

State

 

9

 

 

8

 

 

Health

 

7

 

 

6

 

 

Housing

 

5

 

 

5

 

 

Corporate

 

5

 

 

2

 

 

Education

 

5

 

 

7

 

 










 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 







AAA/Aaa

 

46

%

 

47

%

 

AA/Aa

 

26

 

 

23

 

 

A

 

22

 

 

25

 

 

BBB/Baa

 

5

 

 

5

 

 

Not Rated

 

1

 

 

 

 










 

 

 

 

5

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


 

 

 


6

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 



 

 

Fund Summary as of January 31, 2010

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.

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

 


Performance


For the six months ended January 31, 2010, the Fund returned 6.11% based on market price, and 8.64% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.47% based on market price, and 8.71% on a NAV basis. All returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises funds representing various states and not Michigan alone. 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’s allocations to the industrial development revenue/pollution control revenue and health sectors aided performance, as these represented two of the best-performing sectors for the six months. In contrast, pre-refunded and escrowed issues lagged. The Fund’s overweight in this sector, coupled with a shorter duration, restricted upward price movement in a declining rate environment. Additionally, a large block of bonds was called, increasing the cash position while reinvestment was completed.

 

 

 

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 NYSE

 

MYM

Initial Offering Date

 

February 28, 1992

Yield on Closing Market Price as of January 31, 2010 ($11.89)1

 

6.71%

Tax Equivalent Yield2

 

10.32%

Current Monthly Distribution per Common Share3

 

$0.0665

Current Annualized Distribution per Common Share3

 

$0.7980

Leverage as of January 31, 20104

 

37%





 

 

 

 

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 Monthly Distribution per Share, declared on March 1, 2010, was increased to $0.069. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

1/31/10

 

7/31/09

 

Change

 

High

 

Low

 













Market Price

 

$

11.89

 

$

11.58

 

 

2.68

%

$

12.72

 

$

11.45

 

Net Asset Value

 

$

13.53

 

$

12.87

 

 

5.13

%

$

14.11

 

$

12.85

 


















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

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 







County/City/Special District/School District

 

32

%

 

23

%

 

Health

 

15

 

 

16

 

 

Corporate

 

12

 

 

15

 

 

State

 

12

 

 

11

 

 

Utilities

 

11

 

 

12

 

 

Transportation

 

11

 

 

11

 

 

Education

 

5

 

 

10

 

 

Housing

 

2

 

 

2

 

 










 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 







AAA/Aaa

 

36

%

 

28

%

 

AA/Aa

 

26

 

 

27

 

 

A

 

33

 

 

40

 

 

BBB/Baa

 

2

 

 

2

 

 

Not Rated

 

3

6

 

3

 

 










 

 

 

 

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 of investment grade quality. As of January 31, 2010, the market value of these securities was $4,388,080, representing 2% of the Fund’s long-term investments.


 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2010

7




 

 



 

 

Fund Summary as of January 31, 2010

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.

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

 


Performance


For the six months ended January 31, 2010, the Fund returned 9.02% based on market price, and 9.76% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 8.47% based on market price, and 8.71% on a NAV basis. All returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the Fund, as the Lipper group comprises funds representing various states and not New York alone. 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’s holdings of longer-dated and discount-coupon bonds aided relative performance; these issues outperformed as the market recovered and credit spreads tightened during the six months. Additionally, we participated in the new-issue market when supply was plentiful and underwriters were more willing to structure bonds in accordance with orders. This allowed us to improve the Fund’s diversification, while also increasing its exposure to lower-coupon bonds. On the other hand, the Fund’s zero-coupon and shorter-dated bond holdings detracted from performance, as these issues underperformed the market. We were also unable to purchase enough longer-dated, new-issue insured bonds to swap out of the Fund’s older and lower-book-yield bonds. As a result, the Fund maintains a below-average accrual rate, which had a negative impact on total return.

 

 

 

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 NYSE

 

MYN

Initial Offering Date

 

February 28, 1992

Yield on Closing Market Price as of January 31, 2010 ($12.06)1

 

5.47%

Tax Equivalent Yield2

 

8.42%

Current Monthly Distribution per Common Share3

 

$0.055

Current Annualized Distribution per Common Share3

 

$0.660

Leverage as of January 31, 20104

 

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 Monthly Distribution per Share, declared on March 1, 2010, was increased to $0.0625. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

 

1/31/10

 

7/31/09

 

Change

 

High

 

Low

 


















Market Price

 

$

12.06

 

$

11.36

 

 

6.16

%

$

12.64

 

$

11.32

 

Net Asset Value

 

$

13.52

 

$

12.65

 

 

6.88

%

$

13.98

 

$

12.64

 


















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

 

 

 

 

 

 

 

 









Sector Allocations

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 









County/City/Special District/School District

 

30

%

 

31

%

 

Transportation

 

30

 

 

29

 

 

State

 

10

 

 

11

 

 

Utilities

 

10

 

 

10

 

 

Corporate

 

6

 

 

6

 

 

Education

 

6

 

 

5

 

 

Health

 

4

 

 

4

 

 

Housing

 

3

 

 

3

 

 

Tobacco

 

1

 

 

1

 

 










 

 

 

 

 

 

 

 









Credit Quality Allocations5

 

 

 

 

 

 

 









 

 

1/31/10

 

7/31/09

 







AAA/Aaa

 

44

%

 

45

%

 

AA/Aa

 

17

 

 

16

 

 

A

 

33

 

 

32

 

 

BBB/Baa

 

6

 

 

7

 

 










 

 

 

 

5

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


 

 

 


8

SEMI-ANNUAL REPORT

JANUARY 31, 2010



 


 

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 each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s Common Shareholders will benefit from the incremental net income.

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 securities purchased by the Fund with assets received from the Preferred Shares issuance earn 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 net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely. Furthermore, 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.

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 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 each Fund’s 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 Common Shareholders will be reduced. Each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Fund to incur losses. The use of leverage may limit each Fund’s 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 the Funds. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Funds are permitted to issue Preferred Shares in an amount of up to 50% of its 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, 2010, the Funds had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 






 

 

Percent of
Leverage

 






MUE

 

40

%

 

MCA

 

36

%

 

MYI

 

37

%

 

MYM

 

37

%

 

MYN

 

38

%

 







 


 

Derivative Financial Instruments

The Funds may invest in various derivative instruments, including financial futures contracts, as specified in Note 2 of 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 counterparty to the transaction or illiquidity of the derivative instrument. Each Fund’s ability to successfully use a derivative instrument depends on the investment 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 distressed 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, 2010

9




 

 


 

Schedule of Investments January 31, 2010 (Unaudited)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)
(Percentages shown are based on Net Assets)

 

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Alabama — 2.9%

 

 

 

 

 

 

 

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

 

$

5,225

 

$

5,541,008

 

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

 

 

3,580

 

 

3,043,573

 

 

 

 

 

 




 

 

 

 

 

 

8,584,581

 









Arizona — 0.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 10/01/28

 

 

1,175

 

 

1,214,527

 

5.00%, 10/01/29

 

 

305

 

 

308,010

 

 

 

 

 

 




 

 

 

 

 

 

1,522,537

 









Arkansas — 4.2%

 

 

 

 

 

 

 

Arkansas Development Finance Authority, Refunding
RB, FHA Insured Mortgage Loan, Series C (NPFGC),
5.35%, 12/01/35

 

 

12,165

 

 

12,259,522

 









California — 16.5%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

4,928,310

 

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

 

 

3,500

 

 

3,636,010

 

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

 

 

2,405

 

 

2,385,928

 

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

 

 

4,240

 

 

3,789,797

 

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

 

 

3,175

 

 

3,240,468

 

Port of Oakland, RB, Series K, AMT (NPFGC):

 

 

 

 

 

 

 

5.75%, 11/01/21

 

 

2,975

 

 

2,977,915

 

5.75%, 11/01/21 (a)

 

 

25

 

 

25,304

 

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

 

 

5,000

 

 

4,723,550

 

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

 

 

2,985

 

 

3,030,670

 

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

 

 

150

 

 

150,458

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

Value

 









California (concluded)

 

 

 

 

 

 

 

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

 

$

1,250

 

$

1,251,288

 

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

 

 

5,000

 

 

5,046,700

 

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

 

 

9,350

 

 

9,346,073

 

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

 

 

2,930

 

 

2,492,756

 

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

 

 

1,620

 

 

1,548,785

 

 

 

 

 

 




 

 

 

 

 

 

48,574,012

 









Colorado — 1.3%

 

 

 

 

 

 

 

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

 

 

3,300

 

 

3,640,692

 

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

 

 

175

 

 

187,285

 

 

 

 

 

 




 

 

 

 

 

 

3,827,977

 









District of Columbia — 0.8%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,496,500

 









Florida — 21.6%

 

 

 

 

 

 

 

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

 

 

2,900

 

 

2,841,043

 

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

 

 

4,000

 

 

4,047,920

 

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

 

 

3,670

 

 

537,618

 

County of Miami-Dade Florida, RB, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/33

 

 

6,730

 

 

6,502,997

 

Miami International Airport, 5.25%, 10/01/41

 

 

13,800

 

 

13,589,412

 

Miami International Airport, 5.50%, 10/01/41

 

 

6,700

 

 

6,768,474

 


 


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 following list:

 

 

 

ACA

 

American Capital Access Corp.

AGC

 

Assured Guaranty Corp.

AGM

 

Assured Guaranty Municipal Corp.

AMBAC

 

American Municipal Bond Assurance Corp.

AMT

 

Alternative Minimum Tax (subject to)

ARB

 

Airport Revenue Bonds

BHAC

 

Berkshire Hathaway Assurance Corp.

CAB

 

Capital Appreciation Bonds

CIFG

 

CDC IXIS Financial Guaranty

COP

 

Certificates of Participation

EDA

 

Economic Development Authority

ERB

 

Education Revenue Bonds

FGIC

 

Financial Guaranty Insurance Co.

FHA

 

Federal Housing Administration

FNMA

 

Federal National Mortgage Association

FSA

 

Financial Security Assurance Inc.

GAN

 

Grant Anticipation Notes

GNMA

 

Government National Mortgage Association

GO

 

General Obligation Bonds

HFA

 

Housing Finance Agency

HRB

 

Housing Revenue Bonds

ISD

 

Independent School District

LRB

 

Lease Revenue Bonds

MRB

 

Mortgage Revenue Bonds

NPFGC

 

National Public Finance Guarantee Corp.

PILOT

 

Payment in Lieu of Taxes

PSF-GTD

 

Permanent School Fund Guaranteed

Q-SBLF

 

Qualified School Bond Loan Fund

RB

 

Revenue Bonds

S/F

 

Single-Family

SONYMA

 

State of New York Mortgage Agency

VRDN

 

Variable Rate Demand Note


 

 

 

See Notes to Financial Statements.




10

SEMI-ANNUAL REPORT

JANUARY 31, 2010



 

 



 

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)

 

 

 

 

 

 

 

County of Pasco Florida, RB, Half-Cent (AMBAC),

 

 

 

 

 

 

 

5.13%, 12/01/28

 

$

6,300

 

$

5,836,446

 

County of St. John’s Florida, RB, CAB (AMBAC),

 

 

 

 

 

 

 

5.36%, 6/01/31 (b)

 

 

5,065

 

 

1,489,059

 

Jacksonville Health Facilities Authority, RB, Baptist

 

 

 

 

 

 

 

Medical Center (AGM), 5.00%, 8/15/37

 

 

5,190

 

 

5,098,449

 

Jacksonville Port Authority, RB, AMT (AGC),

 

 

 

 

 

 

 

6.00%, 11/01/38

 

 

3,625

 

 

3,707,541

 

Orange County School Board, COP, Series A (AGC),

 

 

 

 

 

 

 

5.50%, 8/01/34

 

 

12,375

 

 

13,029,885

 

 

 

 

 

 




 

 

 

 

 

 

63,448,844

 









Georgia — 2.9%

 

 

 

 

 

 

 

Gwinnett County Hospital Authority, Refunding RB,

 

 

 

 

 

 

 

Gwinnett Hospital System, Series D (AGM),

 

 

 

 

 

 

 

5.50%, 7/01/41

 

 

3,425

 

 

3,437,330

 

Metropolitan Atlanta Rapid Transit Authority, RB,

 

 

 

 

 

 

 

Third Indenture, Series B (AGM), 5.00%, 7/01/34

 

 

4,830

 

 

5,008,565

 

 

 

 

 

 




 

 

 

 

 

 

8,445,895

 









Idaho — 0.1%

 

 

 

 

 

 

 

Idaho Housing & Finance Association, RB, S/F

 

 

 

 

 

 

 

Mortgage, Series E, AMT, 6.00%, 1/01/32

 

 

280

 

 

294,224

 









Illinois — 7.0%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,

 

 

 

 

 

 

 

Chicago School Reform Board, Series A (NPFGC),

 

 

 

 

 

 

 

5.50%, 12/01/26

 

 

2,080

 

 

2,305,368

 

Chicago Transit Authority, RB, Federal Transit

 

 

 

 

 

 

 

Administration Section 5309, Series A (AGC),

 

 

 

 

 

 

 

6.00%, 6/01/26

 

 

3,400

 

 

3,863,930

 

City of Chicago, Illinois, GO, Refunding, Projects,

 

 

 

 

 

 

 

Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/28

 

 

2,315

 

 

2,429,430

 

5.00%, 1/01/29

 

 

3,585

 

 

3,729,977

 

5.00%, 1/01/30

 

 

1,430

 

 

1,476,261

 

City of Chicago Illinois, Refunding RB, Second Lien

 

 

 

 

 

 

 

(NPFGC), 5.50%, 1/01/30

 

 

2,270

 

 

2,493,845

 

Lake Cook-Dane & McHenry Counties Community

 

 

 

 

 

 

 

Unit School District 220 Illinois, GO (NPFGC),

 

 

 

 

 

 

 

6.00%, 12/01/20

 

 

125

 

 

129,789

 

State of Illinois, RB, Build Illinois, Series B,

 

 

 

 

 

 

 

5.25%, 6/15/28

 

 

4,000

 

 

4,230,400

 

 

 

 

 

 




 

 

 

 

 

 

20,659,000

 









Indiana — 3.5%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB, Series A (NPFGC),

 

 

 

 

 

 

 

5.00%, 1/01/42

 

 

8,000

 

 

7,763,840

 

Indianapolis Local Public Improvement Bond Bank,

 

 

 

 

 

 

 

Refunding RB, Waterworks Project, Series A (AGC),

 

 

 

 

 

 

 

5.50%, 1/01/38

 

 

2,370

 

 

2,542,489

 

 

 

 

 

 




 

 

 

 

 

 

10,306,329

 









Iowa — 1.0%

 

 

 

 

 

 

 

Iowa Finance Authority, Refunding RB, Iowa Health

 

 

 

 

 

 

 

System (AGC), 5.25%, 2/15/29

 

 

2,915

 

 

2,984,464

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Kansas — 1.9%

 

 

 

 

 

 

 

Kansas Development Finance Authority, RB, Sisters

 

 

 

 

 

 

 

of Charity, Series J, 6.13%, 12/01/20

 

$

3,510

 

$

3,563,457

 

Sedgwick & Shawnee Counties Kansas, MRB,

 

 

 

 

 

 

 

Series A-2, AMT (GNMA), 6.20%, 12/01/33

 

 

1,875

 

 

1,903,800

 

 

 

 

 

 




 

 

 

 

 

 

5,467,257

 









Kentucky — 1.0%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority,

 

 

 

 

 

 

 

RB, Louisville Arena, Sub-Series A-1 (AGC),

 

 

 

 

 

 

 

6.00%, 12/01/38

 

 

1,150

 

 

1,234,847

 

Kentucky State Property & Buildings Commission,

 

 

 

 

 

 

 

Refunding RB, Project No. 93 (AGC),

 

 

 

 

 

 

 

5.25%, 2/01/29

 

 

1,525

 

 

1,636,935

 

 

 

 

 

 




 

 

 

 

 

 

2,871,782

 









Louisiana — 1.4%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp.,

 

 

 

 

 

 

 

RB, Series C-3 (AGC), 6.13%, 6/01/25

 

 

3,550

 

 

3,980,970

 









Massachusetts — 1.9%

 

 

 

 

 

 

 

Massachusetts Bay Transportation Authority,

 

 

 

 

 

 

 

Refunding RB, Senior Series A, 5.00%, 7/01/35

 

 

5,535

 

 

5,542,860

 









Michigan — 14.1%

 

 

 

 

 

 

 

City of Detroit Michigan, Series B, RB:

 

 

 

 

 

 

 

Second Lien (NPFGC), 5.50%, 7/01/29

 

 

4,170

 

 

4,115,623

 

Senior Lien (AGM), 7.50%, 7/01/33

 

 

2,000

 

 

2,373,600

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series C (BHAC), 5.75%, 7/01/27

 

 

2,600

 

 

2,812,394

 

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

 

 

5,060

 

 

5,396,794

 

Senior Lien, Series B (NPFGC), 5.25%, 7/01/22

 

 

9,235

 

 

9,313,590

 

Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27

 

 

4,180

 

 

4,806,958

 

Senior Lien, Series C-2 (BHAC), 5.25%, 7/01/29

 

 

1,860

 

 

1,927,778

 

Michigan State Building Authority, Refunding RB,

 

 

 

 

 

 

 

Facilities Program, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

1,440

 

 

1,531,570

 

5.25%, 10/15/25

 

 

750

 

 

792,112

 

Michigan Strategic Fund, Refunding RB, AMT

 

 

 

 

 

 

 

(Syncora) Detroit Edison Co.:

 

 

 

 

 

 

 

Pollution, Series C, 5.65%, 9/01/29

 

 

2,935

 

 

2,924,493

 

Project, Series A, 5.50%, 6/01/30

 

 

2,000

 

 

1,910,340

 

Royal Oak Hospital Finance Authority Michigan,

 

 

 

 

 

 

 

Refunding RB, William Beaumont Hospital,

 

 

 

 

 

 

 

8.25%, 9/01/39

 

 

3,115

 

 

3,611,593

 

 

 

 

 

 




 

 

 

 

 

 

41,516,845

 









Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, Refunding RB,

 

 

 

 

 

 

 

Fairview Health Services, Series B (AGC),

 

 

 

 

 

 

 

6.50%, 11/15/38

 

 

1,975

 

 

2,193,929

 









Nevada — 2.4%

 

 

 

 

 

 

 

County of Clark Nevada, RB, Jet Aviation Fuel Tax,

 

 

 

 

 

 

 

Series C, AMT (AMBAC), 5.38%, 7/01/20

 

 

1,200

 

 

1,158,192

 


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

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)

 

 

 

 

 

 

 

County of Clark, Nevada, RB, Las Vegas-McCarran

 

 

 

 

 

 

 

International Airport, Series A (AGC),

 

 

 

 

 

 

 

5.25%, 7/01/39 (c)

 

$

5,765

 

$

5,739,058

 

Nevada Housing Division, Refunding RB, S/F

 

 

 

 

 

 

 

Mortgage, Mezzanine, Series A-2, AMT (NPFGC),

 

 

 

 

 

 

 

6.30%, 4/01/22

 

 

95

 

 

96,517

 

 

 

 

 

 




 

 

 

 

 

 

6,993,767

 









New Jersey — 6.1%

 

 

 

 

 

 

 

New Jersey EDA, RB, Motor Vehicle Surcharge,

 

 

 

 

 

 

 

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

 

 

11,000

 

 

11,159,720

 

New Jersey Health Care Facilities Financing Authority,

 

 

 

 

 

 

 

RB, Virtua Health (AGC), 5.50%, 7/01/38

 

 

3,400

 

 

3,547,118

 

New Jersey Transportation Trust Fund Authority, RB,

 

 

 

 

 

 

 

Transportation System, Series A (AGC),

 

 

 

 

 

 

 

5.63%, 12/15/28

 

 

2,930

 

 

3,264,167

 

 

 

 

 

 




 

 

 

 

 

 

17,971,005

 









New York — 0.8%

 

 

 

 

 

 

 

New York City Transitional Finance Authority, RB,

 

 

 

 

 

 

 

Fiscal 2009, Series S-3, 5.25%, 1/15/39

 

 

2,300

 

 

2,398,440

 









North Carolina — 0.4%

 

 

 

 

 

 

 

North Carolina HFA, RB, Home Ownership,

 

 

 

 

 

 

 

Series 14A, AMT (AMBAC), 5.35%, 1/01/22

 

 

1,220

 

 

1,230,565

 









Oklahoma — 0.9%

 

 

 

 

 

 

 

Claremore Public Works Authority Oklahoma,

 

 

 

 

 

 

 

Refunding RB, Series A (AGM), 5.25%,

 

 

 

 

 

 

 

6/01/27 (a)

 

 

2,385

 

 

2,786,252

 









Oregon — 0.6%

 

 

 

 

 

 

 

Medford Hospital Facilities Authority, RB, Asante

 

 

 

 

 

 

 

Health System, Series A (AGC), 5.00%, 8/01/40

 

 

1,755

 

 

1,709,423

 









Pennsylvania — 1.0%

 

 

 

 

 

 

 

Pennsylvania Turnpike Commission, RB,

 

 

 

 

 

 

 

Sub-Series B (AGM), 5.25%, 6/01/39

 

 

3,000

 

 

3,041,790

 









Puerto Rico — 1.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB,

 

 

 

 

 

 

 

1st Sub-Series A, 6.38%, 8/01/39

 

 

3,500

 

 

3,724,350

 









South Carolina — 5.5%

 

 

 

 

 

 

 

South Carolina State Housing Finance &

 

 

 

 

 

 

 

Development Authority, Refunding RB, Series A-2,

 

 

 

 

 

 

 

AMT (AGM), 6.35%, 7/01/19

 

 

980

 

 

995,014

 

South Carolina State Public Service Authority, RB,

 

 

 

 

 

 

 

Series A (AMBAC), 5.00%, 1/01/42

 

 

15,000

 

 

15,333,900

 

 

 

 

 

 




 

 

 

 

 

 

16,328,914

 









Texas — 16.7%

 

 

 

 

 

 

 

City of Dallas Texas, Refunding RB (AGC),

 

 

 

 

 

 

 

5.25%, 8/15/38

 

 

2,100

 

 

2,136,225

 

City of El Paso Texas, Refunding RB, Series A (AGM):

 

 

 

 

 

 

 

6.00%, 3/01/15

 

 

115

 

 

126,237

 

6.00%, 3/01/16

 

 

170

 

 

186,611

 

6.00%, 3/01/17

 

 

180

 

 

197,588

 

City of Houston Texas, Refunding RB, Combined,

 

 

 

 

 

 

 

First Lien, Series A (AGC), 6.00%, 11/15/35

 

 

6,700

 

 

7,564,635

 

County of Bexar Texas, RB, Venue Project, Motor

 

 

 

 

 

 

 

Vehicle Rental (BHAC), 5.00%, 8/15/39

 

 

1,805

 

 

1,836,353

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp.,

 

 

 

 

 

 

 

Refunding RB, Memorial Hermann Healthcare

 

 

 

 

 

 

 

System, B, 7.25%, 12/01/35

 

$

1,000

 

$

1,120,360

 

Lower Colorado River Authority, Refunding RB, Lower

 

 

 

 

 

 

 

Colorado River Authority Transmission Services

 

 

 

 

 

 

 

Project (AGC), 5.50%, 5/15/36

 

 

2,935

 

 

3,058,299

 

Lubbock Cooper ISD Texas, GO, School Building

 

 

 

 

 

 

 

(AGC), 5.75%, 2/15/42

 

 

1,250

 

 

1,326,850

 

North Texas Tollway Authority, RB, System, First Tier,

 

 

 

 

 

 

 

Series K-2 (AGC), 6.00%, 1/01/38

 

 

1,000

 

 

1,090,770

 

North Texas Tollway Authority, Refunding RB,

 

 

 

 

 

 

 

System (NPFGC):

 

 

 

 

 

 

 

First Tier, Series A, 5.63%, 1/01/33

 

 

10,975

 

 

11,216,999

 

First Tier, 5.75%, 1/01/40

 

 

14,750

 

 

15,049,867

 

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

 

 

1,000

 

 

1,020,330

 

Tarrant County Cultural Education Facilities Finance

 

 

 

 

 

 

 

Corp., Refunding RB, Christus Health, Series A

 

 

 

 

 

 

 

(AGC), 6.50%, 7/01/37

 

 

3,000

 

 

3,293,400

 

 

 

 

 

 




 

 

 

 

 

 

49,224,524

 









Utah — 1.4%

 

 

 

 

 

 

 

City of Riverton Utah, RB, IHC Health Services Inc.,

 

 

 

 

 

 

 

5.00%, 8/15/41

 

 

4,085

 

 

4,078,464

 









Virginia — 0.9%

 

 

 

 

 

 

 

Virginia Public School Authority, RB, School

 

 

 

 

 

 

 

Financing, 6.50%, 12/01/35

 

 

2,195

 

 

2,515,536

 









Washington — 2.1%

 

 

 

 

 

 

 

Chelan County Public Utility District No. 1, RB,

 

 

 

 

 

 

 

Chelan Hydro System, Series A, AMT (AMBAC),

 

 

 

 

 

 

 

5.45%, 7/01/37

 

 

3,840

 

 

3,738,585

 

Washington Health Care Facilities Authority,

 

 

 

 

 

 

 

Refunding RB, Providence Health, Series C (AGM),

 

 

 

 

 

 

 

5.25%, 10/01/33

 

 

2,375

 

 

2,429,079

 

 

 

 

 

 




 

 

 

 

 

 

6,167,664

 









Total Municipal Bonds — 123.4%

 

 

 

 

 

363,148,222

 










 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to

 

 

 

 

 

 

 

Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









California — 3.7%

 

 

 

 

 

 

 

City of San Jose California, GO, Libraries, Parks, and

 

 

 

 

 

 

 

Public Safety Project (NPFGC), 5.00%, 9/01/30

 

 

3,805

 

 

3,926,269

 

San Diego Community College District California,

 

 

 

 

 

 

 

GO, San Diego Community College District California,

 

 

 

 

 

 

 

GO, Election of 2002 (AGM), 5.00%, 5/01/30

 

 

1,486

 

 

1,512,017

 

Sequoia Union High School District, California, GO,

 

 

 

 

 

 

 

Election Series B (AGM), 5.50%, 7/01/35

 

 

5,189

 

 

5,355,718

 

 

 

 

 

 




 

 

 

 

 

 

10,794,004

 









Colorado — 3.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic

 

 

 

 

 

 

 

Health, Series C3 (AGM), 5.10%, 10/01/41

 

 

9,410

 

 

9,278,354

 










 

 

 

See Notes to Financial Statements.


