N-Q 1 d376182dnq.htm BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC. 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: 07/31/2017

Date of reporting period: 4/30/2017

Item 1 – Schedule of Investments

Schedule of Investments April 30, 2017 (Unaudited)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

     Value  

California — 91.7%

                 

Corporate — 1.3%

     

California Pollution Control Financing Authority, RB, San Jose Water Company Project, AMT, 4.75%, 11/01/46

    $ 4,000     $ 4,232,080  

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

      2,435       2,650,230  
    

 

 

  
               6,882,310  

County/City/Special District/School District — 35.9%

 

Arcadia Unified School District, GO, Election of 2006, Series A, 5.00%, 8/01/37

      7,925       7,940,454  

Banning Unified School District, GO, Election of 2016, Series A (AGM), 5.25%, 8/01/42

      3,235       3,792,326  

City & County of San Francisco California, COP, Port Facilities Project, Series C, AMT, 5.25%, 3/01/32

      1,050       1,182,877  

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 2/01/19 (a)

      2,000       2,174,740  

County of Orange California Sanitation District, COP, Series A, 5.00%, 2/01/19 (a)

      2,500       2,674,950  

County of Orange California Water District, COP, Refunding, 5.25%, 8/15/19 (a)

      9,045       9,912,506  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 3/01/21 (a)

      2,755       3,236,050  

El Monte City School District, GO, Los Angeles Country, California Series B, 5.50%, 8/01/46

      4,265       5,113,522  

Fowler Unified School District, GO, Election of 2016, Series A (BAM), 5.25%, 8/01/46

      3,700       4,302,360  

Garden Grove Unified School District, GO, Election of 2010, Series C, 5.25%, 8/01/37

      2,725       3,127,619  

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

     

5.50%, 8/01/31

      2,165       2,493,582  

5.75%, 8/01/35

      8,400       9,623,040  
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

 

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

 

Grossmont California Healthcare District, GO, Election of 2006, Series B, 6.13%, 7/15/21 (a)

    $ 2,500     $ 2,993,450  

Grossmont Union High School District, GO, Election of 2008, Series C, 5.50%, 8/01/33

      1,880       2,150,363  

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

     

5.13%, 11/01/18

      4,085       4,348,278  

5.13%, 11/01/18

      915       973,972  

Inglewood Redevelopment Agency Successor Agency, Refunding, Tax Allocation Bonds, Subordinate Lien Merged Redevelopment Project, Series A (BAM), 5.00%, 5/01/38

      250       280,310  

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

      5,715       6,691,008  

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/17 (a)

      14,000       14,153,160  

Los Angeles Municipal Improvement Corp., Refunding LRB, Real Property, Series B (AGC), 5.50%, 4/01/19 (a)

      2,075       2,253,201  

Mount San Antonio Community College District, GO, Refunding, Election of 2008, Series A, 5.00%, 8/01/34

      4,500       5,119,875  

Ohlone Community College District, GO, Election of 2010, Series A, 5.25%, 8/01/21 (a)

      8,140       9,466,332  

Orchard School District, GO, Election of 2001, Series A (AGC), 5.00%, 8/01/19 (a)

      7,490       8,157,209  

Perris Union High School District, GO, Election of 2012, Series B, 5.25%, 9/01/39

      2,715       3,119,535  

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

     

5.50%, 8/01/34

      2,000       2,110,860  

5.63%, 8/01/18 (a)

      4,500       4,768,110  

Poway Unified School District Public Financing Authority, Refunding, Series A, 5.00%, 9/01/29

      1,735       1,970,370  
 

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    1

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

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

 

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

    $ 5,000     $ 5,244,250  

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

      2,455       2,467,373  

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

     

5.75%, 5/01/36

      2,570       2,578,018  

5.75%, 5/01/42

      4,500       5,135,760  

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

     

5.00%, 6/01/32

      3,375       3,865,354  

5.00%, 6/01/39

      5,800       6,520,302  

San Juan Unified School District, GO, Election of 2002 (AGM), 5.00%, 8/01/20 (a)

      6,475       7,268,382  

San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 8/01/41

      3,000       3,472,560  

Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/19 (a)

