MUNIYIELD
NEW YORK
INSURED
FUND, INC.
[FUND LOGO]
STRATEGIC
Performance
Semi-Annual Report
April 30, 1997
Officers and Directors
Arthur Zeikel, President and Director
James H. Bodurtha, Director
Herbert I. London, Director
Robert R. Martin, Director
Joseph L. May, Director
Andre F. Perold, Director
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Walter C. O'Connor, Vice President
Gerald M. Richard, Treasurer
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agents
Common Stock:
The Bank of New York
101 Barclay Street
New York, NY 10286
Preferred Stock:
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 10004
NYSE Symbol
MYN
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 representation of future performance. The
Fund has leveraged 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. Statements and other information herein are
as dated and are subject to change.
MuniYield
New York
Insured Fund, Inc.
Box 9011
Princeton, NJ
08543-9011 #16159 -- 4/97
MuniYield New York Insured Fund, Inc.
TO OUR SHAREHOLDERS
For the six months ended April 30, 1997, the Common Stock of MuniYield
New York Insured Fund, Inc. earned $0.450 per share income dividends,
which included earned and unpaid dividends of $0.073. This represents a
net annualized yield of 5.98%, based on a month-end per share net asset
value of $15.16. Over the same period, the total investment return on
the Fund's Common Stock was +1.33%, based on a change in per share net
asset value from $15.49 to $15.16, and assuming reinvestment of $0.455
per share income dividends and $0.066 per share capital gains
distributions.
For the six-month period ended April 30, 1997, the Fund's Auction Market
Preferred Stock had an average yield of 2.81% for Series A and 3.14% for
Series B.
The Municipal Market Environment
Long-term tax-exempt revenue bonds traded in a relatively narrow range
throughout much of the six-month period ended April 30, 1997. By mid-
January 1997, municipal bond yields rose to over 6% as investors reacted
negatively to reports of progressively stronger domestic economic
growth. However, a continued lack of any material inflationary pressures
allowed bond yields to decline to their prior levels by late February.
Bond yields rose again as investors became increasingly concerned that
the US domestic economic strength seen thus far in 1997 would continue,
and that the increase in short-term interest rates by the Federal
Reserve Board in late March would be the first in a series of such moves
designed to slow the US economy before any dormant inflationary
pressures were awakened. Long-term tax-exempt bond yields rose
approximately 15 basis points (0.15%) to almost 6.15% by mid-April.
Similarly, long-term US Treasury bond yields rose over 35 basis points
over the same period to 7.16%. However, in late April economic
indicators were released showing that despite considerable economic
growth any inflationary pressures, particularly those associated with
wage increases, were well-contained and of no immediate concern. Fixed-
income bond prices staged a significant rally during the last week in
April with long-term US Treasury bond yields falling nearly 20 basis
points to end the month at 6.95%. Municipal bond yields, as measured by
the Bond Buyer Revenue Bond Index, declined nearly 15 basis points to
stand at 6.01% by April 30, 1997.
As in recent quarters, the relative stability of long-term tax-exempt
bond yields was supported by low levels of new municipal bond issuance.
During the six months ended April 30, 1997, approximately $90 billion in
long-term tax-exempt bonds was underwritten, a decline of over 6%
compared to the corresponding period a year earlier. During the three
months ended April 30, 1997, $41 billion in new long-term municipal
bonds was issued, also a 6% decline in issuance compared to the three-
month period ended April 30, 1996. Overall investor demand remained
strong, particularly from property and casualty insurance companies and
individual retail investors. In recent years, investor demand increased
whenever tax-exempt bond yields approached or exceeded the 6% level as
they have in the past few months.
Additionally, in recent months much of the new bond issuance was dominated
by a number of larger issues. These included $710 million in New York City
water bonds, $600 million in state of California bonds, $1 billion in New
York City general obligation bonds, $435 million in Dade County, Florida
water and sewer revenue bonds, $450 million in Puerto Rico Electric
Authority issues and $930 million in Port Authority of New York and New
Jersey issues. These bonds have typically been issued in states with
relatively high state income taxes and consequently were generally
underwritten at yields that were relatively unattractive to residents in
other states. This has exacerbated the general decline in overall issuance
in recent years, making the decrease in supply even more dramatic for
general market investors.