12

SEMI-ANNUAL REPORT

JANUARY 31, 2010



 

 


 

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 (d)

 

Par 
(000)

 

Value

 









District of Columbia — 0.6%

 

 

 

 

 

 

 

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

 

$

1,700

 

$

1,898,396

 









Florida — 8.3%

 

 

 

 

 

 

 

City of St. Petersburg Florida, Refunding RB (NPFGC),
5.00%, 10/01/35

 

 

6,493

 

 

6,381,961

 

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

 

 

12,500

 

 

13,765,000

 

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

 

 

3,870

 

 

4,185,908

 

 

 

 

 

 




 

 

 

 

 

 

24,332,869

 









Georgia — 2.2%

 

 

 

 

 

 

 

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

 

 

6,290

 

 

6,537,386

 









Illinois — 6.6%

 

 

 

 

 

 

 

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

 

 

3,969

 

 

4,158,533

 

City of Chicago, Illinois, RB, Series A (AGM),
5.00%, 1/01/33

 

 

15,000

 

 

15,102,600

 

 

 

 

 

 




 

 

 

 

 

 

19,261,133

 









Kentucky — 0.8%

 

 

 

 

 

 

 

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

 

 

2,304

 

 

2,486,359

 









Massachusetts — 1.8%

 

 

 

 

 

 

 

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

 

 

4,994

 

 

5,237,549

 









Nevada — 6.8%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

10,000

 

 

11,085,800

 

Series B, 5.50%, 7/01/29

 

 

8,247

 

 

9,000,786

 

 

 

 

 

 




 

 

 

 

 

 

20,086,586

 









New Jersey — 1.4%

 

 

 

 

 

 

 

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

 

 

3,941

 

 

4,041,735

 









New York — 2.5%

 

 

 

 

 

 

 

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

 

 

6,751

 

 

7,440,059

 









Washington — 2.5%

 

 

 

 

 

 

 

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

 

 

6,883

 

 

7,335,177

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 40.4%

 

 

 

 

 

118,729,607

 









Total Long-Term Investments
(Cost — $475,233,941) — 163.8%

 

 

 

 

 

481,877,829

 










 

 

 

 

 

 

 

 

Short-Term Securities

 

Par 
(000)

 

Value

 









Florida — 1.1%

 

 

 

 

 

 

 

Jacksonville Health Facilities Authority, VRDN
0.18%, 2/01/10 (e)

 

$

3,160

 

$

3,160,000

 









 

 

 

Shares

 

 

 

 









Money Market Fund — 1.6%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.16% (f) (g)

 

 

4,660,891

 

 

4,660,891

 









Total Short-Term Securities

 

 

 

 

 

 

 

(Cost — $7,820,891) — 2.7%

 

 

 

 

 

7,820,891

 









Total Investments (Cost — $483,054,832*) — 166.5%

 

 

 

 

 

489,698,720

 

Liabilities in Excess of Other Assets — (1.1)%

 

 

 

 

 

(3,091,771

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (20.9)%

 

 

 

 

 

(61,446,782

)

Preferred Shares, at Redemption Value — (44.5)%

 

 

 

 

 

(131,005,171

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

294,154,996

 

 

 

 

 

 




 









 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

422,532,212

 

 

 

 

 

 




Gross unrealized appreciation

 

 

 

 

$

13,203,847

 

Gross unrealized depreciation

 

 

 

 

 

(7,435,273

)

 

 

 

 

 




Net unrealized appreciation

 

 

 

 

$

5,768,574

 

 

 

 

 

 





 

 

(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)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 







 

 

Value

 

Unrealized
Depreciation

 

Counterparty

 

 

 







Citigroup, Inc.

 

$

5,739,058

 

$

(25,943

)










 

 

(d)

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.

 

 

(e)

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

 

 

(f)

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
Activity

 

Income

 

Affiliate

 

 

 









FFI Institutional Tax Exempt Fund

 

$

(12,932,199

)

$

9,124

 










 

 

(g)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

13




 

 


 

Schedule of Investments (concluded)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)


 

 

 

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 methodologies 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, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 





 

 

Investments in
Securities

 

Valuation Inputs

 

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

4,660,891

 

 

 




Level 2

 

 

 

 

Long-Term Investments1

 

 

481,877,829

 

Short-Term Securities

 

 

3,160,000

 

 

 




Total Level 2

 

 

485,037,829

 

Level 3

 

 

 

 

 




Total

 

$

489,698,720

 

 

 





 

 

1

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


 

 

 

See Notes to Financial Statements.


14

SEMI-ANNUAL REPORT

JANUARY 31, 2010



 

 



 

 

Schedule of Investments January 31, 2010 (Unaudited)

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







California — 109.8%

 

 

 

 

 

 

 









Corporate — 0.5%

 

 

 

 

 

 

 

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

 

$

2,435

 

$

2,666,447

 









County/City/Special District/
School District — 63.5%

 

 

 

 

 

 

 

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

 

 

9,000

 

 

9,042,210

 

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

 

 

4,300

 

 

4,388,666

 

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

 

 

255

 

 

259,083

 

Brentwood Infrastructure Financing Authority
California, Special Assessment Bonds, Refunding,
Series A (AGM), 5.20%, 9/02/29

 

 

3,980

 

 

4,028,835

 

Central Unified School District, GO, Election 2008,
Series A (AGC), 5.50%, 8/01/29

 

 

2,000

 

 

2,164,560

 

Chabot-Las Positas Community College District
California, GO, CAB, Election 2004, Series 4-B
(AMBAC), 5.17%, 8/01/26 (a)

 

 

6,705

 

 

2,401,664

 

Chino Basin Desalter Authority, Refunding RB,
Series A (AGC), 5.00%, 6/01/35

 

 

1,170

 

 

1,159,961

 

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

 

 

3,000

 

 

3,047,220

 

Chula Vista Elementary School District California,
COP (NPFGC), 5.00%, 9/01/29

 

 

3,785

 

 

3,620,807

 

City of Corona California, COP, Clearwater
Cogeneration Project (NPFGC), 5.00%, 9/01/28

 

 

5,475

 

 

5,092,243

 

City of Riverside California, COP (AMBAC),
5.00%, 9/01/28

 

 

3,000

 

 

3,008,640

 

City of San Jose California, GO, Libraries, Parks, and
Public Safety Project (NPFGC), 5.00%, 9/01/27

 

 

7,910

 

 

8,225,372

 

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

 

 

2,000

 

 

2,201,460

 

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

 

 

10,000

 

 

10,049,700

 

Fontana Unified School District California, GO,
Series A (AGM), 5.25%, 8/01/31

 

 

3,000

 

 

3,046,830

 

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

 

 

10,755

 

 

11,288,556

 

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

 

 

3,295

 

 

3,394,904

 

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

 

 

 

 

 

 

 

5.00%, 8/01/27

 

 

1,350

 

 

1,420,335

 

5.25%, 8/01/30

 

 

2,730

 

 

2,877,393

 

Hemet Unified School District California, GO, Election
2006, Series B (AGC), 5.13%, 8/01/37

 

 

4,500

 

 

4,516,920

 

Imperial Community College District California, GO,
Election of 2004 (NPFGC), 5.00%, 8/01/29

 

 

3,090

 

 

3,109,189

 

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

 

 

10,260

 

 

10,358,393

 

Los Angeles Community College District California,
GO, Election 2001, Series A (NPFGC),
5.00%, 8/01/27

 

 

2,475

 

 

2,565,833

 

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

 

 

10,000

 

 

10,089,100

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 









California (continued)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 7/01/27

 

$

5,240

 

$

5,474,804

 

5.00%, 7/01/35

 

 

6,825

 

 

6,964,298

 

Los Angeles County Public Works Financing Authority,
Refunding RB, Series A (NPFGC), 5.00%, 12/01/28

 

 

4,165

 

 

4,085,032

 

Los Angeles Unified School District California, GO:

 

 

 

 

 

 

 

Election 2002, Series C (AGM),
5.00%, 7/01/32

 

 

10,000

 

 

10,067,400

 

Election of 2004, Series F (FGIC),
5.00%, 7/01/30

 

 

5,000

 

 

5,076,600

 

Merced Community College District California, GO,
School Facilities Improvement District No. 1
(NPFGC), 5.00%, 8/01/31

 

 

6,850

 

 

6,850,000

 

Murrieta Valley Unified School District Public
Financing Authority, Special Tax Bonds, Refunding,
Series A (AGC), 5.13%, 9/01/26

 

 

8,000

 

 

8,402,960

 

Natomas Unified School District California, GO,
Election 2006 (NPFGC), 5.00%, 8/01/28

 

 

6,015

 

 

6,069,676

 

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

 

 

9,045

 

 

9,487,753

 

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

 

 

9,490

 

 

9,504,235

 

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

 

 

9,645

 

 

10,373,197

 

Peralta Community College District California, GO,
Peralta Community College (AGM),
5.00%, 8/01/37

 

 

6,195

 

 

6,225,789

 

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

 

 

 

 

 

 

 

5.50%, 8/01/34

 

 

2,000

 

 

2,086,880

 

5.63%, 8/01/39

 

 

4,500

 

 

4,721,490

 

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

 

 

5,000

 

 

5,102,100

 

Richmond Joint Powers Financing Authority
California, Refunding LRB, Civic Center Project
(AGC), 5.88%, 8/01/37

 

 

2,075

 

 

2,142,853

 

Riverside Unified School District California, GO:

 

 

 

 

 

 

 

Series A (NPFGC), 5.25%, 2/01/23

 

 

6,000

 

 

6,312,420

 

Series C (AGC), 5.00%, 8/01/32

 

 

5,010

 

 

5,047,976

 

Sacramento City Financing Authority California, RB,
Capital Improvement, Community Rein Capital
Program, Series A (AMBAC), 5.00%, 12/01/36

 

 

2,580

 

 

2,441,428

 

Sacramento City Financing Authority California,
Tax Allocation Bonds, CAB, Series A (NPFGC),
5.04%, 12/01/32 (a)

 

 

6,590

 

 

1,384,295

 

Saddleback Valley Unified School District California,
GO (AGM), 5.00%, 8/01/29

 

 

2,565

 

 

2,622,020

 

San Bernardino City Unified School District
California, GO, Series A (AGM), 5.00%, 8/01/28

 

 

5,000

 

 

5,107,050

 

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

 

 

7,500

 

 

7,645,875

 

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

 

 

10,500

 

 

10,588,830

 


See Notes to Financial Statements.




 

SEMI-ANNUAL REPORT

JANUARY 31, 2010

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

 

$

11,400

 

$

11,476,722

 

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

 

 

7,300

 

 

7,305,329

 

San Juan Unified School District California, GO,
Election of 2002 (NPFGC), 5.00%, 8/01/28

 

 

4,250

 

 

4,275,755

 

San Mateo County Transportation District California,
Refunding RB, Series A (NPFGC), 5.00%, 6/01/29

 

 

4,350

 

 

4,533,657

 

Santa Rosa High School District California, GO,
Election 2002 (NPFGC), 5.00%, 8/01/28

 

 

2,500

 

 

2,515,150

 

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

 

 

5,600

 

 

6,121,808

 

South Tahoe Joint Powers Financing Authority, RB,
South Tahoe Redevelopment Project Area No. 1,
Series A (AGM), 5.00%, 10/01/29

 

 

1,645

 

 

1,652,370

 

Ventura County Community College District, GO,
Refunding, Series A (NPFGC), 5.00%, 8/01/27

 

 

3,395

 

 

3,507,374

 

Vista Unified School District California, GO, Series B
(NPFGC), 5.00%, 8/01/28

 

 

2,550

 

 

2,565,453

 

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

 

 

6,690

 

 

6,681,035

 

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

 

 

4,300

 

 

4,829,631

 

 

 

 

 

 




 

 

 

 

 

 

310,607,119

 









Education — 4.5%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB,
Student Loan, Caledge Loan Program, AMT
(AMBAC), 5.55%, 4/01/28

 

 

6,370

 

 

6,102,396

 

County of San Diego California, COP (NPFGC),
5.75%, 7/01/31

 

 

5,200

 

 

5,244,044

 

University of California, RB, Limited Project,
Series D (AGM):

 

 

 

 

 

 

 

5.00%, 5/15/37

 

 

2,775

 

 

2,776,471

 

5.00%, 5/15/41

 

 

8,000

 

 

7,862,720

 

 

 

 

 

 




 

 

 

 

 

 

21,985,631

 









Health — 3.4%

 

 

 

 

 

 

 

California Health Facilities Financing Authority,
Refunding RB, Catholic Healthcare West, Series A:

 

 

 

 

 

 

 

6.00%, 7/01/34

 

 

2,130

 

 

2,226,510

 

6.00%, 7/01/39

 

 

5,500

 

 

5,736,775

 

California Statewide Communities Development
Authority, RB:

 

 

 

 

 

 

 

Adventist, Series B (AGC), 5.00%, 3/01/37

 

 

4,850

 

 

4,751,060

 

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

 

 

3,685

 

 

3,819,982

 

 

 

 

 

 




 

 

 

 

 

 

16,534,327

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 









California (continued)

 

 

 

 

 

 

 









Housing — 0.1%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Series A, 6.35%, 12/01/29

 

$

155

 

$

166,003

 

Series B, 6.25%, 12/01/31

 

 

85

 

 

85,957

 

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

 

 

155

 

 

159,509

 

 

 

 

 

 




 

 

 

 

 

 

411,469

 









State — 2.9%

 

 

 

 

 

 

 

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

 

 

3,500

 

 

3,586,975

 

State of California, GO, Various Purpose,
6.50%, 4/01/33

 

 

9,875

 

 

10,548,574

 

 

 

 

 

 




 

 

 

 

 

 

14,135,549

 









Transportation — 13.4%

 

 

 

 

 

 

 

City of San Jose California, RB, Series D (NPFGC),
5.00%, 3/01/28

 

 

4,075

 

 

4,046,068

 

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

 

 

5,000

 

 

5,405,200

 

County of Sacramento California, RB, Subordinated
and PFC/Grant, Series C (AGC), 5.75%, 7/01/39

 

 

4,880

 

 

5,180,510

 

Port of Oakland, RB, Series K, AMT (NPFGC):

 

 

 

 

 

 

 

5.88%, 11/01/17 (b)

 

 

20

 

 

20,249

 

5.75%, 11/01/29

 

 

11,405

 

 

11,411,387

 

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

 

 

19,040

 

 

17,987,278

 

San Francisco City & County Airports Commission, RB:

 

 

 

 

 

 

 

Series E, 6.00%, 5/01/39

 

 

9,650

 

 

10,335,053

 

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

 

 

1,000

 

 

1,001,030

 

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

 

 

985

 

 

985,690

 

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

 

 

 

 

 

 

 

5.75%, 5/01/24

 

 

5,000

 

 

5,278,350

 

5.75%, 5/01/25

 

 

3,500

 

 

3,668,245

 

 

 

 

 

 




 

 

 

 

 

 

65,319,060

 









Utilities — 21.5%

 

 

 

 

 

 

 

City of Glendale California, RB (NPFGC),
5.00%, 2/01/32

 

 

4,390

 

 

4,349,524

 

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

 

 

9,070

 

 

9,173,851

 

City of Oakland California, RB, Series A (AGM),
5.00%, 6/15/29

 

 

4,270

 

 

4,281,401

 

City of Santa Clara California, RB, Sub-Series A
(NPFGC), 5.00%, 7/01/28

 

 

5,500

 

 

5,532,395

 

Contra Costa Water District, Refunding RB:

 

 

 

 

 

 

 

Series L (AGM), 5.00%, 10/01/32

 

 

4,135

 

 

4,185,199

 

Series O (AMBAC), 5.00%, 10/01/24

 

 

1,735

 

 

1,840,904

 

East Bay Municipal Utility District, RB (NPFGC):

 

 

 

 

 

 

 

Series A, 5.00%, 6/01/37

 

 

6,500

 

 

6,676,280

 

Sub-Series A, 5.00%, 6/01/35

 

 

15,000

 

 

15,351,600

 


 

 

 

See Notes to Financial Statements.


16

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 



 

 

Schedule of Investments (continued)

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 








California (concluded)

 

 

 

 

 

 

 









Utilities (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 6/01/33

 

$

4,000

 

$

4,093,440

 

5.00%, 6/01/37

 

 

7,985

 

 

8,111,882

 

El Centro Financing Authority California, RB, Series A
(AGM), 5.25%, 10/01/35

 

 

1,100

 

 

1,112,254

 

Los Angeles Department of Water & Power, RB:

 

 

 

 

 

 

 

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

 

 

5,000

 

 

5,052,300

 

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

 

 

7,500

 

 

7,635,675

 

Madera Public Financing Authority California,
Refunding RB (NPFGC), 5.00%, 3/01/36

 

 

2,750

 

 

2,604,250

 

Metropolitan Water District of Southern California,
RB, Series B-1 (NPFGC), 5.00%, 10/01/33

 

 

7,175

 

 

7,301,998

 

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

 

 

13,000

 

 

13,039,000

 

Turlock Public Financing Authority California, RB,
Series A (NPFGC), 5.00%, 9/15/33

 

 

3,000

 

 

3,030,540

 

Vallecitos Water District California, COP, Refunding,
Series A (AGM), 5.00%, 7/01/27

 

 

2,000

 

 

2,056,080

 

 

 

 

 

 




 

 

 

 

 

 

105,428,573

 









Total Municipal Bonds — 109.8%

 

 

 

 

 

537,088,175

 










 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 









California — 42.6%

 

 

 

 

 

 

 









Corporate — 8.8%

 

 

 

 

 

 

 

City of Long Beach California, RB, Series A, AMT,
5.38%, 5/15/24

 

 

15,150

 

 

15,303,167

 

San Francisco Bay Area Transit Financing Authority,
Refunding RB, Series A, 5.00%, 7/01/30

 

 

19,630

 

 

20,077,957

 

University of California, RB, Series L
5.00%, 5/15/40

 

 

7,398

 

 

7,547,012

 

 

 

 

 

 




 

 

 

 

 

 

42,928,136

 









County/City/Special District/
School District — 14.6%

 

 

 

 

 

 

 

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

 

 

5,997

 

 

6,127,200

 

Los Angeles Community College District
California, GO:

 

 

 

 

 

 

 

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

 

 

20,000

 

 

20,186,800

 

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

 

 

9,596

 

 

10,644,542

 

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

 

 

12,000

 

 

12,127,080

 

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

 

 

5,000

 

 

4,992,850

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

Par 
(000)

 

Value

 








California (concluded)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

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

 

$

10,000

 

$

10,166,500

 

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

 

 

7,350

 

 

7,512,876

 

 

 

 

 

 




 

 

 

 

 

 

71,757,848

 









Education — 5.1%

 

 

 

 

 

 

 

California State University, RB, Systemwide, Series A
(AGM), 5.00%, 11/01/39

 

 

4,860

 

 

4,800,271

 

Los Angeles Community College District, California,
GO, 2003 Election, Series E (AGM),
5.00%, 8/01/31

 

 

7,497

 

 

7,605,462

 

University of California, RB, Series O,
5.75%, 5/15/34

 

 

11,190

 

 

12,448,763

 

 

 

 

 

 




 

 

 

 

 

 

24,854,496

 









Utilities — 14.1%

 

 

 

 

 

 

 

Anaheim Public Financing Authority California, RB,
Electric System Distribution Facilities, Series A
(AGM), 5.00%, 10/01/31

 

 

3,568

 

 

3,571,422

 

Los Angeles Department of Water & Power, RB,
Power System, Sub-Series A-1 (AGM),
5.00%, 7/01/31

 

 

5,007

 

 

5,143,617

 

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

 

 

16,000

 

 

16,431,520

 

Metropolitan Water District of Southern California,
RB, Series A, 5.00%, 7/01/37

 

 

15,000

 

 

15,516,150

 

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

 

 

9,277

 

 

9,392,195

 

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

 

 

10,000

 

 

10,174,800

 

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

 

 

8,510

 

 

8,641,650

 

 

 

 

 

 




 

 

 

 

 

 

68,871,354

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 42.6%

 

 

 

 

 

208,411,834

 









Total Long-Term Investments
(Cost — $742,462,184) — 152.4%

 

 

 

 

 

745,500,009

 










See Notes to Financial Statements.




 

SEMI-ANNUAL REPORT

JANUARY 31, 2010

17




 

 



 

 

Schedule of Investments (concluded)

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

Value

 








CMA California Municipal Money Fund,
0.04% (d)(e)

 

 

8,945,337

 

$

8,945,337

 









Total Short-Term Securities
(Cost — $8,945,337) — 1.8%

 

 

 

 

 

8,945,337

 









Total Investments (Cost — $751,407,521*) — 154.2%

 

 

 

 

 

754,445,346

 

Other Assets Less Liabilities — 1.9%

 

 

 

 

 

9,687,002

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (22.1)%

 

 

 

 

 

(108,351,727

)

Preferred Shares, at Redemption Value — (34.0)%

 

 

 

 

 

(166,538,192

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

489,242,429

 

 

 

 

 

 





 

 



*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

643,380,407

 

 

 




Gross unrealized appreciation

 

$

11,190,013

 

Gross unrealized depreciation

 

 

(8,400,543

)

 

 




Net unrealized appreciation

 

$

2,789,470

 

 

 





 

 

(a)

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

 

 

(b)

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.