      5,600       6,211,240  

Vacaville Unified School District, GO, Election of 2014, Series B, 4.00%, 8/01/42 (b)

      1,500       1,541,820  

Walnut Valley Unified School District, GO, Election of 2007, Series B, 5.75%, 8/01/21 (a)

      7,680       9,089,894  

West Contra Costa California Unified School District, GO:

     

Election of 2010, Series A (AGM), 5.25%, 8/01/41

      6,140       6,955,208  

Election of 2010, Series B, 5.50%, 8/01/39

      3,000       3,506,910  

Election of 2012, Series A, 5.50%, 8/01/39

      2,500       2,922,425  
    

 

 

  
               190,909,555  

Education — 2.9%

 

California Municipal Finance Authority, RB, Emerson College, 6.00%, 1/01/42

      2,750       3,130,380  
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

                 

Education (continued)

 

California Municipal Finance Authority, Refunding RB:

     

Biola University, 5.00%, 10/01/37

    $ 500     $ 561,310  

Biola University, 5.00%, 10/01/39

      500       559,000  

University of La Verne, Series A,
5.00%, 6/01/36

      1,150       1,299,742  

California School Finance Authority, RB, Alliance for College-Ready Public Schools Projects, Series A, 5.00%, 7/01/36 (c)

      755       789,473  

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

     

5.00%, 9/01/37

      1,500       1,677,900  

5.00%, 9/01/41

      3,000       3,340,620  

University of California, RB, 5.25%, 5/15/36

      3,680       4,324,920  
    

 

 

  
               15,683,345  

Health — 9.7%

 

California Health Facilities Financing Authority, RB:

     

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

      10,000       11,102,500  

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

      4,205       4,559,944  

Sutter Health, Series B, 6.00%, 8/15/42

      7,715       8,768,792  

California Health Facilities Financing Authority, Refunding RB, Series A (a):

     

Catholic Healthcare West, 6.00%, 7/01/19

      5,500       6,090,095  

Dignity Health, 6.00%, 7/01/19

      2,370       2,624,277  

California Municipal Finance Authority, Refunding RB, Community Medical Centers, Series A, 5.00%, 2/01/42

      4,000       4,405,240  

California Statewide Communities Development Authority, RB, Sutter Health, Series A, 6.00%, 8/15/42

      5,130       5,816,599  
 

 

                
2    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

 

Health (continued)

 

California Statewide Communities Development Authority, Refunding RB:

     

Catholic Healthcare West, Series D (BHAC), 5.50%, 7/01/17 (a)

    $ 865     $ 871,583  

CHF-Irvine LLC, 5.00%, 5/15/40

      2,250       2,433,555  

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

      2,860       3,173,513  

Washington Township Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/38

      1,625       1,912,463  
    

 

 

  
               51,758,561  

State — 7.5%

 

State of California, GO, Various Purposes:

     

6.00%, 3/01/33

      5,500       6,202,350  

6.00%, 4/01/38

      17,180       18,800,761  

6.00%, 11/01/39

      3,510       3,932,007  

State of California Public Works Board, LRB:

     

Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34

      3,670       4,034,027  

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

      2,575       3,065,280  

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

      3,365       3,785,760  
    

 

 

  
               39,820,185  

Transportation — 18.9%

 

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

      1,500       1,677,990  

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

     

Series E, 6.00%, 5/01/39

      9,650       10,582,769  

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

      545       547,273  

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

      985       989,068  
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

 

Transportation (continued)

 

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

     

2nd Series 34E (AGM), 5.75%, 5/01/18 (a)

    $ 3,500     $ 3,650,115  

2nd Series A, 5.25%, 5/01/33

      1,900       2,120,153  

Series A, 5.00%, 5/01/40

      3,785       4,137,611  

Series A, 5.00%, 5/01/44

      2,660       2,904,348  

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

     

2nd Series 32, 5.75%, 5/01/18 (a)

      2,285       2,394,886  

Balance 2nd, 5.75%, 5/01/24

      2,715       2,842,931  

City of Los Angeles California Department of Airports, ARB:

     

AMT, Series D, 5.00%, 5/15/35

      2,000       2,250,580  

AMT, Series D, 5.00%, 5/15/36

      1,500       1,680,030  

Los Angeles International Airoport, Sub-Series B, 5.00%, 5/15/40

      2,500       2,758,350  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport, Senior Series A, 5.25%, 5/15/29

      4,760       5,161,125  

City of San Jose California, Refunding ARB, AMT:

     

Series A , 5.00%, 3/01/41

      3,075       3,439,787  

Series A , 5.00%, 3/01/47

      6,770       7,537,447  

Series A-1, 6.25%, 3/01/34

      1,400       1,628,816  

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

      5,000       5,041,650  

County of Sacramento California, ARB:

     

Senior Series B, AMT (AGM), 5.25%, 7/01/33

      7,000       7,316,610  

Subordinated & Passenger Facility Charges/Grant, Series C (AGC), 5.75%, 7/01/18 (a)

      5,555       5,875,190  

County of Sacramento California, Refunding ARB, Senior Series A, 5.00%, 7/01/41

      2,500       2,794,075  

County of Sacramento California Airport System Revenue, Refunding ARB, Airport System Subordinate Revenue, Sub-Series B, 5.00%, 7/01/41

      1,750       1,950,042  
 

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    3

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

Municipal Bonds   

Par  

(000)

     Value  

California (continued)

 

Transportation (continued)

 

County of San Bernardino California Transportation Authority, RB, Series A, 5.25%, 3/01/40

    $ 4,500     $ 5,184,990  

County of San Diego California Regional Airport Authority, Refunding ARB, Series B, 5.00%, 7/01/40

      6,350       6,951,535  

Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/19 (a)

      2,760       3,020,572  

Port of Los Angeles California Harbor Department, RB, Series B, 5.25%, 8/01/19 (a)

      5,530       6,052,087  

Port of Los Angeles California Harbor Department, Refunding RB, Series A, AMT, 5.00%, 8/01/44

      200       219,476  
    

 

 

  
               100,709,506  

Utilities — 15.5%

 

Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36

      5,000       5,639,500  

City of Los Angeles California Department of Water & Power, Refunding RB, Series A:

     

5.25%, 7/01/39

      8,000       9,056,320  

5.00%, 7/01/46

      50       56,971  

City of Los Angeles California Wastewater System, Refunding RB, Sub-Series A, 5.00%, 6/01/28

      2,000       2,218,100  

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

      10,000       11,344,800  

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

     

5.25%, 11/01/19 (a)

      6,280       6,929,540  

5.00%, 11/01/36

      3,335       3,834,850  
Municipal Bonds   

Par  

(000)

     Value  

California (continued)

 

Utilities (continued)

 

County of San Diego California Water Authority, COP, Refunding, Series A (AGM), 5.00%, 5/01/18 (a)

    $ 4,895     $ 5,100,688  

Dublin-San Ramon Services District Water Revenue, Refunding RB, 6.00%, 8/01/41

      4,000       4,625,480  

East Bay California Municipal Utility District Water System Revenue, Refunding RB, Sub-Series A, 5.00%, 6/01/30

      5,000       5,554,750  

El Dorado Irrigation District / El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 3/01/39

      5,000       5,737,600  

Los Angeles Department of Water & Power, RB, Sub Series A-1 (AMBAC), 5.00%, 7/01/37

      5,025       5,061,783  

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

      15,000       15,104,550  

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 5/15/19 (a)

      2,000       2,172,140  
    

 

 

  
               82,437,072  
Total Municipal Bonds — 91.7%       488,200,534  
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

        

California — 75.2%

 

County/City/Special District/School District — 26.9%

 

City of Los Angeles Department of Airports, RB, Los Angeles International Airport, AMT, Series B, 5.00%, 5/15/46

      5,000       5,540,400  

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

      10,000       11,500,281  

County of San Luis California Obispo Community College District, GO, Refunding, Election of 2014, Series A, 4.00%, 8/01/40

      6,585       6,752,450  
 

 

                
4    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

   

Par  

(000)

     Value  

California (continued)