The present economic situation remains nearly ideal. The domestic
economy continues to grow steadily with little, if any, signs of a
resurgence in inflation. Recent economic growth generated considerable
unexpected tax revenues for the Federal government. Forecasts for the
1997 Federal fiscal deficit were reduced to under $100 billion, a level
not seen since the early 1980s. Such a reduced Federal deficit enhances
the prospect for a balanced Federal budget. All these factors support a
scenario of steady, or even falling, interest rates in the coming years.
Present annual estimates of future municipal bond issuance remain
centered around $175 billion, indicating that the current relative
scarcity of tax-exempt bonds should continue for at least the remainder
of the year. Should interest rates begin to decline later this year,
either as the result of a balanced Federal budget or continued benign
inflation, investors are unlikely to be able to purchase long-term
municipal bonds at their currently attractive levels.
Portfolio Strategy
During the six-month period ended April 30, 1997, the municipal market
conformed to a fairly well-defined trading range, albeit at less
expensive levels than seen in recent history. As long-term US Treasury
interest rates rose to 7% and New York insured municipal bonds
approached 6%, we took a more aggressive investment stance for MuniYield
New York Insured Fund, Inc. Generally, demand for municipal bonds has
historically increased when interest rates reach the levels currently
seen, and the recent marketplace has proved to be no exception. This
increased interest in municipal bonds combined with a drastic decrease
in New York insured municipal issuance has created an unusually thin
marketplace. Therefore, as interest rates rose we attempted to utilize
any periods of market weakness to add aggressively structured, higher-
yielding securities to the portfolio mix. We intend to remain focused
on seeking to provide an above-industry average current yield while
enhancing the Fund's net asset value. Because of the inordinately narrow
nature of credit quality spreads, we are purposely underutilizing the
Fund's 20% non-insured capacity as allowed in the Fund's prospectus, and
investing over 85% of portfolio assets in securities rated AAA by at
least one of the major rating agencies and with bond insurance.
In Conclusion
We appreciate your ongoing interest in MuniYield New York Insured Fund,
Inc., and we look forward to assisting you with your financial needs in
the months and years to come.
Sincerely,
/S/ARTHUR ZEIKEL
Arthur Zeikel
President
/S/VINCENT R. GIORDANO
Vincent R. Giordano
Senior Vice President
/S/WALTER C. O'CONNOR
Walter C. O'Connor
Vice President and Portfolio Manager
June 2, 1997
MuniYield New York Insured Fund, Inc. April 30, 1997
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. Of course, increases in short-term interest rates
would reduce (and even eliminate) the dividends on the Common Stock.
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 pickup on the Common Stock will be
reduced or eliminated completely. 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.
