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 811-21178

 

Name of Fund: BlackRock Municipal Income Quality Trust (BYM)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Quality Trust, 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: 08/31/2012

 

Date of reporting period: 11/30/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments November 30, 2011 (Unaudited)

BlackRock Municipal Income Quality Trust (BYM)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 3.7%

 

 

 

 

 

 

 

Alabama State Docks Department,
Refunding RB, 6.00%, 10/01/40

 

$

3,800

 

$

4,007,366

 

Birmingham Airport Authority, RB (AGM),
5.50%, 7/01/40

 

 

5,800

 

 

6,095,162

 

Birmingham Special Care Facilities
Financing Authority, RB, Children’s
Hospital (AGC), 6.00%, 6/01/39

 

 

1,495

 

 

1,629,101

 

County of Jefferson Alabama, RB,
Series A, 4.75%, 1/01/25

 

 

2,800

 

 

2,404,556

 

 

 

 

 

 

 

14,136,185

 

Alaska — 0.3%

 

 

 

 

 

 

 

Alaska Industrial Development & Export
Authority, RB, Providence Health
Services, Series A, 5.50%, 10/01/41

 

 

1,070

 

 

1,130,680

 

Arizona — 0.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

1,500

 

 

1,608,315

 

5.25%, 10/01/28

 

 

250

 

 

270,480

 

 

 

 

 

 

 

1,878,795

 

California — 22.8%

 

 

 

 

 

 

 

California Health Facilities Financing
Authority, Refunding RB, St. Joseph
Health System, Series A, 5.75%,
7/01/39

 

 

625

 

 

651,856

 

California Infrastructure & Economic
Development Bank, RB, Bay Area Toll
Bridges, First Lien, Series A (AMBAC),
5.00%, 1/01/28 (a)

 

 

10,100

 

 

12,545,109

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM):

 

 

 

 

 

 

 

5.59%, 8/01/13 (b)

 

 

7,450

 

 

6,910,024

 

5.40%, 8/01/36 (c)

 

 

4,200

 

 

922,404

 

Golden State Tobacco Securitization
Corp. California, RB, Series 2003-A-1 (a):

 

 

 

 

 

 

 

6.63%, 6/01/13

 

 

6,500

 

 

7,088,705

 

6.75%, 6/01/13

 

 

14,500

 

 

15,840,380

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC),
5.00%, 10/01/33

 

 

16,745

 

 

17,181,207

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Monterey Peninsula Community College
District, GO, CAB, Series C (AGM) (c):

 

 

 

 

 

 

 

5.15%, 8/01/31

 

$

13,575

 

$

4,180,964

 

5.16%, 8/01/32

 

 

14,150

 

 

3,991,857

 

Orange County Sanitation District, COP,
Series B (AGM), 5.00%, 2/01/31

 

 

2,500

 

 

2,627,500

 

San Diego Unified School District
California, GO, CAB, Election of 2008,
Series C, 6.84%, 7/01/38 (c)

 

 

2,000

 

 

394,500

 

San Joaquin Hills Transportation
Corridor Agency California, Refunding
RB, CAB, Series A (NPFGC), 5.50%,
1/15/31 (c)

 

 

53,000

 

 

10,985,840

 

San Jose Unified School District Santa
Clara County California, GO,
Election of 2002, Series B (NPFGC),
5.00%, 8/01/29

 

 

2,350

 

 

2,448,888

 

 

 

 

 

 

 

85,769,234

 

Colorado — 0.3%

 

 

 

 

 

 

 

Regional Transportation District, COP,
Series A, 5.38%, 6/01/31

 

 

960

 

 

1,017,408

 

Connecticut — 0.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational
Facility Authority, RB, Hartford
Healthcare, Series A, 5.00%, 7/01/32

 

 

735

 

 

739,976

 

District of Columbia — 2.5%

 

 

 

 

 

 

 

District of Columbia Tobacco Settlement
Financing Corp., Refunding RB, Asset-
Backed, 6.75%, 5/15/40

 

 

9,500

 

 

9,346,290

 

Florida — 16.5%

 

 

 

 

 

 

 

Broward County School Board Florida,
COP, Series A (AGM), 5.25%, 7/01/33

 

 

2,000

 

 

2,061,600

 

County of Broward Florida, RB, Series A,
5.25%, 10/01/34

 

 

6,750

 

 

7,200,022

 

County of Duval Florida, COP, Master
Lease Program (AGM), 5.00%,
7/01/33

 