 

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

 

County of San Mateo California Community College District, GO, Series A, 5.00%, 9/01/45

    $ 17,615     $ 20,113,323  

Los Angeles Community College District California, GO (a):

     

Election of 2001, Series A (AGM), 5.00%, 8/01/17

      12,000       12,131,280  

Election of 2003, Series F-1, 5.00%, 8/01/17

      12,000       12,629,280  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a)

      9,596       10,662,058  

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

      5,000       5,393,750  

Los Rios Community College District, GO, Election of 2008, Series A, 5.00%, 8/01/35

      11,000       12,110,670  

Palomar California Community College District, GO, Election of 2006, Series C, 5.00%, 8/01/44

      15,140       17,162,098  

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

      10,005       11,381,588  

West Valley-Mission Community College District, GO, Election of 2012, Series B, 4.00%, 8/01/40

      17,000       17,753,270  
    

 

 

  
        143,130,448  

Education — 11.6%

 

University of California, RB:

     

Series AM, 5.25%, 5/15/44

      9,210       10,669,417  

Series O, 14.43%, 5/15/34 (c)(e)

      11,193       12,261,804  

University of California, Refunding RB:

     

Series A, 5.00%, 11/01/43

      13,002       14,815,833  

Series I, 5.00%, 5/15/40

      21,105       23,957,275  
    

 

 

  
        61,704,329  

Health — 16.9%

 

California Health Facilities Financing Authority, RB:

     

Kaiser Permanente, Sub-Series A-2, 4.00%, 11/01/44

      13,280       13,370,702  

Sutter Health, Series A, 5.00%, 8/15/52

      10,000       10,816,900  

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

   

Par  

(000)

     Value  

California (continued)

 

Health (continued)

 

California Health Facilities Financing Authority, Refunding RB:

     

Lucile Salter Packard Children’s Hospital, Series B, 5.00%, 8/15/55

    $ 4,500     $ 4,970,925  

Sutter Health, Series A, 5.00%, 8/15/43

      24,940       27,669,434  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42

      19,860       21,684,538  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series L, 5.00%, 5/15/41

      10,375       11,735,973  
    

 

 

  
        90,248,472  

State — 0.9%

 

State of California, GO, Refunding, 4.00%, 9/01/37

      4,575       4,733,615  

Transportation — 4.7%

 

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

     

Los Angeles International Airport, Series B, 5.00%, 5/15/41

      3,641       4,079,783  

Senior Revenue, Series A, 5.00%, 5/15/40

      5,500       6,102,635  

Series D, 5.00%, 5/15/41

      13,311       14,720,727  
    

 

 

  
        24,903,145  

Utilities — 14.2%

 

Anaheim Public Financing Authority, RB, Refunding, Series A:

     

5.00%, 5/01/39

      6,000       6,713,160  

5.00%, 5/01/46

      13,500       15,050,610  

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

      4,380       4,805,999  

City of Los Angeles California Wastewater System, RB, Green Bonds, Series A, 5.00%, 6/01/44

      6,290       7,134,495  
 

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    5

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

Municipal Bonds Transferred to

Tender Option Bond Trusts (d)

   

Par  

(000)

     Value  

California (continued)

 

Utilities (continued)

 

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

     

5.00%, 5/01/18

    $ 1,412     $ 1,471,133  

5.00%, 5/01/18

      7,098       7,396,457  

Los Angeles Department of Water, Refunding RB, Series A, 5.00%, 7/01/46

      8,413       9,585,819  

Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1 (AGM), 5.00%, 7/01/37

      13,525       13,623,966  

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

     

5.00%, 8/01/18 (a)

      3,729       3,916,545  

5.00%, 8/01/34

      5,548       5,827,316  
    

 

 

  
               75,525,500  

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 75.2%

 

 

     400,245,509  

Total Long-Term Investments

(Cost — $848,378,540) — 166.9%

 

 

     888,446,043  

 

Short-Term Securities    Shares     Value  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 0.70% (f)(g)

      1,889,437     $ 1,889,815  

Total Short-Term Securities

(Cost — $1,889,815) — 0.3%

 