 

 

(c)

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.

 

 

(d)

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

 

$

(12,996,607

)

$

2,220

 

 








 

 

 

(e)

Represents the current yield as of report date.

 

 

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 methodologies 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, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 

 

 





 

Valuation Inputs

 

Investments in
Securities

 

 





 

 

 

Assets

 

 

 

 


 

Level 1 — Short-Term Securities

 

$

8,945,337

 

 

Level 2 — Long-Term Investments1

 

 

745,500,009

 

 

Level 3

 

 

 

 

 

 




 

Total

 

$

754,445,346

 

 

 

 





 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.


18

SEMI-ANNUAL REPORT

JANUARY 31, 2010



 

 


 

 

Schedule of Investments January 31, 2010 (Unaudited)

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


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

Value

 









Alabama — 0.7%

 

 

 

 

 

 

 

Alabama Public School & College Authority,
Refunding RB, Series A, 5.00%, 5/01/29

 

$

2,500

 

$

2,578,325

 

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

 

 

3,605

 

 

3,823,030

 

 

 

 

 

 




 

 

 

 

 

 

6,401,355

 









Alaska — 1.3%

 

 

 

 

 

 

 

Borough of Matanuska-Susitna Alaska, RB, Goose
Creek Correctional Center (AGC), 6.00%, 9/01/28

 

 

10,150

 

 

11,639,919

 









Arizona — 3.0%

 

 

 

 

 

 

 

Downtown Phoenix Hotel Corp., RB, Senior Series A
(FGIC), 5.00%, 7/01/36

 

 

21,355

 

 

17,585,415

 

Maricopa County & Phoenix Industrial Development
Authorities, Refunding RB, S/F, Series A-2, AMT
(GNMA), 5.80%, 7/01/40

 

 

3,595

 

 

3,664,384

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,725

 

 

3,802,107

 

5.25%, 10/01/28

 

 

1,600

 

 

1,653,824

 

 

 

 

 

 




 

 

 

 

 

 

26,705,730

 









California — 13.8%

 

 

 

 

 

 

 

Alameda Corridor Transportation Authority, Refunding
RB, CAB, Subordinate Lien, Series A (AMBAC),
5.40%, 10/01/24 (a)

 

 

10,000

 

 

7,897,400

 

Antioch Public Financing Authority California,
Refunding RB, Municipal Facilities Project, Series A
(NPFGC), 5.50%, 1/01/32

 

 

5,000

 

 

5,091,200

 

California HFA, RB, Home Mortgage, Series K, AMT,
5.50%, 2/01/42

 

 

6,520

 

 

6,544,320

 

California Health Facilities Financing Authority,
Refunding RB, St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

1,550

 

 

1,596,500

 

California State Public Works Board, RB, Department
of Corrections, Series C, 5.25%, 6/01/28

 

 

3,400

 

 

3,204,942

 

California Statewide Communities Development
Authority, RB (AGM):

 

 

 

 

 

 

 

Saint Joseph Health System, Series E, 5.25%,
7/01/47

 

 

10,000

 

 

10,050,200

 

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

 

 

5,750

 

 

5,698,307

 

City of Redding California, COP, Refunding, Series A
(AGM), 5.00%, 6/01/30

 

 

1,900

 

 

1,917,936

 

City of San Jose California, Refunding RB, Series A,
AMT (AMBAC), 5.50%, 3/01/32

 

 

11,965

 

 

11,843,675

 

County of Sacramento California, RB, Senior Series A
(AGM), 5.00%, 7/01/41

 

 

15,000

 

 

14,537,400

 

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

 

 

5,800

 

 

6,176,420

 

Los Angeles Municipal Improvement Corp., RB,
Series B1 (NPFGC), 4.75%, 8/01/37

 

 

15,000

 

 

13,259,850

 

Mendocino-Lake Community College District, GO,
Election 2006, Series A (NPFGC), 5.00%, 8/01/31

 

 

1,485

 

 

1,485,000

 

Norwalk-La Mirada Unified School District California,
GO, Refunding, CAB, Election 2002, Series E (AGC),
6.47%, 8/01/38 (b)

 

 

7,620

 

 

1,203,579

 

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

 

 

2,500

 

 

2,551,550

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

Value

 









California (concluded)

 

 

 

 

 

 

 

Port of Oakland, RB, Series K, AMT (NPFGC), 5.75%,
11/01/29

 

$

3,645

 

$

3,647,041

 

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

 

 

8,465

 

 

7,996,970

 

Riverside County Public Financing Authority, Tax
Allocation Bonds, Redevelopment Projects,
(Syncora), 5.00%, 10/01/35

 

 

10,000

 

 

8,524,100

 

San Mateo Union High School District California,
COP, Refunding, CAB, Phase I Projects, Series B
(AMBAC), 4.81%, 12/15/43 (b)

 

 

3,250

 

 

1,396,103

 

State of California, GO, Series 2007-2 (NPFGC),
5.50%, 4/01/30

 

 

10

 

 

10,110

 

Stockton Public Financing Authority California, RB,
Parking & Capital Projects (NPFGC), 5.25%,
9/01/34

 

 

5,000

 

 

4,780,450

 

West Valley-Mission Community College District,
GO, Election 2004, Series A (AGM) 5.00%,
8/01/30

 

 

3,600

 

 

3,690,324

 

 

 

 

 

 




 

 

 

 

 

 

123,103,377

 









District of Columbia — 1.1%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, RB,
Series B, AMT (AMBAC), 5.00%, 10/01/32

 

 

10,000

 

 

9,813,100

 









Florida — 16.0%

 

 

 

 

 

 

 

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

 

 

15,000

 

 

15,327,000

 

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

 

 

14,250

 

 

14,420,715

 

City of Tallahassee Florida, RB (NPFGC), 5.00%,
10/01/32

 

 

3,300

 

 

3,348,081

 

Collier County School Board, COP (AGM), 5.00%,
2/15/23

 

 

5,000

 

 

5,153,850

 

County of Broward Florida, RB, Series A, 5.25%,
10/01/34

 

 

2,250

 

 

2,320,987

 

County of Miami-Dade, Florida Building Better
Communities Program, GO:

 

 

 

 

 

 

 

Series B, 6.38%, 7/01/28

 

 

6,000

 

 

6,842,100

 

Series B-1, 5.75%, 7/01/33

 

 

3,700

 

 

3,970,137

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

Jackson Health System (AGC), 5.75%,
6/01/39

 

 

5,300

 

 

5,507,495

 

Miami International Airport, AMT (NPFGC), 5.38%,
10/01/25

 

 

10,650

 

 

10,742,655

 

Miami International Airport, AMT (NPFGC), 5.38%,
10/01/27

 

 

1,000

 

 

1,005,720

 

Miami International Airport, Series A, AMT (AGM),
5.50%, 10/01/41

 

 

14,900

 

 

15,052,278

 

County of Miami-Dade Florida, Refunding RB:

 

 

 

 

 

 

 

(AGM), 5.00%, 7/01/35

 

 

2,800

 

 

2,820,944

 

Miami International Airport, AMT (AGC), 5.00%,
10/01/40

 

 

15,000

 

 

14,211,900

 

Miami International Airport, Series A, AMT (AGC),
5.00%, 10/01/35

 

 

9,600

 

 

9,236,832

 

Series C (BHAC), 6.00%, 10/01/23

 

 

20,095

 

 

23,234,442

 

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

 

 

4,125

 

 

4,269,870

 

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

 

 

5,135

 

 

5,219,214

 

 

 

 

 

 




 

 

 

 

 

 

142,684,220

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

19




 

 


 

 

Schedule of Investments (continued)

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


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 









Georgia — 1.7%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General, Series B (AGM),
5.25%, 1/01/33

 

$

12,500

 

$

12,741,125

 

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

 

 

2,275

 

 

2,283,190

 

 

 

 

 

 




 

 

 

 

 

 

15,024,315

 









Hawaii — 0.1%

 

 

 

 

 

 

 

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

 

 

1,160

 

 

1,243,149

 









Illinois — 14.4%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO, Refunding,
CAB, School Reform, Series A (NPFGC), 5.39%,
12/01/22 (b)

 

 

10,515

 

 

5,635,199

 

City of Chicago Illinois, ARB, General, 3rd Lien,
Series B-2 AMT (NPFGC):

 

 

 

 

 

 

 

5.25%, 1/01/27

 

 

16,685

 

 

16,246,518

 

6.00%, 1/01/27

 

 

26,230

 

 

27,096,115

 

City of Chicago Illinois, GO, CAB, City Colleges
(NPFGC), 5.54%, 1/01/29 (b)

 

 

5,000

 

 

1,892,800

 

City of Chicago Illinois, GO, Refunding, Series B
(AGM), 5.00%, 1/01/24

 

 

12,950

 

 

13,607,471

 

City of Chicago Illinois, Refunding, ARB, General,
3rd Lien, Series C-2, AMT (AGM), 5.25%, 1/01/30

 

 

16,400

 

 

16,416,564

 

Illinois Finance Authority, Refunding RB,
Northwestern Memorial Hospital, Series A,
6.00%, 8/15/39

 

 

5,250

 

 

5,748,803

 

Illinois Municipal Electric Agency, RB, Series A (NPFGC):

 

 

 

 

 

 

 

5.00%, 2/01/35

 

 

21,200

 

 

21,109,900

 

5.25%, 2/01/35

 

 

15,000

 

 

15,192,750

 

Regional Transportation Authority, RB, Series C (NPFGC),
7.75%, 6/01/20

 

 

1,000

 

 

1,280,030

 

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

 

 

3,500

 

 

3,606,960

 

 

 

 

 

 




 

 

 

 

 

 

127,833,110

 









Indiana — 2.0%

 

 

 

 

 

 

 

City of Indianapolis Indiana, Refunding RB, 2nd Lien,
Series B (AGC), 5.25%, 8/15/27

 

 

5,000

 

 

5,318,150

 

Indiana Health Facility Financing Authority, RB,
Deaconess Hospital Obligation, Series A (AMBAC),
5.38%, 3/01/34

 

 

2,150

 

 

2,108,612

 

Indiana Municipal Power Agency, RB:

 

 

 

 

 

 

 

Series A (NPFGC), 5.00%, 1/01/37

 

 

9,200

 

 

8,973,680

 

Series B, 5.75%, 1/01/34

 

 

1,050

 

 

1,079,190

 

 

 

 

 

 




 

 

 

 

 

 

17,479,632

 









Iowa — 1.5%

 

 

 

 

 

 

 

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

 

 

12,650

 

 

13,078,961

 









Kentucky — 1.6%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission,
Refunding RB, Project No. 93 (AGC), 5.25%,
2/01/28

 

 

4,000

 

 

4,312,240

 

Louisville & Jefferson County Metropolitan Sewer
District Kentucky, RB, Series A (NPFGC),
5.25%, 5/15/37

 

 

10,000

 

 

10,235,800

 

 

 

 

 

 




 

 

 

 

 

 

14,548,040

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

Value

 









Louisiana — 1.5%

 

 

 

 

 

 

 

New Orleans Aviation Board Louisiana, RB, New
Orleans Aviation, Series A, AMT (AGM), 5.25%,
1/01/32

 

$

13,335

 

$

13,079,101

 









Maryland — 0.6%

 

 

 

 

 

 

 

Maryland Community Development Administration,
Refunding RB, Residential, Series A, AMT, 5.75%,
9/01/39

 

 

4,785

 

 

5,043,534

 









Massachusetts — 6.0%

 

 

 

 

 

 

 

Massachusetts HFA, RB:

 

 

 

 

 

 

 

S/F Housing, Series 128, AMT (AGM),
4.88%, 12/01/38

 

 

12,570

 

 

11,541,271

 

Series B, 7.00%, 12/01/38

 

 

3,440

 

 

3,817,368

 

Massachusetts HFA, Refunding RB:

 

 

 

 

 

 

 

Housing Development, Series B (NPFGC), 5.40%,
12/01/28

 

 

1,835

 

 

1,753,618

 

Rental Housing, Series A, AMT (AGM), 5.15%,
7/01/26

 

 

19,055

 

 

19,248,599

 

Massachusetts Port Authority, Refunding RB, Bosfuel
Project, AMT (NPFGC), 5.00%, 7/01/38

 

 

18,415

 

 

16,851,750

 

 

 

 

 

 




 

 

 

 

 

 

53,212,606

 









Michigan — 7.7%

 

 

 

 

 

 

 

City of Detroit Michigan, RB (AGM):

 

 

 

 

 

 

 

Second Lien, Series B, 6.25%, 7/01/36

 

 

1,075

 

 

1,164,021

 

Second Lien, Series B, 7.00%, 7/01/36

 

 

500

 

 

571,150

 

Senior Lien, Series B, 7.50%, 7/01/33

 

 

1,800

 

 

2,136,240

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Senior Lien, Series C-1 (AGM), 7.00%, 7/01/27

 

 

1,500

 

 

1,724,985

 

Senior Lien, Series D (AGM), 5.00%, 7/01/23

 

 

9,085

 

 

9,194,020

 

Series C (NPFGC), 5.00%, 7/01/22

 

 

5,540

 

 

5,602,657

 

Michigan Higher Education Student Loan Authority,
RB, Student Loan, Series XVII-Q, AMT (AMBAC),
5.00%, 3/01/31

 

 

4,325

 

 

3,902,015

 

Michigan State Building Authority, Refunding RB, Facilities Program, Series I:

 

 

 

 

 

 

 

6.25%, 10/15/38

 

 

3,125

 

 

3,400,156

 

(AGC), 5.25%, 10/15/24

 

 

1,750

 

 

1,861,283

 

(AGC), 5.25%, 10/15/25

 

 

3,250

 

 

3,432,488

 

Michigan Strategic Fund, Refunding RB AMT (Syncora):

 

 

 

 

 

 

 

Detroit Edison Co. Project, Series A, 5.50%,
6/01/30

 

 

8,000

 

 

7,641,360

 

Detroit Edison Co., Pollution, Series C, 5.65%,
9/01/29

 

 

2,935

 

 

2,924,493

 

State of Michigan, RB, GAN (AGM):

 

 

 

 

 

 

 

5.25%, 9/15/21

 

 

2,485

 

 

2,694,162

 

5.25%, 9/15/22

 

 

10,000

 

 

10,768,700

 

5.25%, 9/15/26

 

 

6,650

 

 

7,016,947

 

Wayne County Airport Authority, Refunding RB, AMT
(AGC), 5.38%, 12/01/32

 

 

5,000

 

 

4,596,300

 

 

 

 

 

 




 

 

 

 

 

 

68,630,977

 









Minnesota — 0.7%

 

 

 

 

 

 

 

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

 

 

5,500

 

 

6,109,675

 









Missouri — 0.0%

 

 

 

 

 

 

 

Missouri Housing Development Commission, RB,
S/F Homeowner Loan, Series C-1, AMT (GNMA),
7.15%, 3/01/32

 

 

80

 

 

87,252

 










 

 

 

See Notes to Financial Statements.


20

SEMI-ANNUAL REPORT

JANUARY 31, 2010



 

 



 

Schedule of Investments (continued)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Nevada — 5.8%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited Tax, Performing
Arts Center, 6.00%, 4/01/34

 

$

2,250

 

$

2,469,262

 

County of Clark Nevada, RB:

 

 

 

 

 

 

 

Southwest Gas Corp. Project, Series A, AMT
(AMBAC), 5.25%, 7/01/34

 

 

12,675

 

 

11,565,177

 

Subordinate Lien, Series A2 (BHAC), 5.00%,
7/01/30

 

 

750

 

 

763,358

 

Subordinate Lien, Series A2 (NPFGC), 5.00%,
7/01/30

 

 

20,000

 

 

20,228,400

 

County of Clark, Nevada, RB, Las Vegas-McCarran
International Airport, Series A (AGC), 5.25%,
7/01/39 (c)

 

 

5,170

 

 

5,146,735

 

Las Vegas Convention & Visitors Authority, RB
(AMBAC), 5.00%, 7/01/37

 

 

11,850

 

 

11,289,258

 

 

 

 

 

 




 

 

 

 

 

 

51,462,190

 









New Jersey — 3.4%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax, 5.75%, 6/15/34

 

 

5,000

 

 

4,748,650

 

New Jersey EDA, Refunding RB, School Facilities
Construction, Series N-1:

 

 

 

 

 

 

 

(AMBAC), 5.50%, 9/01/24

 

 

10,000

 

 

11,266,800

 

(NPFGC), 5.50%, 9/01/28

 

 

2,165

 

 

2,426,878

 

New Jersey Transportation Trust Fund Authority, RB:

 

 

 

 

 

 

 

CAB, Transportation System, Series C (AGC),
5.70%, 12/15/25 (b)

 

 

15,735

 

 

6,990,117

 

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

 

 

4,400

 

 

5,112,184

 

 

 

 

 

 




 

 

 

 

 

 

30,544,629

 









New Mexico — 0.0%

 

 

 

 

 

 

 

New Mexico Mortgage Finance Authority, RB, S/F
Mortgage, Series C-2, AMT (GNMA), 6.95%,
9/01/31

 

 

260

 

 

277,189

 









New York — 4.2%

 

 

 

 

 

 

 

City of New York New York, GO:

 

 

 

 

 

 

 

Series J, 5.25%, 5/15/24

 

 

10,000

 

 

10,585,200

 

Series M (AGC), 5.00%, 4/01/30

 

 

5,000

 

 

5,176,900

 

New York City Transitional Finance Authority, RB,
Fiscal 2009, Series S-4, 5.50%, 1/15/34

 

 

7,250

 

 

7,774,175

 

New York State Dormitory Authority, Refunding RB,
State University Educational Facilities, 3rd
General Resolution, Series A (NPFGC), 5.50%,
5/15/24

 

 

7,790

 

 

8,726,747

 

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

 

 

4,500

 

 

4,769,415

 

 

 

 

 

 




 

 

 

 

 

 

37,032,437

 









Oregon — 0.2%

 

 

 

 

 

 

 

Medford Hospital Facilities Authority, RB, Asante
Health System, Series A (AGC), 5.00%, 8/01/40

 

 

1,550

 

 

1,509,747

 









Pennsylvania — 3.0%

 

 

 

 

 

 

 

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

 

 

4,740

 

 

4,745,735

 

Pennsylvania Turnpike Commission, RB:

 

 

 

 

 

 

 

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

 

 

15,600

 

 

15,997,800

 

Sub-Series C (AGC), 6.25%, 6/01/38

 

 

5,695

 

 

6,419,860

 

 

 

 

 

 




 

 

 

 

 

 

27,163,395

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Puerto Rico — 2.7%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities, Series M-3 (NPFGC):

 

 

 

 

 

 

 

6.00%, 7/01/26

 

$

4,840

 

$

5,004,415

 

6.00%, 7/01/27

 

 

4,235

 

 

4,373,103

 

6.00%, 7/01/28

 

 

2,750

 

 

2,837,808

 

Puerto Rico Sales Tax Financing Corp., RB, 1st
Sub-Series A, 6.38%, 8/01/39

 

 

10,195

 

 

10,848,499

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, Series A (NPFGC), 5.71%, 8/01/41 (b)

 

 

7,500

 

 

1,114,800

 

 

 

 

 

 




 

 

 

 

 

 

24,178,625

 









South Carolina — 1.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 12/01/28

 

 

3,895

 

 

4,037,207

 

5.25%, 12/01/29

 

 

3,215

 

 

3,314,086

 

5.25%, 12/01/30

 

 

1,160

 

 

1,190,380

 

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

 

 

515

 

 

522,890

 

 

 

 

 

 




 

 

 

 

 

 

9,064,563

 









Tennessee — 0.2%

 

 

 

 

 

 

 

Tennessee Housing Development Agency, Refunding
RB, Homeownership Program, Series A, AMT (AGM),
5.35%, 1/01/26

 

 

1,700

 

 

1,707,701

 









Texas — 17.4%

 

 

 

 

 

 

 

City of Houston Texas, RB, Combined, First Lien,
Series A (AGM), 5.00%, 11/15/36

 

 

10,000

 

 

10,206,300

 

City of Houston Texas, Refunding RB, Combined,
First Lien, Series A (AGC):

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

5,700

 

 

6,435,585

 

5.38%, 11/15/38

 

 

3,650

 

 

3,850,422

 

Dallas ISD, GO, School Building (PSF-GTD), 6.38%,
2/15/34

 

 

10,000

 

 

11,708,600

 

Dallas-Fort Worth International Airport Facilities
Improvement Corp., Refunding RB, Joint Series A,
AMT (NPFGC), 5.63%, 11/01/26

 

 

15,000

 

 

15,162,000

 

Grand Prairie ISD Texas, GO, Refunding, CAB, 6.58%,
8/15/28 (b)

 

 

10,000

 

 

3,215,700

 

Harris County Hospital District, RB, Senior Lien,
Series A (NPFGC), 5.25%, 2/15/37

 

 

9,650

 

 

9,143,471

 

Harris County-Houston Sports Authority, Refunding RB,
Senior Lien, Series G (NPFGC):

 

 

 

 

 

 

 

5.75%, 11/15/19

 

 

265

 

 

269,720

 

5.75%, 11/15/20

 

 

3,500

 

 

3,553,515

 

5.25%, 11/15/30

 

 

9,800

 

 

9,108,120

 

Judson ISD Texas, GO, School Building (AGC),
5.00%, 2/01/37

 

 

10,000

 

 

10,141,500

 

Leander ISD Texas, GO, Refunding, CAB, School
Building (PSF-GTD), 5.51%, 8/15/36 (b)

 

 

15,000

 

 

3,519,900

 

Matagorda County Navigation District No. 1 Texas,
Refunding RB, Central Power & Light Co. Project,
AMT (NPFGC), 5.20%, 5/01/30

 

 

6,250

 

 

5,869,687

 


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

21




 

 



 

Schedule of Investments (continued)

BlackRock MuniYield Insured Fund, Inc. (MYI)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

North Texas Tollway Authority, Refunding RB:

 

 

 

 

 

 

 

First Tier, Series A, 6.00%, 1/01/28

 

$

6,275

 

$

6,670,890

 

System, First Tier, Series A (NPFGC), 5.13%,
1/01/28

 

 

21,750

 

 

21,770,010

 

System, First Tier, Series B (NPFGC), 5.75%,
1/01/40

 

 

10,000

 

 

10,203,300

 

Texas Department of Housing & Community Affairs,
MRB, Series A, AMT (NPFGC), 5.45%, 9/01/23

 

 

4,490

 

 

4,548,909

 

Texas State Turnpike Authority, RB, First Tier,
Series A (AMBAC):

 

 

 

 

 

 

 

5.50%, 8/15/39

 

 

10,000

 

 

9,927,500

 

5.00%, 8/15/42

 

 

10,000

 

 

9,139,200

 

 

 

 

 

 




 

 

 

 

 

 

154,444,329

 









Utah — 1.9%

 

 

 

 

 

 

 

Utah Transit Authority, Refunding RB, CAB,
Sub-Series A (b):

 

 

 

 

 

 

 

(AGC), 5.36%, 6/15/20

 

 

15,930

 

 

9,931,081

 

(NPFGC), 5.21%, 6/15/24

 

 

13,930

 

 

6,674,838

 

 

 

 

 

 




 

 

 

 

 

 

16,605,919

 









Vermont — 0.3%

 

 

 

 

 

 

 

Vermont HFA, HRB, Series 12B, AMT (AGM), 6.30%,
11/01/19

 

 

340

 

 

347,211

 

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

 

 

2,730

 

 

2,755,744

 

 

 

