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: 07/31/2014
Date of reporting period: 10/31/2013
Item 1 – Schedule of Investments
| Schedule of Investments October 31, 2013 (Unaudited) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| California — 91.9% |
||||||||
| Corporate — 0.5% |
| |||||||
| City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34 |
$ | 2,435 | $ | 2,714,051 | ||||
| County/City/Special District/School District — 34.6% |
| |||||||
| Centinela Valley Union High School District, GO, Refunding, Election of 2008, Series B, 6.00%, 8/01/36 |
2,250 | 2,527,043 | ||||||
| Coast Community College District, GO, Refunding, Election of 2012, Series A, 5.00%, 8/01/38 |
6,140 | 6,483,963 | ||||||
| County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35 |
2,000 | 2,248,560 | ||||||
| Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/37 |
2,565 | 2,755,118 | ||||||
| Grossmont Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/40 |
2,500 | 2,831,850 | ||||||
| Grossmont Union High School District, GO, Election of 2008, Series C, 5.50%, 8/01/33 |
1,880 | 2,063,582 | ||||||
| Kern Community College District, GO, Safety Repair & Improvements, Series C, 5.25%, 11/01/32 |
5,715 | 6,284,214 | ||||||
| Los Angeles Community Redevelopment Agency California, RB, Bunker Hill Project, Series A (AGM), 5.00%, 12/01/27 |
7,000 | 7,265,650 | ||||||
| Los Angeles County Metropolitan Transportation Authority, Refunding RB, Proposition A, First Tier, Senior Series A (AMBAC), 5.00%, 7/01/27 |
4,000 | 4,199,680 | ||||||
| Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/39 |
2,045 | 2,244,244 | ||||||
| Los Rios Community College District, GO, Election of 2008, Series B: |
||||||||
| 5.00%, 8/01/30 |
1,905 | 2,059,038 | ||||||
| 5.00%, 8/01/31 |
3,200 | 3,434,688 | ||||||
| Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series A, 5.00%, 8/01/34 |
4,500 | 4,792,725 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
||||||||
| County/City/Special District/School District (continued) |
| |||||||
| Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/41 |
$ | 8,140 | $ | 8,666,658 | ||||
| Orange County Sanitation District, COP, Series A, 5.00%, 2/01/35 |
2,500 | 2,687,550 | ||||||
| Orange County Water District, COP, Refunding, 5.25%, 8/15/34 |
9,045 | 9,838,608 | ||||||
| Orchard School District, GO, Election of 2001, Series A (AGC), 5.00%, 8/01/34 |
7,490 | 7,890,565 | ||||||
| Oxnard Union High School District California, GO, Refunding, Series A (NPFGC), 6.20%, 8/01/30 |
9,645 | 10,424,702 | ||||||
| Pittsburg Unified School District, GO, Election of 2006 Series B (AGM): |
||||||||
| 5.50%, 8/01/34 |
2,000 | 2,190,840 | ||||||
| 5.63%, 8/01/39 |
4,500 | 4,918,230 | ||||||
| Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 7/01/33 |
5,000 | 5,363,450 | ||||||
| San Diego Community College District California, GO, Election of 2006, 5.00%, 8/01/43 |
2,145 | 2,265,163 | ||||||
| San Jose California Financing Authority, Series A, LRB, Convention Center Expansion & Renovation Project: |
||||||||
| 5.75%, 5/01/36 |
2,570 | 2,758,073 | ||||||
| 5.75%, 5/01/42 |
4,500 | 4,866,615 | ||||||
| San Jose California Financing Authority, Refunding LRB: |
||||||||
| Civic Center Project, 5.00%, 6/01/32 |
3,375 | 3,575,171 | ||||||
| Convention Center Expansion & Renovation Project, 5.00%, 6/01/39 |
21,325 | 22,079,692 | ||||||
| San Juan Unified School District, GO, Election of 2002 (AGM), 5.00%, 8/01/34 |
6,475 | 6,819,081 | ||||||
| San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41 |
