MuniYield New York Insured Fund, Inc.
Semi-Annual
Report
April 30, 1994
This report, including the financial information
herein, is transmitted to the shareholders of
MuniYield New York Insured Fund, Inc. for their
information. It is not a prospectus, circular or
representation intended for use in the purchase
of shares of the Fund or any securities mentioned
in the report. Past performance results shown in
this report should not be considered a represen-
tation of future performance. The Fund has lever-
aged its Common Stock by issuing Preferred Stock
to provide the Common Stock shareholders with a
potentially higher rate of return. Leverage creates
risks for Common Stock shareholders, including
the likelihood of greater volatility of net asset
value and market price of shares of the Common
Stock, and the risk that fluctuations in the short-
term dividend rates of the Preferred Stock may
affect the yield to Common Stock shareholders.
MuniYield New York Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MuniYield New York Insured Fund, Inc.
TO OUR SHAREHOLDERS
For the six-month period ended April 30, 1994, the Common Stock
of MuniYield New York Insured Fund, Inc. earned $0.480 per share
income dividends, which includes earned and unpaid dividends of
$0.081. This represents a net annualized yield of 6.45%, based on
a month-end per share net asset value of $15.00. Over the same
period, the total investment return on the Fund's Common Stock
was -7.94%, based on a change in per share net asset value from
$16.85 to $15.00, and assuming reinvestment of $0.484 per share
income dividends and $0.046 per share capital gains distributions.
<PAGE>
For the six-month period ended April 30, 1994, the Fund's Pre-
ferred Stock had an average yield of 2.42% for Series A and
2.20% for Series B.
The Environment
Inflationary expectations and investor sentiment changed for
the worse during the three-month period ended April 30, 1994.
Following stronger-than-expected economic results through year-
end 1993, the Federal Reserve Board broke with tradition on
February 4, 1994 and publicly announced a modest 25 basis point
(0.25%) increase in short-term interest rates. At the March 22
meeting of the Federal Open Market Committee, the Federal Reserve
Board again raised the Federal Funds rate by 25 basis points,
followed by another 25 basis point increase on April 18.
Rather than view the Federal Reserve Board's first tightening
move as a preemptive strike against inflation, fixed-income
investors focused on Chairman Greenspan's implicit promise of
further tightening should the rate of inflation accelerate, and
bond prices declined sharply. The setback in the bond market was
also reflected in greater stock market volatility. While the sec-
ond and third increases in the Federal Funds rate were less of
a surprise, investors remained concerned that interest rates
would trend upward sharply as the central bank aggressively
attempted to contain the inflationary pressures of an improving
economy. At the same time, highly leveraged investors were forced
to liquidate positions in the face of declining stock and bond
prices. Investor confidence was not restored with the announce-
ment of the surprisingly slow 2.6% gross domestic product growth
rate for the first calendar quarter of 1994. Instead, investors
focused on the higher-than-expected (but still moderate) broad
inflation measures and became concerned that business activity
was beginning to stagnate as inflationary pressures were in-
creasing.
The volatility in the US capital markets was mirrored in inter-
national markets during the period. Political and economic
developments, along with concerns of heightened global infla-
tionary pressures, led to a sell-off in most capital markets,
especially the emerging markets that had appreciated strongly
in 1993.
The Municipal Market
During the six months ended April 30, 1994, tax-exempt bond
yields exhibited considerable volatility as they rose to their
highest level in the past two years. As measured by the Bond
Buyer Revenue Bond Index, the yield on newly issued municipal
bonds maturing in 30 years rose over 90 basis points to 6.42%
by the end of April. Yields on seasoned municipal revenue bonds
rose by over 100 basis points in sympathy with the equally drama-
tic increase in long-term US Treasury bond yields. By the end
of April, yields on US Treasury securities rose by over 95 basis
points to approximately 7.30%.
<PAGE>
Long-term tax-exempt bond yields were essentially unchanged from
the end of October 1993 to the end of January 1994. However, on a
weekly basis, tax-exempt bond yields fluctuated by as much as 15
basis points as investors were unable to reconcile the rapid eco-
nomic growth seen late last year with continued low inflation.
Following the initial interest rate increase by the Federal Re-
serve Board in early February, municipal bond prices began to
erode in concert with taxable bond prices as investors began to
sell securities in anticipation of further interest rate in-
creases. This fear led investors to withdraw from the tax-exempt
market. From early February to the end of March, total assets of
all tax-exempt bond funds declined by $14 billion to $247 billion.