 

 

 




 

 

 

 

 

 

3,102,955

 









Washington — 5.3%

 

 

 

 

 

 

 

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

 

 

3,030

 

 

2,949,978

 

Chelan County Public Utility District No. 1, Refunding
RB, Chelan Hydro System, Series C, AMT (NPFGC),
5.65%, 7/01/32

 

 

6,000

 

 

6,033,360

 

Radford Court Properties Washington, RB (NPFGC),
5.75%, 6/01/32

 

 

10,000

 

 

10,169,300

 

Seattle Housing Authority Washington, RB, Capital
Fund Program, High Rise Rehabilitation, Series III,
AMT (AGM), 5.15%, 11/01/27

 

 

6,255

 

 

6,294,219

 

Skagit County Public Hospital District No. 1
Washington, GO, Series A (NPFGC):

 

 

 

 

 

 

 

5.25%, 12/01/25

 

 

4,745

 

 

4,846,163

 

5.25%, 12/01/26

 

 

5,450

 

 

5,547,337

 

Washington Health Care Facilities Authority, RB,
Providence Health System, Series A (NPFGC),
5.25%, 10/01/21

 

 

5,575

 

 

5,627,907

 

Washington Health Care Facilities Authority, Refunding
RB, Catholic Health Initiatives, Series D, 6.38%,
10/01/36

 

 

5,400

 

 

5,889,078

 

 

 

 

 

 




 

 

 

 

 

 

47,357,342

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority,
RB, SynergyHealth Inc., 6.00%, 11/15/32

 

 

3,395

 

 

3,489,755

 









Total Municipal Bonds — 119.5%

 

 

 

 

 

1,063,658,829

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par 
(000)

 

Value

 









California — 10.7%

 

 

 

 

 

 

 

Alameda County Joint Powers Authority, Refunding
RB, Lease (AGM), 5.00%, 12/01/34

 

$

6,990

 

$

7,116,589

 

California State University, RB, Systemwide, Series A
(AGM), 5.00%, 11/01/37

 

 

18,435

 

 

18,242,480

 

City of Riverside, California, RB, Issue D (AGM),
5.00%, 10/01/38

 

 

20,000

 

 

19,522,400

 

Las Virgenes Unified School District, California, GO,
Series A (AGM), 5.00%, 8/01/31

 

 

10,000

 

 

10,194,595

 

Los Angeles Community College District California,
GO, 2008 Election, Series A, 6.00%, 8/01/33

 

 

5,248

 

 

5,821,234

 

Orange County Sanitation District, COP, Series B
(AGM), 5.00%, 2/01/37

 

 

10,780

 

 

11,081,193

 

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

 

 

1,047

 

 

1,070,570

 

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

 

 

9,370

 

 

9,514,954

 

San Francisco Bay Area Transit Financing Authority,
RB (AGM), 5.00%, 7/01/36

 

 

10,000

 

 

10,110,252

 

University of California, RB, Series O, 5.75%, 5/15/34

 

 

2,205

 

 

2,453,040

 

 

 

 

 

 




 

 

 

 

 

 

95,127,307

 









Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

2,469

 

 

2,602,897

 









Connecticut — 0.6%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility
Authority, RB, Yale University, Series T 1, 4.70%,
7/01/29

 

 

5,010

 

 

5,293,766

 









District of Columbia — 0.9%

 

 

 

 

 

 

 

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

 

 

2,595

 

 

2,882,111

 

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

 

 

4,281

 

 

4,779,491

 

 

 

 

 

 




 

 

 

 

 

 

7,661,602

 









Florida — 0.4%

 

 

 

 

 

 

 

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

 

 

3,299

 

 

3,379,712

 









Georgia — 1.2%

 

 

 

 

 

 

 

Metropolitan Atlanta Rapid Transit Authority,
Refunding RB, Third Indenture, Series B (AGM),
5.00%, 7/01/37

 

 

10,000

 

 

10,305,950

 









Illinois — 3.2%

 

 

 

 

 

 

 

City of Chicago Illinois, GO, Refunding, Series A
(AGC), 5.25%, 1/01/24

 

 

11,000

 

 

11,886,600

 

Illinois Finance Authority, RB, University of Chicago,
Series B, 6.25%, 7/01/38

 

 

10,000

 

 

11,289,900

 

Metropolitan Pier & Exposition Authority, Illinois,
Refunding RB, Mccormick Place Expansion,
Series B (NPFGC), 5.75%, 6/15/23

 

 

4,798

 

 

5,190,352

 

 

 

 

 

 




 

 

 

 

 

 

28,366,852

 









Kentucky — 0.7%

 

 

 

 

 

 

 

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

 

 

5,985

 

 

6,458,076

 









Louisiana — 1.1%

 

 

 

 

 

 

 

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

 

 

10,000

 

 

10,192,800

 










 

 

 

See Notes to Financial Statements.


22

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 



 

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 (d)

 

Par 
(000)

 

Value

 









Nevada — 0.6%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO,
Series B:

 

 

 

 

 

 

 

5.75%, 7/01/34

 

$

4,813

 

$

5,282,819

 

5.50%, 7/01/29

 

 

510

 

 

556,412

 

 

 

 

 

 




 

 

 

 

 

 

5,839,231

 









New Jersey — 1.4%

 

 

 

 

 

 

 

Garden State Preservation Trust, RB, Election 2005,
Series A (AGM), 5.75%, 11/01/28

 

 

10,000

 

 

12,582,500

 









New York — 4.2%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB,
Series DD, 5.00%, 6/15/37

 

 

17,567

 

 

18,075,059

 

Port Authority of New York & New Jersey, RB, Cons
Thirty Seventh, AMT (AGM), 5.13%, 7/15/30

 

 

19,500

 

 

19,600,620

 

 

 

 

 

 




 

 

 

 

 

 

37,675,679

 









Ohio — 0.7%

 

 

 

 

 

 

 

County of Montgomery, Ohio, RB, Catholic Health,
Series C1 (AGM), 5.00%, 10/01/41

 

 

4,990

 

 

4,842,995

 

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

 

 

1,520

 

 

1,587,442

 

 

 

 

 

 




 

 

 

 

 

 

6,430,437

 









South Carolina — 0.6%

 

 

 

 

 

 

 

South Carolina State Housing Finance &
Development Authority, Refunding RB, Series B-1,
5.55%, 7/01/39

 

 

4,968

 

 

5,086,164

 









Texas — 3.9%

 

 

 

 

 

 

 

Friendswood ISD, Texas, GO, Schoolhouse (PSF-GTD),
5.00%, 2/15/37

 

 

12,955

 

 

13,450,070

 

Houston ISD, GO, Schoolhouse (PSF-GTD), 5.00%,
2/15/33

 

 

10,000

 

 

10,470,900

 

Texas State University Systems, Texas, RB, 5.25%,
3/15/26

 

 

10,000

 

 

10,773,300

 

 

 

 

 

 




 

 

 

 

 

 

34,694,270

 









Virginia — 0.5%

 

 

 

 

 

 

 

University of Virginia, Refunding RB, General, 5.00%,
6/01/40

 

 

3,950

 

 

4,167,329

 









Washington — 6.1%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation
Authority, Washington, RB, Series A (AGM), 5.00%,
11/01/34

 

 

16,770

 

 

17,538,821

 

County of King, Washington, RB (AGM), 5.00%,
1/01/37

 

 

15,785

 

 

16,197,746

 

Port of Seattle WA, RB, Series B, AMT (NPFGC), 5.20%,
7/01/29

 

 

20,565

 

 

20,316,505

 

 

 

 

 

 




 

 

 

 

 

 

54,053,072

 









Wisconsin — 0.4%

 

 

 

 

 

 

 

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

 

 

3,959

 

 

3,958,772

 









Total Municipal Bonds Transferred to

 

 

 

 

 

 

 

Tender Option Bond Trusts — 37.5%

 

 

 

 

 

333,876,416

 









Total Long-Term Investments

 

 

 

 

 

 

 

(Cost — $1,381,286,380) — 157.0%

 

 

 

 

 

1,397,535,245

 










 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 









FFI Institutional Tax-Exempt Fund, 0.16% (e)(f)

 

 

16,925,057

 

$

16,925,057

 









Total Short-Term Securities

 

 

 

 

 

 

 

(Cost — $16,925,057) — 1.9%

 

 

 

 

 

16,925,057

 









Total Investments (Cost — $1,398,211,437*) — 158.9%

 

 

 

 

 

1,414,460,302

 

Other Assets Less Liabilities — 0.7%

 

 

 

 

 

6,442,379

 

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense and Fees Payable — (19.6)%

 

 

 

 

 

(174,481,693

)

Preferred Shares, at Redemption Value — (40.0)%

 

 

 

 

 

(356,488,840

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

889,932,148

 

 

 

 

 

 





 

 



*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

1,230,384,776

 

 

 




Gross unrealized appreciation

 

$

37,760,228

 

Gross unrealized depreciation

 

 

(28,058,800

)

 

 




Net unrealized appreciation

 

$

9,701,428

 

 

 





 

 

(a)

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

 

 

(b)

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

 

 

(c)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 









Counterparty

 

Value

 

Unrealized
Depreciation

 









Citigroup, Inc.

 

$

5,146,735

 

$

(23,265

)










 

 

(d)

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.

 

 

(e)

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

 









FFI Institutional Tax Exempt Fund

 

$

(16,688,729

)

$

24,753

 










 

 

(f)

Represents the current yield as of report date.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

23




 

 



 

Schedule of Investments (concluded)

BlackRock MuniYield Insured Fund, Inc. (MYI)


 

 

 

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 methodologies 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, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 






Valuation Inputs

 

Investments in
Securities

 






 

 

Assets

 

 

 




Level 1 — Short-Term Securities

 

$

16,925,057

 

Level 2 — Long-Term Investments1

 

 

1,397,535,245

 

Level 3

 

 

 

 

 




Total

 

$

1,414,460,302

 

 

 





 

 

1

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


 

 

 

See Notes to Financial Statements.


24

SEMI-ANNUAL REPORT

JANUARY 31, 2010



 

 


 

Schedule of Investments January 31, 2010 (Unaudited)

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Michigan — 135.9%

 

 

 

 

 

 

 









Corporate — 13.6%

 

 

 

 

 

 

 

Delta County EDC, Refunding RB, Mead
Westvaco-Escanaba, Series A, 6.25%, 4/15/27 (a)

 

$

2,420

 

$

2,692,540

 

Dickinson County EDC Michigan, Refunding RB,
International Paper Co. Project, Series A, 5.75%,
6/01/16

 

 

2,500

 

 

2,540,725

 

Michigan Strategic Fund, Refunding RB, Detroit

 

 

 

 

 

 

 

Edison Co. Project, Series A, AMT (NPFGC), 5.55%,

 

 

 

 

 

 

 

9/01/29

 

 

9,500

 

 

9,443,380

 

Monroe County EDC Michigan, Refunding RB, Detroit

 

 

 

 

 

 

 

Edison Co. Project, Series AA (NPFGC), 6.95%,

 

 

 

 

 

 

 

9/01/22

 

 

6,500

 

 

7,534,280

 

 

 

 

 

 




 

 

 

 

 

 

22,210,925

 









County/City/Special District/
School District — 44.4%

 

 

 

 

 

 

 

Adrian City School District Michigan, GO (AGM),
5.00%, 5/01/34 (a)

 

 

2,400

 

 

2,763,624

 

Anchor Bay School District Michigan, GO, School
Building & Site, Series II (Q-SBLF), 5.75%,
5/01/20 (a)

 

 

3,165

 

 

3,209,753

 

Bay City School District Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/36

 

 

2,915

 

 

2,930,333

 

Bullock Creek School District Michigan, GO (NPFGC),
5.50%, 5/01/26 (a)

 

 

2,150

 

 

2,179,197

 

Charter Township of Canton Michigan, GO, Capital
Improvement (AGM) 5.00%, 4/01/27

 

 

500

 

 

525,470

 

City of Oak Park Michigan, GO, Street Improvement
(NPFGC), 5.00%, 5/01/30

 

 

600

 

 

614,844

 

County of Genesee, Michigan, GO, Water Supply
System (NPFGC), 5.13%, 11/01/33

 

 

500

 

 

502,755

 

County of Wayne Michigan, GO, Airport Hotel, Detroit
Metropolitan Airport, Series A (NPFGC), 5.00%,
12/01/30

 

 

1,180

 

 

1,075,900

 

Dearborn Brownfield Redevelopment Authority, GO,
Limited Tax, Redevelopment, Series A (AGC),
5.50%, 5/01/39

 

 

2,000

 

 

2,070,200

 

Detroit City School District Michigan, School
Building & Site Improvement, GO (FGIC):

 

 

 

 

 

 

 

Series A, 5.38%, 5/01/24 (a)

 

 

1,480

 

 

1,680,747

 

Series B, 5.00%, 5/01/28

 

 

1,900

 

 

1,835,837

 

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

 

 

2,000

 

 

2,140,120

 

Gibraltar School District Michigan, GO, School
Building & Site:

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14 (a)

 

 

3,065

 

 

3,529,378

 

(NPFGC), 5.00%, 5/01/28

 

 

585

 

 

595,495

 

Grand Blanc Community Schools Michigan,
GO (NPFGC):

 

 

 

 

 

 

 

5.63%, 5/01/17

 

 

1,000

 

 

1,081,420

 

5.63%, 5/01/18

 

 

1,000

 

 

1,065,380

 

5.63%, 5/01/19

 

 

1,100

 

 

1,171,918

 

Grand Rapids Building Authority Michigan, RB,
Series A (AMBAC) (a):

 

 

 

 

 

 

 

5.50%, 10/01/18

 

 

535

 

 

601,040

 

5.50%, 10/01/19

 

 

130

 

 

146,047

 

Harper Creek Community School District Michigan,
GO, Refunding (AGM), 5.00%, 5/01/22

 

 

1,000

 

 

1,050,490

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Michigan (continued)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

Harper Woods School District Michigan, GO,
Refunding, School Building & Site:

 

 

 

 

 

 

 

(FGIC), 5.00%, 5/01/14 (a)

 

$

215

 

$

247,575

 

(NPFGC), 5.00%, 5/01/34

 

 

10

 

 

10,026

 

Hartland Consolidated School District Michigan, GO,
(Q-SBLF), 6.00%, 5/01/16 (a)

 

 

3,425

 

 

3,475,895

 

Haslett Public School District Michigan, GO, Building
& Site (NPFGC), 5.63%, 5/01/18 (a)

 

 

1,275

 

 

1,385,441

 

Jackson Public Schools Michigan, GO (FGIC), 5.38%,
5/01/10 (a)

 

 

3,975

 

 

4,027,708

 

Jonesville Community Schools Michigan, GO,
Refunding (NPFGC), 5.00%, 5/01/29

 

 

1,085

 

 

1,097,912

 

L’Anse Creuse Public Schools Michigan, GO, School
Building & Site (AGM):

 

 

 

 

 

 

 

5.00%, 5/01/12

 

 

400

 

 

431,984

 

5.00%, 5/01/25

 

 

1,000

 

 

1,037,170

 

5.00%, 5/01/26

 

 

1,050

 

 

1,085,175

 

5.00%, 5/01/35

 

 

2,000

 

 

2,023,800

 

Lincoln Consolidated School District Michigan, GO,
Refunding (NPFGC), 4.63%, 5/01/28

 

 

2,470

 

 

2,447,301

 

Livonia Public Schools School District Michigan, GO,
Refunding, Series A (NPFGC), 5.00%, 5/01/24

 

 

500

 

 

516,845

 

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

 

 

1,440

 

 

1,557,331

 

Michigan State Building Authority, RB, Facilities
Program, Series H (AGM), 5.00%, 10/15/26

 

 

3,000

 

 

3,048,240

 

Michigan State Building Authority, Refunding RB,
Facilities Program, Series I (AGM):

 

 

 

 

 

 

 

5.50%, 10/15/10

 

 

6,610

 

 

6,827,205

 

5.50%, 10/15/10 (b)

 

 

390

 

 

404,684

 

New Haven Community Schools Michigan, GO,
Refunding, School Building & Site (AGM), 5.00%,
5/01/23

 

 

500

 

 

517,960

 

New Lothrop Area Public Schools Michigan, GO,
School Building & Site (AGM), 5.00%, 5/01/35

 

 

1,200

 

 

1,206,468

 

Pontiac Tax Increment Finance Authority Michigan,
Tax Allocation Bonds, Refunding, Tax Increment
Development (ACA), 5.38%, 6/01/12 (a)

 

 

640

 

 

711,494

 

Reed City Public Schools Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/14 (a)

 

 

1,000

 

 

1,151,510

 

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

 

 

2,650

 

 

2,687,683

 

Southfield Public Schools Michigan, GO, School
Building & Site, Series B (AGM), 5.00%,
5/01/14 (a)

 

 

1,000

 

 

1,143,480

 

Sparta Area Schools Michigan, GO, School Building
& Site (FGIC), 5.00%, 5/01/14 (a)

 

 

1,000

 

 

1,146,150

 

Thornapple Kellogg School District Michigan, GO,
School Building & Site (NPFGC), 5.00%, 5/01/32

 

 

1,500

 

 

1,515,345

 

Van Dyke Public Schools Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/28

 

 

750

 

 

779,243

 

Zeeland Public Schools Michigan, GO, School
Building & Site (NPFGC), 5.00%, 5/01/29

 

 

1,230

 

 

1,258,757

 

 

 

 

 

 




 

 

 

 

 

 

72,512,330

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

25




 

 


 

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)

 

 

 

 

 

 

 









Education — 5.8%

 

 

 

 

 

 

 

Michigan Higher Education Facilities Authority, RB,
Limited Obligation, Hillsdale College Project,
5.00%, 3/01/35

 

$

1,125

 

$

1,054,699

 

Michigan Higher Education Facilities Authority,
Refunding RB, Limited Obligation, Creative
Studies (a):

 

 

 

 

 

 

 

5.85%, 12/01/12

 

 

550

 

 

612,090

 

5.90%, 12/01/12

 

 

1,000

 

 

1,114,040

 

Michigan Higher Education Student Loan Authority,
RB, Student Loan, AMT (AMBAC):

 

 

 

 

 

 

 

Series XVII-B, 5.40%, 6/01/18

 

 

3,000

 

 

3,003,780

 

Series XVII-Q, 5.00%, 3/01/31

 

 

500

 

 

451,100

 

Michigan State Building Authority, RB, Facilities
Program, Series II (AMBAC), 4.86%,
10/15/10 (b)(c)

 

 

1,675

 

 

1,668,685

 

Saginaw Valley State University Michigan, Refunding
RB, General (NPFGC), 5.00%, 7/01/24

 

 

1,450

 

 

1,489,846

 

 

 

 

 

 




 

 

 

 

 

 

9,394,240

 









Health — 22.5%

 

 

 

 

 

 

 

Dickinson County Healthcare System, Refunding RB,
Series A (ACA), 5.80%, 11/01/24

 

 

2,170

 

 

2,076,538

 

Flint Hospital Building Authority Michigan, Refunding
RB, Hurley Medical Center (ACA):

 

 

 

 

 

 

 

6.00%, 7/01/20

 

 

755

 

 

702,913

 

Series A, 5.38%, 7/01/20

 

 

385

 

 

339,909

 

Kent Hospital Finance Authority Michigan, RB, Spectrum Health, Series A (NPFGC), 5.50%,
7/15/11 (a)

 

 

3,000

 

 

3,242,460

 

Michigan State Hospital Finance Authority, RB:

 

 

 

 

 

 

 

Hospital, MidMichigan Obligation Group,
Series A (AMBAC), 5.50%, 4/15/18

 

 

1,000

 

 

1,020,960

 

McLaren Health Care, Series C, 5.00%, 8/01/35

 

 

1,585

 

 

1,450,671

 

Mercy Health Services, Series R (AMBAC),
5.38%, 8/15/26 (b)

 

 

2,000

 

 

2,007,900

 

Michigan State Hospital Finance Authority,
Refunding RB:

 

 

 

 

 

 

 

Hospital, Crittenton, Series A, 5.63%, 3/01/27

 

 

1,300

 

 

1,278,225

 

Hospital, Oakwood Obligation Group, Series A,
5.00%, 7/15/25

 

 

3,110

 

 

2,872,831

 

Hospital, Oakwood Obligation Group, Series A,
5.00%, 7/15/37

 

 

3,340

 

 

2,841,505

 

Hospital, Sparrow Obligated, 5.00%, 11/15/31

 

 

1,595

 

 

1,480,942

 

McLaren Health Care, 5.75%, 5/15/38

 

 

1,500

 

 

1,523,565

 

Series A, Trinity Health, 6.13%, 12/01/23

 

 

940

 

 

1,032,336

 

Series A, Trinity Health, 6.25%, 12/01/28

 

 

570

 

 

628,488

 

Series A, Trinity Health, 6.50%, 12/01/33

 

 

1,400

 

 

1,553,720

 

Trinity Health Credit, Series C, 5.38%, 12/01/23

 

 

1,000

 

 

1,016,350

 

Trinity Health Credit, Series C, 5.38%, 12/01/30

 

 

1,950

 

 

1,960,803

 

Trinity Health Credit, Series D, 5.00%, 8/15/34

 

 

1,650

 

 

1,578,060

 

Trinity Health, Series A, 6.00%, 12/01/20

 

 

1,400

 

 

1,435,266

 

Trinity Health, Series A (AMBAC), 6.00%,
12/01/27

 

 

5,500

 

 

5,617,920

 

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

 

 

1,000

 

 

1,159,420

 

 

 

 

 

 




 

 

 

 

 

 

36,820,782

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Michigan (concluded)

 

 

 

 

 

 

 









Housing — 3.3%

 

 

 

 

 

 

 

Michigan State HDA, RB:

 

 

 

 

 

 

 

Deaconess Tower, AMT (GNMA), 5.25%,
2/20/48

 

$

1,000

 

$

985,700

 

Series A, 6.00%, 10/01/45

 

 

4,280

 

 

4,390,039

 

Series A, AMT (NPFGC), 5.30%, 10/01/37

 

 

25

 

 

24,926

 

 

 

 

 

 




 

 

 

 

 

 

5,400,665

 









State — 12.9%

 

 

 

 

 

 

 

Michigan Municipal Bond Authority, Refunding RB,
Local Government, Charter County Wayne,
Series B (AGC):

 

 

 

 

 

 

 

5.00%, 11/01/14

 

 

1,500

 

 

1,676,025

 

5.00%, 11/01/15

 

 

1,000

 

 

1,115,870

 

5.00%, 11/01/16

 

 

500

 

 

554,775

 

5.38%, 11/01/24

 

 

125

 

 

135,503

 

Michigan State Building Authority, Refunding RB,
Facilities Program:

 

 

 

 

 

 

 

Series I, 6.25%, 10/15/38

 

 

2,350

 

 

2,556,917

 

Series I (AGC), 5.25%, 10/15/24

 

 

2,000

 

 

2,127,180

 

Series I (AGC), 5.25%, 10/15/25

 

 

1,500

 

 

1,584,225

 

Series I (AGC), 5.25%, 10/15/26

 

 

400

 

 

420,792

 

Series II (NPFGC), 5.00%, 10/15/29

 

 

2,000

 

 

2,013,980

 

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

 

 

5,045

 

 

5,454,856

 

State of Michigan, RB, GAN (AGM), 5.25%,
9/15/27 (b)

 

 

3,250

 

 

3,412,142

 

 

 

 

 

 




 

 

 

 

 

 

21,052,265

 









Transportation — 15.7%

 

 

 

 

 

 

 

County of Wayne Michigan, RB, Detroit Metropolitan,
Wayne County, Series A, AMT (NPFGC), 5.38%,
12/01/15

 

 

6,500

 

 

6,539,325

 

Wayne County Airport Authority, RB, Detroit
Metropolitan Wayne County Airport, AMT (NPFGC):

 

 

 

 

 

 

 

5.25%, 12/01/25

 

 

4,475

 

 

4,261,900

 

5.25%, 12/01/26

 

 

3,700

 

 

3,452,655

 

5.00%, 12/01/34

 

 

5,200

 

 

4,379,336

 

Wayne County Airport Authority, Refunding RB,
AMT (AGC):

 

 

 

 

 

 

 

5.75%, 12/01/26

 

 

3,060

 

 

3,068,140

 

5.38%, 12/01/32

 

 

4,300

 

 

3,952,818

 

 

 

 

 

 




 

 

 

 

 

 

25,654,174

 









Utilities — 17.7%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,284,600

 

Second Lien, Series B (NPFGC), 5.00%, 7/01/34

 

 

2,620

 

 

2,392,532

 

Second Lien, Series B (NPFGC), 5.00%, 7/01/13 (a)

 

 

1,780

 

 

2,006,113

 

Senior Lien, Series A (AGM), 5.00%, 7/01/25

 

 

3,460

 

 

3,469,273

 

Senior Lien, Series A (FGIC), 5.75%, 7/01/13 (a)

 

 

1,000

 

 

1,074,680

 

Senior Lien, Series A (NPFGC), 5.00%, 7/01/34

 

 

4,600

 

 

4,200,628

 

City of Detroit Michigan, Refunding RB, Second Lien,
Series C (AGM), 5.00%, 7/01/29

 

 

6,475

 

 

6,488,856

 

City of Grand Rapids Michigan, Refunding RB,
Series A (NPFGC), 5.50%, 1/01/22

 

 

1,500

 

 

1,685,865

 

City of Wyoming Michigan, RB (NPFGC), 5.00%,
6/01/30

 

 

5,300

 

 

5,361,480

 

 

 

 

 

 




 

 

 

 

 

 

28,964,027

 









Total Municipal Bonds in Michigan

 

 

 

 

 

222,009,408

 










 

 

 

See Notes to Financial Statements.


