UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number 811-09191

 

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

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

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

 

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

 

Date of fiscal year end: 07/31/2010

 

Date of reporting period: 04/30/2010

 

Item 1 – Schedule of Investments

 

 

 

 

Schedule of Investments April 30, 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

 

$

5,672,469

 

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

 

 

3,580

 

 

3,082,989

 

 

 

 

 

 

 

 

 

 

 

 

8,755,458

 

Arizona — 0.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.25%, 10/01/28

 

 

1,175

 

 

1,219,157

 

5.00%, 10/01/29

 

 

305

 

 

309,105

 

 

 

 

 

 

 

 

 

 

 

 

1,528,262

 

Arkansas — 4.1%

 

 

 

 

 

 

 

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

 

 

12,165

 

 

12,284,095

 

California — 14.8%

 

 

 

 

 

 

 

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

 

 

5,400

 

 

5,051,268

 

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

 

 

3,500

 

 

3,670,940

 

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

 

 

2,405

 

 

2,418,492

 

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

 

 

5,000

 

 

5,112,500

 

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

 

 

4,240

 

 

3,872,095

 

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

 

 

3,175

 

 

3,268,980

 

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

 

 

 

 

 

 

 

5.75%, 5/01/10 (a)

 

 

25

 

 

25,003

 

5.75%, 11/01/21

 

 

2,975

 

 

2,976,071

 

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

 

 

2,220

 

 

2,174,423

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

2,985

 

$

3,043,148

 

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

 

 

150

 

 

150,824

 

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

 

 

1,250

 

 

1,251,700

 

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

 

 

9,350

 

 

9,350,841

 

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

 

 

2,430

 

 

2,150,040

 

 

 

 

 

 

 

 

 

 

 

 

44,516,325

 

Colorado — 1.3%

 

 

 

 

 

 

 

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

 

 

3,300

 

 

3,664,320

 

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

 

 

155

 

 

164,627

 

 

 

 

 

 

 

 

 

 

 

 

3,828,947

 

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

 

 

2,508,775

 

Florida — 22.3%

 

 

 

 

 

 

 

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

 

 

2,900

 

 

2,905,307

 

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

 

 

4,000

 

 

4,019,680

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC), 5.24%,
10/01/37 (b)

 

 

3,165

 

 

508,204

 

Miami International Airport,
Series A, AMT (AGM), 5.25%,
10/01/41

 

 

13,800

 

 

13,631,916

 

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

 

 

6,700

 

 

6,776,112

 

 

Portfolio Abbreviations

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

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

FHA

Federal Housing Administration

GNMA

Government National Mortgage Association

GO

General Obligation Bonds

HFA

Housing Finance Agency

ISD

Independent School District

MRB

Mortgage Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

S/F

Single-Family

VRDN

Variable Rate Demand Note

 

 

 

 

 

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC.

APRIL 30, 2010

1


 

 

 

 

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 Miami-Dade Florida, RB
(concluded):

 

 

 

 

 

 

 

Series A, AMT (AGM), 5.00%,
10/01/33

 

$

6,730

 

$

6,486,912

 

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

 

 

11,010

 

 

11,279,195

 

County of Miami-Dade Florida,
Refunding RB, Water & Sewer System
(AGM), 5.00%, 10/01/29

 

 

3,000

 

 

3,088,320

 

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

 

 

5,065

 

 

1,587,016

 

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

 

 

3,625

 

 

3,716,133

 

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

 

 

12,375

 

 

13,186,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

67,185,224

 

Georgia — 2.8%

 

 

 

 

 

 

 

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

 

 

3,425

 

 

3,481,444

 

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

 

 

4,830

 

 

5,060,729

 

 

 

 

 

 

 

 

 

 

 

 

8,542,173

 

Idaho — 0.1%

 

 

 

 

 

 

 

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

 

 

280

 

 

292,807

 

Illinois — 7.6%

 

 

 

 

 

 

 

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

 

 

2,080

 

 

2,331,410

 

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

 

 

3,400

 

 

3,900,548

 

City of Chicago Illinois, GO, Refunding,
Projects, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 1/01/28

 

 

2,315

 

 

2,440,079

 

5.00%, 1/01/29

 

 

3,585

 

 

3,752,706

 

5.00%, 1/01/30

 

 

1,430

 

 

1,488,887

 

City of Chicago Illinois, RB, General,
Third Lien, Series C (AGM), 5.25%,
1/01/35

 

 

2,085

 

 

2,158,392

 

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

 

 

2,270

 

 

2,504,378

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/28

 

 

4,000

 

 

4,249,960

 

 

 

 

 

 

 

 

 

 

 

 

22,826,360

 

Indiana — 3.5%

 

 

 

 

 

 

 

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

 

 

8,000

 

 

8,021,920

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana (concluded)

 

 

 

 

 

 

 

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

 

$

2,370

 

$

2,557,846

 

 

 

 

 

 

 

 

 

 

 

 

10,579,766

 

Iowa — 1.0%

 

 

 

 

 

 

 

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

 

 

