UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-06692
Name of Fund: BlackRock MuniYield California Quality Fund, Inc. (MCA)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield California Quality Fund, Inc., 55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2013
Date of reporting period: 04/30/2013
| Item 1 | – | Schedule of Investments |
| Schedule of Investments April 30, 2013 (Unaudited) | BlackRock MuniYield California Quality Fund, Inc. (MCA) | |
| (Percentages shown are based on Net Assets) |
| Municipal Bonds |
Par (000) |
Value | ||||||
| California – 85.8% |
||||||||
| Corporate – 0.5% |
||||||||
| City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, |
||||||||
| 5.88%, 2/15/34 |
$ | 2,435 | $ | 2,929,768 | ||||
|
|
|
|||||||
| County/City/Special District/School District – 27.1% |
||||||||
| Bay Area Governments Association, Refunding RB, California Redevelopment Agency Pool, Series A (AGM), |
||||||||
| 6.00%, 12/15/24 |
255 | 256,731 | ||||||
| California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, |
||||||||
| 6.13%, 11/01/29 |
3,360 | 4,134,413 | ||||||
| Chabot-Las Positas Community College District, GO, CAB, Series C (AMBAC), |
||||||||
| 5.06%, 8/01/37(a) |
10,000 | 2,979,100 | ||||||
| County of Kern California, COP, Capital Improvements Projects, Series A (AGC), |
||||||||
| 6.00%, 8/01/35 |
2,000 | 2,381,180 | ||||||
| Grossmont Healthcare District, GO, Election of 2006, Series B, |
||||||||
| 6.13%, 7/15/40 |
2,500 | 3,085,550 | ||||||
| Grossmont Union High School District, GO, Election of 2008, Series C, |
||||||||
| 5.50%, 8/01/33 |
1,880 | 2,251,638 | ||||||
| Los Angeles Community Redevelopment Agency California, RB, Bunker Hill Project, Series A (AGM), |
||||||||
| 5.00%, 12/01/27 |
7,000 | 7,421,820 | ||||||
| Los Angeles County Metropolitan Transportation Authority, Refunding RB, Proposition A, First Tier, |
||||||||
| 5.00%, 7/01/27 |
4,000 | 4,338,000 | ||||||
| Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), |
||||||||
| 5.50%, 4/01/39 |
2,045 | 2,382,098 | ||||||
| Ohlone Community College District, GO, Election of 2010, Series A, |
||||||||
| 5.25%, 8/01/41 |
8,140 | 9,554,244 | ||||||
| Orange County Sanitation District, COP, Series A, |
||||||||
| 5.00%, 2/01/35 |
2,500 | 2,866,050 | ||||||
| Orange County Water District, COP, Refunding, |
||||||||
| 5.25%, 8/15/34 |
9,045 | 10,556,781 | ||||||
| Orchard School District California, GO, Election of 2001, Series A (AGC), |
||||||||
| 5.00%, 8/01/34 |
7,490 | 8,451,791 | ||||||
| Oxnard Union High School District California, GO, Refunding, Series A (NPFGC), |
||||||||
| 6.20%, 8/01/30 |
9,645 | 10,853,615 | ||||||
| Pittsburg Unified School District, GO, Election of 2006, Series B (AGM): |
||||||||
| 5.50%, 8/01/34 |
2,000 | 2,314,000 | ||||||
| 5.63%, 8/01/39 |
4,500 | 5,205,240 | ||||||
| Redlands Unified School District California, GO, Election of 2008 (AGM), |
||||||||
| 5.25%, 7/01/33 |
5,000 | 5,720,200 | ||||||
| San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), |
||||||||
| 5.00%, 5/01/38 |
4,895 | 5,538,595 | ||||||
| San Jose Financing Authority, RB, Convention Center Expansion & Renovation Project: |
||||||||
| 5.75%, 5/01/36 |
2,570 | 2,860,924 | ||||||
| 5.75%, 5/01/42 |
4,500 | 5,238,900 | ||||||
| San Jose Financing Authority, Refunding RB, Civic Center Project, Series B (AMBAC), |
||||||||
| 5.00%, 6/01/32 |
11,400 | 11,460,648 | ||||||
| San Juan Unified School District, GO, Election of 2002 (AGM), |
||||||||
| 5.00%, 8/01/34 |
6,475 | 7,349,319 | ||||||
| San Leandro Unified School District California, GO, Election of 2010, Series A, |
||||||||
| 5.75%, 8/01/41 |
3,000 | 3,594,150 | ||||||
| Santa Maria Joint Union High School District, GO, Election 2004, |