 

3,800

 

 

3,881,472

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (NPFGC),
5.25%, 10/01/38 (c)

 

 

25,520

 

 

4,016,848

 

 

Portfolio Abbreviations

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

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

GO

General Obligation Bonds

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF-GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

SBPA

Stand-by Bond Purchase Agreements

VRDN

Variable Rate Demand Notes

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB
(concluded):

 

 

 

 

 

 

 

Miami International Airport,
Series A, 5.50%, 10/01/41

 

$

5,000

 

$

5,176,450

 

Series A, 5.50%, 10/01/36

 

 

5,000

 

 

5,186,350

 

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

 

 

10,100

 

 

10,479,154

 

County of Miami-Dade Florida,
Refunding RB (AGM), 5.00%, 7/01/35

 

 

1,300

 

 

1,335,152

 

Florida Housing Finance Corp., RB,
Homeowner Mortgage, Series 3,
5.45%, 7/01/33

 

 

3,800

 

 

3,937,978

 

Florida State Department of
Environmental Protection, RB,
Series B (NPFGC), 5.00%, 7/01/27

 

 

7,500

 

 

7,934,700

 

Miami-Dade County School Board, COP,
RB, Series B (AGC), 5.25%, 5/01/31

 

 

1,135

 

 

1,190,343

 

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

 

 

6,090

 

 

6,436,399

 

Sarasota County Public Hospital District,
RB, Sarasota Memorial Hospital
Project, Series A, 5.63%, 7/01/39

 

 

300

 

 

306,009

 

South Florida Water Management
District, COP (AMBAC), 5.00%,
10/01/36

 

 

1,000

 

 

1,015,810

 

Tohopekaliga Water Authority,
Refunding RB, Series A, 5.25%,
10/01/36

 

 

2,000

 

 

2,142,680

 

 

 

 

 

 

 

62,300,967

 

Georgia — 2.9%

 

 

 

 

 

 

 

Burke County Development Authority,
RB, Oglethorpe Power, Vogtle Project,
Series C, 5.70%, 1/01/43

 

 

1,250

 

 

1,296,163

 

City of Atlanta Georgia, Refunding RB,
General, Series C, 6.00%, 1/01/30

 

 

7,500

 

 

8,645,400

 

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

 

 

900

 

 

939,627

 

 

 

 

 

 

 

10,881,190

 

Hawaii — 1.4%

 

 

 

 

 

 

 

Hawaii State Harbor, RB, Series A,
5.50%, 7/01/35

 

 

5,000

 

 

5,265,250

 

Illinois — 4.3%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Series A, 5.50%, 12/01/39

 

 

2,590

 

 

2,730,585

 

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

 

 

2,500

 

 

2,704,350

 

Chicago Park District, GO, Harbor
Facilities, Series C, 5.25%, 1/01/40

 

 

600

 

 

626,856

 

Chicago Transit Authority, RB, Sales Tax
Receipts Revenue, Third Lien, 5.25%,
12/01/36

 

 

650

 

 

675,636

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

City of Chicago Illinois, RB, Series A
(AGC), 5.00%, 1/01/38

 

$

7,310

 

$

7,397,574

 

Illinois Municipal Electric Agency, RB,
Series A (NPFGC), 5.25%, 2/01/27

 

 

1,350

 

 

1,425,451

 

Railsplitter Tobacco Settlement
Authority, RB, 6.00%, 6/01/28

 

 

710

 

 

747,268

 

 

 

 

 

 

 

16,307,720

 

Indiana — 2.1%

 

 

 

 

 

 

 

Indiana Finance Authority, Refunding
RB, First Lien, CWA Authority, Series A,
5.25%, 10/01/38

 

 

1,100

 

 

1,167,617

 

Indiana Municipal Power Agency, RB,
Series B, 5.75%, 1/01/34

 

 

450

 

 

461,421

 

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

 

 

5,750

 

 

6,163,770

 

 

 

 

 

 

 

7,792,808

 

Iowa — 1.4%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A
(AGC), 5.63%, 8/15/37

 

 

5,000

 

 

5,223,450

 

Kentucky — 0.4%

 

 

 

 

 

 

 

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

 

 

1,500

 

 

1,602,285

 

Louisiana — 2.5%

 

 

 

 

 

 

 

Jefferson Parish Hospital Service District
No. 1, Refunding RB, West Jefferson
Medical Center, Series A, 6.00%,
1/01/39

