BlackRock Municipal Bond Trust

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 811-21036

Name of Fund: BlackRock Municipal Bond Trust (BBK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Bond Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2013

Date of reporting period: 11/30/2012

Item 1 – Schedule of Investments

 

 

Schedule of Investments November 30, 2012 (Unaudited)

  

 

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Alabama — 4.0%

      

Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC):

      

6.00%, 6/01/34

    $ 1,150       $ 1,406,922   

6.00%, 6/01/39

      450         552,276   

Birmingham Water Works Board, RB,
4.75%, 1/01/36

      2,100         2,344,503   

Hoover City Board of Education, GO, Refunding, 4.25%, 2/15/40

      2,750         3,002,917   
                7,306,618   

Arizona — 9.4%

      

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42

        2,200         2,436,808   

Arizona Sports & Tourism Authority, RB, Multipurpose Stadium Facilities,
Series A (NPFGC), 5.00%, 7/01/13 (a)

      1,500         1,541,430   

Arizona State University, RB, Series D, 5.50%, 7/01/26

      200         247,850   

County of Pinal Arizona Election District No. 3, Refunding RB, 4.75%, 7/01/31

      3,750         4,204,200   

Pima County IDA, Refunding IDRB, Tucson Electric Power, 5.75%, 9/01/29

      900         958,662   

Salt Verde Financial Corp., RB, Senior:

      

5.00%, 12/01/32

      1,500         1,802,385   

5.00%, 12/01/37

      2,065         2,489,027   

San Luis Facility Development Corp., RB, Senior Lien, Regional Detention Center Project:

      

6.25%, 5/01/15

      185         184,780   

7.00%, 5/01/20

      300         307,020   

7.25%, 5/01/27

      600         583,782   

State of Arizona, COP, Department of Administration, Series A (AGM),
5.00%, 10/01/29

      750         852,480   

University Medical Center Corp. Arizona, RB, 6.50%, 7/01/39

      500         589,465   

University Medical Center Corp. Arizona, Refunding RB, 6.00%, 7/01/39

      900         1,064,124   
                17,262,013   

Arkansas — 1.4%

      

City of Conway Arkansas, RB, Wastewater Revenue Improvement, Series A, 4.20%, 10/01/37

      500         536,885   

City of Springdale Arkansas, RB, Sales and Tax Use:

      

3.00%, 11/01/30

      650         662,090   

3.00%, 11/01/31

      1,010         1,029,129   

3.00%, 11/01/32

      310         314,526   
                2,542,630   
    

Par

(000)

      Value  

Municipal Bonds

                  

California — 17.4%

      

California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 10.37%, 6/01/55 (b)

    $ 4,500       $ 61,245   

California Educational Facilities Authority, RB, Santa Clara University,
5.00%, 2/01/40

      1,000         1,141,270   

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31

      1,900         2,348,476   

California HFA, RB, Home Mortgage, Series G, AMT, 5.05%, 2/01/29

      2,285         2,305,268   

Carlsbad Unified School District, GO, Election of 2006, Series B, 0.00%, 5/01/34 (c)

      1,000         846,060   

City of San Jose California, Refunding ARB, San Jose Airport, Series A1, AMT, 5.75%, 3/01/34

        2,000         2,368,820   

Dinuba Unified School District, GO, Election of 2006 (AGM):

      

5.63%, 8/01/31

      250         294,683   

5.75%, 8/01/33

      500         591,815   

Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 0.00%, 8/01/34 (c)

      1,650         1,296,075   

Norwalk-La Mirada Unified School District California, GO, Refunding, CAB, Election of 2002, Series E (AGC), 4.71%, 8/01/38 (b)

      8,000         2,424,720   

Palomar Community College District, GO, CAB, Election of 2006, Series B:

      

4.26%, 8/01/30 (b)

      1,500         712,230   

5.47%, 8/01/33 (b)

      4,000         1,311,000   

0.00%, 8/01/39 (c)

      2,000         1,343,120   

San Diego Community College District California, GO, CAB, Election of 2002, 0.00%, 8/01/19 (c)