3,000 | 3,265,350 | ||||||
| Santa Maria Joint Union High School District, GO, Election of 2004, 5.00%, 8/01/33 |
3,710 | 3,975,896 | ||||||
| Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38 |
5,600 | 6,252,008 | ||||||
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | OCTOBER 31, 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) |
||||||||
| County/City/Special District/School District (concluded) |
| |||||||
| Southwestern Community College District, GO, Election of 2008, Series C, 5.25%, 8/01/36 |
$ | 2,775 | $ | 2,956,430 | ||||
| Walnut Valley Unified School District, GO, Election of 2007, Series B, 5.75%, 8/01/41 |
7,680 | 8,492,083 | ||||||
| West Contra Costa California Unified School District, GO: |
||||||||
| Election of 2010, Series A (AGM), 5.25%, 8/01/41 |
6,140 | 6,429,869 | ||||||
| Election of 2010, Series B, 5.50%, 8/01/39 (a) |
3,000 | 3,178,530 | ||||||
| Election of 2012, Series A, 5.50%, 8/01/39 (a) |
2,500 | 2,660,850 | ||||||
|
|
|
|||||||
| 180,745,769 | ||||||||
| Education — 4.3% |
||||||||
| California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42 |
2,500 | 2,734,075 | ||||||
| Gavilan Joint Community College District, GO, Election of 2004, Series D: |
||||||||
| 5.50%, 8/01/31 |
2,165 | 2,408,411 | ||||||
| 5.75%, 8/01/35 |
8,400 | 9,430,176 | ||||||
| University of California, Refunding RB, Limited Project, Series G: |
||||||||
| 5.00%, 5/15/37 |
7,450 | 7,813,858 | ||||||
|
|
|
|||||||
| 22,386,520 | ||||||||
| Health — 14.5% |
||||||||
| ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare, Series A, 6.00%, 8/01/30 |
2,345 | 2,659,746 | ||||||
| California Health Facilities Financing Authority, RB: |
||||||||
| Children’s Hospital, Series A, 5.25%, 11/01/41 |
8,500 | 8,605,145 | ||||||
| Providence Health Services, Series B, 5.50%, 10/01/39 |
4,105 | 4,508,932 | ||||||
| Sutter Health, Series A, 5.25%, 11/15/46 |
6,970 | 7,000,041 | ||||||
| Sutter Health, Series B, 6.00%, 8/15/42 |
7,715 | 8,898,018 | ||||||
| California Health Facilities Financing Authority, Refunding RB: |
||||||||
| Catholic Healthcare West, Series A, 6.00%, 7/01/34 |
2,220 | 2,442,999 | ||||||
| Catholic Healthcare West, Series A, 6.00%, 7/01/39 |
5,500 | 5,994,285 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
||||||||
| Health (concluded) |
||||||||
| California Health Facilities Financing Authority, Refunding RB (concluded): |
||||||||
| Stanford Hospital, Series A-3, 5.50%, 11/15/40 |
$ | 3,000 | $ | 3,190,020 | ||||
| California Statewide Communities Development Authority, RB: |
||||||||
| Kaiser Permanente, Series A, 5.00%, 4/01/42 |
18,000 | 18,134,460 | ||||||
| Kaiser Permanente, Series B, 5.25%, 3/01/45 |
6,000 | 6,044,040 | ||||||
| Sutter Health, Series A, 6.00%, 8/15/42 |
4,460 | 5,091,536 | ||||||
| California Statewide Communities Development Authority, Refunding RB: |
||||||||
| Catholic Healthcare West, Series D (BHAC), 5.50%, 7/01/31 |
865 | 942,348 | ||||||
| Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41 |
2,000 | 2,010,480 | ||||||
|
|
|
|||||||
| 75,522,050 | ||||||||
| Housing — 0.0% |
||||||||
| California Rural Home Mortgage Finance Authority, Mortgage-Backed Securities Program, RB, Series A, AMT (Ginnie Mae), 6.35%, 12/01/29 |
40 | 40,385 | ||||||
| County of San Bernardino California, Refunding RB, Home Mortgage-Backed Securities, Series A-1, AMT (Ginnie Mae), 6.25%, 12/01/31 |
80 | 85,416 | ||||||
|
|
|
|||||||
| 125,801 | ||||||||
| State — 7.8% |
||||||||
| California State Public Works Board, RB: |