 

 

1,550

 

 

1,626,214

 

State of Louisiana, RB, Series A (AGM),
5.00%, 5/01/31

 

 

7,500

 

 

7,797,750

 

 

 

 

 

 

 

9,423,964

 

Michigan — 4.6%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, System,
Second Lien, Series A (BHAC), 5.50%,
7/01/36

 

 

2,900

 

 

3,043,376

 

City of Detroit Michigan, Refunding RB,
Second Lien, Series E (BHAC), 5.75%,
7/01/31

 

 

3,000

 

 

3,220,410

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

 

465

 

 

476,797

 

Lansing Board of Water & Light, RB,
Series A, 5.50%, 7/01/41

 

 

1,100

 

 

1,203,664

 

Michigan State Building Authority, RB,
Refunding Facilities Program:

 

 

 

 

 

 

 

Series I-A, 5.38%, 10/15/36

 

 

2,000

 

 

2,139,820

 

Series I-A, 5.38%, 10/15/41

 

 

800

 

 

851,336

 

Series II-A, 5.38%, 10/15/36

 

 

1,500

 

 

1,604,865

 

Michigan Finance Authority, Refunding
RB, 5.00%, 12/01/39

 

 

4,700

 

 

4,685,947

 

 

 

 

 

 

 

17,226,215

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2011

2


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Quality Trust (BYM)
 (Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nebraska — 1.2%

 

 

 

 

 

 

 

Nebraska Investment Finance Authority,
Refunding RB, Series A:

 

 

 

 

 

 

 

5.90%, 9/01/36

 

$

2,450

 

$

2,644,187

 

6.05%, 9/01/41

 

 

1,690

 

 

1,789,575

 

 

 

 

 

 

 

4,433,762

 

Nevada — 1.1%

 

 

 

 

 

 

 

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

 

 

4,100

 

 

4,255,677

 

New Jersey — 1.4%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System:

 

 

 

 

 

 

 

5.25%, 6/15/36 (d)

 

 

1,990

 

 

2,057,859

 

Series A, 5.50%, 6/15/41

 

 

3,000

 

 

3,225,750

 

 

 

 

 

 

 

5,283,609

 

New York — 1.1%

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corp., RB,
Series A, 5.75%, 2/15/47

 

 

770

 

 

814,468

 

New York City Transitional Finance
Authority, RB, Fiscal 2009, Series S-4,
5.50%, 1/15/33

 

 

1,950

 

 

2,089,717

 

New York State Dormitory Authority,
ERB, Series B, 5.75%, 3/15/36

 

 

1,300

 

 

1,462,682

 

 

 

 

 

 

 

4,366,867

 

North Carolina — 0.9%

 

 

 

 

 

 

 

North Carolina Medical Care
Commission, RB, Novant Health
Obligation, Series A, 4.75%,
11/01/43

 

 

3,875

 

 

3,627,504

 

Ohio — 0.5%

 

 

 

 

 

 

 

County of Lucas Ohio, Refunding RB,
Promedica Healthcare, Series A,
6.50%, 11/15/37

 

 

610

 

 

694,942

 

Ohio Higher Educational Facility
Commission, Refunding RB, Summa
Health System, 2010 Project (AGC),
5.25%, 11/15/40

 

 

1,125

 

 

1,129,624

 

 

 

 

 

 

 

1,824,566

 

Pennsylvania — 0.2%

 

 

 

 

 

 

 

Pennsylvania Turnpike Commission, RB,
Subordinate, Special Motor, License
Fund, Series A, 6.00%, 12/01/36

 

 

625

 

 

717,194

 

Puerto Rico — 2.5%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A:

 

 

 

 

 

 

 

6.38%, 8/01/39

 

 

5,300

 

 

5,869,326

 

5.50%, 8/01/42

 

 

3,450

 

 

3,594,797

 

 

 

 

 

 

 

9,464,123

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Rhode Island — 0.8%

 

 

 

 

 

 

 

Rhode Island Health & Educational
Building Corp., Refunding RB, Public
Schools Financing Program, Series E
(AGC), 6.00%, 5/15/29

 

$

2,625

 

$

2,910,626

 

South Carolina — 1.5%

 

 

 

 

 

 

 

South Carolina Jobs-EDA, Refunding RB,
Palmetto Health, Series A (AGM),
6.50%, 8/01/39

 

 

260

 

 

284,994

 

