BlackRock MuniYield California Quality Fund, Inc.

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: 07/31/2018

Date of reporting period: 04/30/2018


Item 1 – Schedule of Investments

 


Schedule of Investments  (unaudited)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Municipal Bonds — 89.8%

 

California — 89.8%  
Corporate — 1.8%  

California Pollution Control Financing Authority, RB:

   

Poseidon Resources (Channel Side) LP Desalination Project, AMT,
5.00%, 11/21/45(d)

  $ 2,750     $ 2,914,973  

San Jose Water Company Project, AMT, 4.75%, 11/01/46

    4,000       4,279,760  

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A,
5.88%, 02/15/34

    2,435       2,534,251  
   

 

 

 
      9,728,984  
County/City/Special District/School District — 32.5%  

Chaffey Joint Union High School District, GO, CAB, Election of 2012, Series C(a):

   

0.00%, 08/01/32

    250       148,360  

0.00%, 08/01/33

    500       282,450  

0.00%, 08/01/34

    505       272,347  

0.00%, 08/01/35

    545       280,501  

0.00%, 08/01/36

    500       245,375  

0.00%, 08/01/37

    650       304,174  

0.00%, 08/01/38

    630       281,219  

0.00%, 08/01/39

    750       319,283  

0.00%, 08/01/40

    1,850       752,432  

0.00%, 08/01/41

    305       118,493  

0.00%, 02/01/42

    350       132,787  

City & County of San Francisco California, COP, Port Facilities Project, Series C, AMT,
5.25%, 03/01/32

    1,050       1,160,429  

County of Kern California, COP, Capital Improvements Projects, Series A (AGC),
6.00%, 02/01/19(b)

    2,000       2,063,820  

County of Orange California Sanitation District, COP, Series A, 5.00%, 02/01/19(b)

    2,500       2,562,250  

County of Orange California Water District, COP, Refunding, 5.25%, 08/15/19(b)

    9,045       9,450,306  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 03/01/21(b)

    2,755       3,061,549  

El Monte City School District, GO, Los Angeles Country, California Series B, 5.50%, 08/01/46

    4,265       5,083,368  

Folsom Cordova Unified School District School Facilities Improvement Dist No. 5, GO, Election of 2014, Series C, 4.00%, 10/01/43(c)

    2,820       2,894,815  
Security  

Par

(000)

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

Fowler Unified School District, GO, Election of 2016, Series A (BAM), 5.25%, 08/01/46

  $ 3,700     $ 4,309,279  

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 08/01/37

    2,725       3,079,822  

Gavilan Joint Community College District, GO, Election of 2004, Series D(b):

   

5.50%, 08/01/21

    2,165       2,408,519  

5.75%, 08/01/21

    8,400       9,410,604  

Grossmont California Healthcare District, GO, Election of 2006, Series B, 6.13%, 07/15/21(b)

    2,500       2,822,450  

Grossmont California Union High School District, GO, Election of 2008, Series C, 5.50%, 08/01/21(b)

    1,880       2,091,462  

Imperial Irrigation District, Series A, Electric System Revenue(b):

   

5.13%, 11/01/18

    4,085       4,152,770  

5.13%, 11/01/18

    915       930,180  

Kern Community College District, GO, Safety Repair & Improvements, Series C, 5.25%, 11/01/32

    5,715       6,580,937  

Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC),
5.50%, 04/01/19(b)

    2,075       2,146,753  

Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series A,
5.00%, 08/01/34

    4,500       5,014,665  

Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 08/01/21(b)

    8,140       8,991,851  

Orchard School District, GO, Election of 2001, Series A (AGC), 5.00%, 08/01/19(b)

    7,490       7,787,877  

Perris Union High School District, GO, Election of 2012, Series B (BAM), 5.25%, 09/01/39

    2,715       3,093,118  

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

   