26

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 


 

Schedule of Investments (concluded)

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









Puerto Rico — 7.6%

 

 

 

 

 

 

 









State — 5.6%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities, Series M-3 (NPFGC), 6.00%,
7/01/27

 

$

4,200

 

$

4,336,962

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, Series A (NPFGC) (c):

 

 

 

 

 

 

 

5.19%, 8/01/43

 

 

12,500

 

 

1,628,625

 

4.99%, 8/01/46

 

 

30,000

 

 

3,156,900

 

 

 

 

 

 




 

 

 

 

 

 

9,122,487

 









Transportation — 2.0%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority,
Refunding RB, Series CC (AGC) 5.50%, 7/01/31

 

 

3,000

 

 

3,237,000

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

12,359,487

 









Total Municipal Bonds — 143.5%

 

 

 

 

 

234,368,895

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









Michigan — 10.8%

 

 

 

 

 

 

 









County/City/Special District/
School District — 4.4%

 

 

 

 

 

 

 

Lakewood Public Schools, Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/37

 

 

3,970

 

 

4,227,454

 

Portage Public Schools Michigan, GO, School
Building & Site (AGM), 5.00%, 5/01/31

 

 

2,850

 

 

2,941,200

 

 

 

 

 

 




 

 

 

 

 

 

7,168,654

 









Education — 6.4%

 

 

 

 

 

 

 

Saginaw Valley State University MI, Refunding RB
(AGM), 5.00%, 7/01/31

 

 

2,500

 

 

2,558,550

 

Wayne State University, Refunding RB, General (AGM),
5.00%, 11/15/35

 

 

7,790

 

 

7,961,848

 

 

 

 

 

 




 

 

 

 

 

 

10,520,398

 









Total Municipal Bonds Transferred to

 

 

 

 

 

 

 

Tender Option Bond Trusts — 10.8%

 

 

 

 

 

17,689,052

 









Total Long-Term Investments
(Cost — $251,115,736) — 154.3%

 

 

 

 

 

252,057,947

 









 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 









CMA Michigan Municipal Money Fund,
0.00% (e)(f)

 

 

6,050,336

 

 

6,050,336

 









Total Short-Term Securities

 

 

 

 

 

 

 

(Cost — $6,050,336) — 3.7%

 

 

 

 

 

6,050,336

 









Total Investments (Cost — $257,166,072*) — 158.0%

 

 

 

 

 

258,108,283

 

Other Assets Less Liabilities — 1.0%

 

 

 

 

 

1,599,958

 

Liability for Trust Certificates, Including
Interest Expense and Fees Payable — (5.5)%

 

 

 

 

 

(9,034,912

)

Preferred Shares, at Redemption Value — (53.5)%

 

 

 

 

 

(87,355,469

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

163,317,860

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

247,944,561

 

 

 




Gross unrealized appreciation

 

$

8,084,836

 

Gross unrealized depreciation

 

 

(6,951,114

)

 

 




Net unrealized appreciation

 

$

1,133,722

 

 

 





 

 

(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)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

(c)

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

 

 

(d)

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.

 

 

(e)

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
Activity

 

 

 

 

Affiliate

 

 

Income

 







CMA Michigan Municipal Money Fund

 

$

1,934,775

 

$

607

 










 

 

 

(f)

Represents the current yield as of report date.

 

 

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 methodologies 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, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 








Valuation Inputs

 

 

 

 

Investments in
Securities

 








 

 

 

 

 

Assets

 

 

 

 

 

 



Level 1 — Short-Term Securities

 

 

 

 

$

6,050,336

 

Level 2 — Long-Term Investments1

 

 

 

 

 

252,057,947

 

Level 3

 

 

 

 

 

 

 

 

 

 

 




Total

 

 

 

 

$

258,108,283

 

 

 

 

 

 





 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

27



 

 



 

 

Schedule of Investments January 31, 2010 (Unaudited)

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







New York — 113.9%

 

 

 

 

 

 

 









Corporate — 9.7%

 

 

 

 

 

 

 

New York City Industrial Development Agency, RB,
Japan Airlines Co., Remarketed, AMT (AGM),
6.00%, 11/01/15

 

$

3,190

 

$

3,192,105

 

New York City Industrial Development Agency,
Refunding RB, Terminal One Group Association
Project, AMT, 5.50%, 1/01/24

 

 

1,500

 

 

1,506,690

 

 

 

 

 

 

 

 

 

New York Liberty Development Corp., RB, Goldman
Sachs Headquarters, 5.25%, 10/01/35

 

 

3,150

 

 

3,166,159

 

New York State Energy Research & Development
Authority, RB, Lilco Project, Series A (NPFGC),
5.15%, 3/01/16

 

 

3,000

 

 

3,011,010

 

New York State Energy Research & Development
Authority, Refunding RB, Brooklyn Union Gas/
Keyspan, Series A, AMT (FGIC), 4.70%, 2/01/24

 

 

10,750

 

 

10,587,460

 

Suffolk County Industrial Development Agency
New York, RB, Keyspan, Port Jefferson, AMT,
5.25%, 6/01/27

 

 

4,625

 

 

4,471,404

 

Suffolk County Industrial Development Agency
New York, Refunding RB, Ogden Martin System
Huntington, AMT (AMBAC):

 

 

 

 

 

 

 

6.00%, 10/01/10

 

 

8,530

 

 

8,788,630

 

6.15%, 10/01/11

 

 

9,170

 

 

9,825,930

 

6.25%, 10/01/12

 

 

6,470

 

 

7,104,578

 

 

 

 

 

 




 

 

 

 

 

 

51,653,966

 









County/City/Special District/
School District — 34.9%

 

 

 

 

 

 

 

City of Buffalo New York, GO, School, Series D (NPFGC):

 

 

 

 

 

 

 

5.50%, 12/15/14

 

 

1,250

 

 

1,323,875

 

5.50%, 12/15/16

 

 

1,500

 

 

1,565,145

 

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

 

 

1,280

 

 

1,327,756

 

City of New York New York, GO, Refunding, Series 02-B
(AMBAC), 7.00%, 2/01/18

 

 

70

 

 

70,344

 

City of Niagara Falls, New York, GO, Water Treatment
Plant (NPFGC), AMT 7.25%, 11/01/10

 

 

1,000

 

 

1,052,350

 

Dutchess County Resource Recovery Agency, New York,
RB, Solid Waste System, Series A (NPFGC),
5.40%, 1/01/13

 

 

1,700

 

 

1,765,501

 

Erie County Industrial Development Agency, RB, City
of Buffalo Project (AGM), 5.75%, 5/01/20

 

 

1,900

 

 

2,070,848

 

Hudson Yards Infrastructure Corp., RB, Series A:

 

 

 

 

 

 

 

(FGIC), 5.00%, 2/15/47

 

 

12,150

 

 

11,308,856

 

(NPFGC), 4.50%, 2/15/47

 

 

16,275

 

 

14,736,199

 

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

 

 

1,675

 

 

1,725,669

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 









New York (continued)

 

 

 

 

 

 

 









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

 

 

 

 

 

 

 

New York City Industrial Development Agency, RB, PILOT:

 

 

 

 

 

 

 

CAB, Yankee Stadium (AGC), 6.48%,
3/01/39 (a)

 

$

5,000

 

$

893,100

 

CAB, Yankee Stadium (AGC), 6.42%,
3/01/43 (a)

 

 

5,830

 

 

770,609

 

Queens Baseball Stadium (AGC),
6.38%, 1/01/39

 

 

1,000

 

 

1,107,050

 

Queens Baseball Stadium (AMBAC),
5.00%, 1/01/36

 

 

11,800

 

 

10,852,342

 

Queens Baseball Stadium (AMBAC),
5.00%, 1/01/39

 

 

5,250

 

 

4,773,248

 

Queens Baseball Stadium (AMBAC),
5.00%, 1/01/46

 

 

9,900

 

 

8,900,595

 

Yankee Stadium (FGIC), 5.00%, 3/01/46

 

 

9,650

 

 

8,673,034

 

Yankee Stadium (NPFGC), 5.00%, 3/01/36

 

 

4,650

 

 

4,335,753

 

New York City Transit Authority, Metropolitan
Transportation Authority, Triborough Bridge & Tunnel
COP, Series A (AMBAC), 5.63%, 1/01/12

 

 

1,020

 

 

1,033,841

 

New York City Transitional Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2008, Series S-1, 4.50%, 1/15/38

 

 

1,750

 

 

1,682,643

 

Fiscal 2009, Series S-1 (AGC), 5.50%, 7/15/38

 

 

6,000

 

 

6,405,180

 

Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/39

 

 

1,500

 

 

1,606,155

 

Future Tax Secured, Series C (FGIC),
5.00%, 2/01/33

 

 

12,395

 

 

12,674,011

 

Future Tax Secured, Series E (NPFGC),
5.25%, 2/01/22

 

 

2,500

 

 

2,684,125

 

Series S-2 (AGM), 5.00%, 1/15/37

 

 

5,000

 

 

5,088,100

 

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

 

 

5,980

 

 

5,567,739

 

New York City Transitional Finance Authority, Refunding
RB, Series A (FGIC), 5.00%, 11/15/26

 

 

1,000

 

 

1,036,870

 

New York Convention Center Operating Corp., RB,
Hotel Unit Fee Secured (AMBAC):

 

 

 

 

 

 

 

5.00%, 11/15/30

 

 

1,500

 

 

1,507,380

 

5.00%, 11/15/35

 

 

33,000

 

 

32,526,780

 

5.00%, 11/15/44

 

 

13,470

 

 

12,995,721

 

North Country Development Authority, Refunding RB
(AGM), 6.00%, 5/15/15

 

 

1,115

 

 

1,232,175

 

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

 

 

11,200

 

 

11,602,864

 

Syracuse Industrial Development Agency, New York,
RB, Carousel Center Project, Series A, AMT (Syncora),
5.00%, 1/01/36

 

 

11,500

 

 

7,639,220

 

Town of Huntington New York, GO, Refunding (AMBAC):

 

 

 

 

 

 

 

5.50%, 4/15/12

 

 

460

 

 

508,723

 

5.50%, 4/15/13

 

 

455

 

 

517,895

 

Town of North Hempstead New York, GO, Refunding,
Series B (NPFGC):

 

 

 

 

 

 

 

6.40%, 4/01/13

 

 

1,745

 

 

2,022,717

 

6.40%, 4/01/17

 

 

555

 

 

679,986

 

 

 

 

 

 




 

 

 

 

 

 

186,264,399

 










 

 

 

See Notes to Financial Statements.


28

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 



 

 

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)

 

 

 

 

 

 

 









Education — 8.4%

 

 

 

 

 

 

 

Madison County Industrial Development Agency
New York, RB, Colgate University Project,
Series A (AMBAC):

 

 

 

 

 

 

 

5.00%, 7/01/30

 

$

5,410

 

$

5,556,990

 

5.00%, 7/01/35

 

 

2,675

 

 

2,714,189

 

New York City Industrial Development Agency, RB,
Polytechnic University Project (ACA),
5.25%, 11/01/37

 

 

2,480

 

 

2,111,670

 

New York City Industrial Development Agency,
Refunding RB, Nightingale, Bamford School
(AMBAC), 5.25%, 1/15/18

 

 

1,275

 

 

1,365,665

 

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

 

 

5,500

 

 

5,698,770

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Mount Sinai School of Medicine,
5.13%, 7/01/39

 

 

2,500

 

 

2,471,800

 

Mount Sinai School of Medicine at NYU (NPFGC),
5.00%, 7/01/35

 

 

7,100

 

 

6,999,180

 

New York University, Series 1 (AMBAC),
5.50%, 7/01/40

 

 

4,580

 

 

5,304,052

 

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

 

 

815

 

 

838,317

 

Rensselaer County Industrial Development Agency
New York, RB, Polytechnic Institute, Series B
(AMBAC), 5.50%, 8/01/22

 

 

1,255

 

 

1,271,466

 

Trust for Cultural Resources, RB, Carnegie Hall,
Series A:

 

 

 

 

 

 

 

4.75%, 12/01/39

 

 

3,550

 

 

3,461,286

 

5.00%, 12/01/39

 

 

2,150

 

 

2,159,804

 

Trust for Cultural Resources, Refunding RB, American
Museum of Natural History, Series A (NPFGC):

 

 

 

 

 

 

 

5.00%, 7/01/36

 

 

4,250

 

 

4,334,192

 

5.00%, 7/01/44

 

 

500

 

 

505,910

 

 

 

 

 

 




 

 

 

 

 

 

44,793,291

 









Health — 6.4%

 

 

 

 

 

 

 

New York City Industrial Development Agency, RB,
Royal Charter, NY Presbyterian (AGM),
5.75%, 12/15/29

 

 

7,970

 

 

8,451,149

 

New York State Dormitory Authority, MRB, Montefiore
Hospital (NPFGC), 5.00%, 8/01/33

 

 

1,500

 

 

1,520,865

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par 
(000)

 

Value

 







New York (continued)

 

 

 

 

 

 

 









Health (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Hudson Valley Hospital (BHAC),
5.00%, 8/15/36

 

$

6,000

 

$

6,205,500

 

New York & Presbyterian Hospital (AGM),
5.25%, 2/15/31

 

 

3,000

 

 

3,086,520

 

New York & Presbyterian Hospital (AGM),
5.00%, 8/15/36

 

 

5,000

 

 

5,044,350

 

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

 

 

1,180

 

 

1,202,679

 

New York State Rehabilitation Association,
Series A (CIFG), 5.13%, 7/01/23

 

 

1,000

 

 

999,960

 

North Shore-Long Island Jewish Health System,
Series A, 5.50%, 5/01/37

 

 

2,075

 

 

2,092,783

 

Series B (NPFGC), 6.50%, 2/15/11 (b)

 

 

1,000

 

 

1,064,550

 

New York State Dormitory Authority, Refunding RB,
St. Luke’s Roosevelt Hospital (FHA),
4.90%, 8/15/31

 

 

3,250

 

 

3,144,895

 

Oneida County Industrial Development Agency
New York, RB, Civic Facilities, Mohawk Valley,
Series A (AGM), 5.20%, 2/01/13

 

 

1,050

 

 

1,063,797

 

 

 

 

 

 




 

 

 

 

 

 

33,877,048

 









Housing — 3.1%

 

 

 

 

 

 

 

Monroe County Industrial Development Agency, RB,
Industrial Development, Southview Towers Project,
AMT (SONYMA):

 

 

 

 

 

 

 

6.13%, 2/01/20

 

 

1,235

 

 

1,248,425

 

6.25%, 2/01/31

 

 

1,125

 

 

1,136,891

 

New York City Housing Development Corp., RB AMT:

 

 

 

 

 

 

 

Series C, 5.00%, 11/01/26

 

 

1,500

 

 

1,499,880

 

Series C, 5.05%, 11/01/36

 

 

2,000

 

 

1,858,660

 

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

 

 

1,340

 

 

1,194,422

 

New York Mortgage Agency, Refunding RB, AMT:

 

 

 

 

 

 

 

Homeowner Mortgage, Series 97,
5.50%, 4/01/31

 

 

1,130

 

 

1,133,085

 

Series 133, 4.95%, 10/01/21

 

 

1,540

 

 

1,560,929

 

Series 143, 4.90%, 10/01/37

 

 

1,000

 

 

932,600

 

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

 

 

2,485

 

 

2,427,174

 

New York State HFA, RB, Saint Philip’s Housing,
Series A (FNMA), AMT, 4.65%, 11/15/38

 

 

1,500

 

 

1,411,290

 

Yonkers Industrial Development Agency New York, RB,
Monastery Manor Association LP Project, AMT
(SONYMA), 5.25%, 4/01/37

 

 

2,445

 

 

2,332,603

 

 

 

 

 

 




 

 

 

 

 

 

16,735,959

 










 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

29




 

 


 

 

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 — 8.7%

 

 

 

 

 

 

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

Master Boces Program Lease (AGC),
5.00%, 8/15/28

 

$

1,750

 

$

1,815,870

 

Mental Health Facilities, Series B, 5.25%,
2/15/23 (c)

 

 

1,570

 

 

1,781,542

 

Mental Health Services Facilities, Series C, AMT
(AGM), 5.40%, 2/15/33

 

 

6,460

 

 

6,525,827

 

School Districts Financing Program, Series A
(AGM), 5.00%, 10/01/35

 

 

550

 

 

559,779

 

School District Financing Program, Series C
(AGM), 5.00%, 10/01/37

 

 

4,050

 

 

4,114,192

 

School Districts Financing Program, Series E
(NPFGC), 5.75%, 10/01/30

 

 

6,900

 

 

7,274,325

 

Upstate Community Colleges, Series A (AGM),
6.00%, 7/01/16 (c)

 

 

1,070

 

 

1,107,193

 

New York State Dormitory Authority, Refunding RB,
School District Financing Program, Series B (AGM),
5.00%, 4/01/36

 

 

5,000

 

 

5,090,300

 

New York State Thruway Authority, RB:

 

 

 

 

 

 

 

Second General, Series B, 5.00%, 4/01/27

 

 

1,500

 

 

1,577,925

 

Series A (AMBAC), 5.00%, 4/01/26

 

 

4,380

 

 

4,609,862

 

New York State Urban Development Corp., Personal
Income Tax, RB (NPFGC):

 

 

 

 

 

 

 

Series C-1, 5.00%, 3/15/33 (c)

 

 

3,000

 

 

3,375,000

 

State Facilities, Series A-1, 5.00%, 3/15/29

 

 

5,000

 

 

5,159,450

 

New York State Urban Development Corp., Refunding
RB, Correctional Capital Facilities, Series A (AGM),
6.50%, 1/01/11

 

 

3,190

 

 

3,360,665

 

 

 

 

 

 




 

 

 

 

 

 

46,351,930

 









Tobacco — 1.7%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corp. New York, RB:

 

 

 

 

 

 

 

Asset-Backed, Series A-1 (AMBAC),
5.25%, 6/01/20

 

 

5,000

 

 

5,283,400

 

Asset-Backed, Series A-1 (AMBAC),
5.25%, 6/01/22

 

 

2,000

 

 

2,103,880

 

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

 

 

1,900

 

 

2,012,879

 

 

 

 

 

 




 

 

 

 

 

 

9,400,159

 









Transportation — 29.3%

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corp., RB (AGC):

 

 

 

 

 

 

 

5.00%, 2/15/47

 

 

3,750

 

 

3,635,588

 

Series A, 5.00%, 2/15/47

 

 

550

 

 

533,220

 

Metropolitan Transportation Authority, RB,
Series 2008C, 6.50%, 11/15/28

 

 

3,200

 

 

3,652,832

 

Metropolitan Transportation Authority, Refunding RB:

 

 

 

 

 

 

 

Series A (AGM), 5.00%, 11/15/32

 

 

1,015

 

 

1,028,388

 

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

 

 

29,300

 

 

31,062,981

 

Series A (NPFGC), 5.13%, 11/15/22

 

 

1,390

 

 

1,446,962

 

Series A (NPFGC), 5.00%, 11/15/30

 

 

6,600

 

 

6,654,252

 

Series A (NPFGC), 5.25%, 11/15/31

 

 

2,500

 

 

2,537,400

 

Series C (AGM), 5.13%, 7/01/13 (c)

 

 

1,640

 

 

1,812,315

 

Transportation, Series F (NPFGC), 5.25%,
11/15/27 (c)

 

 

6,235

 

 

7,011,258

 

Transportation, Series F (NPFGC),
5.00%, 11/15/31

 

 

5,000

 

 

5,042,400

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York (concluded)

 

 

 

 

 

 

 









Transportation (concluded)

 

 

 

 

 

 

 

New York State Thruway Authority, RB:

 

 

 

 

 

 

 

Series F (AMBAC), 5.00%, 1/01/30

 

$

6,000

 

$

6,130,920

 

Series G (AGM), 4.75%, 1/01/29

 

 

7,250

 

 

7,343,090

 

Series G (AGM), 4.75%, 1/01/30

 

 

9,000

 

 

9,029,520

 

Series G (AGM), 5.00%, 1/01/30

 

 

2,000

 

 

2,059,200

 

Series G (AGM), 5.00%, 1/01/32

 

 

1,030

 

 

1,052,505

 

Niagara Frontier Transportation Authority New York, RB,
Buffalo Niagara International Airport, Series B
(NPFGC), 5.50%, 4/01/19

 

 

2,705

 

 

2,734,755

 

Port Authority of New York & New Jersey, RB:

 

 

 

 

 

 

 

Consolidated 116th Series, 4.13%, 9/15/32

 

 

2,700

 

 

2,507,058

 

Consolidated, 161st Series, 4.50%, 10/15/37

 

 

1,750

 

 

1,695,977

 

Special Project, JFK International Air Terminal,
Series 6, AMT (NPFGC), 6.25%, 12/01/10

 

 

14,750

 

 

15,071,697

 

Special Project, JFK International Air Terminal,
Series 6, AMT (NPFGC), 6.25%, 12/01/11

 

 

7,175

 

 

7,465,803

 

Special Project, JFK International Air Terminal,
Series 6, AMT (NPFGC), 6.25%, 12/01/13

 

 

4,425

 

 

4,693,288

 

Special Project, JFK International Air Terminal,
Series 6, AMT (NPFGC), 6.25%, 12/01/14

 

 

7,380

 

 

7,778,003

 

Special Project, JFK International Air Terminal,
Series 6, AMT (NPFGC), 5.75%, 12/01/22

 

 

10,160

 

 

10,418,470

 

Special Project, JFK International Air Terminal,
Series 6, AMT (NPFGC), 5.75%, 12/01/25

 

 

3,500

 

 

3,494,260

 

Triborough Bridge & Tunnel Authority, New York, RB:

 

 

 

 

 

 

 

Sub-Series A (NPFGC), 5.25%, 11/15/30

 

 

6,000

 

 

6,212,100

 

Subordinate Bonds (AMBAC), 5.00%, 11/15/28

 

 

2,465

 

 

2,552,606

 

Triborough Bridge & Tunnel Authority, Refunding RB,
General Purpose, Series Y (NPFGC), 6.00%,
1/01/12 (b)

 

 

1,290

 

 

1,383,035

 

 

 

 

 

 




 

 

 

 

 

 

156,039,883

 









Utilities — 11.7%

 

 

 

 

 

 

 

Buffalo Sewer Authority, New York, RB, Series F (NPFGC),
6.00%, 7/01/13

 

 

4,300

 

 

4,583,026

 

Long Island Power Authority, RB:

 

 

 

 

 

 

 

General, Series A (AGC), 6.00%, 5/01/33

 

 

1,500

 

 

1,670,595

 

General, Series B (AGM), 5.00%, 12/01/35

 

 

4,000

 

 

4,082,440

 

Series A (AGC), 5.75%, 4/01/39

 

 

1,015

 

 

1,117,434

 

Series A (AMBAC), 5.00%, 9/01/29

 

 

7,000

 

 

7,146,300

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2004, Series C (NPFGC), 5.00%, 6/15/35

 

 

975

 

 

994,519

 

Series A (AGM), 4.25%, 6/15/39

 

 

500

 

 

467,200

 

Series A (AMBAC), 5.00%, 6/15/35

 

 

3,500

 

 

3,555,195

 

Series A (NPFGC), 5.75%, 6/15/27 (c)

 

 

24,650

 

 

26,447,971

 

Series A (NPFGC), 5.13%, 6/15/34

 

 

1,250

 

 

1,267,650

 

Series D (AGM), 5.00%, 6/15/37

 

 

9,000

 

 

9,182,250

 

Series DD (AGM), 4.50%, 6/15/39

 

 

1,500

 

 

1,468,785

 

Series F (AGM), 5.00%, 6/15/29

 

 

500

 

 

505,610

 

 

 

 

 

 




 

 

 

 

 

 

62,488,975

 









Total Municipal Bonds in New York

 

 

 

 

 

607,605,610

 










 

 

 

See Notes to Financial Statements.