This decline in investor demand, coupled with fears that the ro-
bust economic recovery seen during the fourth quarter of 1993
would continue well into 1994, helped push municipal bond yields
higher in February and March. Attracted by tax-exempt yields in
excess of 6.25%, investor demand returned in April, allowing
yields to decline approximately 15 basis points to end the April
period at approximately 6.40%.
A rise in tax-exempt bond yields the magnitude of that experienced
over the past six months has not been seen since 1987 when muni-
cipal bond rates rose 250 basis points between March and October
of that year. It is very important to note that the recent muni-
cipal bond price declines were largely the result of consistent
and insistent selling pressures over the last two months. In 1987,
the tax-exempt bond market was much more volatile and, at times,
chaotic as investors sought to liquidate positions without con-
cern for fundamental value. For the most part, the recent price
deterioration has been orderly, and the municipal bond market's
liquidity and integrity have not been challenged or jeopardized.
To a large extent, the municipal bond market has continued to be
supported by its strong technical position. New-issue volume for
the last six months has been less than $105 billion. This rep-
resents a decline of approximately 20% versus the comparable
period a year ago. This decline was expected and has been dis-
cussed in previous shareholder reports. This reduced issuance
has minimized potential selling pressure in recent months since
institutional investors have been wary of selling appreciable
amounts of securities that they may be unable to replace later
this year at any price level. We expect this decline in issuance
to continue since we anticipate recent yield increases to sig-
nificantly impact future municipal bond issuance. Just as higher
mortgage rates slow home mortgage refinancings, the recent rise
in bond yields will prevent bond refinancings from becoming the
driving force in bond issuance in 1994 as they were in 1993.
<PAGE>
Despite recent price declines, tax-exempt securities remain among
the most attractive investment alternatives available. After the
recent yield increases, longer-term municipal securities yielded
approximately 90% of comparable US Treasury yields. Purchasers of
these municipal bonds also accrue substantial after-tax yield
advantages. To investors in the 39% marginal Federal income tax
bracket, the purchase of a municipal bond yielding 6.50% rep-
resents an after-tax equivalent of 10.65%. With prevailing
estimates of 1994 inflation at no more than 3%--4%, real after-
tax rates in excess of 6.50% easily compensate longer-term in-
vestors for much of the price volatility recently experienced.
Portfolio Strategy
During the six months ended April 30, 1994, the New York sector
of the tax-exempt arena closely mirrored, and in some instances
exceeded, the volatility witnessed in the municipal market in
general. Faced with the same factors that weighed on the market
as a whole, the relative performance of New York tax-exempt
issues was further hindered by a significant increase in the
volume of securities offered for sale by New York State, New York
City and each of their respective political subdivisions. While
national issuance during the period contracted by more than 19%
as compared to the same period of last year, volume of New York
tax-exempt securities increased by more than 45%, soaring to over
$16 billion and representing the largest single-state issuer of
debt in the nation. As such, while general market municipal bonds
found a certain measure of support in the positive technical
foundation underlying their trading, New York tax-exempt issues
were forced to adjust at various points to levels which enabled
both local and national investors to absorb the supply. Miti-
gating these adjustments in yields was the adoption on the part
of investors of a more positive outlook for the fundamental
credit prospects within the State as both the national and
regional economies continue to show signs of improvement.
Portfolio decisions throughout the six months were guided by a
decidedly conservative posture. While the Fund maintained an
almost fully invested stance throughout the period, its struc-
ture at the start of the period was less aggressive than general
market fundamentals may have warranted. As the issuance witnessed
during the period began and the forward outlook for interest
rates in general became more uncertain, our trading activity
sought to capitalize on the opportunities inherent in such an
environment by drawing down the Fund's average portfolio matur-
ity and shifting its focus toward the generation of tax-exempt
income. Issues used to facilitate this objective were those
deemed to possess strong qualities of protection from redemption
prior to maturity and superior qualities of creditworthiness
relative to the universe of New York tax-exempt bonds.
<PAGE>
In Conclusion
We appreciate your ongoing interest in MuniYield New York In-
sured Fund, Inc., and we look forward to assisting you with your
financial needs in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Vice President and Portfolio Manager
June 1, 1994
THE BENEFITS AND RISKS OF LEVERAGING
MuniYield New York Insured Fund, Inc. utilizes leveraging to seek
to enhance the yield and net asset value of its Common Stock.