5.50%, 08/01/18

    2,000       2,018,940  

5.63%, 08/01/18

    4,500       4,544,010  

Redlands Unified School District California, GO, Election of 2008 (AGM), 5.25%, 07/01/18(b)

    5,000       5,029,450  

Riverside County Public Financing Authority, Tax Allocation Bonds, Series A (BAM),
4.00%, 10/01/40

    2,455       2,503,241  
 

 

 

     1  


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

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

RNR School Financing Authority, Special Tax Bonds, Community Facilities District No. 92-1, Series A (BAM):

   

5.00%, 09/01/37

  $   1,500     $ 1,689,000  

5.00%, 09/01/41

    3,000       3,357,090  

San Jose California Financing Authority, LRB, Convention Center Expansion & Renovation Project, Series A:

   

5.75%, 05/01/36

    2,570       2,577,556  

5.75%, 05/01/42

    4,500       4,933,440  

San Jose California Financing Authority, Refunding LRB, Civic Center Project,
Series A:

   

5.00%, 06/01/32

    3,375       3,781,991  

5.00%, 06/01/39

    5,800       6,429,242  

San Juan Unified School District, GO, Election of 2002 (AGM), 5.00%, 08/01/20(b)

    6,475       6,926,178  

San Leandro California Unified School District, GO, Election of 2010, Series A,
5.75%, 08/01/41

    3,000       3,327,900  

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC),
5.75%, 09/01/19(b)

    5,600       5,891,648  

Walnut Valley Unified School District, GO, Election of 2007, Series B,
5.75%, 08/01/21(b)

    7,680       8,603,981  

Washington Township Health Care District, GO, Election of 2004, Series B,
5.50%, 08/01/38

    1,625       1,877,817  

West Contra Costa California Unified School District, GO:

   

Election of 2010, Series A (AGM),
5.25%, 08/01/21(b)

    6,140       6,699,354  

Election of 2010, Series B,
5.50%, 08/01/39

    3,000       3,431,940  

Election of 2012, Series A,
5.50%, 08/01/39

    2,500       2,861,275  
   

 

 

 
      168,718,298  
Education — 3.1%  

California Municipal Finance Authority, RB, Emerson College, 6.00%, 01/01/22(b)

    2,750       3,130,407  
Security  

Par

(000)

    Value  
Education (continued)  

California Municipal Finance Authority, Refunding RB, University of La Verne, Series A,
5.00%, 06/01/36

  $ 1,150     $ 1,298,442  

California School Finance Authority, RB, Alliance for College-Ready Public Schools Projects, Series A,
5.00%, 07/01/36(d)

    755       823,539  

California School Finance Authority, Refunding RB, Aspire Public Schools- Obligated Group,
5.00%, 08/01/46(d)

    1,250       1,331,938  

California Statewide Communities Development Authority, Refunding RB:

   

CHF-Irvine LLC, 5.00%, 05/15/33

    2,625       2,929,867  

CHF-Irvine LLC, 5.00%, 05/15/40

    2,250       2,476,328  

University of California, RB, 5.25%, 05/15/36

    3,680       4,203,811  
   

 

 

 
      16,194,332  
Health — 11.7%  

California Health Facilities Financing Authority, RB:

   

Children’s Hospital, Series A,
5.25%, 11/01/41

    10,000       10,992,900  

Providence Health Services, Series B,
5.50%, 10/01/39

    4,205       4,405,452  

Sutter Health, Series B,
6.00%, 08/15/20(b)

    7,715       8,424,549  

California Health Facilities Financing Authority, Refunding RB, Series A:

   

Catholic Healthcare West, 6.00%, 07/01/19(b)

    5,500       5,764,715  

Dignity Health, 6.00%, 07/01/19(b)

    2,370       2,484,068  

Providence St. Joseph Health, 4.00%, 10/01/47

    4,855       4,882,479  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 02/01/42

    4,000       4,351,040  

California Statewide Communities Development Authority, RB:

   

Huntington Memorial Hospital Project,
4.00%, 07/01/48(c)