30

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 


 

 

Schedule of Investments (continued)

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Guam — 0.8%

 

 

 

 

 

 

 









Transportation — 0.8%

 

 

 

 

 

 

 

Guam International Airport Authority, RB, General,
Series C (NPFGC), AMT:

 

 

 

 

 

 

 

5.25%, 10/01/21

 

$

2,240

 

$

2,242,487

 

5.25%, 10/01/22

 

 

2,050

 

 

2,050,820

 









Total Municipal Bonds in Guam

 

 

 

 

 

4,293,307

 









 

 

 

 

 

 

 

 









Puerto Rico — 14.0%

 

 

 

 

 

 

 









County/City/Special District/
School District — 0.4%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., Refunding RB,
CAB, Series A (NPFGC), 5.79%, 8/01/41 (a)

 

 

12,800

 

 

1,902,592

 









Housing — 0.7%

 

 

 

 

 

 

 

Puerto Rico HFA, RB, Subordinate, Capital Fund
Modernization, 5.13%, 12/01/27

 

 

4,000

 

 

4,003,960

 









State — 5.4%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO, Refunding:

 

 

 

 

 

 

 

Public Improvement, Series A (NPFGC),
5.50%, 7/01/20

 

 

2,000

 

 

2,094,440

 

Public Improvement, Series A-4 (AGM),
5.25%, 7/01/30

 

 

2,150

 

 

2,212,974

 

Sub-Series C-7 (NPFGC), 6.00%, 7/01/27

 

 

2,000

 

 

2,091,260

 

Sub-Series C-7 (NPFGC), 6.00%, 7/01/28

 

 

4,775

 

 

4,986,294

 

Puerto Rico Convention Center Authority, RB, Series A
(AMBAC), 5.00%, 7/01/31

 

 

4,000

 

 

3,669,840

 

Puerto Rico Infrastructure Financing Authority, RB,
CAB, Series A (a):

 

 

 

 

 

 

 

(AMBAC), 4.74%, 7/01/35

 

 

3,900

 

 

636,675

 

(AMBAC), 5.03%, 7/01/43

 

 

8,000

 

 

730,240

 

(FGIC), 4.62%, 7/01/31

 

 

22,030

 

 

5,001,911

 

Puerto Rico Public Buildings Authority, Refunding RB,
Government Facilities, Series M-3 (NPFGC),
6.00%, 7/01/28

 

 

2,850

 

 

2,941,000

 

Puerto Rico Sales Tax Financing Corp., RB,
1st Sub-Series A, 5.75%, 8/01/37

 

 

4,500

 

 

4,589,055

 

 

 

 

 

 




 

 

 

 

 

 

28,953,689

 









Transportation — 4.9%

 

 

 

 

 

 

 

Puerto Rico Highway & Transportation Authority, RB:

 

 

 

 

 

 

 

Series G (FGIC), 5.25%, 7/01/13 (c)

 

 

655

 

 

748,422

 

Series G (FGIC), 5.25%, 7/01/19

 

 

2,265

 

 

2,290,323

 

Series G (FGIC), 5.25%, 7/01/21

 

 

345

 

 

346,808

 

Series Y (AGM), 6.25%, 7/01/21

 

 

6,275

 

 

6,965,564

 

Puerto Rico Highway & Transportation Authority,
Refunding RB:

 

 

 

 

 

 

 

Series D, 5.75%, 7/01/12 (c)

 

 

3,000

 

 

3,334,020

 

Series CC (AGM), 5.50%, 7/01/31

 

 

5,000

 

 

5,395,000

 

Series CC (AGM), 5.25%, 7/01/32

 

 

1,000

 

 

1,034,810

 

Series CC (AGM), 5.25%, 7/01/33

 

 

1,000

 

 

1,028,640

 

Series CC (AGM), 5.25%, 7/01/36

 

 

4,750

 

 

4,859,535

 

 

 

 

 

 




 

 

 

 

 

 

26,003,122

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Puerto Rico (concluded)

 

 

 

 

 

 

 









Utilities — 2.6%

 

 

 

 

 

 

 

Puerto Rico Aqueduct & Sewer Authority, RB, Senior
Lien, Series A (AGC), 5.13%, 7/01/47

 

$

10,980

 

$

10,708,245

 

Puerto Rico Electric Power Authority, Refunding RB,
Series VV (NPFGC), 5.25%, 7/01/30

 

 

3,000

 

 

3,033,720

 

 

 

 

 

 




 

 

 

 

 

 

13,741,965

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

74,605,328

 









Total Municipal Bonds — 128.7%

 

 

 

 

 

686,504,245

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

 

 

 

 

 

 









New York — 28.7%

 

 

 

 

 

 

 









County/City/Special District/
School District — 11.5%

 

 

 

 

 

 

 

City of New York. New York, GO:

 

 

 

 

 

 

 

Series J, 5.00%, 5/15/23

 

 

6,750

 

 

7,081,425

 

Sub-Series C 3 (AGC), 5.75%, 8/15/28

 

 

14,400

 

 

16,180,128

 

New York State Dormitory Authority, RB, State
University Dormitory Facilities, Series A,
5.25%, 7/01/29

 

 

6,000

 

 

6,447,180

 

Sales Tax Asset Receivable Corp., RB, Series A
(AMBAC), 5.00%, 10/15/32

 

 

29,000

 

 

31,394,240

 

 

 

 

 

 




 

 

 

 

 

 

61,102,973

 









Education — 1.2%

 

 

 

 

 

 

 

New York State Dormitory Authority, RB, New York
University, Series A, 5.00%, 7/01/38

 

 

6,498

 

 

6,664,093

 









State — 1.6%

 

 

 

 

 

 

 

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

 

 

7,850

 

 

8,732,733

 









Transportation — 13.0%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, RB, Series A
(NPFGC), 5.00%, 11/15/31

 

 

3,901

 

 

4,025,420

 

Metropolitan Transportation Authority, Refunding, RB,
Series A (AGM), 5.00%, 11/15/30

 

 

8,460

 

 

8,540,624

 

New York State Thruway Authority, RB, Series G (AGM),
5.00%, 1/01/32

 

 

16,000

 

 

16,349,600

 

New York State Thruway Authority, Refunding RB,
Series H (AGM), 5.00%, 1/01/37

 

 

10,000

 

 

10,196,200

 

Port Authority of New York & New Jersey, RB,
Consolidated Thirty Seventh, AMT (AGM),
5.13%, 7/15/30

 

 

2,500

 

 

2,512,900

 

Triborough Bridge & Tunnel Authority, Refunding
RB (NPFGC):

 

 

 

 

 

 

 

5.25%, 11/15/23

 

 

7,000

 

 

7,475,230

 

5.00%, 11/15/32

 

 

19,678

 

 

19,972,956

 

 

 

 

 

 




 

 

 

 

 

 

69,072,930

 










 

 

 

See Notes to Financial Statements.




SEMI-ANNUAL REPORT

JANUARY 31, 2010

31




 

 


 

 

Schedule of Investments (concluded)

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

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 







New York (concluded)

 

 

 

 

 

 

 









Utilities — 1.4%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series A, 5.75%, 6/15/40

 

$

4,094

 

$

4,565,674

 

Series FF-2, 5.50%, 6/15/40

 

 

2,759

 

 

3,019,171

 

 

 

 

 

 




 

 

 

 

 

 

7,584,845

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 28.7%

 

 

 

 

 

153,157,574

 









Total Long-Term Investments
(Cost — $835,715,042) — 157.4%

 

 

 

 

 

839,661,819

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









CMA New York Municipal Money Fund,
0.00% (e)(f)

 

 

12,621,815

 

 

12,621,815

 









Total Short-Term Securities
(Cost — $12,621,815) — 2.4%

 

 

 

 

 

12,621,815

 









Total Investments (Cost — $848,336,857*) — 159.8%

 

 

 

 

 

852,283,634

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

7,469,757

 

Liability for Trust Certificates, Including

 

 

 

 

 

 

 

Interest Expense and Fees Payable — (14.8)%

 

 

 

 

 

(78,690,019

)

Preferred Shares, at Redemption Value — (46.4)%

 

 

 

 

 

(247,723,844

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

533,339,528

 

 

 

 

 

 













 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

770,300,300

 

 

 




Gross unrealized appreciation

 

$

24,211,049

 

Gross unrealized depreciation

 

 

(20,842,519

)

 

 




Net unrealized appreciation

 

$

3,368,530

 

 

 





 

 

(a)

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

 

 

(b)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

(c)

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

 

 

(d)

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.

 

 

(e)

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

 

$

(185,424

)

$

1,864

 










 

 

 

(f)

Represents the current yield as of report date.

 

 

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 methodologies 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, 2010 in determining the fair valuation of the Fund’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

12,621,815

 

Level 2 — Long-Term Investments1

 

 

839,661,819

 

Level 3

 

 

 

 

 




Total

 

$

852,283,634

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.


32

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

January 31, 2010 (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

 

$

485,037,829

 

$

745,500,009

 

$

1,397,535,245

 

$

252,057,947

 

$

839,661,819

 

Investments at value — affiliated2

 

 

4,660,891

 

 

8,945,337

 

 

16,925,057

 

 

6,050,336

 

 

12,621,815

 

Interest receivable

 

 

5,151,442

 

 

11,439,581

 

 

17,136,278

 

 

3,021,327

 

 

9,761,693

 

Investments sold receivable

 

 

1,010,833

 

 

675,104

 

 

5,198,813

 

 

 

 

320,000

 

Prepaid expenses

 

 

34,949

 

 

58,086

 

 

95,689

 

 

42,489

 

 

60,389

 

Other assets

 

 

 

 

66,380

 

 

119,717

 

 

 

 

71,600

 

 

 
















Total assets

 

 

495,895,944

 

 

766,684,497

 

 

1,437,010,799

 

 

261,172,099

 

 

862,497,316

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investments purchased payable

 

 

7,474,423

 

 

 

 

11,126,367

 

 

509,826

 

 

 

Income dividends payable — Common Shares

 

 

1,564,670

 

 

2,096,033

 

 

4,105,491

 

 

802,637

 

 

2,169,528

 

Investment advisory fees payable

 

 

196,609

 

 

323,541

 

 

602,258

 

 

108,512

 

 

363,004

 

Interest expense and fees payable

 

 

48,848

 

 

76,258

 

 

107,595

 

 

4,912

 

 

75,215

 

Officer’s and Directors’ fees payable

 

 

444

 

 

73,607

 

 

131,048

 

 

521

 

 

79,645

 

Other affiliates payable

 

 

2,784

 

 

4,916

 

 

9,128

 

 

1,628

 

 

5,440

 

Other accrued expenses payable

 

 

50,066

 

 

54,052

 

 

133,826

 

 

40,734

 

 

126,308

 

 

 
















Total accrued liabilities

 

 

9,337,844

 

 

2,628,407

 

 

16,215,713

 

 

1,468,770

 

 

2,819,140

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Trust certificates3

 

 

61,397,934

 

 

108,275,469

 

 

174,374,098

 

 

9,030,000

 

 

78,614,804

 

 

 
















Total Liabilities

 

 

70,735,778

 

 

110,903,876

 

 

190,589,811

 

 

10,498,770

 

 

81,433,944

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Preferred Shares at Redemption Value

 


















$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

131,005,170

 

 

166,538,192

 

 

356,488,840

 

 

87,355,469

 

 

247,723,844

 

 

 
















Net Assets Applicable to Common Shareholders

 

$

294,154,996

 

$

489,242,429

 

$

889,932,148

 

$

163,317,860

 

$

533,339,528

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net Assets Applicable to Common Shareholders Consist of

 


















Paid-in capital6

 

$

298,178,261

 

$

497,660,786

 

$

949,651,998

 

$

163,853,685

 

$

553,621,921

 

Undistributed net investment income

 

 

5,575,667

 

 

5,904,777

 

 

13,125,709

 

 

2,651,131

 

 

8,078,987

 

Accumulated net realized loss

 

 

(16,242,820

)

 

(17,360,959

)

 

(89,094,424

)

 

(4,129,167

)

 

(32,308,157

)

Net unrealized appreciation/depreciation

 

 

6,643,888

 

 

3,037,825

 

 

16,248,865

 

 

942,211

 

 

3,946,777

 

 

 
















Net Assets Applicable to Common Shareholders

 

$

294,154,996

 

$

489,242,429

 

$

889,932,148

 

$

163,317,860

 

$

533,339,528

 

 

 
















Net asset value per Common Share

 

$

13.16

 

$

14.24

 

$

13.22

 

$

13.53

 

$

13.52

 

 

 
















1  Investments at cost — unaffiliated

 

$

478,393,941

 

$

742,462,184

 

$

1,381,286,380

 

$

251,115,736

 

$

835,715,042

 

 

 
















2  Investments at cost — affiliated

 

$

4,660,891

 

$

8,945,337

 

$

16,925,057

 

$

6,050,336

 

$

12,621,815

 

 

 
















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

 

 

9,908

 

 

 
















Par value $0.10 per share

 

 

5,240

 

 

6,661

 

 

14,258

 

 

1,553

 

 

 

 

 
















5  Preferred Shares authorized

 

 

8,180

 

 

11,000

 

 

22,800

 

 

3,960

 

 

12,160

 

 

 
















6  Common Shares outstanding, 200 million shares authorized, $0.10 par value

 

 

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, 2010

33




 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended January 31, 2010 (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

 

$

11,893,612

 

$

17,313,989

 

$

33,940,162

 

$

6,395,830

 

$

21,186,494

 

Income — affiliated

 

 

9,124

 

 

4,897

 

 

29,511

 

 

607

 

 

4,710

 

 

 
















Total income

 

 

11,902,736

 

 

17,318,886

 

 

33,969,673

 

 

6,396,437

 

 

21,191,204

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Investment advisory

 

 

1,337,308

 

 

1,889,221

 

 

3,508,414

 

 

646,291

 

 

2,104,326

 

Commissions for Preferred Shares

 

 

100,556

 

 

130,785

 

 

271,575

 

 

64,976

 

 

192,966

 

Accounting services

 

 

65,274

 

 

101,996

 

 

185,697

 

 

30,685

 

 

126,310

 

Professional

 

 

37,948

 

 

35,053

 

 

63,685

 

 

25,461

 

 

44,684

 

Transfer agent

 

 

25,685

 

 

37,998

 

 

67,411

 

 

23,440

 

 

48,678

 

Officer and Directors

 

 

17,501

 

 

33,920

 

 

64,266

 

 

10,096

 

 

36,246

 

Custodian

 

 

13,061

 

 

19,167

 

 

30,937

 

 

6,928

 

 

19,012

 

Printing

 

 

8,363

 

 

13,359

 

 

25,329

 

 

5,072

 

 

15,854

 

Registration

 

 

4,654

 

 

6,023

 

 

11,800

 

 

4,601

 

 

6,844

 

Miscellaneous

 

 

49,385

 

 

59,834

 

 

87,470

 

 

35,278

 

 

60,987

 

 

 
















Total expenses excluding interest expense and fees

 

 

1,659,735

 

 

2,327,356

 

 

4,316,584

 

 

852,828

 

 

2,655,907

 

Interest expense and fees1

 

 

236,316

 

 

340,881

 

 

575,188

 

 

28,051

 

 

308,481

 

 

 
















Total expenses

 

 

1,896,051

 

 

2,668,237

 

 

4,891,772

 

 

880,879

 

 

2,964,388

 

Less fees waived by advisor

 

 

(199,627

)

 

(19,274

)

 

(14,739

)

 

(5,669

)

 

(14,010

)

 

 
















Total expenses after fees waived

 

 

1,696,424

 

 

2,648,963

 

 

4,877,033

 

 

875,210

 

 

2,950,378

 

 

 
















Net investment income

 

 

10,206,312

 

 

14,669,923

 

 

29,092,640

 

 

5,521,227

 

 

18,240,826

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

177,991

 

 

604,747

 

 

(1,081,763

)

 

618,016

 

 

(95,102

)

Financial futures contracts

 

 

21,903

 

 

15,930

 

 

302,345

 

 

115,635

 

 

(22,326

)

 

 
















 

 

 

199,894

 

 

620,677

 

 

(779,418

)

 

733,651

 

 

(117,428

)

 

 
















Net change in unrealized appreciation/depreciation on investments

 

 

19,022,308

 

 

25,535,270

 

 

61,846,435

 

 

6,754,527

 

 

29,469,236

 

 

 
















Total realized and unrealized gain

 

 

19,222,202

 

 

26,155,947

 

 

61,067,017

 

 

7,488,178

 

 

29,351,808

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Dividends to Preferred Shareholders From

 


















Net investment income

 

 

(283,709

)

 

(512,166

)

 

(1,216,404

)

 

(236,214

)

 

(723,452

)

 

 
















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

 

$

29,144,805

 

$

40,313,704

 

$

88,943,253

 

$

12,773,191

 

$

46,869,182

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1  Related to tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

See Notes to Financial Statements.


34

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 


 

Statements of Changes in Net Assets

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)


 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

10,206,312

 

$

20,160,412

 

Net realized gain (loss)

 

 

199,894

 

 

(11,811,410

)

Net change in unrealized appreciation/depreciation

 

 

19,022,308

 

 

(4,009,106

)

Dividends to Preferred Shareholders from net investment income

 

 

(283,709

)

 

(2,736,892

)

 

 







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

 

 

29,144,805

 

 

1,603,004

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(9,332,138

)

 

(14,193,791

)

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

19,812,667

 

 

(12,590,787

)

Beginning of period

 

 

274,342,329

 

 

286,933,116

 

 

 







End of period

 

$

294,154,996

 

$

274,342,329

 

 

 







Undistributed net investment income

 

$

5,575,667

 

$

4,985,202

 

 

 







 

 

 

 

 

 

 

 

BlackRock MuniYield California Insured Fund, Inc. (MCA)

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

14,669,923

 

$

29,423,972

 

Net realized gain (loss)

 

 

620,677

 

 

(7,354,130

)

Net change in unrealized appreciation/depreciation

 

 

25,535,270

 

 

(10,184,886

)

Dividends to Preferred Shareholders from net investment income

 

 

(512,166

)

 

(4,039,487

)

 

 







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

 

 

40,313,704

 

 

7,845,469

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(12,576,199

)

 

(22,575,308

)

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

27,737,505

 

 

(14,729,839

)

Beginning of period

 

 

461,504,924

 

 

476,234,763

 

 

 







End of period

 

$

489,242,429

 

$

461,504,924

 

 

 







Undistributed net investment income

 

$

5,904,777

 

$

4,323,219

 

 

 








 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

35




 

 


 

 

Statements of Changes in Net Assets

BlackRock MuniYield Insured Fund, Inc. (MYI)


 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

29,092,640

 

$

58,754,948

 

Net realized loss

 

 

(779,418

)

 

(45,344,504

)

Net change in unrealized appreciation/depreciation

 

 

61,846,435

 

 

793,742

 

Dividends to Preferred Shareholders from net investment income

 

 

(1,216,404

)

 

(8,128,538

)

 

 







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

 

 

88,943,253

 

 

6,075,648

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(24,632,944

)

 

(45,900,731

)

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

64,310,309

 

 

(39,825,083

)

Beginning of period

 

 

825,621,839

 

 

865,446,922

 

 

 







End of period

 

$

889,932,148

 

$

825,621,839

 

 

 







Undistributed net investment income

 

$

13,125,709

 

$

9,882,417

 

 

 







 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

5,521,227

 

$

11,238,595

 

Net realized gain

 

 

733,651

 

 

129,790

 

Net change in unrealized appreciation/depreciation

 

 

6,754,527

 

 

(5,910,336

)

Dividends to Preferred Shareholders from net investment income

 

 

(236,214

)

 

(1,734,047

)

 

 







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

 

 

12,773,191

 

 

3,724,002

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(4,815,819

)

 

(8,122,923

)

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

7,957,372

 

 

(4,398,921

)

Beginning of period

 

 

155,360,488

 

 

159,759,409

 

 

 







End of period

 

$

163,317,860

 

$

155,360,488

 

 

 







Undistributed net investment income

 

$

2,651,131

 

$

2,181,937

 

 

 








 

 

 

See Notes to Financial Statements.