||||||||
| Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34 |
3,670 | 4,216,169 | ||||||
| Various Capital Projects, Sub-Series I-1, 6.13%, 11/01/29 |
3,360 | 3,901,598 | ||||||
| State of California, GO, Various Purposes: |
||||||||
| 6.00%, 3/01/33 |
7,000 | 8,185,170 | ||||||
| 6.00%, 4/01/38 |
17,615 | 20,058,905 | ||||||
| 6.00%, 11/01/39 |
3,510 | 4,044,749 | ||||||
|
|
|
|||||||
| 40,406,591 | ||||||||
| 2 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | OCTOBER 31, 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 (continued) |
| |||||||
| Transportation — 14.4% |
| |||||||
| Bay Area Toll Authority, RB, San Francisco Bay Area Toll Bridge, Series C-1, 0.98%, 4/01/45 (b) |
$ | 2,600 | $ | 2,618,174 | ||||
| City & County of San Francisco Airports Commission, ARB, Series E, 6.00%, 5/01/39 |
9,650 | 10,978,515 | ||||||
| City & County of San Francisco Airports Commission, RB, Special Facility Lease SFO Fuel Series A AMT (AGM): |
||||||||
| 6.13%, 1/01/27 |
985 | 988,477 | ||||||
| 6.10%, 1/01/20 |
1,000 | 1,004,280 | ||||||
| City & County of San Francisco Airports Commission, Refunding ARB, Second Series A, AMT, 5.25%, 5/01/33 |
1,435 | 1,493,806 | ||||||
| City & County of San Francisco Airports Commission, Refunding RB, AMT (AGM) Second Series 34E: |
||||||||
| 5.75%, 5/01/24 |
5,000 | 5,673,650 | ||||||
| 5.75%, 5/01/25 |
3,500 | 3,955,665 | ||||||
| City of Los Angeles Department of Airports, RB, Los Angeles International Airport, Sub-Series B, 5.00%, 5/15/40 |
2,500 | 2,562,975 | ||||||
| City of Los Angeles Department of Airports, Refunding RB, Los Angeles International Airport, Senior Series A, 5.25%, 5/15/29 |
3,760 | 4,157,244 | ||||||
| City of San Jose California, Refunding ARB, Series A-1, AMT, 6.25%, 3/01/34 |
1,400 | 1,554,252 | ||||||
| County of Orange California, ARB, Series B, 5.75%, 7/01/34 |
5,000 | 5,486,650 | ||||||
| County of Sacramento California, ARB: |
||||||||
| Subordinated & Passenger Facility Charges/Grant, Series C (AGC), 5.75%, 7/01/39 |
5,555 | 6,178,327 | ||||||
| Senior Series B, AMT (AGM), 5.25%, 7/01/33 |
7,555 | 7,835,668 | ||||||
| County of San Joaquin Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/36 |
2,415 | 2,773,048 | ||||||
| Los Angeles Harbor Department, RB, Series B: |
||||||||
| 5.25%, 8/01/34 |
5,530 | 6,053,691 | ||||||
| 5.25%, 8/01/39 |
2,535 | 2,761,756 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (continued) |
| |||||||
| Transportation (concluded) |
| |||||||
| San Diego County Regional Airport Authority, Refunding RB: |
||||||||
| Series B, 5.00%, 7/01/40 |
$ | 6,350 | $ | 6,396,101 | ||||
| Sub-Series A, 5.00%, 7/01/40 |
2,790 | 2,818,151 | ||||||
|
|
|
|||||||
| 75,290,430 | ||||||||
| Utilities — 15.8% |
| |||||||
| Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36 |
5,000 | 5,477,650 | ||||||
| City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A: |
||||||||
| 5.00%, 6/01/28 |
2,000 | 2,203,000 | ||||||
| 5.00%, 6/01/32 |
2,000 | 2,138,020 | ||||||
| 5.00%, 6/01/34 |
4,000 | 4,309,080 | ||||||
| 5.00%, 6/01/35 |
8,000 | 8,539,440 | ||||||
| City of Manteca California, Refunding RB, Water, 5.00%, 7/01/33 |
2,985 | 3,156,816 | ||||||
| City of San Francisco California, Refunding RB, Public Utilities Water Commission, Series A, 5.25%, 11/01/31 |
6,280 | 6,881,373 | ||||||
| Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41 |
4,000 | 4,596,440 | ||||||
| East Bay Municipal Utility District, Refunding RB: |
||||||||
| Series A (NPFGC), 5.00%, 6/01/37 |