However, these objectives cannot be achieved in all interest rate
environments. To leverage, the Fund issues Preferred Stock, which
pays dividends at prevailing short-term interest rates, and
invests the proceeds in long-term municipal bonds. The interest
earned on these investments is paid to Common Stock shareholders
in the form of dividends, and the value of these portfolio
holdings is reflected in the per share net asset value of the
Fund's Common Stock. However, in order to benefit Common Stock
shareholders, the yield curve must be positively sloped; that is,
short-term interest rates must be lower than long-term interest
rates. At the same time, a period of generally declining interest
rates will benefit Common Stock shareholders. If either of these
conditions change, then the risks of leveraging will begin to
outweigh the benefits.
To illustrate these concepts, assume a fund's Common Stock
capitalization of $100 million and the issuance of Preferred
Stock for an additional $50 million, creating a total value of
$150 million available for investment in long-term municipal
bonds. If prevailing short-term interest rates are approximately
3% and long-term interest rates are approximately 6%, the yield
curve has a strongly positive slope. The fund pays dividends on
the $50 million of Preferred Stock based on the lower short-term
interest rates. At the same time, the fund's total portfolio of
$150 million earns the income based on long-term interest rates.
<PAGE>
In this case, the dividends paid to Preferred Stock shareholders
are significantly lower than the income earned on the fund's
long-term investments, and therefore the Common Stock shareholders
are the beneficiaries of the incremental yield. However, if short-
term interest rates rise, narrowing the differential between short-
term and long-term interest rates, the incremental yield pick-up
on the Common Stock will be reduced. At the same time, the market
value of the fund's Common Stock (that is, its price as listed on
the New York Stock Exchange) may, as a result, decline. Furthermore,
if long-term interest rates rise, the Common Stock's net asset
value will reflect the full decline in the price of the portfolio's
investments, since the value of the fund's Preferred Stock does
not fluctuate. In addition to the decline in net asset value, the
market value of the fund's Common Stock may also decline.
Portfolio Abbreviations
To simplify the listings of MuniYield New York Insured Fund,
Inc.'s portfolio holdings in the Schedule of Investments, we
have abbreviated the names of some of the securities according
to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
GO General Obligation Bonds
HFA Housing Finance Authority
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New York--99.6%
<S> <S> <C> <S> <C>
Babylon, New York, IDA, Resource Recovery Revenue Bonds (Ogden Martin Systems):
BBB+ Baa1 $ 4,940 Series A, 8.50% due 1/01/2019 $ 5,394
BBB+ Baa1 1,000 Series B, 8.50% due 1/01/2019 1,092
Battery Park City Authority, New York, Revenue Refunding Bonds (Senior Lien):
AA A1 3,000 Series A, 4.75% due 11/01/2019 2,390
AA A1 2,000 Series A, 5.70% due 11/01/2020 1,828
AAA Aaa 3,905 Broome County, New York, COP, Public Safety Facility, 5.25% due 4/01/2022 (d) 3,387
Clifton Park, New York, Water Authority, Water System Revenue Refunding Bonds (c):
