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 811-06501
Name of Fund: BlackRock MuniYield Michigan Insured Fund II, Inc.
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer (principal executive officer), BlackRock MuniYield Michigan
Insured Fund II, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536.
Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrant's telephone number, including area code: (800) 882-0052
Date of fiscal year end: 10/31/2007
Date of reporting period: 05/01/2007 - 07/31/2007
Item 1 - Schedule of Investments
BlackRock MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan - 136.8% $ 2,400 Adrian, Michigan, City School District, GO, 5% due 5/01/2014 (d)(f) $ 2,555
2,000 Anchor Bay, Michigan, School District, School Building and Site, GO, Series I, 6%
due 5/01/2009 (c)(f) 2,075
3,165 Anchor Bay, Michigan, School District, School Building and Site, GO, Series II,
5.75% due 5/01/2010 (c)(f) 3,325
2,275 Bay City, Michigan, School District, School Building and Site, GO, 5% due
5/01/2031 (d) 2,366
2,150 Bullock Creek, Michigan, School District, GO, 5.50% due 5/01/2010 (e)(f) 2,245
3,850 Charlotte, Michigan, Public School District, GO, 5.375% due 5/01/2009 (c)(f) 3,955
2,420 Delta County, Michigan, Economic Development Corporation, Environmental
Improvement Revenue Refunding Bonds (Mead Westvaco-Escanaba), Series A, 6.25%
due 4/15/2012 (f) 2,664
2,000 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Refunding, Series A, 5% due 5/01/2021 (d) 2,089
2,000 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Series A, 5% due 5/01/2013 (c)(f) 2,115
1,480 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Series A, 5.375% due 5/01/2013 (c)(f) 1,593
1,900 Detroit, Michigan, City School District, GO (School Building and Site
Improvement), Series B, 5% due 5/01/2028 (c) 1,945
1,780 Detroit, Michigan, Water Supply System Revenue Bonds, Second Lien, Series B, 5%
due 7/01/2013 (e)(f) 1,884
2,620 Detroit, Michigan, Water Supply System Revenue Bonds, Second Lien, Series B, 5%
due 7/01/2034 (e) 2,685
4,600 Detroit, Michigan, Water Supply System Revenue Bonds, Senior Lien, Series A, 5%
due 7/01/2034 (e) 4,713
Portfolio Abbreviations
To simplify the listings of BlackRock MuniYield Michigan Insured
Fund II, Inc.'s portfolio holdings in the Schedule of Investments,
we have abbreviated the names of many of the securities according to
the list below.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
GO General Obligation Bonds
HDA Housing Development Authority
M/F Multi-Family
RIB Residual Interest Bonds
BlackRock MuniYield Michigan Insured Fund II, Inc.
Schedule of Investments as of July 31, 2007 (Unaudited) (concluded) (in Thousands)
Face
Amount Municipal Bonds Value
Michigan $ 2,500 Dickinson County, Michigan, Economic Development Corporation, Environmental
(concluded) Improvement Revenue Refunding Bonds (International Paper Company Project),
Series A, 5.75% due 6/01/2016 $ 2,584
2,170 Dickinson County, Michigan, Healthcare System, Hospital Revenue Refunding Bonds,
5.80% due 11/01/2024 (h) 2,235
1,610 East Grand Rapids, Michigan, Public School District, GO, 5.75% due
5/01/2009 (d)(f) 1,664
6,300 East Grand Rapids, Michigan, Public School District, GO, 6% due 5/01/2009 (d)(f) 6,537
880 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2014 (d)(f) 937
2,000 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5.25% due
5/01/2023 (d) 2,126
1,000 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2026 (d) 1,035
370 Eaton Rapids, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 382
385 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 5.375% due 7/01/2020 (h) 390
775 Flint, Michigan, Hospital Building Authority, Revenue Refunding Bonds (Hurley
Medical Center), Series A, 6% due 7/01/2020 (h) 829
1,800 Fowlerville, Michigan, Community Schools, School District, GO, 5% due
5/01/2030 (c) 1,859
3,065 Gibraltar, Michigan, School District, GO (School Building and Site), 5% due
5/01/2014 (c)(f) 3,263
585 Gibraltar, Michigan, School District, GO (School Building and Site), 5% due
5/01/2028 (c) 605
1,000 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2017 (c) 1,067