4,000 | 4,228,680 | ||||||
| Sub-Series A, 5.00%, 6/01/30 |
5,000 | 5,467,900 | ||||||
| Sub-Series A (AGM), 5.00%, 6/01/37 |
10,000 | 10,571,700 | ||||||
| Sub-Series A (AMBAC), 5.00%, 6/01/33 |
3,000 | 3,240,150 | ||||||
| Imperial Irrigation District, Refunding RB, Electric System, 5.13%, 11/01/38 |
5,745 | 5,989,450 | ||||||
| Los Angeles Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39 |
8,000 | 8,550,480 | ||||||
| San Diego County Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/38 |
4,895 | 5,143,960 | ||||||
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | OCTOBER 31, 2013 | 3 |
| 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 (concluded) |
| |||||||
| San Diego Public Facilities Financing Authority, Refunding RB, Sewer Improvements, Senior Series A, 5.25%, 5/15/34 |
$ | 2,000 | $ | 2,143,860 | ||||
|
|
|
|||||||
| 82,637,999 | ||||||||
| Total Municipal Bonds — 91.9% | 479,829,211 | |||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (c) |
||||||||
| California — 70.7% |
| |||||||
| County/City/Special District/School District — 30.7% |
| |||||||
| Arcadia Unified School District California, GO, Election of 2006, Series A (AGM), 5.00%, 8/01/37 |
7,925 | 8,124,832 | ||||||
| Desert Community College District California, GO, Series C (AGM), 5.00%, 8/01/37 |
12,150 | 12,596,512 | ||||||
| Los Angeles Community College District California, GO: |
||||||||
| Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 |
26,438 | 27,891,315 | ||||||
| Election of 2001, Series A (AGM), 5.00%, 8/01/32 |
12,000 | 12,659,880 | ||||||
| Election of 2003, Series E (AGM), 5.00%, 8/01/31 |
7,497 | 7,970,937 | ||||||
| Election of 2003, Series F-1, 5.00%, 8/01/33 |
12,000 | 12,681,840 | ||||||
| Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33 |
9,596 | 11,051,002 | ||||||
| Los Angeles County Metropolitan Transportation Authority, Refunding RB, Proposition A, First Tier, Senior Series A (AMBAC), 5.00%, 7/01/35 |
6,828 | 7,141,783 | ||||||
| Los Angeles County Sanitation Districts Financing Authority, Refunding RB, Capital Project 14 (BHAC), 5.00%, 10/01/34 |
4,998 | 5,182,590 | ||||||
| Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |
5,000 | 5,193,750 | ||||||
| Poway Unified School District, GO, Election of 2002, Improvement District 02, Series 1-B (AGM), 5.00%, 8/01/30 |
10,000 | 10,641,900 | ||||||
| Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (c) |
Par (000) |
Value | ||||||
| California (continued) |
| |||||||
| County/City/Special District/School District (concluded) |
| |||||||
| San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31 |
$ | 7,550 | $ | 8,026,707 | ||||
| San Francisco Bay Area Rapid Transit District, Refunding RB, Series A (NPFGC): |
||||||||
| 5.00%, 7/01/30 |
19,630 | 20,522,576 | ||||||
| 5.00%, 7/01/34 |
10,497 | 10,974,427 | ||||||
|
|
|
|||||||
| 160,660,051 | ||||||||
| Education — 16.0% |
| |||||||
| California State University, Refunding RB, Systemwide, Series C (NPFGC), 5.00%, 11/01/35 |
20,000 | 20,677,800 | ||||||
| Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35 |
11,000 | 11,711,370 | ||||||
| University of California, RB: |
||||||||
| Limited Project, Series D (AGM), 5.00%, 5/15/41 |
8,000 | 8,205,760 | ||||||
| Series L, 5.00%, 5/15/40 |
7,398 | 7,698,120 | ||||||
| Series O, 5.75%, 5/15/34 |
11,190 | 12,635,039 | ||||||
| University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 |
21,782 | 22,845,881 | ||||||
|
|
|
|||||||
| 83,773,970 | ||||||||
| Transportation — 1.0% |
| |||||||