      2,800         2,416,708   

San Jose Evergreen Community College District, GO, Election of 2010, Series B, 3.50%, 8/01/32

      1,200         1,267,776   

State of California, GO, Refunding, Veterans, AMT, 5.05%, 12/01/36

      650         670,638   

State of California, GO, Various Purpose:

      

5.75%, 4/01/31

      2,000         2,440,200   

6.00%, 3/01/33

      1,000         1,285,130   

6.50%, 4/01/33

      1,950         2,504,521   

5.50%, 3/01/40

      2,350         2,833,935   

Val Verde Unified School District California, Special Tax Bonds, Refunding, Junior Lien, 6.25%, 10/01/28

      1,585         1,633,818   
                32,097,508   
 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    1        

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Colorado — 1.2%

      

Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D,
6.25%, 10/01/33

    $ 1,070       $ 1,299,547   

Park Creek Metropolitan District, Refunding RB, Limited Property Tax (AGM), 6.00%, 12/01/38

      750         896,063   
                2,195,610   

Connecticut — 1.4%

      

Connecticut State Health & Educational Facilities Authority, Refunding RB:

      

Hartford Healthcare, Series A, 5.00%, 7/01/32

        1,390         1,572,048   

Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36

      550         619,839   

Sacred Heart University, Series G, 5.38%, 7/01/31

      400         453,608   
                2,645,495   

Delaware — 0.7%

      

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40

      1,200         1,368,696   

Florida — 5.5%

      

County of Lee Florida, Refunding RB, Lee Airport, Series A, AMT (AGM),
5.00%, 10/01/28

      2,000         2,286,340   

Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/36

      125         134,775   

Palm Beach County Housing Finance Authority, HRB, Indian Trace Apartments, Series A, AMT (AGM), 5.63%, 1/01/44

      7,050         7,062,760   

Stevens Plantation Community Development District, Special Assessment Bonds, Series A, 7.10%, 5/01/35 (d)

      910         682,737   
                10,166,612   

Georgia — 1.1%

      

Chatham County Hospital Authority, Refunding RB, Memorial Health University Medical Center, Inc., Series A, 4.00%, 1/01/34

      2,000         2,101,060   

Hawaii — 0.2%

      

Hawaii State Department of Budget & Finance Senior Living, Refunding RB, Special Purpose, Kahala Nui, 5.25%, 11/15/37

      400         434,904   
    

Par

(000)

      Value  

Municipal Bonds

                  

Idaho — 1.2%

      

Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/33

    $ 1,750       $ 2,135,508   

Illinois — 9.0%

      

Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40

      665         781,708   

City of Chicago Illinois, Refunding RB, O’Hare International Airport, Passenger Facility Charge, Series B, AMT, 4.00%, 1/01/29

      4,000         4,175,960   

Illinois Finance Authority, RB:

      

Navistar International, Recovery Zone, 6.50%, 10/15/40

      560         587,698   

Rush University Medical Center, Series C, 6.63%, 11/01/39

      650         817,453   

Illinois Finance Authority, Refunding RB:

      

OSF Healthcare System, 6.00%, 5/15/39

      1,025         1,209,602   

Roosevelt University Project, 6.50%, 4/01/44

      1,000         1,148,820   

Series A, Friendship Village Schaumburg, 5.63%, 2/15/37

      210         212,497   

Railsplitter Tobacco Settlement Authority, RB:

      

6.25%, 6/01/24

      1,000         1,133,770   

6.00%, 6/01/28

      1,150         1,414,994   

Village of Bolingbrook Illinois, GO, Refunding, Series B (NPFGC), 6.24%, 1/01/36 (b)

      21,065         5,105,313   
                16,587,815   

Indiana — 0.6%

      

Indiana Finance Authority, Refunding RB, Improvement, U.S. Steel Corp.,
6.00%, 12/01/26

      1,000         1,032,260   

Iowa — 0.9%

      

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility:

      