||||||||
| 5.00%, 8/01/33 |
3,710 | 4,342,703 | ||||||
| Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), |
||||||||
| 5.75%, 9/01/38 |
5,600 | 6,642,104 | ||||||
| Southwestern Community College District, GO, Election Of 2008, Series C, |
||||||||
| 5.25%, 8/01/36 |
2,570 | 3,018,568 | ||||||
| Walnut Valley Unified School District, GO, Election of 2007, Series B, |
||||||||
| 5.75%, 8/01/41 |
7,680 | 9,219,686 | ||||||
| West Contra Costa Unified School District California, GO, Election of 2010, Series A (AGM), |
||||||||
| 5.25%, 8/01/41 |
6,140 | 7,172,380 | ||||||
| Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), |
||||||||
| 6.25%, 11/01/39 |
4,300 | 5,135,447 | ||||||
|
|
|
|||||||
| 156,325,875 | ||||||||
|
|
|
|||||||
| Education – 3.8% |
||||||||
| California Municipal Finance Authority, RB, Emerson College, |
||||||||
| 6.00%, 1/01/42 |
2,500 | 3,036,725 | ||||||
| Gavilan Joint Community College District, GO, Election of 2004, Series D: |
||||||||
| 5.50%, 8/01/31 |
2,165 | 2,624,954 | ||||||
| 5.75%, 8/01/35 |
8,400 | 10,318,476 | ||||||
| University of California, Refunding RB, Series AF, |
||||||||
| 5.00%, 5/15/36 |
5,000 | 5,875,650 | ||||||
|
|
|
|||||||
| 21,855,805 | ||||||||
|
|
|
|||||||
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2013 | 1 |
| Schedule of Investments (continued) | BlackRock MuniYield California Quality Fund, Inc. (MCA) | |
| (Percentages shown are based on Net Assets) |
| Municipal Bonds |
Par (000) |
Value | ||||||
| California (continued) |
||||||||
| Health – 16.3% |
||||||||
| ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare, Series A, |
||||||||
| 6.00%, 8/01/30 |
$ | 2,270 | $ | 2,777,481 | ||||
| California Health Facilities Financing Authority, RB: |
||||||||
| Children’s Hospital, Series A, 5.25%, 11/01/41 |
8,000 | 8,891,360 | ||||||
| Providence Health Services, Series B, 5.50%, 10/01/39 |
4,105 | 4,828,465 | ||||||
| Sutter Health, Series A, 5.25%, 11/15/46 |
9,470 | 10,509,048 | ||||||
| Sutter Health, Series B, 6.00%, 8/15/42 |
7,715 | 9,543,841 | ||||||
| California Health Facilities Financing Authority, Refunding RB: |
||||||||
| Catholic Healthcare West, Series A, 6.00%, 7/01/34 |
2,180 | 2,617,766 | ||||||
| Catholic Healthcare West, Series A, 6.00%, 7/01/39 |
5,500 | 6,604,455 | ||||||
| Stanford Hospital, Series A-3, 5.50%, 11/15/40 |
3,000 | 3,613,410 | ||||||
| California Statewide Communities Development Authority, RB: |
||||||||
| Kaiser Permanente, Series A, 5.00%, 4/01/42 |
26,220 | 29,104,200 | ||||||
| Kaiser Permanente, Series B, 5.25%, 3/01/45 |
4,000 | 4,357,960 | ||||||
| Sutter Health, Series A, 6.00%, 8/15/42 |
4,375 | 5,412,094 | ||||||
| California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West, Series D (BHAC), |
||||||||
| 5.50%, 7/01/31 |
865 | 991,117 | ||||||
| City of Newport Beach California, Refunding RB, Hoag Memorial Hospital Presbyterian, |
||||||||
| 6.00%, 12/01/40 |
3,825 | 4,726,973 | ||||||
|
|
|
|||||||
| 93,978,170 | ||||||||
|
|
|
|||||||
| Housing – 0.00% |
||||||||
| California Rural Home Mortgage Finance Authority, RB, Mortgage-Backed Securities Program, Series A, AMT (Ginnie Mae), |
||||||||
| 6.35%, 12/01/29 |
50 | 50,851 | ||||||
| County of San Bernardino California, Refunding RB, Home Mortgage-Backed Securities, Series A-1, AMT (Ginnie Mae), |
||||||||
| 6.25%, 12/01/31 |
80 | 86,460 | ||||||
|
|
|
|||||||
| 137,311 | ||||||||
|
|
|
|||||||
| State – 6.6% |
||||||||
| California State Public Works Board, RB, Department of Education, Riverside Campus Project, Series B, |
||||||||
| 6.50%, 4/01/34 |
3,670 | 4,505,292 | ||||||
| State of California, GO, Various Purpose: |
||||||||
| 6.00%, 3/01/33 |
7,000 | 8,614,550 | ||||||