AAA Aaa 1,880 5% due 10/01/2018 1,592
AAA Aaa 2,230 5% due 10/01/2026 1,845
<PAGE>
AAA Aaa 1,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue
Refunding Bonds, Series B, 6.25% due 7/01/2017 (d) 1,002
Metropolitan Transportation Authority, New York, Transportation Facilities Revenue
Bonds, Series J (c):
AAA Aaa 4,000 6.375% due 7/01/2010 4,110
AAA Aaa 25,620 6.50% due 7/01/2018 26,113
Monroe County, New York, GO:
AAA Aaa 2,825 6.10% due 3/01/2010 (d) 2,867
AAA Aaa 2,175 6.10% due 3/01/2011 (d) 2,199
AAA Aaa 1,850 6.10% due 3/01/2012 (d) 1,864
AAA Aaa 1,000 UT, 5.10% due 6/01/2009 (b) 929
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New York (continued)
<S> <S> <C> <S> <C>
A1+ NR $ 500 Nassau County, New York, IDA, Civic Facilities Revenue Bonds (Cold Spring Harbor
Laboratory Project), VRDN, 2.90% due 7/01/2019 (a) $ 500
AAA Aaa 2,995 New York City, New York, Educational Construction Revenue Bonds, Series A, 6.25% due
10/01/2003 (d) 3,172
New York City, New York, GO:
A- Aaa 2,485 Refunding, Series A, UT, 8% due 8/15/2001 (e) 2,933
AAA Aaa 2,000 Refunding, Series A, UT, 5.75% due 8/01/2010 (c) 1,932
A- Baa1 15 Series A, UT, 8% due 8/15/2021 17
AAA Aaa 7,055 Series C, Subseries C-1, 6.625% due 8/01/2013 (d) 7,648
AAA Aaa 5,190 Series C, Subseries C-1, 6.625% due 8/01/2015 (b) 5,619
A- Baa1 2,500 Series C, Subseries C-1, 7.50% due 8/01/2021 2,718
AAA Aaa 4,360 Series C, Subseries C-1, UT, 6.625% due 8/01/2014 (d) 4,726
A- Baa1 1,000 Series D, Group C, UT, 8% due 8/01/2015 1,125
AAA Aaa 1,665 Series I, UT, 7.25% due 8/15/2015 (b) 1,819
<PAGE>
New York City, New York, Municipal Water Finance Authority, Water and Sewer System
Revenue Bonds:
AAA Aaa 2,000 Refunding, Series A, 5.50% due 6/15/2011 (b) 1,875
AAA Aaa 2,000 Refunding, Series A, 5.75% due 6/15/2018 (c) 1,869
AAA Aaa 2,500 Series A, 6.75% due 6/15/2006 (b) 2,654
AAA Aaa 5,000 Series A, 7% due 6/15/2015 (b) 5,245
AAA Aaa 7,500 Series A, 7% due 6/15/2015 (c) 7,996
AAA Aaa 1,285 Series A, 7.25% due 6/15/2000 (d)(e) 1,445
AAA Aaa 2,000 Series A, 6.75% due 6/15/2016 (c) 2,067
AAA Aaa 1,000 Series C, 7% due 6/15/2001 (c)(e) 1,118
AAA VMIG1 600 VRDN, Series C, 2.75% due 6/15/2023 (a)(c) 600
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 3,000 (City University System), Series C, 7.50% due 7/01/2010 (c) 3,444
AAA Aaa 7,070 (City University System), Series C, 7% due 7/01/2014 (c) 7,549
BBB Baa1 1,750 (City University System), Series F, 5% due 7/01/2020 1,412
AAA Aaa 2,000 (Insured Colgate University), 5.625% due 7/01/2023 (c) 1,833
AAA Aaa 7,920 Refunding (New York University), Series A, 5% due 7/01/2009 (d) 7,219
BBB+ Baa1 5,215 Refunding, (University Educational Facilities), Series B, 7.375% due 5/15/2014 5,617
AAA Aaa 3,000 (University of Rochester), 6.50% due 7/01/2009 (d) 3,114
AAA Aaa 7,500 New York State Energy Research and Development Authority, Electric Facilities Revenue
Bonds (Consolidated Edison Company, Inc.), AMT, Series A, 6.75% due l/15/2027 (d) 7,702
New York State Energy Research and Development Authority, Gas Facilities Revenue Bonds
(Brooklyn Union Gas Company), AMT (d):
AAA Aaa 3,000 Series A, 6.75% due 2/01/2024 3,125
AAA Aaa 11,535 Series B, 6.75% due 2/01/2024 12,017
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New York (continued)
<S> <S> <C> <S> <C>