South Carolina State Ports Authority, RB,
5.25%, 7/01/40

 

 

5,000

 

 

5,246,250

 

 

 

 

 

 

 

5,531,244

 

Tennessee — 3.6%

 

 

 

 

 

 

 

Knox County Health Educational &
Housing Facilities Board Tennessee,
Refunding RB, CAB, Series A (AGM) (c):

 

 

 

 

 

 

 

5.88%, 1/01/23

 

 

8,910

 

 

4,755,534

 

5.90%, 1/01/24

 

 

8,500

 

 

4,263,515

 

5.91%, 1/01/25

 

 

6,850

 

 

3,231,899

 

Memphis Center City Revenue Finance
Corp., RB, Sub-Pyramid & Pinch
District, Series B, 5.25%, 11/01/30

 

 

1,240

 

 

1,317,785

 

 

 

 

 

 

 

13,568,733

 

Texas — 25.4%

 

 

 

 

 

 

 

City of Houston Texas, Refunding RB,
Senior Lien, Series A, 5.50%,
7/01/34

 

 

4,165

 

 

4,431,685

 

City of San Antonio Texas, Refunding RB
(NPFGC):

 

 

 

 

 

 

 

5.13%, 5/15/29

 

 

9,250

 

 

9,851,065

 

5.13%, 5/15/34

 

 

10,000

 

 

10,679,500

 

Comal ISD, GO, School Building
(PSF-GTD), 5.00%, 2/01/36

 

 

2,500

 

 

2,610,625

 

Coppell ISD Texas, GO, Refunding, CAB
(PSF-GTD), 5.64%, 8/15/30 (c)

 

 

10,030

 

 

4,575,184

 

County of Harris Texas, GO (NPFGC) (c):

 

 

 

 

 

 

 

5.57%, 8/15/25

 

 

7,485

 

 

4,569,817

 

5.60%, 8/15/28

 

 

10,915

 

 

5,650,150

 

County of Harris Texas, Refunding RB,
Senior Lien, Toll Road (AGM), 5.00%,
8/15/30

 

 

3,010

 

 

3,074,956

 

Harris County-Houston Sports Authority,
Refunding RB (NPFGC) (c):

 

 

 

 

 

 

 

CAB, Junior Lien, Series H,
5.94%, 11/15/38

 

 

5,785

 

 

782,537

 

CAB, Junior Lien, Series H,
5.95%, 11/15/39

 

 

6,160

 

 

773,696

 

Third Lien, Series A-3, 5.97%,
11/15/38

 

 

16,890

 

 

2,284,710

 

Mansfield ISD Texas, GO, School
Building (PSF-GTD), 5.00%, 2/15/33

 

 

2,980

 

 

3,180,763

 

North Texas Tollway Authority,
Refunding RB:

 

 

 

 

 

 

 

First Tier, Series A, 6.00%,
1/01/28

 

 

625

 

 

694,519

 

System, First Tier, System
(NPFGC), 5.75%, 1/01/40

 

 

23,050

 

 

24,093,934

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Quality Trust (BYM)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.00%,
8/15/42

 

$

19,500

 

$

18,531,240

 

 

 

 

 

 

 

95,784,381

 

Washington — 3.4%

 

 

 

 

 

 

 

Chelan County Public Utility District No. 1,
RB, Chelan Hydro System, Series C
(AMBAC), 5.13%, 7/01/12 (a)

 

 

3,655

 

 

3,759,277

 

County of King Washington, Refunding
RB (AGM), 5.00%, 1/01/36

 

 

2,200

 

 

2,282,104

 

Washington Health Care Facilities
Authority, RB:

 

 

 

 

 

 

 

MultiCare Health Care, Series C
(AGC), 5.50%, 8/15/43

 

 

5,000

 

 

5,149,200

 

Providence Health & Services,
Series A, 5.00%, 10/01/39

 

 

1,000

 

 

1,006,030

 

Providence Health & Services,
Series A, 5.25%, 10/01/39

 

 

675

 

 

692,820

 

 

 

 

 

 

 

12,889,431

 

Wisconsin — 1.1%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

Ascension Health Senior Credit
Group, 5.00%, 11/15/33

 

 

1,500

 

 

1,551,705

 

Froedtert & Community
Health, 5.25%, 4/01/39

 

 

2,500

 

 

2,531,675

 

 

 

 

 

 

 

4,083,380

 

Total Municipal Bonds – 111.1%

  

 