| 6.00%, 4/01/38 |
17,115 | 20,537,487 | ||||||
| 6.00%, 11/01/39 |
3,455 | 4,197,410 | ||||||
|
|
|
|||||||
| 37,854,739 | ||||||||
|
|
|
|||||||
| Transportation – 15.0% |
||||||||
| Bay Area Toll Authority, RB, San Francisco Bay Area Toll Bridge, |
||||||||
| 1.12% 4/01/45 (b) |
10,600 | 10,600,742 | ||||||
| City of San Jose California, Refunding ARB, Series A-1, AMT, |
||||||||
| 6.25%, 3/01/34 |
1,400 | 1,675,576 | ||||||
| County of Orange California, ARB, Series B, |
||||||||
| 5.75%, 7/01/34 |
5,000 | 5,768,050 | ||||||
| County of Sacramento California, ARB: |
||||||||
| Senior Series B, AMT (AGM), 5.25%, 7/01/33 |
7,550 | 8,576,423 | ||||||
| Subordinated and Passenger Facility Charges/Grant, Series C (AGC), 5.75%, 7/01/39 |
5,505 | 6,463,696 | ||||||
| Los Angeles Department of Airports, Refunding RB, Los Angeles International Airport, Senior Series A, |
||||||||
| 5.25%, 5/15/29 |
3,760 | 4,478,085 | ||||||
| Los Angeles Harbor Department, RB, Series B: |
||||||||
| 5.25%, 8/01/34 |
5,530 | 6,495,980 | ||||||
| 5.25%, 8/01/39 |
2,490 | 2,917,010 | ||||||
| San Diego County Regional Airport Authority, RB, AMT, |
||||||||
| 5.00%, 7/01/38 |
5,500 | 6,086,355 | ||||||
| San Diego County Regional Airport Authority, Refunding RB, Series B, |
||||||||
| 5.00%, 7/01/40 |
6,350 | 7,025,386 | ||||||
| San Francisco City & County Airports Commission, RB: |
||||||||
| Series E, 6.00%, 5/01/39 |
9,650 | 11,625,258 | ||||||
| Special Facility Lease, SFO Fuel, Series A AMT (AGM), 6.10%, 1/01/20 |
1,000 | 1,004,440 | ||||||
| Special Facility Lease, SFO Fuel, Series A AMT (AGM), 6.13%, 1/01/27 |
985 | 989,019 | ||||||
| San Francisco City & County Airports Commission, Refunding RB, Second Series 34E, AMT (AGM): |
||||||||
| 5.75%, 5/01/24 |
5,000 | 5,861,800 | ||||||
| 5.75%, 5/01/25 |
3,500 | 4,085,130 | ||||||
| San Joaquin County Transportation Authority, Refunding RB, Limited Tax, Series A, |
||||||||
| 6.00%, 3/01/36 |
2,400 | 2,965,440 | ||||||
|
|
|
|||||||
| 86,618,390 | ||||||||
|
|
|
|||||||
| 2 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2013 |
| Schedule of Investments (continued) | BlackRock MuniYield California Quality Fund, Inc. (MCA) | |
| (Percentages shown are based on Net Assets) |
| Municipal Bonds |
Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| Utilities – 16.5% |
||||||||
| Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, |
||||||||
| 5.38%, 10/01/36 |
$ | 5,000 | $ | 5,945,250 | ||||
| City of Los Angeles California Wastewater System, Refunding RB: |
||||||||
| Series A (NPFGC), 5.00%, 6/01/34 |
5,000 | 5,389,900 | ||||||
| Sub-Series A, 5.00%, 6/01/28 |
2,000 | 2,321,400 | ||||||
| Sub-Series A, 5.00%, 6/01/32 |
3,000 | 3,467,340 | ||||||
| City of Sacramento California, RB: |
||||||||
| 5.00%, 9/01/38 |
2,000 | 2,329,940 | ||||||
| 5.00%, 9/01/42 |
2,000 | 2,314,620 | ||||||
| Dublin-San Ramon Services District, Refunding RB, |
||||||||
| 6.00%, 8/01/41 |
4,000 | 4,909,440 | ||||||
| East Bay Municipal Utility District, Refunding RB, Series A (NPFGC), |
||||||||
| 5.00%, 6/01/37 |
4,000 | 4,525,400 | ||||||
| East Bay Municipal Utility District, Refunding RB, Sub-Series A: |
||||||||
| 5.00%, 6/01/30 |
5,000 | 5,943,950 | ||||||
| (AGM), 5.00%, 6/01/37 |
10,000 | 11,313,500 | ||||||
| (AMBAC), 5.00%, 6/01/33 |
3,000 | 3,416,970 | ||||||
| Imperial Irrigation District, Refunding RB, Electric System, Series B, |
||||||||
| 5.13%, 11/01/38 |
5,560 | 6,341,347 | ||||||
| Los Angeles Department of Water & Power, Refunding RB, Series A: |
||||||||
| 5.25%, 7/01/39 |
8,000 | 9,296,080 | ||||||
| Power System, Sub-Series A-2, (NPFGC), 5.00%, 7/01/13(c) |
15,000 | 15,121,650 | ||||||
| Metropolitan Water District of Southern California, RB, Series B-1 (NPFGC), |