1,000 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2018 (c) 1,063
1,100 Grand Blanc, Michigan, Community Schools, GO, 5.625% due 5/01/2019 (c) 1,169
665 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50%
due 10/01/2012 (a)(f) 716
805 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2018 (a) 859
190 Grand Rapids, Michigan, Building Authority Revenue Bonds, Series A, 5.50% due
10/01/2019 (a) 203
1,500 Grand Rapids, Michigan, Sanitation Sewer System Revenue Refunding and
Improvement Bonds, Series A, 5.50% due 1/01/2022 (c) 1,685
215 Harper Woods, Michigan, City School District, School Building and Site, GO,
Refunding, 5% due 5/01/2014 (c)(f) 229
10 Harper Woods, Michigan, City School District, School Building and Site, GO,
Refunding, 5% due 5/01/2034 (c) 10
4,500 Hartland, Michigan, Consolidated School District, GO, 6% due 5/01/2010 (c)(f) 4,756
1,275 Haslett, Michigan, Public School District, School Building and Site, GO, 5.625%
due 11/01/2011 (e)(f) 1,364
2,660 Hudsonville, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (d) 2,748
3,975 Jackson, Michigan, Public Schools, GO, 5.375% due 5/01/2010 (c)(f) 4,138
3,000 Kent, Michigan, Hospital Finance Authority Revenue Bonds (Spectrum Health),
Series A, 5.50% due 7/15/2011 (e)(f) 3,202
1,440 Ludington, Michigan, Area School District, GO, 5.25% due 5/01/2023 (e) 1,521
1,125 Michigan Higher Education Facilities Authority, Limited Obligation Revenue Bonds
(Hillsdale College Project), 5% due 3/01/2035 1,143
1,000 Michigan Higher Education Facilities Authority, Limited Obligation Revenue
Refunding Bonds (Hope College), Series A, 5.90% due 4/01/2032 1,042
550 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College
for Creative Studies), 5.85% due 12/01/2022 579
1,000 Michigan Higher Education Facilities Authority, Revenue Refunding Bonds (College
for Creative Studies), 5.90% due 12/01/2027 1,050
3,000 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds,
AMT, Series XVII-B, 5.40% due 6/01/2018 (a) 3,050
500 Michigan Higher Education Student Loan Authority, Student Loan Revenue Bonds,
AMT, Series XVII-Q, 5% due 3/01/2031 (a) 507
1,185 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II,
4.67% due 10/15/2009 (a)(b)(j) 1,089
1,675 Michigan State Building Authority Revenue Bonds (Facilities Program), Series II,
4.77% due 10/15/2010 (a)(b)(j) 1,479
2,000 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program),
Series II, 5% due 10/15/2029 (e) 2,065
4,600 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program),
Series II, 5% due 10/15/2033 (a) 4,775
3,870 Michigan State, COP, 5.50% due 6/01/2010 (a)(f) 4,041
1,000 Michigan State, Comprehensive Transportation Revenue Refunding Bonds, 5% due
5/15/2026 (d) 1,044
1,000 Michigan State, HDA, Limited Obligation M/F Housing Revenue Bonds (Deaconess
Towers Apartments), AMT, 5.25% due 2/20/2048 (l) 1,003
285 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series A, 5.30% due
10/01/2037 (e) 287
1,500 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series B, 4.85% due
10/01/2037 (d) 1,447
1,500 Michigan State, HDA, Rental Housing Revenue Bonds, AMT, Series D, 5.125% due
4/01/2031 (d) 1,513
1,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds (Mid-Michigan
Obligation Group), Series A, 5.50% due 4/15/2018 (a) 1,054
1,300 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Crittenton Hospital), Series A, 5.625% due 3/01/2027 1,356
380 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Oakwood Obligated Group), Series A, 5% due 7/15/2025 383
5,100 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Oakwood Obligated Group), Series A, 5% due 7/15/2037 5,045
1,250 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Sparrow Obligation Group), 5.625% due 11/15/2011 (f) 1,345
2,495 Michigan State Hospital Finance Authority, Hospital Revenue Refunding Bonds
(Sparrow Obligated Group), 5% due 11/15/2031 2,491
2,000 Michigan State Hospital Finance Authority Revenue Bonds (Mercy Health Services),
Series R, 5.375% due 8/15/2026 (a)(b) 2,012
5,670 Michigan State Hospital Finance Authority Revenue Bonds (Mid-Michigan Obligor
