Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 169

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 169
---
 advised by the investment adviser either (i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC Derivatives, or (ii) markets itself as providing investment exposure to
such instruments. To the extent MVT uses CFTC Derivatives, it intends to do so below such prescribed levels and will

91

not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, the Investment Advisor has claimed an exclusion from the definition of the term
“commodity pool operator” under the CEA pursuant to Rule 4.5 under the CEA. The Investment Advisor is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect of MVT.

Interest Rate Swap Transactions. In order to seek to hedge the value of MVT against interest rate fluctuations, to
hedge against increases in MVT’s costs associated with the dividend payments on any preferred shares, including the VMTP Shares, or to seek to increase MVT’s return, MVT may enter into interest rate swap transactions such as MMD Swaps or
SIFMA Swaps. To the extent that MVT enters into these transactions, MVT expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio as a duration management technique or to protect against any
increase in the price of securities MVT anticipates purchasing at a later date. MVT may enter into these transactions primarily as a hedge or for duration or risk management rather than as a speculative investment. However, MVT also may invest in
MMD Swaps and SIFMA Swaps to seek to enhance return or gain or to increase MVT’s yield, for example, during periods of steep interest rate yield curves (i.e., wide differences between short-term and long-term interest rates).

MVT may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, MVT exchanges with another party their
respective commitments to pay or receive interest (e.g., an exchange of fixed rate payments for floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index
is a tax-exempt index, SIFMA Swaps may reduce cross-market risks incurred by MVT and increase MVT’s ability to hedge effectively. SIFMA Swaps are typically quoted for the entire yield
curve, beginning with a seven day floating rate