 

 

 

418,783,514

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (e)

 

 

 

 

 

 

 

Arizona — 2.0%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB,
Sub-Civic Plaza Expansion Project,
Series A, 5.00%, 7/01/37

 

 

4,490

 

 

4,554,521

 

Phoenix Civic Improvement Corp., RB,
Junior Lien, Series A, 5.00%, 7/01/34

 

 

1,300

 

 

1,381,679

 

Salt River Project Agricultural
Improvement & Power District, RB,
Series A, 5.00%, 1/01/38

 

 

1,500

 

 

1,566,255

 

 

 

 

 

 

 

7,502,455

 

California — 10.7%

 

 

 

 

 

 

 

California State University, RB,
Systemwide, Series A (AGM), 5.00%,
11/01/33

 

 

3,379

 

 

3,475,470

 

California State University, Refunding
RB, Systemwide, Series A (AGM),
5.00%, 11/01/32

 

 

8,000

 

 

8,310,960

 

Foothill-De Anza Community College
District, GO, Election of 1999,
Series C (NPFGC), 5.00%, 8/01/36

 

 

7,500

 

 

7,704,225

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (e)

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

5,000

 

$

5,212,450

 

San Diego Community College District
California, GO, Election of 2002,
5.25%, 8/01/33

 

 

449

 

 

486,008

 

San Diego County Water Authority, COP,
Refunding, Series 2008-A (AGM),
5.00%, 5/01/33

 

 

4,870

 

 

5,081,504

 

University of California, RB, Series C
(NPFGC), 4.75%, 5/15/37

 

 

10,000

 

 

10,034,300

 

 

 

 

 

 

 

40,304,917

 

District of Columbia — 0.3%

 

 

 

 

 

 

 

District of Columbia, RB, Series A,
5.50%, 12/01/30

 

 

1,080

 

 

1,221,577

 

Florida — 5.1%

 

 

 

 

 

 

 

City of Tallahassee Florida, RB (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/32

 

 

3,000

 

 

3,094,710

 

5.00%, 10/01/37

 

 

5,000

 

 

5,157,850

 

Florida State Board of Education, GO,
Series D, 5.00%, 6/01/37

 

 

2,999

 

 

3,146,175

 

Highlands County Health Facilities
Authority, RB, Adventist, Series C,
5.25%, 11/15/36 (f)

 

 

1,800

 

 

1,828,188

 

Orange County School Board, COP,
Series A (NPFGC), 5.00%, 8/01/30

 

 

6,000

 

 

6,155,220

 

 

 

 

 

 

 

19,382,143

 

Hawaii — 2.7%

 

 

 

 

 

 

 

Honolulu City & County Board of Water
Supply, RB, Series A (FGIC), 5.00%,
7/01/33

 

 

10,000

 

 

10,206,000

 

Illinois — 9.8%

 

 

 

 

 

 

 

City of Chicago Illinois, RB, Sales Tax
Revenue, Series A, 5.00%, 1/01/41

 

 

3,870

 

 

3,974,761

 

Illinois Finance Authority, RB, Carle
Foundation, Series A (AGM), 6.00%,
8/15/41

 

 

2,400

 

 

2,498,256

 

Illinois State Toll Highway Authority, RB,
Series B, 5.50%, 1/01/33

 

 

4,499

 

 

4,738,709

 

Metropolitan Pier & Exposition Authority,
RB, McCormick Place Expansion
Project, Series A (NPFGC), 5.00%,
12/15/28

 

 

24,010

 

 

24,168,706

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/34

 

 

1,400

 

 

1,464,224

 

 

 

 

 

 

 

36,844,656

 

Massachusetts — 3.7%

 

 

 

 

 

 

 

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

 

 

12,987

 

 

13,955,915

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2011

4


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Income Quality Trust (BYM)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (e)

 

Par
(000)

 

Value

 

Nevada — 1.8%

 

 

 

 

 

 

 

City of Las Vegas Nevada, GO, Limited
Tax, Performing Arts Center, 6.00%,
4/01/39

 

$

4,197

 

$

4,633,969

 

Clark County Water Reclamation
District, GO, Series B, 5.75%,
7/01/34

 

 

2,024

 

 

2,255,523

 

 

 

 

 

 

 

6,889,492

 

New York — 4.6%

 

 

 

 

 

 

 

Erie County Industrial Development
Agency, RB, City School District of
Buffalo Project, Series A (AGM),
5.75%, 5/01/28