<TABLE>
<CAPTION>
MuniYield New York Insured Fund, Inc. April 30, 1997
SCHEDULE OF INVESTMENTS (in Thousands)
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
<S> <C> <C> <C> <C>
New York -- 98.5%
AAA Aaa $6,000 Albany County, New York, Airport Authority, Airport Revenue Bonds, RITR, AMT,
Series RI-97-7, 7.17% due 12/15/2023 (g)(h) $6,075
Battery Park City Authority, New York, Revenue Bonds, Junior Lien, Series A (b):
AAA Aaa 4,700 5.50% due 11/01/2026 4,515
AAA Aaa 2,425 5.50% due 11/01/2029 2,326
AAA Aaa 3,275 Broome County, New York, COP, Public Safety Facility, 5.25% due 4/01/2022 (d) 3,003
AAA Aaa 4,000 Buffalo and Fort Erie, New York, Public Bridge Authority, Toll Bridge System
Revenue Bonds, 5.75% due 1/01/2025 (d) 3,956
AAA Aaa 1,050 Clarence, New York, Central School District, UT, 5.30% due 6/01/2017 (c) 1,006
AAA Aaa 1,000 Metropolitan Transportation Authority, New York, Commuter Facilities Revenue
Refunding Bonds, Series B, 6.25% due 7/01/2017 (d) 1,038
Metropolitan Transportation Authority, New York, Transportation Facilities
Revenue Bonds, Series J (c):
AAA Aaa 4,000 6.375% due 7/01/2010 4,270
AAA Aaa 20,620 6.50% due 7/01/2018 22,078
Monroe County, New York, Public Improvement, GO (d):
AAA Aaa 1,040 6.10% due 3/01/2012 1,115
AAA Aaa 2,825 AMT, 6.10% due 3/01/2010 3,030
AAA Aaa 2,175 AMT, 6.10% due 3/01/2011 2,333
A1+ NR* 800 Nassau County, New York, IDA, Civic Facilities Revenue Bonds (Cold Spring Harbor
Laboratory Project), VRDN, 4.35% due 7/01/2019 (a) 800
A1+ VMIG1+ 2,450 New York City, New York, Cultural Resource Trust Revenue Bonds (Solomon R.
Guggenheim), VRDN, Series B, 4.25% due 12/01/2015 (a) 2,450
AAA Aaa 2,000 New York City, New York, Educational Construction Fund Revenue Bonds, Junior
Sub-Lien, 5.50% due 4/01/2026 (b) 1,922
BBB+ Baa1 5,000 New York City, New York, GO, UT, Refunding, Series B, 6.375% due 8/15/2012 5,111
A1+ NR* 2,000 New York City, New York, IDA, Civic Facilities Revenue Bonds (National Audubon
Society), VRDN, 4.25% due 12/01/2014 (a) 2,000
New York City, New York, Municipal Water Finance Authority, Water and Sewer
System Revenue Bonds:
A- A2 4,000 RIB, 6.825% due 6/15/2025 (h) 4,005
A-1 VMIG1+ 2,000 RITR, Series RI-2, 6.825% due 6/15/2025 (h) 2,002
AAA Aaa 3,700 Series A, 7% due 6/15/2001 (c)(e) 4,046
AAA Aaa 2,000 Series A, 6.75% due 6/15/2016 (c) 2,137
AAA Aaa 2,480 Series A-1992, 7% due 6/15/2015 (b) 2,673
AAA Aaa 1,590 Series A-1994, 7% due 6/15/2001 (c)(e) 1,739
AAA Aaa 700 Series A-1994, 7% due 6/15/2015 (c) 755
AAA Aaa 2,000 Series B, 5.75% due 6/15/2026 (d) 1,980
A1+ VMIG1+ 300 VRDN, Series G, 4.45% due 6/15/2024 (a)(c) 300
New York State Dormitory Authority Revenue Bonds:
AAA Aaa 4,400 (City University System), Series C, 7.50% due 7/01/2010 (c) 5,228
AAA Aaa 7,070 (City University System), Series C, 7% due 7/01/2014 (c) 7,622
AAA Aaa 2,365 (City University System), Third Resolution - Series 1, 6.25% due 7/01/2016 (b) 2,474
AAA Aaa 4,000 (City University System), Third Resolution - Series 1, 6.25% due 7/01/2020 (b) 4,161
A1+ VMIG1+ 200 (Cornell University), VRDN, Series B, 4.25% due 7/01/2025 (a) 200
AAA Aaa 2,000 (Ithaca College), 5.25% due 7/01/2026 (b) 1,862
AAA Aaa 10,000 (Mount Sinai School of Medicine), Series A, 5.15% due 7/01/2024 (d) 9,192
AAA Aaa 2,000 (New School Social Research), 5.75% due 7/01/2026 (d) 1,977
AAA Aaa 2,000 Refunding (Montefiore Medical Center), 5.25% due 2/01/2015 (b)(f) 1,892