 

 

 


36

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 


 

 

Statements of Changes in Net Assets

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


 

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

18,240,826

 

$

34,156,457

 

Net realized gain (loss)

 

 

(117,428

)

 

(4,120,078

)

Net change in unrealized appreciation/depreciation

 

 

29,469,236

 

 

(19,596,751

)

Dividends to Preferred Shareholders from net investment income

 

 

(723,452

)

 

(5,209,900

)

 

 







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

 

 

46,869,182

 

 

5,229,728

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(12,622,708

)

 

(25,048,659

)

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

34,246,474

 

 

(19,818,931

)

Beginning of period

 

 

499,093,054

 

 

518,911,985

 

 

 







End of period

 

$

533,339,528

 

$

499,093,054

 

 

 







Undistributed net investment income

 

$

8,078,987

 

$

3,184,321

 

 

 








 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

37




 


 

 

Statements of Cash Flows


 

 

 

 

 

 

 

 

 

 

 

Six Months Ended Ended January 31, 2010 (Unaudited)

 

BlackRock
MuniHoldings
Insured
Fund II, Inc.
(MUE)

 

BlackRock
MuniYield
California
Insured
Fund, Inc.
(MCA)

 

BlackRock
MuniYield
Insured
Fund, Inc.
(MYI)

 









Cash Provided by Operating Activities

 

 

 

 

 

 

 

 

 

 












 

 

 

 

 

 

 

 

 

 

 

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

 

$

29,428,514

 

$

40,825,870

 

$

90,159,657

 

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

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in interest receivable

 

 

190,810

 

 

(485,530

)

 

(694,717

)

Increase in other assets

 

 

 

 

(18,863

)

 

(34,372

)

Decrease in income receivable — affiliated

 

 

 

 

617

 

 

375

 

Increase in investment advisory fees payable

 

 

5,457

 

 

6,842

 

 

3,575

 

Increase (decrease) in other affiliates payable

 

 

(39

)

 

537

 

 

1,109

 

Decrease in accrued expenses payable

 

 

(14,837

)

 

(35,584

)

 

(19,739

)

Increase (decrease) in Officer’s and Directors’ fees payable

 

 

(167

)

 

24,828

 

 

43,876

 

Decrease in interest expense and fees payable

 

 

(141,436

)

 

(178,478

)

 

(322,508

)

Net realized and unrealized gain

 

 

(19,200,299

)

 

(26,140,017

)

 

(60,764,672

)

Amortization of premium and discount on investments

 

 

442,466

 

 

1,258,497

 

 

671,558

 

Proceeds for sales of long-term investments

 

 

44,829,705

 

 

112,497,054

 

 

93,993,656

 

Purchases of long-term investments

 

 

(57,236,174

)

 

(137,697,746

)

 

(135,785,685

)

Net proceeds from sales of short-term securities

 

 

13,072,199

 

 

12,996,607

 

 

26,686,729

 

 

 










Cash provided by operating activities

 

 

11,376,199

 

 

3,054,634

 

 

13,938,842

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Cash Used for Financing Activities

 

 

 

 

 

 

 

 

 

 












 

 

 

 

 

 

 

 

 

 

 

Cash payments on redemption of Preferred Shares

 

 

 

 

 

 

(2,175,000

)

Cash receipts from trust certificates

 

 

1,971,106

 

 

10,000,000

 

 

11,951,552

 

Cash payments for trust certificates

 

 

(3,860,000

)

 

 

 

 

Cash dividends paid to Common Shareholders

 

 

(9,276,257

)

 

(12,576,199

)

 

(24,632,944

)

Cash dividends paid to Preferred Shareholders

 

 

(287,514

)

 

(527,157

)

 

(1,239,355

)

 

 










Cash used for financing activities

 

 

(11,452,665

)

 

(3,103,356

)

 

(16,095,747

)

 

 










 

 

 

 

 

 

 

 

 

 

 












Cash

 

 

 

 

 

 

 

 

 

 












Net decrease in cash

 

 

(76,466

)

 

(48,722

)

 

(2,156,905

)

Cash at beginning of period

 

 

76,466

 

 

48,722

 

 

2,156,905

 

 

 










Cash at end of period

 

 

 

 

 

 

 

 

 










 

 

 

 

 

 

 

 

 

 

 












Cash Flow Information

 

 

 

 

 

 

 

 

 

 












Cash paid during the period for interest

 

$

377,752

 

$

519,329

 

$

897,696

 

 

 











 

 

 

A Statement of Cash Flows is presented when a Fund had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.


 

 

 

See Notes to Financial Statements.

 


38

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 



 

 

Financial Highlights

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

 

 

Period
October 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended
July 31,
2009

 

 

Year Ended September 30,

 

 

 

 

 

 



 

 

 

 

 

2007

 

2006

 

2005

 

2004

 

















Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















Net asset value, beginning of period

 

$

12.27

 

$

12.84

 

$

13.72

 

$

14.15

 

$

14.23

 

$

14.41

 

$

14.37

 

 

 






















Net investment income1

 

 

0.46

 

 

0.90

 

 

0.78

 

 

0.97

 

 

0.93

 

 

0.97

 

 

1.00

 

Net realized and unrealized gain (loss)

 

 

0.86

 

 

(0.71

)

 

(0.91

)

 

(0.45

)

 

0.03

 

 

(0.09

)

 

(0.00

)2

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.12

)

 

(0.25

)

 

(0.33

)

 

(0.29

)

 

(0.18

)

 

(0.09

)

 

 






















Net increase (decrease) from investment operations

 

 

1.31

 

 

0.07

 

 

(0.38

)

 

0.19

 

 

0.67

 

 

0.70

 

 

0.91

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.42

)

 

(0.64

)

 

(0.50

)

 

(0.62

)

 

(0.75

)

 

(0.88

)

 

(0.87

)

 

 






















Net asset value, end of period

 

$

13.16

 

$

12.27

 

$

12.84

 

$

13.72

 

$

14.15

 

$

14.23

 

$

14.41

 

 

 






















Market price, end of period

 

$

12.89

 

$

11.40

 

$

11.30

 

$

12.39

 

$

12.96

 

$

13.90

 

$

13.25

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

10.80

%4

 

1.58

%

 

(2.41

)%4

 

1.73

%

 

5.19

%

 

5.35

%

 

7.12

%

 

 






















Based on market price

 

 

16.80

%4

 

7.24

%

 

(4.89

)%4

 

0.31

%

 

(1.37

)%

 

11.92

%

 

7.80

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.30

%6

 

1.66

%

 

1.55

%6

 

1.61

%

 

1.64

%

 

1.38

%

 

1.27

%

 

 






















Total expenses after fees waived and paid indirectly5

 

 

1.16

%6

 

1.45

%

 

1.45

%6

 

1.54

%

 

1.57

%

 

1.32

%

 

1.17

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

1.00

%6

 

1.04

%

 

1.15

%6

 

1.17

%

 

1.16

%

 

1.15

%

 

1.12

%

 

 






















Net investment income5

 

 

6.98

%6

 

7.61

%

 

6.74

%6

 

6.94

%

 

6.70

%

 

6.72

%

 

6.93

%

 

 






















Dividends to Preferred Shareholders

 

 

0.19

%6

 

1.03

%

 

2.19

%6

 

2.37

%

 

2.10

%

 

1.27

%

 

0.63

%

 

 






















Net investment income to Common Shareholders

 

 

6.79

%6

 

6.58

%

 

4.55

%6

 

4.57

%

 

4.60

%

 

5.45

%

 

6.30

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























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

 

$

294,155

 

$

274,342

 

$

286,933

 

$

306,769

 

$

316,216

 

$

318,044

 

$

322,072

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

131,000

 

$

131,000

 

$

145,300

 

$

204,500

 

$

204,500

 

$

204,500

 

$

204,500

 

 

 






















Portfolio turnover

 

 

10

%

 

37

%

 

43

%

 

43

%

 

35

%

 

46

%

 

45

%

 

 






















Asset coverage, end of period per $1,000

 

$

3,245

8

$

3,094

8

$

2,975

8

$

2,500

8

$

2,546

8

$

2,555

 

$

2,575

 

 

 























 

 

 

 

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. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

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

Asset coverage per preferred share at $25,000 liquidation preference for the periods ended 2010, 2009, 2008, 2007 and 2006 were $81,137, $77,357, $74,376, $62,514 and $63,667, respectively.


 

 

 

See Notes to Financial Statements.

 


SEMI-ANNUAL REPORT

JANUARY 31, 2010

39




 

 


 

 

Financial Highlights

BlackRock MuniYield California Insured Fund, Inc. (MCA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 

 


 

 

 

 

 

 

2007

 

2006

 

2005

 

2004

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

13.43

 

$

13.86

 

$

14.63

 

$

15.09

 

$

14.82

 

$

15.23

 

$

15.10

 

 

 






















Net investment income1

 

 

0.43

 

 

0.86

 

 

0.68

 

 

0.92

 

 

0.96

 

 

0.95

 

 

0.94

 

Net realized and unrealized gain (loss)

 

 

0.76

 

 

(0.51

)

 

(0.75

)

 

(0.42

)

 

0.35

 

 

(0.33

)

 

0.13

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.01

)

 

(0.12

)

 

(0.20

)

 

(0.28

)

 

(0.24

)

 

(0.13

)

 

(0.06

)

 

 






















Net increase (decrease) from investment operations

 

 

1.18

 

 

0.23

 

 

(0.27

)

 

0.22

 

 

1.07

 

 

0.49

 

 

1.01

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.37

)

 

(0.66

)

 

(0.50

)

 

(0.68

)

 

(0.80

)

 

(0.88

)

 

(0.88

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

(0.02

)

 

 

 

 






















Net asset value, end of period

 

$

14.24

 

$

13.43

 

$

13.86

 

$

14.63

 

$

15.09

 

$

14.82

 

$

15.23

 

 

 






















Market price, end of period

 

$

12.50

 

$

12.08

 

$

12.33

 

$

13.16

 

$

14.64

 

$

14.16

 

$

13.73

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

9.10

%4

 

3.03

%

 

(1.54

)%4

 

1.76

%

 

7.57

%

 

3.55

%

 

7.54

%

 

 






















Based on market price

 

 

6.47

%4

 

4.17

%

 

(2.63

)%4

 

(5.65

)%

 

9.22

%

 

9.75

%

 

5.93

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.09

%6

 

1.40

%

 

1.38

%6

 

1.53

%

 

1.60

%

 

1.27

%

 

1.08

%

 

 






















Total expenses after fees waived and paid indirectly5

 

 

1.09

%6

 

1.38

%

 

1.36

%6

 

1.53

%

 

1.59

%

 

1.27

%

 

1.08

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

0.95

%6

 

1.02

%

 

1.04

%6

 

1.03

%

 

1.03

%

 

0.96

%

 

0.95

%

 

 






















Net investment income5

 

 

6.27

%6

 

6.60

%

 

6.15

%6

 

6.22

%

 

6.46

%

 

6.29

%

 

6.29

%

 

 






















Dividends to Preferred Shareholders

 

 

0.21

%6

 

0.91

%

 

1.78

%6

 

1.87

%

 

1.62

%

 

0.84

%

 

0.43

%

 

 






















Net investment income to Common Shareholders

 

 

6.06

%6

 

5.69

%

 

4.37

%6

 

4.35

%

 

4.84

%

 

5.45

%

 

5.86

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























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

 

$

489,242

 

$

461,505

 

$

476,235

 

$

502,855

 

$

518,667

 

$

509,066

 

$

523,206

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

166,525

 

$

166,525

 

$

192,300

 

$

275,000

 

$

275,000

 

$

275,000

 

$

230,000

 

 

 






















Portfolio turnover

 

 

15

%

 

25

%

 

25

%

 

25

%

 

27

%

 

39

%

 

63

%

 

 






















Asset coverage per Preferred Share at $25,000, end of period

 

$

98,451

 

$

94,289

 

$

86,933

8

$

70,733

8

$

72,170

8

$

71,280

8

$

81,875

8

 

 























 

 

 

 

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. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Stock shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

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

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.


40

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 


 

 

Financial Highlights

BlackRock MuniYield Insured Fund, Inc. (MYI)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 

 



 

 

 

 

 

2007

 

2006

 

2005

 

2004

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

12.27

 

$

12.86

 

$

14.57

 

$

15.30

 

$

15.27

 

$

15.59

 

$

15.36

 

 

 






















Net investment income1

 

 

0.43

 

 

0.87

 

 

0.70

 

 

1.04

 

 

0.98

 

 

1.04

 

 

1.04

 

Net realized and unrealized gain (loss)

 

 

0.91

 

 

(0.66

)

 

(1.69

)

 

(0.79

)

 

0.46

 

 

(0.22

)

 

0.25

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.02

)

 

(0.12

)

 

(0.22

)

 

(0.31

)

 

(0.25

)

 

(0.16

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.04

)

 

(0.02

)

 

 

 

 






















Net increase (decrease) from investment operations

 

 

1.32

 

 

0.09

 

 

(1.21

)

 

(0.06

)

 

1.15

 

 

0.64

 

 

1.22

 

 

 






















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.37

)

 

(0.68

)

 

(0.50

)

 

(0.67

)

 

(0.78

)

 

(0.95

)

 

(0.97

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.34

)

 

(0.01

)

 

 

 

 






















Total dividends and distributions to Common Shareholders

 

 

(0.37

)

 

(0.68

)

 

(0.50

)

 

(0.67

)

 

(1.12

)

 

(0.96

)

 

(0.97

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

(0.02

)

 

 






















Net asset value, end of period

 

$

13.22

 

$

12.27

 

$

12.86

 

$

14.57

 

$

15.30

 

$

15.27

 

$

15.59

 

 

 






















Market price, end of period

 

$

12.59

 

$

12.12

 

$

12.22

 

$

13.04

 

$

14.36

 

$

14.70

 

$

14.57

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

10.92

%4

 

1.70

%

 

(8.22

)%4

 

(0.06

)%

 

8.09

%

 

4.54

%

 

8.52

%

 

 






















Based on market price

 

 

6.94

%4

 

5.72

%

 

(2.55

)%4

 

(4.70

)%

 

5.38

%

 

7.69

%

 

7.36

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets of Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.11

%6

 

1.46

%

 

1.64

%6

 

1.71

%

 

1.67

%

 

1.60

%

 

1.19

%

 

 






















Total expenses after fees waived and paid indirectly5

 

 

1.11

%6

 

1.45

%

 

1.63

%6

 

1.71

%

 

1.67

%

 

1.60

%

 

1.19

%

 

 






















Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7

 

 

0.98

%6

 

1.06

%

 

1.06

%6

 

1.03

%

 

1.02

%

 

1.01

%

 

0.95

%

 

 






















Net investment income5

 

 

6.60

%6

 

7.52

%

 

6.51

%6

 

6.94

%

 

6.52

%

 

6.62

%

 

6.77

%

 

 






















Dividends to Preferred Shareholders

 

 

0.28

%6

 

1.04

%

 

2.03

%6

 

2.06

%

 

1.67

%

 

1.05

%

 

0.51

%

 

 






















Net investment income to Common Shareholders

 

 

6.32

%6

 

6.48

%

 

4.48

%6

 

4.88

%

 

4.85

%

 

5.57

%

 

6.26

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























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

 

$

889,932

 

$

825,622

 

$

865,447

 

$

980,741

 

$

1,030,048

 

$

1,028,022

 

$

1,049,423

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

356,450

 

$

358,625

 

$

377,175

 

$

570,000

 

$

570,000

 

$

570,000

 

$

570,000

 

 

 






















Portfolio turnover

 

 

6

%

 

30

%

 

70

%

 

117

%

 

95

%

 

105

%

 

122

%

 

 






















Asset coverage, end of period per $1,000

 

$

3,497

8

$

3,302

8

$

3,295

8

$

2,721

8

$

2,807

8

$

2,804

 

$

2,841

 

 

 























 

 

 

 

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. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Stock shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

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

Asset coverage per preferred share at $25,000 liquidation preference for the periods ended 2010, 2009, 2008, 2007 and 2006 were $87,419, $82,559, $82,381, $68,039 and $70,198, respectively.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

41




 

 


 

 

Financial Highlights

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

 

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

Year Ended
July 31,
2009

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 

 



 

 

 

 

 

2007

 

2006

 

2005

 

2004

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

12.87

 

$

13.24

 

$

14.13

 

$

14.60

 

$

14.54

 

$

15.21

 

$

15.21

 

 

 






















Net investment income1

 

 

0.46

 

 

0.93

 

 

0.70

 

 

0.97

 

 

0.97

 

 

0.99

 

 

1.00

 

Net realized and unrealized gain (loss)

 

 

0.62

 

 

(0.49

)

 

(0.88

)

 

(0.47

)

 

0.13

 

 

(0.58

)

 

(0.00

)2

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.14

)

 

(0.21

)

 

(0.29

)

 

(0.26

)

 

(0.15

)

 

(0.07

)

 

 






















Net increase (decrease) from investment operations

 

 

1.06

 

 

0.30

 

 

(0.39

)

 

0.21

 

 

0.84

 

 

0.26

 

 

0.93

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.40

)

 

(0.67

)

 

(0.50

)

 

(0.68

)

 

(0.78

)

 

(0.91

)

 

(0.93

)

 

 






















Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

0.00

3

 

(0.02

)

 

 

 

 






















Net asset value, end of period

 

$

13.53

 

$

12.87

 

$

13.24

 

$

14.13

 

$

14.60

 

$

14.54

 

$

15.21

 

 

 






















Market price, end of period

 

$

11.89

 

$

11.58

 

$

11.63

 

$

12.61

 

$

13.97

 

$

14.41

 

$

14.54

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

8.64

%5

 

3.81

%

 

(2.48

)%5

 

1.78

%

 

6.09

%

 

1.73

%

 

6.78

%

 

 






















Based on market price

 

 

6.11

%5

 

6.34

%

 

(4.01

)%5

 

(5.07

)%

 

2.42

%

 

5.47

%

 

12.91

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses6

 

 

1.08

%7

 

1.28

%

 

1.48

%7

 

1.69

%

 

1.65

%

 

1.47

%

 

1.28

%

 

 






















Total expenses after fees waived6

 

 

1.08

%7

 

1.26

%

 

1.45

%7

 

1.68

%

 

1.64

%

 

1.46

%

 

1.26

%

 

 






















Total expenses after fees waived and excluding interest expense and fees6,8

 

 

1.04

%7

 

1.12

%

 

1.14

%7

 

1.14

%

 

1.13

%

 

1.07

%

 

1.05

%

 

 






















Net investment income6

 

 

6.80

%7

 

7.43

%

 

6.61

%7

 

6.77

%

 

6.72

%

 

6.57

%

 

6.61

%

 

 






















Dividends to Preferred Shareholders

 

 

0.29

%7

 

1.15

%

 

1.98

%7

 

2.05

%

 

1.78

%

 

0.97

%

 

0.47

%

 

 






















Net investment income to Common Shareholders

 

 

6.51

%7

 

6.28

%

 

4.63

%7

 

4.72

%

 

4.94

%

 

5.60

%

 

6.14

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























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

 

$

163,318

 

$

155,360

 

$

159,759

 

$

170,559

 

$

176,216

 

$

175,264

 

$

183,224

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

87,350

 

$

87,350

 

$

87,350

 

$

99,000

 

$

99,000

 

$

99,000

 

$

89,000

 

 

 






















Portfolio turnover

 

 

10

%

 

9

%

 

20

%

 

10

%

 

14

%

 

19

%

 

35

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

71,744

 

$

69,467

 

$

70,730

9

$

68,076

9

$

69,507

9

$

69,269

9

$

76,471

9

 

 























 

 

 

 

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. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

5

Aggregate total investment return.

 

 

 

 

6

Do not reflect the effect of dividends to Preferred Stock shareholders.

 

 

 

 

7

Annualized.

 

 

 

 

8

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.

 

 

 

 

9

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 

 

 


42

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 

 


 

 

Financial Highlights

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended
January 31,
2010
(Unaudited)

 

Year Ended
July 31,
2009

 

Period
November 1,
2007
to July 31,
2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended October 31,

 

 

 

 

 

 



 

 

 

 

 

2007

 

2006

 

2005

 

2004

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net asset value, beginning of period

 

$

12.65

 

$

13.16

 

$

13.94

 

$

14.40

 

$

14.26

 

$

14.81

 

$

14.81

 

 

 






















Net investment income1

 

 

0.46

 

 

0.87

 

 

0.66

 

 

0.84

 

 

0.92

 

 

0.94

 

 

0.91

 

Net realized and unrealized gain (loss)

 

 

0.75

 

 

(0.61

)

 

(0.77

)

 

(0.38

)

 

0.23

 

 

(0.50

)

 

(0.01

)

Dividends to Preferred Shareholders from net investment income

 

 

(0.02

)

 

(0.13

)

 

(0.19

)

 

(0.27

)

 

(0.24

)

 

(0.13

)

 

(0.06

)

 

 






















Net increase (decrease) from investment operations

 

 

1.19

 

 

0.13

 

 

(0.30

)

 

0.19

 

 

0.91

 

 

0.31

 

 

0.84

 

 

 






















Dividends to Common Shareholders from net investment income

 

 

(0.32

)

 

(0.64

)

 

(0.48

)

 

(0.65

)

 

(0.77

)

 

(0.84

)

 

(0.84

)

Capital charges with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

(0.00

)2

 

(0.02

)

 

 

 

 






















Net asset value, end of period

 

$

13.52

 

$

12.65

 

$

13.16

 

$

13.94

 

$

14.40

 

$

14.26

 

$

14.81

 

 

 






















Market price, end of period

 

$

12.06

 

$

11.36

 

$

11.80

 

$

12.80

 

$

14.10

 

$

13.17

 

$

13.20

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Based on net asset value

 

 

9.76

%4

 

2.29

%

 

(1.86

)%4

 

1.66

%

 

6.71

%

 

2.53

%

 

6.53

%

 

 






















Based on market price

 

 

9.02

%4

 

2.44

%

 

(4.16

)%4

 

(4.67

)%

 

13.13

%

 

6.24

%

 

6.13

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Ratios to Average Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Total expenses5

 

 

1.13

%6

 

1.34

%

 

1.48

%6

 

1.64

%

 

1.56

%

 

1.31

%

 

1.13

%

 

 






















Total expenses after fees waived5

 

 

1.12

%6

 

1.32

%

 

1.46

%6

 

1.63

%

 

1.56

%

 

1.31

%

 

1.13

%

 

 






















Total expenses after fees waived and excluding interest expense and fees5,7

 

 

1.00

%6

 

1.06

%

 

1.04

%6

 

1.04

%

 

1.03

%

 

0.96

%

 

0.94

%

 

 






















Net investment income5

 

 

6.82

%6

 

7.11

%

 

6.36

%6

 

5.96

%

 

6.50

%

 

6.37

%

 

6.23

%

 

 






















Dividends to Preferred Shareholders

 

 

0.28

%6

 

1.09

%

 

1.82

%6

 

1.88

%

 

1.68

%

 

0.87

%

 

0.42

%

 

 






















Net investment income to Common Shareholders

 

 

6.54

%6

 

6.02

%

 

4.54

%6

 

4.08

%

 

4.82

%

 

5.50

%

 

5.81

%

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























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

 

$

533,340

 

$

499,093

 

$

518,912

 

$

549,910

 

$

567,954

 

$

562,474

 

$

584,248

 

 

 






















Preferred Shares outstanding at $25,000 liquidation preference, end of period (000)

 

$

247,700

 

$

247,700

 

$

259,475

 

$

304,000

 

$

304,000

 

$

304,000

 

$

259,000

 

 

 






















Portfolio turnover

 

 

4

%

 

22

%

 

17

%

 

25

%

 

43

%

 

35

%

 

18

%

 

 






















Asset coverage per Preferred Share at $25,000 liquidation preference, end of period

 

$

78,832

 

$

75,376

 

$

75,011

8

$

70,242

8

$

71,725

8

$

71,259

8

$

81,397

8

 

 























 

 

 

 

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 net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

4

Aggregate total investment return.

 

 

 

 

5

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

6

Annualized.

 

 

 

 

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

Amounts have been recalculated to conform with current period presentation.


 

 

 

See Notes to Financial Statements.

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

43




 


Notes to Financial Statements (Unaudited)

1. Organization and Significant Accounting Policies:

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”) and BlackRock MuniYield New York Insured Fund, Inc. (“MYN”) (collectively, 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: The Funds’ policy is to fair value their financial instruments at market value. 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. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

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 or is not available, the investment will be valued by a method approved by the Board as reflecting fair value. When determining the price for such investments, the investment advisor and/or the sub-advisor seeks to determine the price that each Fund 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 sub-advisor deems relevant.

Forward Commitments and When-Issued Delayed Delivery Securities:Each Fund 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 such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, 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. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized gain of the commitment, which is shown on the Schedules of Investments, if any.

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 a Fund has contributed bonds. 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 Funds. 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 bond, a substantial downgrade in credit quality of the municipal bond, 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 bond 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 invests 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 as trust certificates in the Statements of Assets and Liabilities.

