BlackRock Municipal Income Quality Trust (BYM)

BlackRock Municipal Income Quality Trust was a closed-end fund that invested in municipal bonds, the debt that U.S. states, cities and public agencies issue to fund roads, schools, utilities and other projects. Its objective was current income exempt from regular federal income tax, including the alternative minimum tax. It focused on investment-grade municipal securities and used leverage to raise its income. Its shares traded on the New York Stock Exchange under the symbol BYM.

The fund had its initial public offering on October 31, 2002, and was part of BlackRock's large family of municipal closed-end funds. Like other leveraged muni funds, its distributions were sensitive to short-term borrowing costs, and its shares often traded at a discount to net asset value. The sharp rise in interest rates in 2022 and 2023 hurt bond prices and widened discounts across the sector.

In 2025 BlackRock proposed a broad consolidation of its municipal closed-end funds to create larger, more liquid vehicles with lower expenses per share. Under the plan, BYM, together with BFK, BLE and MUE, would be merged into BlackRock MuniHoldings Fund, Inc. (MHD). Shareholders of the funds involved approved the reorganizations.

The reorganizations into MHD took effect on February 9, 2026. BYM shareholders received MHD shares based on the relative net asset values of the two funds, and BYM was delisted from the NYSE and dissolved. Former BYM holders now own shares of the larger MHD fund.