AAA Aaa 4,000 Refunding (State University Facilities - Lease), Series A, 5.30% due 7/01/2024 (b) 3,728
AAA Aaa 10,500 New York State Energy Research and Development Authority, Facilities Revenue Bonds
(Consolidated Edison Company, Inc.), AMT, Series A, 6.75% due 1/15/2027 (d) 11,077
New York State Energy Research and Development Authority, Gas Facilities Revenue
Bonds (Brooklyn Union Gas Company) (d):
AAA Aaa 10,250 AMT, Series B, 6.75% due 2/01/2024 11,000
AAA Aaa 4,000 Refunding, Series A, 5.50% due 1/01/2021 3,856
AAA Aaa 3,600 New York State Energy Research and Development Authority, PCR, Refunding
(Rochester Gas and Electric Project), AMT, Series B, 6.50% due 5/15/2032 (d) 3,742
New York State Enviromental Facilities Corporation, Special Obligation Revenue
Refunding Bonds (Riverbank State Park) (b):
AAA Aaa 2,975 5.50% due 4/01/2016 2,906
AAA Aaa 2,000 5.125% due 4/01/2022 1,838
A1+ VMIG1+ 3,400 New York State Local Government Assistance Corporation, VRDN, Series G, 4.50% due
4/01/2025 (a) 3,400
New York State Medical Care Facilities Finance Agency Revenue Bonds:
AAA Aaa 2,790 (Health Center Project - Second Mortgage), Series A, 6.375% due 11/15/2019 (b) 2,935
AAA Aaa 10,000 (Hospital and Nursing Home), Series C, 6.375% due 8/15/2029 (d) 10,397
AAA Aaa 1,865 (Long-Term Health Care), Series B, 6.45% due 11/01/2014 (g) 1,958
AAA Aaa 1,000 (Long-Term Health Care Insured Program), Series D, 6.50% due 11/01/2015 (g) 1,057
AAA Aaa 8,335 (Mental Health Services Facilities), Series A, 6.375% due 8/15/2017 (c) 8,690
AAA Aaa 7,250 (New York Hospital Mortgage), Series A, 6.80% due 8/15/2024 (b)(f) 7,892
BBB Baa 5,000 (Security Hospital), Series A, 7.40% due 8/15/2021 5,454
AAA Aaa 1,580 New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, Series 43,
6.45% due 10/01/2017 (d) 1,675
AAA Aaa 5,000 New York State Power Authority, General Purpose and Revenue Refunding Bonds,
Series Z, 6.50% due 1/01/2019 (b) 5,332
New York State Thruway Authority, Highway and Bridge Trust Fund, UT, Series B (c):
AAA Aaa 8,000 6.25% due 4/01/2012 8,435
AAA Aaa 3,000 6% due 4/01/2014 3,075
AAA Aaa 6,250 New York State Urban Development Corporation, Revenue Refunding Bonds
(Correctional Facilities), Series A, 5% due 1/01/2017 (b) 5,674
AAA Aaa 2,000 Niagara Falls, New York, Toll Bridge Commission, Revenue Refunding Bonds,
Series B, 5.25% due 10/01/2021 (c) 1,840
Port Authority of New York and New Jersey, Consolidated Revenue Bonds:
AA- A1 5,000 69th Series, 7.125% due 6/01/2025 5,385
AA- A1 5,000 72nd Series, 7.35% due 10/01/2002 (e) 5,633
AAA Aaa 2,180 Refunding, AMT, UT, 97th Series, 6.50% due 7/15/2019 (c) 2,293
AAA Aaa 5,700 Syracuse, New York, COP (Syracuse Hancock International Airport), AMT, 6.50% due
1/01/2017 (c) 5,946
A1+ VMIG1+ 2,400 Syracuse, New York, IDA, Civic Facility Revenue Bonds (Multi-Modal Syracuse
University Project), VRDN, 4.25% due 3/01/2023 (a) 2,400
Triborough Bridge and Tunnel Authority, New York, Special Obligation Refunding
Bonds:
AAA Aaa 4,500 Series A, 6.625% due 1/01/2017 (d) 4,808
AAA Aaa 1,000 Series B, 6.875% due 1/01/2015 (b) 1,075
AAA Aaa 6,440 Series B, 6.875% due 1/01/2015 (c) 6,925
AAA Aaa 2,000 Upper Mohawk Valley, New York, Regional Water Finance Authority, Water Systems
Revenue Refunding Bonds, Series A, 5.125% due 10/01/2026 (g) 1,826
Total Investments (Cost -- $250,667) -- 98.5% 263,525
Other Assets Less Liabilities -- 1.5% 4,127
--------
Net Assets -- 100.0% $267,652
========
(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, 1997.