| City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40 |
4,999 | 5,096,785 | ||||||
| Utilities — 23.0% |
| |||||||
| City of Napa California Water System, RB, (AMBAC), 5.00%, 5/01/35 |
9,070 | 9,333,665 | ||||||
| East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35 |
15,000 | 15,658,500 | ||||||
| East Bay Municipal Utility District, Refunding RB, Sub-Series A (AMBAC), 5.00%, 6/01/37 |
7,990 | 8,590,928 | ||||||
| Los Angeles Department of Water & Power, RB, Power System: |
||||||||
| Sub-Series A-1 (AGM), 5.00%, 7/01/37 |
13,525 | 14,119,637 | ||||||
| Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 |
5,029 | 5,272,554 | ||||||
| 4 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | OCTOBER 31, 2013 |
| 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 (c) |
Par (000) |
Value | ||||||||
| California (concluded) |
| |||||||||
| Utilities (concluded) |
| |||||||||
| Los Angeles Department of Water & Power, RB, Power System (concluded): |
||||||||||
| Sub-Series A-2 (AGM), 5.00%, 7/01/35 |
$ | 7,500 | $ | 7,940,100 | ||||||
| Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37 |
15,000 | 16,061,550 | ||||||||
| Rancho Water District Financing Authority, Refunding RB, Series A (AGM), 5.00%, 8/01/34 |
9,277 | 9,718,109 | ||||||||
| San Diego County Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/33 |
8,510 | 9,047,066 | ||||||||
| San Francisco City & County Public Utilities Commission, RB, Water System Improvement Project, Sub-Series A, 5.00%, 11/01/37 |
22,997 | 24,267,749 | ||||||||
|
|
|
|||||||||
| 120,009,858 | ||||||||||
| Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts — 70.7% | 369,540,664 | |||||||||
| Total Long-Term Investments (Cost — $821,671,670) — 162.6% |
849,369,875 | |||||||||
| Short-Term Securities | Shares | Value | ||||||||
| BIF California Municipal Money Fund, 0.00% (d)(e) |
3,553,478 | $ | 3,553,478 | |||||||
| Total Short-Term Securities (Cost — $3,553,478) — 0.7% |
3,553,478 | |||||||||
| Total Investments (Cost — $825,225,148*) — 163.3% |
852,923,353 | |||||||||
| Other Assets Less Liabilities — 2.7% | 14,296,650 | |||||||||
| Liability for TOB Trust Certificates, Including |
|
(178,321,135 | ) | |||||||
| VRDP Shares, at Liquidation Value — (31.9%) | (166,500,000 | ) | ||||||||
|
|
|
|||||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 522,398,868 | ||||||||
|
|
|
|||||||||
| * As of October 31, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:
| ||||||
| Tax cost |
$ | 646,715,766 | ||||||
|
|
|
|||||||
| Gross unrealized appreciation |
$ | 34,152,696 | ||||||
| Gross unrealized depreciation |
(6,231,049 | ) | ||||||
|
|
|
|||||||
| Net unrealized appreciation |
$ | 27,921,647 | ||||||
|
|
|
|||||||
| Notes to Schedule of Investments |
| (a) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value | Unrealized Appreciation |
||||||
| Piper Jaffray | $ | 5,839,380 | $ | 86,490 | ||||
| (b) | Variable rate security. Rate shown is as of report date. |
| (c) | Represent bonds transferred to a TOB. In exchange the Fund acquired residual interest certificates. These bonds serve as collateral in a financing transaction. |
| (d) | Investments in issuers considered to be an affiliate of the Fund during the period ended October 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| Affiliate |
Shares Held at July 31, 2013 |
Net Activity |
Shares Held at October 31, 2013 |
Income | ||||||||||||
| BIF California Municipal Money Fund |
2,379,292 | 1,174,186 | 3,553,478 | — | ||||||||||||
| (e) | Represents the current yield as of report date |