    1,780       1,770,655  

Sutter Health, Series A, 6.00%, 08/15/20(b)

    5,130       5,601,806  
 

 

 

2   


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Health (continued)            

California Statewide Communities Development Authority, Refunding RB:

   

Trinity Health Credit Group Composite Issue,
5.00%, 12/01/41

  $   2,860     $ 3,129,069  

Front Porch Communities and Services, 4.00%, 04/01/42

    2,595       2,604,601  

Front Porch Communities and Services, 4.00%, 04/01/47

    2,535       2,526,305  

Front Porch Communities and Services, 5.00%, 04/01/47

    3,305       3,636,525  
   

 

 

 
      60,574,164  
State — 6.7%  

State of California, GO, Various Purposes:

   

6.00%, 04/01/19(b)

    4,910       5,097,366  

6.00%, 04/01/38

    8,970       9,303,774  

6.00%, 03/01/33

    5,500       5,920,200  

6.00%, 11/01/39

    3,510       3,722,495  

State of California Public Works Board, LRB:

   

Department of Education, Riverside Campus Project, Series B, 6.50%, 04/01/19(b)

    3,670       3,828,324  

Various Capital Projects, Series I,
5.50%, 11/01/33

    2,575       2,946,701  

Various Capital Projects, Sub-Series I-1, 6.13%, 11/01/19(b)

    3,365       3,582,143  
   

 

 

 
      34,401,003  
Tobacco — 0.2%  

San Diego Tobacco Settlement Revenue Funding Corp., Refunding RB, Sub-Series C,
4.00%, 06/01/32

    860       869,365  
   

 

 

 
Transportation — 22.1%  

Alameda Corridor Transportation Authority, Refunding RB, 2nd Subordinate Lien, Series B, 5.00%, 10/01/35

    1,500       1,662,720  

City & County of San Francisco California Airports Commission, ARB:

   

Series E, 6.00%, 05/01/39

    9,650       10,039,956  

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

    375       376,178  

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

    985       988,014  
Security  

Par

(000)

    Value  
Transportation (continued)  

City & County of San Francisco California Airports Commission, Refunding ARB, AMT:

   

2nd Series 34E (AGM), 5.75%, 05/01/18(b)

  $   3,500     $   3,500,000  

2nd Series A, 5.25%, 05/01/33

    1,900       2,105,390  

Series A, 5.00%, 05/01/40

    3,785       4,136,816  

Series A, 5.00%, 05/01/44

    2,660       2,901,209  

City & County of San Francisco California Airports Commission, Refunding RB, AMT:

   

2nd Series 34E (AGM), 5.75%, 05/01/18(b)

    840       840,000  

Series A, 5.00%, 05/01/47

    7,715       8,601,608  

City of Los Angeles California Department of Airports, ARB:

   

Los Angeles International Airport,
Sub-Series B, 5.00%, 05/15/40

    2,500       2,636,050  

Series D, AMT, 5.00%, 05/15/35

    2,000       2,230,520  

Series D, AMT, 5.00%, 05/15/36

    1,500       1,669,890  

Sub-Series A, AMT, 5.00%, 05/15/47

    2,990       3,339,740  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A,
5.25%, 05/15/29

    4,760       4,929,266  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT:

   

Series A, 5.00%, 03/01/41

    3,075       3,425,119  

Series A, 5.00%, 03/01/47

    6,770       7,502,785  

Series A-1, 6.25%, 03/01/34

    1,400       1,553,090  

County of Sacramento California, Refunding ARB, Senior Series A, 5.00%, 07/01/41

    2,500       2,817,125  

County of Sacramento California, ARB:

   

Senior Series B, AMT (AGM), 5.25%, 07/01/33

    7,000       7,035,560  

Subordinated & Passenger Facility Charges/Grant, Series C (AGC),
5.75%, 07/01/18(b)

    5,555       5,591,774  
 

 

 

     3  


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  
Transportation (continued)  