2,915

 

 

3,005,861

 

Kansas — 1.8%

 

 

 

 

 

 

 

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

 

 

3,510

 

 

3,549,873

 

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

 

 

1,875

 

 

1,903,369

 

 

 

 

 

 

 

 

 

 

 

 

5,453,242

 

Kentucky — 0.9%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,084,470

 

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

 

 

1,525

 

 

1,646,970

 

 

 

 

 

 

 

 

 

 

 

 

2,731,440

 

Louisiana — 1.3%

 

 

 

 

 

 

 

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

 

 

3,550

 

 

3,939,541

 

Maine — 1.0%

 

 

 

 

 

 

 

City of Portland Maine, RB, General
(AGM), 5.25%, 1/01/35

 

 

2,795

 

 

2,865,099

 

Massachusetts — 1.9%

 

 

 

 

 

 

 

Massachusetts Bay Transportation
Authority, Refunding RB, Senior
Series A, 5.00%, 7/01/10 (a)

 

 

5,535

 

 

5,579,003

 

Michigan — 12.7%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second
Lien, Series B:

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,401,520

 

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

 

 

4,170

 

 

4,196,855

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

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

 

 

2,600

 

 

2,810,704

 

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

 

 

5,060

 

 

5,363,803

 

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

 

 

4,180

 

 

4,868,822

 

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

 

 

1,860

 

 

1,894,484

 

 

 

 

2

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC.

APRIL 30, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

City of Detroit Michigan, Refunding RB
(concluded):

 

 

 

 

 

 

 

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

 

$

5,735

 

$

5,893,114

 

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

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

1,440

 

 

1,536,595

 

5.25%, 10/15/25

 

 

750

 

 

794,708

 

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

 

 

 

 

 

 

 

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

 

 

2,935

 

 

2,931,331

 

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

 

 

2,000

 

 

1,920,080

 

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

 

 

3,115

 

 

3,676,728

 

 

 

 

 

 

 

 

 

 

 

 

38,288,744

 

Minnesota — 0.7%

 

 

 

 

 

 

 

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

 

 

1,975

 

 

2,215,318

 

Nevada — 2.0%

 

 

 

 

 

 

 

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

 

 

5,765

 

 

5,869,577

 

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

 

 

95

 

 

96,481

 

 

 

 

 

 

 

 

 

 

 

 

5,966,058

 

New Jersey — 6.0%

 

 

 

 

 

 

 

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

 

 

11,000

 

 

11,196,790

 

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

 

 

3,400

 

 

3,605,700

 

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

 

 

2,930

 

 

3,267,477

 

 

 

 

 

 

 

 

 

 

 

 

18,069,967

 

New York — 0.8%

 

 

 

 

 

 

 

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

 

 

2,300

 

 

2,441,726

 

North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

 

1,220

 

 

1,228,833

 

Pennsylvania — 1.0%

 

 

 

 

 

 

 

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

 

 

3,000

 

 

3,127,530

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Puerto Rico — 1.3%

 

 

 

 

 

 

 

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

 

$

3,500

 

$

3,929,905

 

South Carolina — 5.5%

 

 

 

 

 

 

 

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

 

 

980

 

 

994,543

 

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

 

 

15,000

 

 

15,540,750

 

 

 

 

 

 

 

 

 

 

 

 

16,535,293

 

Texas — 15.4%

 

 

 

 

 

 

 

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

 

 

2,100

 

 

2,165,247

 

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

 

 

6,700

 

 

7,686,240

 

County of Bexar Texas, RB, Venue
Project, Motor Vehicle Rental (BHAC),
5.00%, 8/15/39

 

 

1,805

 

 

1,857,941

 

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

 

 

1,000

 

 

1,127,170

 

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

 

 

2,935

 

 

3,108,488

 

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

 

 

1,250

 

 

1,339,813

 

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

 

 

1,000

 

 

1,109,650

 

North Texas Tollway Authority,
Refunding RB, System, First Tier
(NPFGC):

 

 

 

 

 

 

 

5.75%, 1/01/40

 

 

14,750

 

 

15,436,907

 

Series A, 5.63%, 1/01/33

 

 

10,975

 

 

11,484,898

 

Series B, 5.75%, 1/01/40

 

 

1,000

 

 

1,046,570

 

 

 

 

 

 

 

 

 

 

 

 

46,362,924

 

Utah — 2.5%

 

 

 

 

 

 

 

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

 

 

4,085

 

 

4,154,568

 

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

 

 

3,000

 

 

3,328,770

 

 

 

 

 

 

 

 

 

 

 

 

7,483,338

 

Virginia — 0.9%

 

 

 

 

 

 

 

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

 

 

2,195

 

 

2,536,827

 

 

 

 

 

 

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC.