(b) AMBAC Insured.
(c) FGIC Insured.
(d) MBIA Insured.
(e) Prerefunded.
(f) FHA Insured.
(g) FSA Insured.
(h) The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at April 30, 1997.
* Not Rated.
+ Highest short-term rating by Moody's Investors Service, Inc.
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 many of the securities
according to the list at right.
AMT Alternative Minimum Tax (subject to)
COP Certificates of Participation
GO General Obligation Bonds
IDA Industrial Development Authority
PCR Pollution Control Revenue Bonds
RIB Residual Interest Bonds
RITR Residual Interest Trust Receipts
UT Unlimited Tax
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
FINANCIAL INFORMATION
Statement of Assets, Liabilities and Capital as of April 30, 1997
<S> <C> <C> <C>
Assets: Investments, at value (identified cost -- $250,667,609) (Note 1a) $263,525,463
Cash 67,873
Interest receivable 4,546,828
Deferred organization expenses (Note 1e) 2,109
Prepaid expenses and other assets 18,203
------------
Total assets 268,160,476
------------
Liabilities: Payables:
Dividends to shareholders (Note 1f) $329,316
Investment adviser (Note 2) 109,072 438,388
------------
Accrued expenses and other liabilities 70,093
------------
Total liabilities 508,481
------------
Net Assets: Net assets $267,651,995
============
Capital: Capital Stock (200,000,000 shares authorized) (Note 4):
Preferred Stock, par value $.05 per share (3,400 shares of AMPS*
issued and outstanding at $25,000 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 168,007,202
Undistributed investment income -- net 2,585,264
Accumulated realized capital losses on investments -- net (424,626)
Accumulated distributions in excess of realized capital gains -- net
(Note 1f) (1,578,373)
Unrealized appreciation on investments -- net 12,857,854
------------
Total -- Equivalent to $15.16 net asset value per share of Common
Stock (market price -- $14.875) 182,651,995
------------
Total capital $267,651,995
============
* Auction Market Preferred Stock.