County of Sacramento California Airport System Revenue, Refunding ARB, Airport System Subordinate Revenue, Sub-Series B,
5.00%, 07/01/41

  $ 1,750     $ 1,963,973  

County of San Bernardino California Transportation Authority, RB, Series A,
5.25%, 03/01/40

    4,500       5,102,055  

County of San Diego California Regional Airport Authority, Refunding ARB, Series B,
5.00%, 07/01/40

    6,350       6,708,330  

County of San Diego Regional Airport Authority, ARB, Subordinate, Series B, AMT,
5.00%, 07/01/42

    10,760       12,033,446  

Los Angeles Harbor Department, RB, Series B,
5.25%, 08/01/19(b)

    2,760       2,879,977  

Port of Los Angeles California Harbor Department, RB, Series B, 5.25%, 08/01/19(b)

    5,530       5,770,389  

Port of Los Angeles California Harbor Department, Refunding RB, Series A, AMT, 5.00%, 08/01/44

    200       218,924  

Sacramento County California Airport System Revenue, Refunding RB, Series C, AMT, 5.00%, 07/01/32(c)

    2,430       2,799,943  
   

 

 

 
      115,359,847  
Utilities — 11.7%  

Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A,
5.38%, 04/01/21(b)

    5,000       5,487,200  

City of Los Angeles California Department of Water & Power, Refunding RB, Water System, Series A, 5.25%, 07/01/39

    8,000       8,692,720  

City of Los Angeles California Wastewater System Revenue, Refunding RB, Sub-Series A:

   

5.00%, 06/01/20(b)

    1,325       1,408,104  

5.00%, 06/01/28

    675       716,769  

City of San Francisco California Public Utilities Commission Water Revenue, RB,
Sub-Series A, 5.00%, 11/01/37

    10,000       10,916,400  

City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB, Series A:

   

5.25%, 11/01/19(b)

    6,280       6,604,362  

5.00%, 11/01/36

    3,335       3,798,298  

Dublin-San Ramon Services District Water Revenue, Refunding RB, 6.00%, 02/01/21(b)

    4,000       4,432,280  
Security  

Par

(000)

    Value  
Utilities (continued)  

East Bay California Municipal Utility District Water System Revenue, Refunding RB, Sub-Series A, 5.00%, 06/01/20(b)

  $ 5,000     $ 5,324,150  

El Dorado Irrigation District/El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 03/01/39

    5,000       5,617,350  

Los Angeles Department of Water, RB, Series A, 5.00%, 07/01/48

    5,000       5,756,300  

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 05/15/19(b)

    2,000       2,073,020  
   

 

 

 
      60,826,953  
   

 

 

 

Total Municipal Bonds — 89.8%
(Cost — $446,568,740)

 

    466,672,946  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

California — 80.9%  
County/City/Special District/School District — 24.2%  

County of Riverside California Public Financing Authority, RB, Capital Facilities Project,
5.25%, 11/01/45

    10,000       11,402,698  

County of San Luis California Obispo Community College District, GO, Refunding Election of 2014, Series A, 4.00%, 08/01/40

    6,585       6,810,014  

County of San Mateo California Community College District, GO, Election of 2014, Series A, 5.00%, 09/01/45

    17,615       20,007,663  

Fremont Union High School District, GO, Refunding Series A, 4.00%, 08/01/46

    5,000       5,187,825  

Los Angeles California Unified School District, GO:

   

Election of 2008, Series B-1,
5.25%, 07/01/42(f)

    7,075       8,393,059  

Series I, 5.00%, 01/01/34

    5,000       5,172,675  

Los Angeles Community College District California, GO, Election of 2003, Series F-1, 5.00%, 08/01/18(b)

    12,000       12,097,980  
 

 

 

4   


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

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

Los Angeles Community College District California, GO, Refunding, Go, Refunding, Election of 2008, Series A,
6.00%, 08/01/19(b)