Group), Series A, 5% due 4/15/2036 5,627
1,000 Michigan State Hospital Finance Authority Revenue Bonds (Trinity Health Credit
Group), Series A, 5% due 12/01/2031 1,007
7,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.125% due 11/15/2009 (e)(f) 7,406
3,760 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.25% due 11/15/2009 (e)(f) 3,988
1,345 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford
Health System), Series A, 5.25% due 11/15/2032 1,375
4,065 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford
Health System), Series A, 5% due 11/15/2038 4,046
3,215 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy Health
Services), Series X, 6% due 8/15/2009 (e)(f) 3,385
2,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount
Clemens), Series A, 5.75% due 5/15/2009 (e)(f) 2,086
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy-Mount
Clemens), Series A, 6% due 5/15/2009 (e)(f) 1,047
5,500 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health), Series A, 6% due 12/01/2027 (a) 5,868
1,000 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health Credit), Series C, 5.375% due 12/01/2023 1,047
3,450 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health Credit), Series C, 5.375% due 12/01/2030 3,600
1,900 Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Trinity
Health Credit Group), Series D, 5% due 8/15/2034 1,910
9,500 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), AMT, Series A, 5.55% due
9/01/2029 (e) 9,891
2,000 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds
(Detroit Edison Company Pollution Control Project), Series AA, 6.95% due
5/01/2011 (c) 2,206
1,375 Michigan State Strategic Fund, Limited Obligation Revenue Refunding Bonds (Dow
Chemical Company Project), AMT, 5.50% due 12/01/2028 1,413
6,500 Monroe County, Michigan, Economic Development Corporation, Limited Obligation
Revenue Refunding Bonds (Detroit Edison Co. Project), Series AA, 6.95% due
9/01/2022 (c) 8,294
1,200 New Lothrop, Michigan, Area Public Schools, School Building and Site, GO, 5% due
5/01/2035 (d) 1,243
600 Oak Park, Michigan, Street Improvement, GO, 5% due 5/01/2030 (e) 625
1,000 Plainwell, Michigan, Community Schools, School District, School Building and
Site, GO, 5.50% due 11/01/2012 (d)(f) 1,076
1,000 Pontiac, Michigan, Tax Increment Finance Authority, Revenue Refunding Bonds
(Development Area Number 3), 5.375% due 6/01/2017 (h) 1,031
1,000 Reed, Michigan, City Public Schools, School Building and Site, GO, 5% due
5/01/2014 (d)(f) 1,065
1,900 Rochester, Michigan, Community School District, GO, Series II, 5.50% due
11/01/2011 (e)(f) 2,024
1,500 Romulus, Michigan, Community Schools, GO, 5.75% due 5/01/2009 (c)(f) 1,550
1,050 Roseville, Michigan, School District, School Building and Site, GO, Refunding,
5% due 5/01/2031 (d) 1,092
1,450 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5%
due 7/01/2024 (c) 1,508
1,000 Saginaw Valley State University, Michigan, General Revenue Refunding Bonds, 5%
due 7/01/2034 (c) 1,031
2,500 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Company), RIB, Series 282, 8.86% due 8/01/2024 (a)(g) 2,714
2,650 South Lyon, Michigan, Community Schools, GO, Series A, 5.75% due
5/01/2010 (e)(f)(n) 2,784
1,000 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A, 5%
due 5/01/2014 (d)(f) 1,065
1,950 Southfield, Michigan, Public Schools, School Building and Site, GO, Series A,
5.25% due 5/01/2014 (d)(f) 2,105
1,000 Sparta, Michigan, Area Schools, School Building and Site, GO, 5% due
5/01/2014 (c)(f) 1,065
1,500 Thornapple Kellogg School District, Michigan, GO, Refunding, 5% due
5/01/2032 (e) 1,565
6,500 Wayne Charter County, Michigan, Airport Revenue Bonds (Detroit Metropolitan Wayne
County), AMT, Series A, 5.375% due 12/01/2015 (e) 6,657
1,180 Wayne Charter County, Michigan, Detroit Metropolitan Airport, GO, Airport Hotel,
Series A, 5% due 12/01/2030 (e) 1,217
2 Wayne County, Michigan, Airport Authority Revenue Bonds, DRIVERS, AMT,
Series 1081-Z, 6.51% due 6/01/2013 (e)(g)(n) 3
5,200 Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan
Wayne County Airport), AMT, 5% due 12/01/2034 (e) 5,289