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended April 30, 1997
<S> <C> <C> <C>
Investment Income Interest and amortization of premium and discount earned $7,795,003
(Note 1d):
Expenses: Investment advisory fees (Note 2) $670,609
Commission fees (Note 4) 108,966
Professional fees 38,862
Accounting services (Note 2) 29,131
Transfer agent fees 28,855
Listing fees 12,326
Directors' fees and expenses 11,586
Custodian fees 10,848
Printing and shareholder reports 10,606
Pricing fees 4,806
Amortization of organization expenses (Note 1e) 1,068
Other 11,454
---------
Total expenses 939,117
---------
Investment income -- net 6,855,886
---------
Realized & Unreal- Realized gain on investments -- net 1,161,376
ized Gain (Loss) on Change in unrealized appreciation on investments -- net (4,248,320)
Investments -- Net -----------
(Notes 1b, 1d & 3): Net Increase in Net Assets Resulting from Operations $3,768,942
===========
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Six For the
Months Ended Year Ended
Increase (Decrease) in Net Assets: April 30, 1997 Oct. 31, 1996
<S> <C> <C> <C>
Operations: Investment income -- net $6,855,886 $13,884,530
Realized gain (loss) on investments -- net 1,161,376 (565,697)
Change in unrealized appreciation on investments -- net (4,248,320) 272,623
----------- -----------
Net increase in net assets resulting from operations 3,768,942 13,591,456
----------- -----------
Dividends & Investment income -- net:
Distributions to Common Stock (5,474,799) (10,991,979)
Shareholders Preferred Stock (1,255,161) (2,764,285)
(Note 1f): Realized gain on investments-- net:
Common Stock (799,350) --
Preferred Stock (198,679) --
In excess of realized gain on investments-- net:
Common Stock -- (1,232,695)
Preferred Stock -- (345,678)
----------- -----------
Net decrease in net assets resulting from dividends and
distributions to shareholders (7,727,989) (15,334,637)
----------- -----------
Net Assets: Total decrease in net assets (3,959,047) (1,743,181)
Beginning of period 271,611,042 273,354,223
----------- -----------
End of period* $267,651,995 $271,611,042
============ ============
* Undistributed investment income -- net $2,585,264 $2,459,338
============ ============
See Notes to Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
For the
Six
The following per share data and ratios have been derived Months
from information provided in the financial statements. Ended For the Year Ended
April 30, October 31,
Increase (Decrease) in Net Asset Value: 1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $15.49 $15.64 $14.17 $16.85 $14.45
Operating -------- -------- -------- -------- --------
Performance: Investment income -- net .57 1.15 1.19 1.20 1.23
Realized and unrealized gain (loss) on
investments -- net (.26) (.03) 1.58 (2.67) 2.34
-------- -------- -------- -------- --------
Total from investment operations .31 1.12 2.77 (1.47) 3.57
-------- -------- -------- -------- --------
Less dividends and distributions to Common
Stock shareholders:
Investment income -- net (.45) (.91) (.92) (.97) (.99)
Realized gain on investments -- net (.07) -- (.10) (.05) --
In excess of realized gain on investments
-- net -- (.10) -- -- --
-------- -------- -------- -------- --------
Total dividends and distributions to Common
Stock shareholders (.52) (1.01) (1.02) (1.02) (.99)
-------- -------- -------- -------- --------
Effect of Preferred Stock activity:
Dividends and distributions to Preferred Stock
shareholders:
Investment income -- net (.10) (.23) (.26) (.18) (.18)
Realized gain on investments -- net (.02) -- (.02) (.01) --
In excess of realized gain on investments
-- net -- (.03) -- -- --
-------- -------- -------- -------- --------
Total effect of Preferred Stock activity (.12) (.26) (.28) (.19) (.18)
-------- -------- -------- -------- --------
Net asset value, end of period $15.16 $15.49 $15.64 $14.17 $16.85
======== ======== ======== ======== ========
Market price per share, end of period $14.875 $14.875 $14.375 $12.25 $16.50
======== ======== ======== ======== ========
Total Investment Based on market price per share 3.54%++++ 10.79% 26.40% (20.49%) 19.04%
Return:** ======== ======== ======== ======== ========
Based on net asset value per share 1.33%++++ 6.04% 18.89% (9.94%) 24.09%
======== ======== ======== ======== ========
Ratios to Average Expenses .70%* .70% .71% .70% .69%
Net Assets:*** ======== ======== ======== ======== ========
Investment income -- net 5.11%* 5.11% 5.42% 5.28% 5.36%
======== ======== ======== ======== ========
Supplemental Net assets, net of Preferred Stock, end of
Data: period (in thousands) $182,652 $186,611 $188,354 $170,670 $202,998
======== ======== ======== ======== ========
Preferred Stock outstanding, end of period
(in thousands) $85,000 $85,000 $85,000 $85,000 $85,000
======== ======== ======== ======== ========
Portfolio turnover 40.01% 80.59% 88.17% 41.26% 1.63%
======== ======== ======== ======== ========
Leverage: Asset coverage per $1,000 $3,149 $3,195 $3,216 $3,008 $3,388
======== ======== ======== ======== ========
Dividends Per Share Series A -- Investment income -- net $349 $819 $935 $673 $638
On Preferred Stock ======== ======== ======== ======== ========
Outstanding:+ Series B -- Investment income -- net $390 $807 $904 $593 $651
======== ======== ======== ======== ========
* Annualized.