  $ 9,596     $ 10,096,090  

Palomar Community College District, GO, Election of 2006, Series C, 5.00%, 08/01/44

    15,140       16,951,879  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District No. 2, Series A, 5.00%, 10/01/43

    10,005       11,401,765  

West Valley-Mission Community College District, GO, Election of 2012, Series B,
4.00%, 08/01/40

    17,000       17,693,770  
   

 

 

 
      125,215,418  
Education — 13.9%  

California State University, Refunding RB,
Series A, 5.00%, 11/01/43

    13,002       14,713,589  

Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 08/01/20(b)

    11,000       11,753,775  

University of California, RB:

   

Series AM, 5.25%, 05/15/44

    9,210       10,455,054  

Series O, 5.75%, 05/15/19(b)

    11,192       11,644,116  

University of California, Refunding RB, Series I,
5.00%, 05/15/40

    21,105       23,886,028  
   

 

 

 
      72,452,562  
Health — 17.8%  

California Health Facilities Financing Authority, Refunding RB, Kaiser Permanent, Sub-Series A-2, 4.00%, 11/01/44

    13,280       13,509,080  

California Health Facilities Financing Authority, RB:

   

Lucile Salter Packard Children’s Hospital at Stanford, 5.00%, 11/15/56

    6,000       6,708,820  

Sutter Health, Series A, 4.00%, 11/15/42

    7,500       7,612,950  

Sutter Health, Series A, 5.00%, 08/15/52

    10,000       10,847,300  

California Health Facilities Financing Authority, Refunding RB:

   

Lucile Salter Packard Children’s Hospital, Series B, 5.00%, 08/15/55

    4,500       5,002,166  
Security  

Par

(000)

    Value  
Health (continued)  

California Health Facilities Financing Authority, Refunding RB (continued):

   

Sutter Health, Series A, 5.00%, 08/15/43

  $ 24,940     $ 27,558,700  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 04/01/42

    19,860       21,522,084  
   

 

 

 
      92,761,100  
State — 0.7%  

State of California, GO, Refunding Various Purpose,
5.25%, 10/01/39

    3,000       3,460,830  
   

 

 

 
Transportation — 9.3%  

Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge(f):

   

4.00%, 04/01/42

    11,250       11,642,381  

4.00%, 04/01/49

    6,555       6,738,125  

City of Los Angeles California Department of Airports, ARB:

   

Los Angeles International Airport, Series B, AMT, 5.00%, 05/15/46

    5,000       5,542,100  

Series D, AMT, 5.00%, 05/15/41

    13,312       14,719,130  

City of Los Angeles California Department of Airports, RB, AMT:

   

Los Angeles International Airport, Series B,
5.00%, 05/15/41

    3,641       4,050,317  

Senior Revenue, Series A, 5.00%, 05/15/40

    5,500       6,090,012  
   

 

 

 
      48,782,065  
Utilities — 15.0%  

Anaheim Public Financing Authority, Refunding RB, Anaheim Convention Center Expansion Project, Series A:

   

5.00%, 05/01/39

    6,000       6,681,270  

5.00%, 05/01/46

    13,500       14,954,693  

City & County of San Francisco California Public Utilities Commission, RB, Water Revenue, Series B, 5.00%, 11/01/19(b)

    4,380       4,587,765  

City of Los Angeles California Wastewater System Revenue, RB, Green Bonds, Series A,
5.00%, 06/01/44

    6,290       7,054,990  

City of Sacramento California Water Revenue, RB,
5.25%, 09/01/47

    14,825       17,324,295  

County of San Diego California Water Authority Financing Corp., COP, Refunding Series A (AGM)(b):

   

5.00%, 05/01/18

    1,412       1,411,809  

5.00%, 05/01/18

    7,098       7,098,191  
 

 

 

     5  


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

    Value  

Los Angeles Department of Water, Refunding RB, Series A, 5.00%, 07/01/46

  $ 8,413     $ 9,468,794  

Rancho Water District Financing Authority, Refunding RB, Series A (AGM)(b):