||||||||
| 5.00%, 10/01/13(c) |
6,885 | 7,023,457 | ||||||
| Sacramento Municipal Utility District, RB, Series A, |
||||||||
| 5.00%, 8/15/37(d) |
3,630 | 4,195,482 | ||||||
| San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, |
||||||||
| 5.25%, 5/15/34 |
1,000 | 1,172,270 | ||||||
|
|
|
|||||||
| 95,027,996 | ||||||||
|
|
|
|||||||
| Total Municipal Bonds – 85.8% |
494,728,054 | |||||||
|
|
|
|||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(e) |
||||||||
| California – 77.1% |
||||||||
| County/City/Special District/School District – 36.4% |
||||||||
| Arcadia Unified School District California, GO, Election of 2006, Series A (AGM), |
||||||||
| 5.00%, 8/01/37 |
7,925 | 8,491,912 | ||||||
| Desert Community College District California, GO, Series C (AGM), |
||||||||
| 5.00%, 8/01/37 |
12,150 | 13,183,722 | ||||||
| Fremont Unified School District Alameda County California, GO, Election of 2002, Series B (AGM), |
||||||||
| 5.00%, 8/01/15(c) |
10,000 | 11,005,100 | ||||||
| Los Angeles Community College District California, GO: |
||||||||
| Election of 2001, Series A (AGM), 5.00%, 8/01/32 |
12,000 | 13,518,720 | ||||||
| Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 |
26,438 | 29,783,464 | ||||||
| Election of 2003, Series E (AGM), 5.00%, 8/01/31 |
7,497 | 8,317,662 | ||||||
| Election of 2003, Series F-1, 5.00%, 8/01/33 |
12,000 | 13,697,280 | ||||||
| Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, |
||||||||
| 6.00%, 8/01/33 |
9,596 | 11,879,054 | ||||||
| Los Angeles County Metropolitan Transportation Authority, Refunding RB, Proposition A, First Tier, Senior |
||||||||
| 5.00%, 7/01/35 |
6,828 | 7,374,105 | ||||||
| Los Angeles County Sanitation Districts Financing Authority, Refunding RB, Capital Project 14 (BHAC), |
||||||||
| 5.00%, 10/01/34 |
4,998 | 5,400,940 | ||||||
| Los Angeles Unified School District California, GO, Series I, |
||||||||
| 5.00%, 1/01/34 |
5,000 | 5,736,700 | ||||||
| Ohlone Community College District, GO, Series B (AGM), |
||||||||
| 5.00%, 8/01/15(c) |
19,998 | 22,074,660 | ||||||
| Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), |
||||||||
| 5.00%, 8/01/30 |
10,000 | 10,743,500 | ||||||
| San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), |
||||||||
| 5.00%, 8/01/31 |
7,550 | 8,307,491 | ||||||
| San Diego County Water Authority, COP, Series A (AGM), |
||||||||
| 5.00%, 5/01/30 |
7,350 | 7,847,228 | ||||||
| San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC): |
||||||||
| 5.00%, 7/01/30 |
19,630 | 21,178,611 | ||||||
| 5.00%, 7/01/34 |
10,497 | 11,325,232 | ||||||
|
|
|
|||||||
| 209,865,381 | ||||||||
|
|
|
|||||||
| Education – 15.6% |
||||||||
| California State University, Refunding RB, Systemwide, Series C (NPFGC), |
||||||||
| 5.00%, 11/01/35 |
20,000 | 21,658,200 | ||||||
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2013 | 3 |
| Schedule of Investments (continued) | BlackRock MuniYield California Quality Fund, Inc. (MCA) | |
| (Percentages shown are based on Net Assets) |
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts(e) |
Par (000) |
Value | ||||||
| California (continued) |
||||||||
| Education (concluded) |
||||||||
| Los Rios Community College District, GO, Election of 2008, Series A, |
||||||||
| 5.00%, 8/01/35 |
$ | 11,000 | $ | 12,477,630 | ||||
| University of California, RB: |
||||||||
| Limited Project, Series D (AGM), 5.00%, 5/15/41 |
8,000 | 8,858,160 | ||||||
| Series L, 5.00%, 5/15/40 |
7,398 | 8,226,924 | ||||||
| Series O, 5.75%, 5/15/34 |
11,190 | 13,482,421 | ||||||
| University of California, Refunding RB, Limited Project, Series G, |
||||||||
| 5.00%, 5/15/37 |
21,781 | 25,021,855 | ||||||
|
|
|
|||||||
| 89,725,190 | ||||||||
|
|
|