Interest income from the underlying security 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

 

 

 




44

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


Notes to Financial Statements (continued)

each reset date. At January 31, 2010, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for trust certificates were as follows:

 

 

 

 

 

 

 

 

 

 

 









 

 

Underlying
Municipal
Bonds
Transferred to
TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest Rates

 









MUE

 

$

118,729,607

 

$

61,397,934

 

 

0.24% – 0.65

%

MCA

 

$

208,411,834

 

$

108,275,469

 

 

0.16% – 0.34

%

MYI

 

$

333,876,416

 

$

174,374,098

 

 

0.16% – 0.51

%

MYM

 

$

17,689,052

 

$

9,030,000

 

 

0.21% – 0.36

%

MYN

 

$

153,157,574

 

$

78,614,804

 

 

0.23% – 0.65

%












For the six months ended January 31, 2010, the Funds’ average trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

 

 

 

 

 

 

 

 







 

 

Average
Trust Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 







MUE

 

$

63,475,330

 

0.75%

 

MCA

 

$

102,526,238

 

0.67%

 

MYI

 

$

166,618,546

 

0.69%

 

MYM

 

$

9,030,000

 

0.62%

 

MYN

 

$

68,711,344

 

0.90%

 








Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ investment income and distributions to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Funds’ net asset value per share.

Zero-Coupon Bonds: Each Fund 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 and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Funds either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), each Fund will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its 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, each party has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Fund amortizes all premiums and discounts on debt securities.

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 6.

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.

Each Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for the periods ended July 31, 2009 and 2008, October 31, 2007 and 2006 (September 30, 2007 and 2006 for MUE). The statutes of limitations on the Funds’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Standards: In June 2009, amended guidance was issued by the Financial Accounting Standards Board (“FASB”) for transfers of financial assets. This guidance is intended to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement, if any, in transferred financial assets. The amended guidance is effective for financial statements for fiscal years and interim periods beginning after November 15, 2009. Earlier application is prohibited. The recognition and measurement provisions of this guidance must be applied to transfers occurring on or after the effective date. Additionally, the enhanced disclosure provisions of the amended guidance should be applied to transfers that occurred both before and after the effective date of this guidance. The impact of this guidance on the Funds’ financial statements and disclosures, if any, is currently being assessed.

In January 2010, the FASB issued amended guidance to improve disclosure about fair value measurements which will require additional disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances and settlements in the reconciliation for fair value measurements using significant unobservable inputs (Level 3). It also clarifies existing disclosure requirements relating to the levels of disaggregation for fair value measurement and inputs and valuation techniques used to measure fair value. The amended guidance

 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2010

45




 


Notes to Financial Statements (continued)

is effective for financial statements for fiscal years and interim periods beginning after December 15, 2009 except for disclosures about purchases, sales, issuances and settlements in the rollforward of activity in Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. The impact of this guidance on the Funds’ financial statements and disclosures 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 had been invested in common shares of other certain 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 there under represent general unsecured claims against the general assets of each Fund. Each Fund may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Directors in order to match its deferred compensation obligations. Investments to cover each Fund’s deferred compensation liability, if any, are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Funds investments under the plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a 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. Each Fund has an arrangement with its custodian whereby fees may be reduced by credits earned on uninvested cash balances, which if applicable are shown as fees paid indirectly in the Statements of Operations. The custodians impose fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

2. Derivative Financial Instruments:

The Funds may engage in various portfolio investment strategies both to increase the return of the Funds and to economically hedge, or protect, exposure to certain risks such as interest rate risk. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying instrument or if the counterparty does not perform under the contract. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. Counterparty risk related to exchange-traded financial futures contracts is minimal because of the protection against default provided by the exchanges on which they trade.

Financial Futures Contracts: The Funds may purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Funds agree 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 Funds as unrealized gains or losses. When the contract is closed, the Funds record 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 financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Derivative Instruments Categorized by Risk Exposure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



The Effect of Derivative Instruments on the Statements of Operations
Year Ended January 31, 2010*

 



 

 

Net Realized Gain (Loss) from

 

 

 


 

 

 

MUE

 

MCA

 

MYI

 

MYM

 

MYN

 













Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

$

21,903

 

$

15,930

 

$

302,345

 

$

115,635

 

$

(22,326

)



















 

 

 

 

*

As of January 31, 2010, there were no financial futures contracts outstanding. During the six months ended January 31, 2010, the Funds had limited activity in these transactions.

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”), Bank of America Corporation (“BAC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but BAC and Barclays are not.

Each Fund entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services.

The Manager 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 Manager a monthly fee of the Fund’s average daily net assets at the following annual rates. Average daily net assets is

 

 

 




46

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


Notes to Financial Statements (continued)

the average daily value of each Fund’s total assets minus the sum of its accrued liabilities.

 

 

 

 

 






MUE

 

 

0.55

%

MCA

 

 

0.50

%

MYI

 

 

0.50

%

MYM

 

 

0.50

%

MYN

 

 

0.50

%






The Manager 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 MUE, which is included in fees waived by advisor in the Statements of Operations. For the six months ended January 31, 2010, the Manager waived its fees in the amount of $194,188.

The Manager has voluntarily agreed to waive its advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds, however the Manager does not waive its advisory fees by the amount of investment advisory fees through its investment in other affiliated investment companies. These amounts are included in fees waived by advisor in the Statements of Operations. For the six months ended January 31, 2010 the amounts waived were as follows:

 

 

 

 

 





 

 

Fees Waived
by Manager

 





MUE

 

$

5,439

 

MCA

 

$

19,274

 

MYI

 

$

14,739

 

MYM

 

$

5,669

 

MYN

 

$

14,010

 






The Manager has entered into a separate sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager, under which the Manager pays BIM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by the Fund to the Manager.

For the six months ended January 31, 2010, the Funds reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations.

 

 

 

 

 





 

 

Reimbursement

 





MUE

 

$

4,530

 

MCA

 

$

7,883

 

MYI

 

$

14,644

 

MYM

 

$

2,466

 

MYN

 

$

8,301

 






Certain officers and/or directors of the Funds are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager for compensation paid to the Funds’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended January 31, 2010 were as follows:

 

 

 

 

 

 

 

 







 

 

Purchases

 

Sales

 







MUE

 

$

58,513,609

 

$

45,559,379

 

MCA

 

$

137,697,746

 

$

113,172,158

 

MYI

 

$

131,621,348

 

$

88,689,260

 

MYM

 

$

26,487,943

 

$

26,941,936

 

MYN

 

$

70,551,857

 

$

36,527,830

 









5. Concentration, Market and Credit Risk:

MCA, MYM, and MYN invest a substantial amount of their 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 may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

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 have 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 generally approximated by their value recorded in the Funds’ Statements of Assets and Liabilities, less any collateral held by the Funds.

 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

47




 


Notes to Financial Statements (continued)

6. Capital Share Transactions:

Each Fund is authorized to issue 200 million shares, including Preferred Shares, par value $0.10 for MUE, MCA, MYI and MYM and par value $0.05 for MYM and MYN, all of which were initially classified as Common Shares. Each Fund’s Board is authorized, however, to reclassify any unissued shares of Common Shares without approval of Common Shareholders.

Common Shares

Shares issued and outstanding remained constant during the six months ended January 31, 2010 and the year ended July 31, 2009.

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 per share plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Fund, as set forth in each Fund’s Articles Supplementary/Statement of Preferences/Certificate of Designation (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Fund that has issued Preferred Shares may effect repurchases of such shares at prices below their liquidation preference as agreed upon by the Fund and seller. Each Fund also may redeem such shares from time to time as provided in the applicable Governing Instrument. Each Fund intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with the 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 to elect two Directors for each 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, effective yields and reset frequency at January 31, 2010:

 

 

 

 

 

 

 

 

 

 










 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days










MUE

 

A

 

1,3451

 

0.32%

 

7

 

 

 

B

 

1,3451

 

0.34%

 

7

 

 

 

C

 

2,5501

 

0.35%

 

7

 











MCA

 

A

 

1,0901

 

0.26%

 

28

 

 

 

B

 

1,0901

 

0.34%

 

7

 

 

 

C

 

  9691

 

0.35%

 

7

 

 

 

D

 

1,2111

 

0.34%

 

28

 

 

 

E

 

1,2111

 

0.32%

 

7

 

 

 

F

 

1,0902

 

1.41%

 

7

 











MYI

 

A

 

1,3761

 

0.27%

 

28

 

 

 

B

 

1,3761

 

0.26%

 

28

 

 

 

C

 

1,3761

 

0.32%

 

28

 

 

 

D

 

1,3761

 

0.34%

 

28

 

 

 

E

 

2,5021

 

0.34%

 

7

 

 

 

F

 

1,5011

 

0.26%

 

28

 

 

 

G

 

1,5011

 

0.34%

 

7

 

 

 

H

 

1,6252

 

1.39%

 

7

 

 

 

 

1,6252

 

1.41%

 

7

 











MYM

 

A

 

1,9411

 

0.34%

 

7

 

 

 

B

 

1,2001

 

0.35%

 

7

 

 

 

C

 

  3532

 

1.41%

 

7

 











MYN

 

A

 

1,3851

 

0.41%

 

28

 

 

 

B

 

1,3851

 

0.34%

 

7

 

 

 

C

 

2,2821

 

0.34%

 

7

 

 

 

D

 

1,5971

 

0.35%

 

7

 

 

 

E

 

1,7931

 

0.34%

 

28

 

 

 

F

 

1,4662

 

1.39%

 

7

 












 

 

 

 

1

The maximum applicable rate on this series of Preferred Shares 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 Shares is the higher of 100% 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 and 28-day Preferred Shares are cumulative at a rate which is reset every seven or 28 days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the affected 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 shares are successfully auctioned. The maximum applicable rate on the Preferred Shares is footnoted as applicable

 

 

 




48

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


 

Notes to Financial Statements (continued)

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, 2010 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 













 

 

Series

 

Low

 

High

 

Average













MUE

 

A

 

0.35

%

 

0.58

%

 

0.43

%

 

 

B

 

0.32

%

 

0.58

%

 

0.44

%

 

 

C

 

0.31

%

 

0.58

%

 

0.44

%













MCA

 

A

 

0.26

%

 

0.58

%

 

0.47

%

 

 

B

 

0.24

%

 

0.58

%

 

0.43

%

 

 

C

 

0.26

%

 

0.58

%

 

0.44

%

 

 

D

 

0.34

%

 

0.50

%

 

0.45

%

 

 

E

 

0.24

%

 

0.58

%

 

0.43

%

 

 

F

 

1.34

%

 

1.63

%

 

1.50

%













MYI

 

A

 

0.27

%

 

0.55

%

 

0.44

%

 

 

B

 

0.26

%

 

0.58

%

 

0.47

%

 

 

C

 

0.32

%

 

0.50

%

 

0.46

%

 

 

D

 

0.34

%

 

0.53

%

 

0.42

%

 

 

E

 

0.26

%

 

0.58

%

 

0.44

%

 

 

F

 

0.26

%

 

0.58

%

 

0.48

%

 

 

G

 

0.24

%

 

0.58

%

 

0.44

%

 

 

H

 

1.32

%

 

1.63

%

 

1.49

%

 

 

I

 

1.32

%

 

1.63

%

 

1.49

%













MYM

 

A

 

0.24

%

 

0.58

%

 

0.44

%

 

 

B

 

0.26

%

 

0.58

%

 

0.44

%

 

 

C

 

1.34

%

 

1.63

%

 

1.50

%













MYN

 

A

 

0.31

%

 

0.53

%

 

0.39

%

 

 

B

 

0.24

%

 

0.58

%

 

0.43

%

 

 

C

 

0.24

%

 

0.42

%

 

0.56

%

 

 

D

 

0.26

%

 

0.55

%

 

0.44

%

 

 

E

 

0.34

%

 

0.53

%

 

0.40

%

 

 

F

 

1.32

%

 

1.61

%

 

1.48

%













Since February 13, 2008, 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 0.24% to 1.63% for the six months ended January 31, 2010. A failed auction is not an event of default for the Funds but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a fund’s auction rate preferred shares than buyers. 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%.

The Funds pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions and 0.15% on the aggregate principal amount of all shares that fail to clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions.

During the year ended July 31, 2009, certain Funds 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:

 

 

 

 

 

 

 

 

 

 

 












 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal












MUE

 

A

 

7/06/09

 

147

 

 

$

3,675,000

 

 

B

 

7/09/09

 

147

 

 

$

3,675,000

 

 

C

 

7/08/09

 

278

 

 

$

6,950,000












MCA

 

A

 

7/31/09

 

169

 

 

$

4,225,000

 

 

B

 

7/13/09

 

169

 

 

$

4,225,000

 

 

C

 

7/08/09

 

150

 

 

$

3,750,000

 

 

D

 

7/10/09

 

187

 

 

$

4,675,000

 

 

E

 

7/06/09

 

187

 

 

$

4,675,000

 

 

F

 

7/09/09

 

169

 

 

$

4,225,000












MYI

 

A

 

7/23/09

 

80

 

 

$

2,000,000

 

 

B

 

7/30/09

 

80

 

 

$

2,000,000

 

 

C

 

7/09/09

 

80

 

 

$

2,000,000

 

 

D

 

7/16/09

 

80

 

 

$

2,000,000

 

 

E

 

7/09/09

 

145

 

 

$

3,625,000

 

 

F

 

8/04/09

 

87

 

 

$

2,175,000

 

 

G

 

7/14/09

 

87

 

 

$

2,175,000

 

 

H

 

7/06/09

 

95

 

 

$

2,375,000

 

 

I

 

7/06/09

 

95

 

 

$

2,375,000












MYN

 

A

 

7/21/09

 

66

 

 

$

1,650,000

 

 

B

 

6/30/09

 

66

 

 

$

1,650,000

 

 

C

 

7/06/09

 

108

 

 

$

2,700,000

 

 

D

 

7/08/09

 

76

 

 

$

1,900,000

 

 

E

 

7/16/09

 

85

 

 

$

2,125,000

 

 

F

 

7/06/09

 

70

 

 

$

1,750,000












The Funds financed the Preferred Share redemptions with cash received from TOB transactions.

Preferred Shares issued and outstanding remained constant for the six months ended January 31, 2010 for MUE, MCA, MYM and MYN.

 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

49




 


 

Notes to Financial Statements (continued)

7. Capital Loss Carryforwards:

As of July 31, 2009, the Funds had capital carry loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















Expires July 31,

 

MUE

 

MCA

 

MYI

 

MYM

 

MYN

 













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

 

 

 

 

 

 

25,066,903

 

 

823,067

 

 

2,330,288

 

2017

 

 

8,936,425

 

 

2,753,866

 

 

21,251,301

 

 

253,932

 

 

2,295,738

 

 

 
















Total

 

$

9,242,528

 

$

11,209,643

 

$

53,787,277

 

$

3,416,103

 

$

27,323,889

 

 

 
















8. Restatement Information:

Subsequent to the initial issuance of the October 31, 2006 financial statements for MYI and September 30, 2006 financial statements for MUE, the Funds determined that the criteria for sale accounting in FAS 140 had not been met for certain transfers of municipal bonds related to investments in TOB Residuals, and that these transfers should have been accounted for as secured borrowings rather than as sales. As a result, certain financial highlights for the period ended October 31, 2005 with respect to MYI, and for the period ended September 30, 2005 with respect to MUE, 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 MYI
For the Years Ended October 31, 2005 and 2004


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

2004

 

 

 


 



 

 

Previously
Reported

 

Restated

 

Previously
Reported

 

Restated

 











Total expenses, net of waiver1

 

 

1.01

%

 

1.60

%

 

0.95

%

 

1.19

%

Total expenses1

 

 

1.01

%

 

1.60

%

 

0.95

%

 

1.19

%

Portfolio turnover

 

 

123.85

%

 

105

%

 

144.40

%

 

122

%
















 

 

 

 

1

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

 

 

 

 

 

 

 

 

 

 


Financial Highlights for MUE
For the Years Ended September 30, 2005 and 2004


 

 

2005

 

2004

 

 

 


 



 

 

Previously
Reported

 

Restated

 

Previously
Reported

 

Restated

 











Total expenses, net of waiver1

 

 

1.15

%

 

1.32

%

 

1.12

%

 

1.17

%

Total expenses1

 

 

1.21

%

 

1.38

%

 

1.21

%

 

1.27

%

Portfolio turnover

 

 

58.19

%

 

46

%

 

45.89

%

 

45

%
















 

 

 

 

1

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

 

 


50

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


 

Notes to Financial Statements (concluded)

9. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Each Fund paid a net investment income dividend on March 1, 2010 to Common Shareholders of record on February 12, 2010 as follows:

 

 

 

 

 






 

 

Common
Dividend
Per Share

 





MUE

 

$

0.0700

 

MCA

 

$

0.0610

 

MYI

 

$

0.0610

 

MYM

 

$

0.0665

 

MYN

 

$

0.0550

 






The dividends declared on Preferred Shares for the period February 1, 2010 to February 28, 2010 were as follows:

 

 

 

 

 

 

 







 

 

Series

 

Dividends
Declared

 







MUE

 

A

 

$

3,057

 

 

 

B

 

$

1,234

 

 

 

C

 

$

3,045

 








MCA

 

A

 

$

2,960

 

 

 

B

 

$

1,913

 

 

 

C

 

$

1,161

 

 

 

D

 

$

3,036

 

 

 

E

 

$

2,721

 

 

 

F

 

$

4,154

 








MYI

 

A

 

$

6,456

 

 

 

B

 

$

5,174

 

 

 

C

 

$

3,794

 

 

 

D

 

$

1,206

 

 

 

E

 

$

2,194

 

 

 

F

 

$

4,076

 

 

 

G

 

$

2,258

 

 

 

H

 

$

15,801

 

 

 

I

 

$

11,157

 








MYM

 

A

 

$

2,919

 

 

 

B

 

$

1,438

 

 

 

C

 

$

1,395

 








MYN

 

A

 

$

7,812

 

 

 

B

 

$

2,083

 

 

 

C

 

$

4,004

 

 

 

D

 

$

1,914

 

 

 

E

 

$

1,572

 

 

 

F

 

$

14,256

 








The Funds’ distribution rates declared on March 1, 2010 were as follows:

 

 

 

 

 





 

 

Per Common
Share
Amount

 





MUE

 

$

0.0735

 

MCA

 

$

0.0660

 

MYI

 

$

0.0660

 

MYM

 

$

0.0690

 

MYN

 

$

0.0625

 







 

 

 




SEMI-ANNUAL REPORT

JANUARY 31, 2010

51




 


 

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

Frank J. Fabozzi, Director and Member of the Audit Committee

Kathleen F. Feldstein, Director

James T. Flynn, Director and Member of the Audit Committee

Henry Gabbay, Director

Jerrold B. Harris, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director and Member of the Audit Committee

Anne Ackerley, Fund President and Chief Executive Officer

Brendan Kyne, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Brian Kindelan, Chief Compliance Officer of the Funds

Howard Surloff, Secretary

 

Investment Advisor

BlackRock Advisors, LLC

Wilmington, DE 19809

 

Sub-Advisor

BlackRock Investment Management, LLC

Plainsboro, NJ 08536

 

Custodians

State Street Bank and Trust Company1

Boston, MA 02111

 

The Bank of New York Mellon2

New York, NY 10286

 

Transfer Agents

Common Shares

Computershare Trust Company, N.A. 1

Providence, RI 02940

 

BNY Mellon Shareowner Services2

Jersey City, NJ 07310

 

Auction Agent

Preferred Shares

BNY Mellon Shareowner Services

Jersey City, NJ 07310

 

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

 

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809


 

 

 

 

1

For MUE, MCA and MYI.

 

2

For MYM and MYN.


 


Effective January 1, 2010, Kent Dixon, a Director of the Funds, retired.
The Funds’ Board wishes Mr. Dixon well in his retirement.



 

 

 

 

 

 


52

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


 

Additional Information

 


Proxy Results


 

The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009 to elect director nominees of each Fund:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G. Nicholas Beckwith, III

 

Richard E. Cavanagh

 

Richard S. Davis

 

Kent Dixon

 

 

 


 


 


 



 

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes For

 

 

Votes For

 

 

Votes For

 

 

Votes For

 

 



















MUE

 

19,212,973

 

1,381,764

 

19,209,859

 

1,384,878

 

19,234,382

 

1,360,355

 

19,210,765

 

1,383,972

 

MCA

 

29,849,064

 

1,189,769

 

29,948,036

 

1,090,797

 

29,948,956

 

1,089,877

 

29,800,293

 

1,238,540

 

MYI

 

60,512,898

 

3,405,899

 

60,998,030

 

2,920,767

 

61,079,994

 

2,838,803

 

61,000,904

 

2,917,893

 

MYM

 

11,125,827

 

434,289

 

11,127,859

 

432,257

 

11,135,038

 

425,078

 

11,111,905

 

448,211

 

MYN

 

34,771,049

 

1,140,908

 

34,671,707

 

1,240,250

 

34,666,601

 

1,245,356

 

34,405,934

 

1,506,023

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Frank J. Fabozzi1

 

Kathleen F. Feldstein

 

James T. Flynn

 

Henry Gabbay

 

 

 


 


 


 



 

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes For

 

 

Votes For

 

 

Votes For

 

 

Votes For

 

 



















MUE

 

2,723

 

8

 

19,244,424

 

1,350,313

 

19,229,852

 

1,364,885

 

19,228,274

 

1,366,463

 

MCA

 

4,711

 

13

 

29,922,615

 

1,116,218

 

29,925,565

 

1,113,268

 

29,935,574

 

1,103,259

 

MYI

 

9,900

 

84

 

60,477,645

 

3,441,152

 

60,893,528

 

3,025,269

 

61,104,660

 

2,814,137

 

MYM

 

2,812

 

7

 

11,123,410

 

436,706

 

11,123,787

 

436,329

 

11,130,676

 

429,440

 

MYN

 

5,152

 

1,971

 

34,646,526

 

1,265,431

 

34,387,193

 

1,524,764

 

34,802,623

 

1,109,334

 



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jerrold B. Harris

 

R. Glenn Hubbard

 

W. Carl Kester1

 

Karen P. Robards

 

 

 


 


 


 



 

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes
Withheld

 

 

 

Votes For

 

 

Votes For

 

 

Votes For

 

 

Votes For

 

 



















MUE

 

19,214,587

 

1,380,150

 

19,202,783

 

1,391,954

 

2,723

 

8

 

19,285,683

 

1,309,054

 

MCA

 

29,876,768

 

1,162,065

 

29,905,961

 

1,132,872

 

4,711

 

13

 

29,756,128

 

1,282,705

 

MYI

 

60,939,637

 

2,979,160

 

60,763,123

 

3,155,674

 

9,900

 

84

 

60,570,134

 

3,348,663

 

MYM

 

11,129,299

 

430,817

 

11,137,251

 

422,865

 

2,812

 

7

 

11,138,669

 

421,447

 

MYN

 

34,791,797

 

1,120,160

 

34,624,059

 

1,287,898

 

5,152

 

1,971

 

34,699,763

 

1,212,194

 




















 

 

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.


 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2010

53




 


 

Additional Information (continued)

 


General Information


 

Electronic Delivery

 

Electronic copies of most financial reports are available on the Funds’ website 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.

 

Householding

 

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 is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 441-7762.

 

Availability of Quarterly Schedule of Investments

 

Each Fund files its 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 SEC’s 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 (202) 551-8090. Each Fund’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

 

Availability of Proxy Voting Policies and Procedures

 

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 (800) 441-7762; (2) at www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

 

Availability of Proxy Voting Record

 

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 SEC’s website at http://www.sec.gov.


 

 

 


54

SEMI-ANNUAL REPORT

JANUARY 31, 2010




 


 

Additional Information (concluded)

 


BlackRock Privacy Principles


BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

 

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

 

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

 

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

 

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.


 

 

 


SEMI-ANNUAL REPORT

JANUARY 31, 2010

55



(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 reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

(BLACKROCK LOGO)

#MHMYINS5-1/10


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 Insured Fund, Inc.

   
 

By:

/s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniYield Insured Fund, Inc.
   
  Date: March 19, 2010
   
  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 MuniYield Insured Fund, Inc.
   
  Date: March 19, 2010
   
 

By:

/s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Insured Fund, Inc.
   
  Date: March 19, 2010