AAA Aaa $ 5,000 New York State Energy Research and Development Authority, PCR, Refunding (Niagara
Mohawk Corporation Project), Series A, 6.625% due 10/01/2013 (c) $ 5,171
AAA Aaa 5,000 New York State Energy Research and Development Authority, Solid Waste Disposal
Revenue Bonds (New York State Electric & Gas Co. Project), Series A, AMT, 5.70% due
12/01/2028 (d) 4,515
A1+ NR 400 New York State Environmental Facilities Corporation, Resource Recovery Revenue Bonds
(Huntington Project), VRDN, AMT, 2.80% due 11/01/2014 (a) 400
BBB Baa1 1,585 New York State, HFA, Service Contract Obligation Revenue Bonds, Series D, 5.375% due
3/15/2011 1,448
<PAGE>
New York State Job Development Authority Revenue Bonds, VRDN, AMT (a):
NR VMIG1 2,000 Series A-1 thru A-25, 2.95% due 3/01/2007 2,000
NR VMIG1 2,100 Series B-l thru B-9, 3.25% due 3/01/2003 2,100
New York State Local Government Assistance Corporation, Revenue Refunding Bonds:
A A 4,040 Series E, 5.25% due 4/01/2016 3,548
A A 1,000 Series E, 5% due 4/01/2021 831
New York State Medical Care Facilities Finance Agency Revenue Bonds:
AAA Aaa 8,335 (Mental Health Services), Series A, 6.375% due 8/15/2017 (c) 8,428
BBB+ Baa1 420 (Mental Health Services), Series A, 7.50% due 2/15/2021 456
AAA Aaa 1,230 (Mental Health Services), Series C, 7.30% due 8/15/2001 (e) 1,403
BBB+ Baa1 420 (Mental Health Services), Series C, 7.30% due 2/15/2021 453
AAA Aaa 10,000 Refunding (Hospital and Nursing Home), Series C, 6.375% due 8/15/2029 (d) 10,108
BBB Baa 5,000 (Security Hospital), Series A, 7.40% due 8/15/2021 5,367
NR Aa 4,220 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 29-A,
5.25% due 4/01/2015 3,638
AAA Aaa 5,000 New York State Power Authority, General Purpose and Revenue Refunding Bonds,
Series Z, 6.50% due 1/01/2019 (b) 5,111
New York State Thruway Authority Revenue Bonds:
AAA Aaa 4,000 Series A, 5.50% due 1/01/2023 (c) 3,602
AAA Aaa 3,000 Series B, 5% due 1/01/2014 (d) 2,609
BBB Baa1 3,950 New York State Thruway Authority, Service Contract Revenue Bonds (Local Highway and
Bridge), 5.25% due 4/01/2013 3,440
AAA Aaa 6,100 New York State Urban Development Corporation, Revenue Refunding Bonds (Correctional
Facilities), 5.25% due 1/01/2018 (b) 5,330
AAA Aaa 4,000 North Hempstead, New York, Solid Waste Management Authority, Revenue Refunding
Bonds, Series B, 5% due 2/01/2012 (d) 3,531
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AAA Aaa 2,000 71st Series, 6.50% due 1/15/2026 (c) 2,037
AAA Aaa 2,000 73rd Series, AMT, 6.75% due 4/15/2026 (d) 2,062
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
New York (concluded)
<S> <S> <C> <S> <C>
AAA Aaa $2,340 Suffolk County, New York, IDA, Southwest Sewer System Revenue Bonds, 4.75% due
2/01/2009 (c) $ 2,056
AAA Aaa 5,700 Syracuse, New York, COP (Syracuse Hancock International Airport), AMT, 6.50% due
1/01/2017 (c) 5,806
Triborough Bridge and Tunnel Authority, New York, Special Obligation Revenue
Refunding Bonds:
AAA Aaa 4,500 Series A, 6.625% due 1/01/2017 (d) 4,620
AAA Aaa 1,000 Series B, 6.875% due 1/01/2015 (b) 1,046
AAA Aaa 6,440 Series B, 6.875% due 1/01/2015 (c) 6,736
Total Investments (Cost--$261,141)--99.6% 264,574
Other Assets Less Liabilities--0.4% 1,157
--------
Net Assets--100.0% $265,731
========
<FN>
(a) The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at April 30, 1994.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) MBIA Insured.