APRIL 30, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Washington — 1.9%

 

 

 

 

 

 

 

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

 

$

3,840

 

$

3,796,762

 

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

 

 

1,875

 

 

1,941,150

 

 

 

 

 

 

 

 

 

 

 

 

5,737,912

 

Total Municipal Bonds – 119.7%

 

 

 

 

 

360,346,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

 

 

 

 

 

 

California — 3.6%

 

 

 

 

 

 

 

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

 

 

3,805

 

 

3,929,050

 

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

 

 

1,486

 

 

1,529,703

 

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

 

 

5,189

 

 

5,425,731

 

 

 

 

 

 

 

 

 

 

 

 

10,884,484

 

Colorado — 3.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Catholic Health, Series C-3 (AGM),
5.10%, 10/01/41

 

 

9,410

 

 

9,471,353

 

District of Columbia — 0.6%

 

 

 

 

 

 

 

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

 

 

1,700

 

 

1,915,345

 

Florida — 7.9%

 

 

 

 

 

 

 

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

 

 

6,493

 

 

6,526,363

 

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

 

 

12,500

 

 

13,877,250

 

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

 

 

3,000

 

 

3,248,520

 

 

 

 

 

 

 

 

 

 

 

 

23,652,133

 

Georgia — 2.2%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/34

 

 

6,290

 

 

6,561,351

 

Illinois — 6.5%

 

 

 

 

 

 

 

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

 

 

15,000

 

 

15,248,625

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (c)

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

$

3,969

 

$

4,200,179

 

 

 

 

 

 

 

 

 

 

 

 

19,448,804

 

Kentucky — 0.8%

 

 

 

 

 

 

 

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

 

 

2,304

 

 

2,488,993

 

Massachusetts — 1.7%

 

 

 

 

 

 

 

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

 

 

4,994

 

 

5,229,807

 

Nevada — 6.7%

 

 

 

 

 

 

 

Clark County Water Reclamation
District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

10,000

 

 

11,196,500

 

Series B, 5.50%, 7/01/29

 

 

8,247

 

 

9,049,543

 

 

 

 

 

 

 

 

 

 

 

 

20,246,043

 

New Jersey — 1.4%

 

 

 

 

 

 

 

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

 

 

3,941

 

 

4,062,617

 

New York — 2.5%

 

 

 

 

 

 

 

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

 

 

6,751

 

 

7,523,354

 

Washington — 2.5%

 

 

 

 

 

 

 

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

 

 

6,883

 

 

7,524,102

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 39.5%

 

 

 

 

 

119,008,386

 

Total Long-Term Investments
(Cost – $466,251,435) – 159.2%

 

 

 

 

 

479,355,139

 

 

 

 

 

 

 

 

 

 

 

 

4

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC.

APRIL 30, 2010


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniHoldings Insured Fund II, Inc. (MUE)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

Florida — 0.4%

 

 

 

 

 

 

 

Jacksonville Health Facilities
Authority, VRDN 0.24%,
5/03/10 (d)

 

$

1,160

 

$

1,160,000

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

Money Market Fund — 2.3%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.25% (e)(f)

 

 

7,001,650

 

 

7,001,650

 

Total Short-Term Securities
(Cost – $8,161,650) – 2.7%

 

 

 

 

 

8,161,650

 

Total Investments
(Cost – $474,413,085*) – 161.9%

 

 

 

 

 

487,516,789

 

Other Assets Less Liabilities – 1.8%

 

 

 

 

 

5,467,317

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (20.2)%

 

 

 

 

 

(60,869,874)

 

Preferred Shares, at Redemption Value – (43.5)%

 

 

 

 

 

(131,010,306)

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

301,103,926

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of April 30, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

419,240,533

 

 

 

Gross unrealized appreciation

 

$

16,433,681

 

Gross unrealized depreciation

 

 

(8,975,359

)

 

 

Net unrealized appreciation

 

$

7,458,322

 

 

 

 

 

(a)

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

 

 

(b)

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

 

 

(c)

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

 

 

(d)

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

 

 

(e)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
July 31,
2009

 

Net
Activity

 

Shares Held
at April 30,
2010

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

17,593,090

 

 

(10,591,440

)

 

7,001,650

 

$

13,910

 

 

 

 

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

The following table summarizes the inputs used as of April 30, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

479,355,139

 

 

—

 

$

479,355,139

 

Short-Term
Securities

 

$

7,001,650

 

 

1,160,000

 

 

—

 

 

8,161,650

 

Total

 

$

7,001,650

 

$

480,515,139

 

 

—

 

$

487,516,789

 

 

 

 

 

1

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

 

 

 

 

 

BLACKROCK MUNIHOLDINGS INSURED FUND II, INC.

APRIL 30, 2010

5

Item 2 –

Controls and Procedures

 

 

2(a) –

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

 

 

2(b) –

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

 

 

Item 3 –

Exhibits

 

 

 

Certifications – Attached hereto

 

 

 

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

 

 

 

BlackRock MuniHoldings Insured Fund II, Inc.
   
 

By:

 /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniHoldings Insured Fund II, Inc.
   
  Date: June 28, 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 MuniHoldings Insured Fund II, Inc.
   
  Date: June 28, 2010
   
 

By:

 /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniHoldings Insured Fund II, Inc.
   
  Date: June 28, 2010