 

 

4,494

 

 

4,924,986

 

Metropolitan Transportation Authority,
RB, Series A (NPFGC), 5.00%,
11/15/31

 

 

7,002

 

 

7,349,153

 

Triborough Bridge & Tunnel Authority,
RB, General, Series A-2, 5.25%,
11/15/34

 

 

4,500

 

 

4,898,475

 

 

 

 

 

 

 

17,172,614

 

Ohio — 0.2%

 

 

 

 

 

 

 

State of Ohio, RB, Cleveland Clinic
Health, Series B, 5.50%, 1/01/34

 

 

620

 

 

650,715

 

South Carolina — 0.2%

 

 

 

 

 

 

 

South Carolina State Public Service
Authority, RB, Santee Cooper,
Series A, 5.50%, 1/01/38

 

 

600

 

 

651,564

 

Texas — 3.1%

 

 

 

 

 

 

 

North East ISD Texas, GO, School
Building (PSF-GTD):

 

 

 

 

 

 

 

5.13%, 6/15/29

 

 

9,500

 

 

10,197,272

 

Series A, 5.00%, 8/01/37

 

 

1,500

 

 

1,584,690

 

 

 

 

 

 

 

11,781,962

 

Utah — 1.4%

 

 

 

 

 

 

 

Utah Transit Authority, RB, Series A
(AGM), 5.00%, 6/15/36

 

 

5,000

 

 

5,244,150

 

Virginia — 0.1%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding
RB, Health Care, Inova Health System,
Series A, 5.50%, 5/15/35

 

 

400

 

 

427,424

 

Washington — 1.0%

 

 

 

 

 

 

 

Central Puget Sound Regional Transit
Authority, RB, Series A (AGM), 5.00%,
11/01/32

 

 

3,494

 

 

3,678,658

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 46.7%

 

 

 

 

 

175,914,242

 

Total Long-Term Investments
(Cost – $581,023,363) – 157.8%

 

 

 

 

 

594,697,756

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

New York — 0.4%

 

 

 

 

 

 

 

City of New York, New York, GO, VRDN,
Sub-Series A-6 (AGM Insurance, Dexia
Credit Local SBPA), 0.40%,
12/01/11 (f)

 

$

1,700

 

$

1,700,000

 

 

 


Shares

 

 

 

 

Money Market Funds — 0.9%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (g)(h)

 

 

3,294,410

 

 

3,294,410

 

Total Short-Term Securities
(Cost – $4,994,410) – 1.3%

 

 

 

 

 

4,994,410

 

Total Investments (Cost $586,017,773*) – 159.1%

 

 

 

 

 

599,692,166

 

Other Assets Less Liabilities – 1.4%

 

 

 

 

 

5,276,620

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (24.1)%

 

 

 

 

 

(90,943,590

)

AMPS, at Redemption Value – (36.4)%

 

 

 

 

 

(137,253,219

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

$

376,771,977

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate Cost

 

$

495,091,565

 

Gross unrealized appreciation

 

$

28,633,963

 

Gross unrealized depreciation

 

 

(14,927,452

)

Net unrealized appreciation

 

$

13,706,511

 

 

 

(a)

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

 

 

(b)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

 

 

(c)

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

 

 

(d)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

Morgan Stanley & Co., Inc.

 

$

2,057,859

 

$

22,965

 

 

 

(e)

Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

(f)

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

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2011

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Quality Trust (BYM)

 

 

(g)

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


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
August 31,
2011

 

Net
Activity

 

Shares
Held at
November 30,
2011

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

5,821,237

 

 

(2,526,827

)

 

3,294,410

 

$

237

 

 

 

 

(h)

Represents the current yield as of report date.

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

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 Trust’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of November 30, 2011 in determining the fair valuation of the Trust’s investments:

 

  

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

594,697,756

 

 

—

 

$

594,697,756

 

Short-Term
Securities

 

$

3,294,410

 

 

1,700,000

 

 

—

 

 

4,994,410

 

Total

 

$

3,294,410

 

$

596,397,756

 

 

—

 

$

599,692,166

 

 

 

1

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


 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL INCOME QUALITY TRUST

NOVEMBER 30, 2011

6

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 Municipal Income Quality Trust

 

 
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Quality Trust
   
  Date: January 23, 2012
   
  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 Municipal Income Quality Trust
   
  Date: January 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Quality Trust
     
  Date: January 23, 2012