(e) Prerefunded.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Statement of Assets, Liabilities and Capital as of April 30, 1994
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$261,140,513) (Note 1a) $264,573,850
Cash 78,051
Interest receivable 4,688,528
Deferred organization expenses 21,058
Prepaid expenses and other assets 28,091
------------
Total assets 269,389,578
------------
Liabilities: Payables:
Securities purchased $ 2,925,714
Dividends to shareholders (Note 1g) 521,281
Investment adviser (Note 2) 105,356 3,552,351
------------
Accrued expenses and other liabilities 105,733
------------
Total liabilities 3,658,084
------------
Net Assets: Net assets $265,731,494
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.10 per share (1,700 shares of AMPS*
issued and outstanding at $50,000 per share liquidation preference) $ 85,000,000
Common Stock, par value $.10 per share (12,046,743 shares issued and
outstanding) $ 1,204,674
Paid-in capital in excess of par 168,007,201
Undistributed investment income--net 2,070,154
Undistributed realized capital gains--net 6,016,128
Unrealized appreciation on investments--net 3,433,337
------------
Total--Equivalent to $15.00 net asset value per share of Common Stock
(market price--$14.625) 180,731,494
------------
Total capital $265,731,494
============
<FN>
* Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Six
Months Ended
April 30, 1994
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 8,181,186
(Note 1d):
Expenses: Investment advisory fees (Note 2) $ 699,207
Commission fees (Note 4) 106,992
Professional fees 40,732
Accounting services (Note 2) 33,761
Transfer agent fees 24,596
Printing and shareholder reports 15,220
Listing fees 12,688
Custodian fees 11,648
Directors' fees and expenses 11,419
Pricing fees 5,152
Amortization of organization expenses (Note 1e) 3,143
Other 13,720
------------
Total expenses 978,278
------------
Investment income--net 7,202,908
------------
Realized & Realized gain on investments--net 6,016,131
Unrealized Gain Change in unrealized appreciation on investments--net (28,110,730)
(Loss) on ------------
Investments--Net Net Decrease in Net Assets Resulting from Operations $(14,891,691)
(Notes 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Six For the Year
Months Ended Ended
Increase (Decrease) in Net Assets: April 30, 1994 Oct. 31, 1993
<S> <S> <C> <C>
Operations: Investment income--net $ 7,202,908 $ 14,765,970
Realized gain on investments--net 6,016,131 684,053
Change in unrealized appreciation/depreciation on investments--net (28,110,730) 27,491,003
------------ ------------
Net increase (decrease) in net assets resulting from operations (14,891,691) 42,941,026
------------ ------------
Dividends & Investment income--net:
Distributions to Common Stock (5,832,419) (11,932,621)
Shareholders Preferred Stock (886,252) (2,207,569)
(Note 1g): Realized gain on investments--net:
Common Stock (558,029) --
Preferred Stock (98,090) --
------------ ------------
Net decrease in net assets resulting from dividends and distributions
to shareholders (7,374,790) (14,140,190)
------------ ------------
Capital Stock Value of shares issued to Common Stock shareholders in reinvestment
Transactions of dividends -- 2,610,375
(Notes 1e & 4): ------------ ------------
Net increase in net assets derived from stock capital transactions -- 2,610,375
------------ ------------
Net Assets: Total increase (decrease) in net assets (22,266,481) 31,411,211
Beginning of period 287,997,975 256,586,764
------------ ------------
End of period* $265,731,494 $287,997,975
============ ============
<FN>
* Undistributed investment income--net $ 2,070,154 $ 1,585,917
============ ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights
<CAPTION>
For the
For the Six Period
The following per share data and ratios have been derived Months For the February 28,
from information provided in the financial statements. Ended Year Ended 1992++ to
April 30, October 31, October 31,
Increase (Decrease) in Net Asset Value: 1994 1993 1992
<S> <S> <C> <C> <C>
Per Share Net asset value, beginning of period $ 16.85 $ 14.45 $ 14.18
Operating ---------- ---------- ----------
Performance: Investment income--net .60 1.23 .75
Realized and unrealized gain (loss) on investments--net (1.83) 2.34 .36
---------- ---------- ----------
Total from investment operations (1.23) 3.57 1.11
---------- ---------- ----------
Less dividends and distributions to Common Stock
shareholders:
Investment income--net (.48) (.99) (.55)
Realized gain on investments--net (.05) -- --
---------- ---------- ----------
Total dividends and distributions to Common Stock
shareholders (.53) (.99) (.55)
---------- ---------- ----------
Capital charge resulting from issuance of Common Stock -- -- (.02)
---------- ---------- ----------
Effect of Preferred Stock activity++++:
Dividends and distributions to Preferred Stock
shareholders:
Investment income--net (.08) (.18) (.12)
Realized gain on investments--net (.01) -- --
Capital charge resulting from issuance of Preferred Stock -- -- (.15)
---------- ---------- ----------
Total effect of Preferred Stock activity (.09) (.18) (.27)
---------- ---------- ----------
Net asset value, end of period $ 15.00 $ 16.85 $ 14.45
========== ========== ==========
Market price per share, end of period $ 14.625 $ 16.50 $ 14.75
========== ========== ==========
Total Investment Based on market price per share (8.34%)+++ 19.04% 2.05%+++
Return:** ========== ========== ==========
Based on net asset value per share (7.94%)+++ 24.09% 5.76%+++
========== ========== ==========
<PAGE>
Ratios to Average Expenses, net of reimbursement .70%* .69% .54%*
Net Assets:*** ========== ========== ==========
Expenses .70%* .69% .71%*
========== ========== ==========
Investment income--net 5.13%* 5.36% 5.56%*
========== ========== ==========
Supplemental Net assets, net of Preferred Stock, end of period
Data: (in thousands) $ 180,731 $ 202,998 $ 171,587
========== ========== ==========
Preferred Stock outstanding, end of period (in thousands) $ 85,000 $ 85,000 $ 85,000
========== ========== ==========
Portfolio turnover 30.45% 1.63% 18.10%
========== ========== ==========
Dividends Per Series A--Investment income--net $ 544 $ 1,276 $ 884
Share on Preferred Series B--Investment income--net 488 1,301 851
Stock Outstanding:
<FN>
* Annualized.