|||||||
| Transportation – 1.0% |
||||||||
| City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, |
||||||||
| 5.00%, 5/15/40 |
4,999 | 5,646,485 | ||||||
|
|
|
|||||||
| Utilities – 24.1% |
||||||||
| City of Napa California Water Revenue, RB (AMBAC), |
||||||||
| 5.00%, 5/01/35 |
9,070 | 9,802,765 | ||||||
| East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), |
||||||||
| 5.00%, 6/01/35 |
15,000 | 16,150,350 | ||||||
| East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), |
||||||||
| 5.00%, 6/01/37 |
7,990 | 9,083,511 | ||||||
| Los Angeles Department of Water & Power, RB: |
||||||||
| Power System, Sub-Series A-1 (AGM), 5.00%, 7/01/37 |
13,525 | 15,209,344 | ||||||
| Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 |
5,029 | 5,655,639 | ||||||
| Sub-Series A-2 (AGM), 5.00%, 7/01/35 |
7,500 | 8,332,800 | ||||||
| Metropolitan Water District of Southern California, RB, Series A, |
||||||||
| 5.00%, 7/01/37 |
15,000 | 16,990,650 | ||||||
| Rancho Water District Financing Authority, Refunding RB, Series A (AGM), |
||||||||
| 5.00%, 8/01/34 |
9,277 | 10,589,315 | ||||||
| San Diego County Water Authority, COP, Series A (AGM), |
||||||||
| 5.00%, 5/01/31 |
10,000 | 10,676,500 | ||||||
| San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), |
||||||||
| 5.00%, 5/01/33 |
8,510 | 9,627,363 | ||||||
| San Francisco City & County Public Utilities Commission, RB, Water System Improvement Program, |
||||||||
| 5.00%, 11/01/37 |
22,997 | 26,687,924 | ||||||
|
|
|
|||||||
| 138,806,161 | ||||||||
|
|
|
|||||||
| Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts – 77.1% |
444,043,217 | |||||||
|
|
|
|||||||
| Total Long-Term Investments |
938,771,271 | |||||||
|
|
|
|||||||
| Short-Term Securities |
Shares | |||||||
| BIF California Municipal Money Fund, 0.00%(f)(g) |
2,400,302 | 2,400,302 | ||||||
|
|
|
|||||||
| Total Short-Term Securities |
2,400,302 | |||||||
|
|
|
|||||||
| Total Investments (Cost – $858,156,287*) – 163.3% |
941,171,573 | |||||||
| Other Assets Less Liabilities – 0.9% |
4,980,400 | |||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (35.3)% |
(203,299,126 | ) | ||||||
| VRDP Shares, at Liquidation Value – (28.9)% |
(166,500,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares – 100.0% |
$ | 576,352,847 | ||||||
|
|
|
|||||||
| * | As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows: |
| Tax cost |
$ | 654,675,111 | ||
|
|
|
|||
| Gross unrealized appreciation |
$ | 83,419,382 | ||
| Gross unrealized depreciation |
(105,466 | ) | ||
|
|
|
|||
| Net unrealized appreciation |
$ | 83,313,916 | ||
|
|
|
Notes to Schedule of Investments
| (a) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
| (b) | Variable rate security. Rate shown is as of report date. |
| (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. |
| 4 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2013 |
| Schedule of Investments (continued) | BlackRock MuniYield California Quality Fund, Inc. (MCA) | |
| (d) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty |
Value | Unrealized Appreciation |
||||||
| Barclays Capital, Inc. |
$ | 4,195,482 | $ | 36,845 | ||||
| (e) | Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction. |
| (f) | Investments in issuers considered to be an affiliate of the Fund during the period ended April 30, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate |
Shares Held at July 31, 2012 |
Net Activity | Shares Held at April 30, 2013 |
Income | ||||||||||||
| BIF California Municipal Money Fund |
4,870,908 | (2,470,606 | ) | 2,400,302 | $ | 24 | ||||||||||
| (g) | Represents the current yield as of report date. |
| • | For Fund compliance purposes, the Fund’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