 

     1,889,815  

Total Investments

(Cost — $850,268,355*) — 167.2%

 

 

     890,335,858  
Other Assets Less Liabilities — 0.2%       1,026,376  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (36.2)%

 

     (192,774,909 ) 

VRDP Shares at Liquidation Value, Net of Deferred Offering Costs — (31.2)%

 

     (166,225,278 ) 
    

 

 

  

Net Assets Applicable to Common Shares — 100.0%

 

   $ 532,362,047  
    

 

 

  

*  As of April 30, 2017, gross unrealized appreciation and depreciation based

    on cost for U.S. federal income tax purposes  were as follows:

   

Tax cost

 

   $ 647,816,176  
    

 

 

  

Gross unrealized appreciation

 

   $ 50,182,103  

Gross unrealized depreciation

 

     —  
    

 

 

  

Net unrealized appreciation

 

   $ 50,182,103  
    

 

 

  
 
Notes to Schedule of Investments

 

(a)   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.

 

(b)   When-issued security.

 

(c)   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.

 

 

(d)   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.

 

(e)   Variable rate security. Rate as of period end.

 

(f)   During the period ended April 30, 2017, 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:

 

Affiliate      Shares Held
at July 31,
2016		        Net
Activity		        Shares Held
at April 30,
2017		        Value at
April 30,
2017		        Income        Net
Realized
Loss1		       

Change in
Unrealized
Appreciation

(Depreciation)

  

BlackRock Liquidity Funds, MuniCash, Institutional Class

        143,051          1,746,386          1,889,437        $ 1,889,815        $ 20,364        $ (1,046 )         —  

1        Includes net capital gain distributions.

         

          

 

(g)   Current yield as of period end.

 

                
6    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (continued)

   

BlackRock MuniYield California Quality Fund, Inc. (MCA)

 

 

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.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

Contracts
Short		        Issue   Expiration     Notional
Value		     Unrealized
Depreciation		  
  (93 )       5-Year U.S. Treasury Note     June 2017     $ 11,011,781     $ (51,276 ) 
  (218 )       10-Year U.S. Treasury Note     June 2017     $ 27,406,688       (214,013 ) 
  (136 )       Long U.S. Treasury Bond     June 2017     $ 20,803,750       (255,992 ) 
  (41 )       Ultra U.S. Treasury Bond     June 2017     $ 6,680,437       (83,644 ) 
  Total              $ (604,925 ) 
          

 

 

  

 

Portfolio Abbreviations

 

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
BAM    Build America Mutual Assurance Co.
BHAC    Berkshire Hathaway Assurance Corp.
COP    Certificates of Participation
GO    General Obligation Bonds
LRB    Lease Revenue Bonds
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds

 

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    7

Schedule of Investments (continued)

   

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 price quotations in active markets/exchanges for identical assets or 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 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 derivative financial instruments 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, 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:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long Term Investments1

     —        $ 888,446,043          —        $ 888,446,043  

Short-Term Securities

   $ 1,889,815          —          —          1,889,815  
 

 

 

  

Total

  $ 1,889,815        $ 888,446,043          —        $ 890,335,858  
 

 

 

  
                
Derivative Financial Instruments2                                         

Liabilities:

                

Interest rate contracts

  $ (604,925 )         —          —        $ (604,925 ) 

1    See above Schedule of Investments for values in each sector.

     

2    Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument.

     

 

                
8    BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017   

Schedule of Investments (concluded)

   

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

    —        $ (192,337,579 )         —        $ (192,337,579 ) 

VRDP Shares at Liquidation Value

    —          (166,500,000 )         —          (166,500,000 ) 
 

 

 

  

Total

    —        $ (358,837,579 )         —        $ (358,837,579 ) 
 

 

 

  

During the period ended April 30, 2017, there were no transfers between levels.

 

                
   BLACKROCK MUNIYIELD CALIFORNIA QUALITY FUND, INC.    APRIL 30, 2017    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 22, 2017

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 22, 2017

 

By:     /s/ Neal J. Andrews                        
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniYield California Quality Fund, Inc.

Date: June 22, 2017