** Total investment returns based on market value, which can be significantly greater or lesser
than the net asset value, may 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.
+ Dividends per share have been adjusted to a two-for-one stock split that occurred on December
1, 1994.
++++ 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. These unaudited financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented. All such adjustments are of a normal recurring nature. 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.
(a) Valuation of investments -- Municipal bonds are traded primarily in
the over-the-counter markets 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 and options thereon, 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 avail-
able bid price. Securities 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, including valuations
furnished by a pricing service retained by the Fund, which may utilize a
matrix system for valuations. The procedures of the pricing service and
its valuations are reviewed by the officers of the Fund under the
general supervision of the Board of Directors.
(b) Derivative financial instruments -- The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
[bullet] 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.
[bullet] Options -- The Fund is authorized to write covered call options
and purchase put options. When the Fund writes an option, an amount
equal to the premium received by the Fund is reflected as an asset and
an equivalent liability. The amount of the liability is subsequently
marked to market to reflect the current market value of the option
written.
When a security is purchased or sold through an exercise of an option,
the related premium paid (or received) is added to (or deducted from)
the basis of the security acquired or deducted from (or added to) the
proceeds of the security sold. When an option expires (or the Fund
enters into a closing transaction), the Fund realizes a gain or loss on
the option to the extent of the premiums received or paid (or gain or
loss to the extent the cost of the closing transaction exceeds the
premium paid or received).
Written and purchased options are non-income producing investments.
(c) Income taxes -- It is the Fund's policy to comply with the
requirements 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 transactions
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 transactions 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) Dividends and distributions -- Dividends from net investment income
are declared and paid monthly. Distributions of capital gains are
recorded on the ex-dividend dates. Distributions in excess of realized
capital gains are due primarily to differing tax treatments for futures
transactions.
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is Princeton
Services, Inc. ("PSI"), an indirect wholly-owned subsidiary of Merrill
Lynch & Co., Inc. ("ML & Co."), which is the limited partner.
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, PSI, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for
the six months ended April 30, 1997 were $101,983,170 and $112,788,767,
respectively.
Net realized and unrealized gains (losses) as of April 30, 1997 were as
follows:
Realized Unrealized
Gains (Losses) Gains
Long-term investments $1,524,731 $12,857,854
Short-term investments (363,355) --
----------- -----------
Total $1,161,376 $12,857,854
=========== ===========
As of April 30, 1997, net unrealized appreciation for Federal income tax
purposes aggregated $12,857,854, of which $13,279,196 related to
appreciated securities and $421,342 related to depreciated securities.
The aggregate cost of investments at April 30, 1997 for Federal income
tax purposes was $250,667,609.
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, 1997, shares issued and outstanding
remained constant at 12,046,743. At April 30, 1997, total paid-in
capital amounted to $169,211,876.
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, 1997 were: Series A, 3.65% and Series B,
4.05%.
As of April 30, 1997, there were 3,400 AMPS shares authorized, issued
and outstanding with a liquidation preference of $25,000 per share.
The Fund pays commissions to certain brokerdealers at the end of each
auction at an annual rate ranging from 0.25% to 0.375%, calculated on
the proceeds of each auction. For the six months ended April 30, 1997,
Merrill Lynch, Pierce, Fenner & Smith Inc., an affiliate of FAM, earned
$48,199 as commissions.
5. Subsequent Event:
On May 9, 1997, the Fund's Board of Directors declared an ordinary
income dividend to Common Stock shareholders in the amount of $.072724
per share, payable on May 29, 1997 to shareholders of record as of May
19, 1997.