5,300 Wyoming, Michigan, Sewage Disposal System Revenue Bonds, 5% due 6/01/2030 (e) 5,498
1,330 Zeeland, Michigan, Public Schools, School Building and Site, GO, 5% due
5/01/2029 (e) 1,374
Puerto Rico - 4.1% 1,100 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Refunding Bonds, Series K, 5% due 7/01/2015 (f) 1,181
5,300 Puerto Rico Commonwealth Highway and Transportation Authority, Transportation
Revenue Refunding Bonds, Series N, 5.25% due 7/01/2039 (c) 5,912
Total Municipal Bonds (Cost - $228,763) - 140.9% 240,055
Municipal Bonds Held in Trust (m)
Michigan - 26.0% 2,700 Detroit, Michigan, Water Supply System, Senior Lien Revenue Bonds, Series A,
5.75% due 7/01/2011 (c)(f) 2,905
5,350 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program)
Series I, 5.50% due 10/15/2009 (b) 5,539
7,000 Michigan State Building Authority, Revenue Refunding Bonds (Facilities Program),
Series I, 5.50% due 10/15/2010 (d) 7,410
5,715 Michigan State, COP, Refunding (New Center Development Inc.), 5.75% due
9/01/2010 (b)(e) 6,079
5,045 Michigan State, COP, Refunding (New Center Development Inc.), 5.75% due
9/01/2011 (b)(e) 5,366
8,000 Saint Clair County, Michigan, Economic Revenue Refunding Bonds (Detroit Edison
Co. Project), Series AA, 6.40% due 8/01/2024 (a) 8,343
4,475 Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan
Wayne County Airport), AMT, 5.25% due 12/01/2025 (e) 4,685
3,700 Wayne County, Michigan, Airport Authority Revenue Bonds (Detroit Metropolitan
Wayne County Airport), AMT, 5.25% due 12/01/2026 (e) 3,874
Puerto Rico - 2.8% 4,540 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series HH, 5.75%
due 7/01/2010 (d)(f) 4,826
Total Municipal Bonds Held in Trust (Cost - $49,859) - 28.8% 49,027
Shares
Held Short-Term Securities
1,166 CMA Michigan Municipal Money Fund, 3.03% (i)(k) 1,166
Total Short-Term Securities (Cost - $1,166) - 0.7% 1,166
Total Investments (Cost - $279,788*) - 170.4% 290,248
Other Assets Less Liabilities - 1.8% 3,082
Liability for Trust Certificates, Including Interest Expense Payable - (14.0%) (23,933)
Preferred Stock, at Redemption Value - (58.2%) (99,070)
-----------
Net Assets Applicable to Common Stock - 100.0% $ 170,327
===========
* The cost and unrealized appreciation (depreciation) of investments as
of July 31, 2007, as computed for federal income tax purposes, were
as follows:
Aggregate cost $ 256,514
============
Gross unrealized appreciation $ 12,023
Gross unrealized depreciation (1,202)
------------
Net unrealized appreciation $ 10,821
============
(a) AMBAC Insured.
(b) Escrowed to maturity.
(c) FGIC Insured.
(d) FSA Insured.
(e) MBIA Insured.
(f) Prerefunded.
(g) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(h) ACA Insured.
(i) Investments in companies considered to be an affiliate of the Fund,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940,
were as follows:
Net Dividend
Affiliate Activity Income
CMA Michigan Municipal Money Fund (3,548) $56
(j) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(k) Represents the current yield as of July 31, 2007.
(l) GNMA Collateralized.
(m) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction
in which the Fund may have acquired the residual interest certificates.
These securities serve as collateral in a financing transaction.
(n) These securities are short-term floating rate certificates issued by
tender option bond trusts and are secured by the underlying municipal
bond securities.
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 and 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
(17 CFR 270.30a-3(d)) 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 Michigan Insured Fund II, Inc.
By: /s/ Robert C. Doll, Jr.
------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Michigan Insured Fund II, Inc.
Date: September 20, 2007
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/ Robert C. Doll, Jr.
------------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Michigan Insured Fund II, Inc.
Date: September 20, 2007
By: /s/ Donald C. Burke
--------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Michigan Insured Fund II, Inc.
Date: September 20, 2007