** Total investment returns based on market value, which
can be significantly greater or lesser than the net
asset value, result in substantially different returns.
Total investment returns exclude the effects of sales
loads.
*** Do not reflect the effect of dividends to Preferred Stock
shareholders.
++ Commencement of Operations.
++++ The Fund's Preferred Stock was issued on April 10, 1992.
+++ Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
MuniYield New York Insured Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 as a non-diversified,
closed-end management investment company. The Fund determines and
makes available for publication the net asset value of its Common
Stock on a weekly basis. The Fund's Common Stock is listed on the
New York Stock Exchange under the symbol MYN. The following is a
summary of significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds are traded
primarily in the over-the-counter market and are valued at the
most recent bid price or yield equivalent as obtained by the
Fund's pricing service from dealers that make markets in such
securities. Financial futures contracts, which are traded on
exchanges, are valued at their closing prices as of the close of
such exchanges. Options, which are traded on exchanges, are
valued at their last sale price as of the close of such exchanges
or, lacking any sales, at the last available bid price. Secur-
ities with remaining maturities of sixty days or less are valued
at amortized cost, which approximates market value. Securities
for which market quotations are not readily available are valued
at their fair value as determined in good faith by or under the
direction of the Board of Directors of the Fund.
(b) Financial futures contracts--The Fund may purchase or sell
interest rate futures contracts and options on such futures
contracts for the purpose of hedging the market risk on existing
securities or the intended purchase of securities. Futures
contracts are contracts for delayed delivery of securities at a
specific future date and at a specific price or yield. Upon
entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on
which the transaction is effected. Pursuant to the contract, the
Fund agrees to receive from or pay to the broker an amount of
cash equal to the daily fluctuation in value of the contract.
Such receipts or payments are known as variation margin and are
recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss
equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed.
(c) Income taxes--It is the Fund's policy to comply with the re-
quirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income
tax provision is required.
(d) Security transactions and investment income--Security trans-
actions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the
accrual basis. Discounts and market premiums are amortized into
interest income. Realized gains and losses on security trans-
actions are determined on the identified cost basis.
(e) Deferred organization expenses--Deferred organization
expenses are amortized on a straight-line basis over a five-year
period.
(f) Non-income producing investments--Written and purchased
options are non-income producing investments.
<PAGE>
(g) Dividends and distributions--Dividends from net investment
income are declared and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates.
2. Investment Advisory Agreement and Transactions with
Affiliates:
The Fund has entered into an Investment Advisory Agreement with
Fund Asset Management, L.P. ("FAM"). Effective January 1, 1994,
the investment advisory business of FAM was reorganized from a
corporation to a limited partnership. Both prior to and after the
reorganization, ultimate control of FAM was vested with Merrill
Lynch & Co., Inc. ("ML & Co."). The general partner of FAM is
Princeton Services, Inc., an indirect wholly-owned subsidiary of
ML & Co. The limited partners are ML & Co. and Merrill Lynch
Investment Management, Inc. ("MLIM"), which is also an indirect
wholly-owned subsidiary of ML & Co.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee at an annual rate of 0.50%
of the Fund's average weekly net assets.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or directors of the Fund are officers and/or
directors of FAM, MLIM, Merrill Lynch, Pierce, Fenner & Smith
Inc. ("MLPF&S"), and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term
securities, for the six months ended April 30, 1994 were
$82,378,077 and $84,543,226, respectively.
Net realized and unrealized gains as of April 30, 1994 were as
follows:
Realized Unrealized
Gains Gains
Long-term investments $ 6,016,131 $ 3,433,337
----------- -----------
Total $ 6,016,131 $ 3,433,337
=========== ===========
As of April 30, 1994, net unrealized appreciation for Federal
income tax purposes aggregated $3,433,337, of which $8,638,287
related to appreciated securities and $5,204,950 related to
depreciated securities. The aggregate cost of investments at
April 30, 1994 for Federal income tax purposes was $261,140,513.