   

5.00%, 08/01/18

    3,729       3,759,545  

5.00%, 08/01/18

    5,548       5,593,720  
   

 

 

 
      77,935,072  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 80.9%
(Cost — $414,639,833)

 

    420,607,047  
   

 

 

 

Total Long-Term Investments — 170.7%
(Cost — $861,208,573)

 

    887,279,993  
   

 

 

 

 

Security

  Shares     Value  

Short-Term Securities — 0.8%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.48%(g)(h)

    4,319,508     $ 4,319,508  

Total Short-Term Securities — 0.8%
(Cost — $4,319,508)

 

    4,319,508  
   

 

 

 

Total Investments — 171.5%
(Cost — $865,528,081)

 

    891,599,501  

Other Assets Less Liabilities — 0.5%

 

    2,487,141  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (40.0)%

 

    (207,994,852

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (32.0)%

 

    (166,236,715
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 519,855,075  
   

 

 

 
 

 

(a) Zero-coupon bond.
(b) U.S. 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) When-issued security.
(d) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(e) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing.
(f) All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between April 1, 2025 to January 1, 2026, is $18,076,869.
(g) Annualized 7-day yield as of period end.
(h) During the period ended April 30, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated   

Shares

Held at

07/31/17

    

Net

Activity

    

Shares

Held at

04/30/18

    

Value at

04/30/18

     Income     

Net

Realized

Gain (Loss)(a)

    

Change in
Unrealized

Appreciation
(Depreciation)

 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     545,574        3,773,934        4,319,508      $ 4,319,508      $ 19,469      $ (1,760    $ (54
              

 

 

    

 

 

    

 

 

 

 

  (a)  Includes net capital gain distributions, if applicable.  

For Fund compliance purposes, the Fund’s sector classifications refer to 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 the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

6   


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
      

Notional

Amount (000)

      

Value /

Unrealized

Appreciation
(Depreciation)

 

Short Contracts:

                 

10-Year U.S. Treasury Note

     126          06/20/18        $ 15,073        $ 86,064  

Long U.S. Treasury Bond

     127          06/20/18          18,268          (3,061

5-Year U.S. Treasury Note

     24          06/29/18          2,724          12,850  
                 

 

 

 
                  $ 95,853  
                 

 

 

 

Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAM    Build America Mutual Assurance Co.
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
GO    General Obligation Bonds
LRB    Lease Revenue Bonds
RB    Revenue Bonds

 

 

     7  


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

    Level 1 — Unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that 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 Fund’s own assumptions used in determining the fair value of investments)

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. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value 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 investments 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, refer to the Fund’s most recent financial statements as contained in its semi-annual report

As of April 30, 2018, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Long-Term Investments(a)

   $        $ 887,279,993        $        $ 887,279,993  

Short-Term Securities

     4,319,508                            4,319,508  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 4,319,508        $ 887,279,993        $        $ 891,599,501  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 98,914        $        $        $ 98,914  

Liabilities:

 

Interest rate contracts

     (3,061                          (3,061
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 95,853        $        $        $ 95,853  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a)  See above Schedule of Investments for values in each sector.  
  (b)  Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.  

 

 

8   


Schedule of Investments  (unaudited) (continued)

April 30, 2018

  

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

      Level 1        Level 2        Level 3        Total  

Liabilities:

 

TOB Trust Certificates

   $        $ (207,177,578      $        $ (207,177,578

VRDP Shares at Liquidation Value

              (166,500,000                 (166,500,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (373,677,578      $        $ (373,677,578
  

 

 

      

 

 

      

 

 

      

 

 

 

During the period ended April 30, 2018, there were no transfers between levels.

 

 

     9  


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 18, 2018  

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 18, 2018  
By:  

/s/ Neal J. Andrews

 
  Neal J. Andrews  
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniYield California Quality Fund, Inc.
Date: June 18, 2018