| • | Financial futures contracts as of April 30, 2013 were as follows: |
| Contracts Sold |
Issue |
Exchange |
Expiration | Notional Value | Unrealized Depreciation |
|||||||||
| (340) | 10-Year US Treasury Note | Chicago Board of Trade | June 2013 | $ | 45,342,188 | $ | (688,457 | ) | ||||||
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) | |||||||
| ARB | Airport Revenue Bonds | |||||||
| BHAC | Berkshire Hathaway Assurance Corp. | |||||||
| CAB | Capital Appreciation Bonds | |||||||
| COP | Certificates of Participation | |||||||
| Ginnie Mae | Government National Mortgage Association | |||||||
| GO | General Obligation Bonds | |||||||
| NPFGC | National Public Finance Guarantee Corp. | |||||||
| RB | Revenue Bonds |
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2013 | 5 |
| Schedule of Investments (concluded) | BlackRock MuniYield California Quality Fund, Inc. (MCA) | |
| • | Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows: |
| • | Level 1 – unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Fund has the ability to access |
| • | 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 and derivative financial instruments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.
The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: |
||||||||||||||||
| Investments: |
||||||||||||||||
| Long-Term Investments1 |
– | $ | 938,771,271 | – | $ | 938,771,271 | ||||||||||
| Short-Term Securities |
$ | 2,400,302 | – | – | 2,400,302 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 2,400,302 | $ | 938,771,271 | – | $ | 941,171,573 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
1 See above Schedule of Investments for values in each sector. |
| |||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Derivative Financial Instruments2 |
||||||||||||||||
| Liabilities: |
||||||||||||||||
| Interest rate contracts |
$ | (688,457 | ) | – | – | $ | (688,457 | ) | ||||||||
|
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument
Certain of the Fund’s assets and liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows: |
| |||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: |
||||||||||||||||
| Cash pledged for financial futures contracts |
$ | 448,000 | – | – | $ | 448,000 | ||||||||||
| Liabilities: |
||||||||||||||||
| TOB trust certificates |
– | $ | (203,182,546 | ) | – | (203,182,546 | ) | |||||||||
| VRDP Shares |
– | (166,500,000 | ) | – | (166,500,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 448,000 | $ | (369,682,546 | ) | – | $ | (369,234,546 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
There were no transfers between levels during the period ended April 30, 2013.
| 6 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | APRIL 30, 2013 |
| Item 2 | – | Controls and Procedures | ||
| 2(a) | – | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended. | ||
| 2(b) | – | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. | ||
| Item 3 | – | Exhibits | ||
Certifications – Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| BlackRock MuniYield California Quality Fund, Inc. |
||||||
| By: | /s/ John M. Perlowski |
|||||
| John M. Perlowski | ||||||
| Chief Executive Officer (principal executive officer) of BlackRock MuniYield California Quality Fund, Inc. | ||||||
Date: June 24, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ John M. Perlowski |
|||||
| John M. Perlowski | ||||||
| Chief Executive Officer (principal executive officer) of BlackRock MuniYield California Quality Fund, Inc. | ||||||
| Date: June 24, 2013 | ||||||
| By: | /s/ Neal J. Andrews |
|||||
| Neal J. Andrews | ||||||
| Chief Financial Officer (principal financial officer) of BlackRock MuniYield California Quality Fund, Inc. | ||||||
Date: June 24, 2013