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | OCTOBER 31, 2013 | 5 |
| Schedule of Investments (continued) | BlackRock MuniYield California Quality Fund, Inc. (MCA) |
| 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 Guarantee 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. | |||||||
| COP | Certificates of Participation | |||||||
| Ginnie Mae | Government National Mortgage Association | |||||||
| GO | General Obligation Bonds | |||||||
| LRB | Lease Revenue Bonds | |||||||
| NPFGC | National Public Finance Guarantee Corp. | |||||||
| RB | Revenue Bonds |
| Ÿ | Financial futures contracts as of October 31, 2013 were as follows: |
| Contracts Sold |
Issue | Exchange | Expiration |
Notional Value |
Unrealized Depreciation |
|||||||||||
| (330 | ) | 10-Year US Treasury Note | Chicago Board of Trade | December 2013 | $ | 42,028,594 | $ | (384,578 | ) | |||||||
| Ÿ | 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 rating 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. |
| Ÿ | 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: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access |
| Ÿ | 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) |
| Ÿ | 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 fair value hierarchy classification 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, please refer to the Fund’s most recent financial statements as contained in its annual report.
| 6 | BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | OCTOBER 31, 2013 |
| Schedule of Investments (concluded) |
BlackRock MuniYield California Quality Fund, Inc. (MCA) |
The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy as of October 31, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets: |
||||||||||||||
| Investments: |
||||||||||||||
| Long-Term Investments 1 |
— | $ | 849,369,875 | — | $ | 849,369,875 | ||||||||
| Short-Term Securities |
$ | 3,553,478 | — | — | 3,553,478 | |||||||||
|
|
|
|||||||||||||
| Total |
$ | 3,553,478 | $ | 849,369,875 | — | $ | 852,923,353 | |||||||
|
|
|
|||||||||||||
| 1 See above Schedule of Investments for values in each sector. |
| |||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Derivative Financial Instruments 2 |
||||||||||||||
| Liabilities: |
||||||||||||||
| Interest rate contracts |
$ | (384,578 | ) | — | — | $ | (384,578 | ) | ||||||
| 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/or liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of October 31, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets: |
||||||||||||||
| Cash |
$ | 145,562 | — | — | $ | 145,562 | ||||||||
| Cash pledged for financial futures contracts |
585,000 | — | — | 585,000 | ||||||||||
| Liabilities: |
||||||||||||||
| TOB trust certificates |
— | $ | (178,285,940 | ) | — | (178,285,940 | ) | |||||||
| VRDP Shares |
— | (166,500,000 | ) | — | (166,500,000 | ) | ||||||||
|
|
|
|||||||||||||
| Total |
$ | 730,562 | $ | (344,785,940 | ) | — | $ | (344,055,378 | ) | |||||
|
|
|
|||||||||||||
There were no transfers between levels during the period ended October 31, 2013.
| BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. | OCTOBER 31, 2013 | 7 |
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: December 23, 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: | December 23, 2013 | |
| By: | /s/ Neal J. Andrews | |
| Neal J. Andrews | ||
| Chief Financial Officer (principal financial officer) of | ||
| BlackRock MuniYield California Quality Fund, Inc. | ||
| Date: | December 23, 2013 | |