<PAGE>
4. Capital Stock Transactions:
The Fund is authorized to issue 200,000,000 shares of capital
stock, including Preferred Stock, par value $.10 per share, all
of which were initially classified as Common Stock. The Board of
Directors is authorized, however, to reclassify any unissued
shares of capital stock without approval of the holders of Common
Stock.
Common Stock
For the six months ended April 30, 1994, shares issued and out-
standing remained constant at 12,046,743. At April 30, 1994,
total paid-in capital amounted to $169,211,875.
Preferred Stock
Auction Market Preferred Stock ("AMPS") are shares of Preferred
Stock of the Fund that entitle their holders to receive cash
dividends at an annual rate that may vary for the successive
dividend periods. The yields in effect at April 30, 1994 were as
follows: Series A, 2.60% and Series B, 2.45%.
For the six months ended April 30, 1994, there were 1,700 AMPS
shares authorized, issued and outstanding with a liquidation
preference of $50,000 per share, plus accumulated and unpaid
dividends of $76,133.
The Fund pays commissions to certain broker-dealers at the end of
each auction at the annual rate of one-quarter of 1% calculated
on the proceeds of each auction. For the six months ended April
30, 1994, MLPF&S, an affiliate of MLIM, earned $89,844 as commis-
sions.
5. Subsequent Event:
On May 6, 1994, the Fund's Board of Directors declared an ordin-
ary income dividend to Common Stock shareholders in the amount of
$.080584 per shares, payable on May 27, 1994 to shareholders of
record as of May 17, 1994.
PER SHARE INFORMATION
<PAGE>
<TABLE>
Per Share Selected Quarterly Financial Data*
<CAPTION>
Net Realized Unrealized Dividends/Distributions
Investment Gains Gains Net Investment Income Capital Gains
For the Quarter Income (Losses) (Losses) Common Preferred Common Preferred
<S> <C> <C> <C> <C> <C> <C> <C>
May 1, 1992 to July 31, 1992 $.31 $ .03 $ 1.27 $.30 $.07 -- --
August 1, 1992 to October 31, 1992 .29 (.01) (.98) .25 .04 -- --
November 1, 1992 to January 31, 1993 .30 -- .78 .25 .05 -- --
February 1, 1993 to April 30, 1993 .31 -- .67 .25 .04 -- --
May 1, 1993 to July 31, 1993 .31 -- .32 .24 .04 -- --
August 1, 1993 to October 31, 1993 .31 .06 .51 .25 .05 -- --
November 1, 1993 to January 31, 1994 .31 .45 (.20) .24 .04 $.05 $.01
February 1, 1994 to April 30, 1994 .29 .05 (2.13) .24 .04 -- --
<CAPTION>
Net Asset Value Market Price**
For the Quarter High Low High Low Volume***
<S> <C> <C> <C> <C> <C>
May 1, 1992 to July 31, 1992 $15.55 $14.20 $15.75 $14.875 762
August 1, 1992 to October 31, 1992 15.39 14.32 16.00 14.375 826
November 1, 1992 to January 31, 1993 15.23 14.45 15.625 14.25 861
February 1, 1993 to April 30, 1993 16.33 15.22 16.25 15.375 1,442
May 1, 1993 to July 31, 1993 16.48 15.94 16.50 15.375 1,019
August 1, 1993 to October 31, 1993 17.15 16.07 17.125 16.125 1,014
November 1, 1993 to January 31, 1994 17.07 16.38 16.75 15.25 870
February 1, 1994 to April 30, 1994 17.02 14.49 16.875 14.125 1,048
<FN>
* Calculations are based upon shares of Common Stock outstanding
at the end of each quarter.
** As reported in the consolidated transaction reporting system.
*** In thousands.
</TABLE>
<PAGE>
Officers and Directors
Arthur Zeikel, President and Director
Kenneth S. Axelson, Director
Herbert I. London, Director
Robert R. Martin, Director
Joseph L. May, Director
Andre F. Perold, Director
Terry K. Glenn, Executive Vice President
Donald C. Burke, Vice President
Vincent R. Giordano, Vice President
Kenneth A. Jacob, Vice President
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
The Bank of New York
110 Washington Street
New York, New York 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, New York 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
NYSE Symbol
MYN