5.75%, 9/01/30

      500         572,495   

6.00%, 9/01/39

      1,000         1,135,920   
                1,708,415   

Kansas — 0.5%

      

Pratt County Public Building Commission, RB, 3.25%, 12/01/32

      1,000         1,011,530   

Louisiana — 2.5%

      

Lafayette Public Trust Financing Authority, Refunding RB, Ragin Cajun Facilities Project, 3.75%, 10/01/32

      520         544,669   
 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    2        

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Louisiana (concluded)

      

Louisiana Local Government Environmental Facilities & Community Development Authority, RB:

      

Parish of Plaquemines Project (AGM), 4.00%, 9/01/42

    $ 480       $ 495,974   

Westlake Chemical Corp,
Series A-1, 6.50%, 11/01/35

      1,050         1,239,126   

Louisiana Public Facilities Authority, RB:

      

Belle Chasse Educational Foundation Project, 6.50%, 5/01/31

      400         472,124   

Franciscan Missionaries of our Lady Health System Project, Series B, 5.00%, 7/01/42

      1,600         1,800,912   
                4,552, 805   

Maryland — 1.9%

      

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25

      250         275,572   

Maryland Health & Higher Educational Facilities Authority, Refunding RB, Doctor’s Community Hospital, 5.63%, 7/01/30

      2,900         3,181,764   
                3,457,336   

Michigan — 3.0%

      

Board of Control of Michigan Technological University, Refunding RB, General, Series A, 4.00%, 10/01/30

      1,290         1,388,027   

Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38

      1,250         1,536,050   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39

      1,950         2,539,895   
                5,463,972   

Minnesota — 4.1%

      

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38

      4,600         5,783,718   

Minnesota Higher Education Facilities Authority, RB, Macalester College, Series 7-S (f):

      

3.25%, 5/01/36

      300         300,996   

4.00%, 5/01/43

      400         426,488   

Minnesota Higher Education Facilities Authority, Refunding RB, College of St. Scholarstica, Inc., Series 7, 4.00%, 12/01/32

      100         105,312   
    

Par

(000)

      Value  

Municipal Bonds

                  

Minnesota (concluded)

      

Tobacco Securitization Authority Minnesota, Refunding RB, Tobacco Settlement, Series B, 5.25%, 3/01/31

    $ 800       $ 900,808   
                7,517,322   

Mississippi — 3.2%

      

Mississippi Development Bank, RB, Hinds Community College District, CAB (AGM), 5.00%, 4/01/36

      845         965,446   

Mississippi Development Bank Special Obligation, RB, Jackson County Limited Tax Note (AGC), 5.50%, 7/01/32

      1,750         2,035,775   

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/36

      2,100         2,434,719   

Warren County Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, AMT, 5.38%, 12/01/35

      400         446,040   
                5,881,980   

Missouri — 1.6%

      

Missouri State Development Finance Board, RB:

      

Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41

      900         1,004,103   

St. Joseph Sewage System Improvements, 5.25%, 5/01/31

      580         635,483   

Missouri State Health & Educational Facilities Authority, RB:

      

A.T. Still University Health Sciences, 5.25%, 10/01/31

      500         582,090   

Heartland Regional Medical Center, 4.13%, 2/15/43

      770         798,959   
                3,020,635   

Montana — 0.8%

      

Montana Facility Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 4.75%, 1/01/40

      1,350         1,497,947   

Multi-State — 6.3%

      

Centerline Equity Issuer Trust, 7.20%, 11/15/52 (g)(h)

      10,500         11,546,325   

 

  

Nebraska — 3.8%

      

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42

      600         667,026   

City of Omaha Nebraska, RB, Sanitary Sewerage System:

      

3.25%, 11/15/37(f)

      2,400         2,365,200   

4.00%, 11/15/42(f)

      2,200         2,358,752   
 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    3        

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Nebraska (concluded)

      

City of Omaha Nebraska, RB, Sanitary Sewerage System (concluded): 4.25%, 11/15/38

    $   1,440       $ 1,592,381   
                6,983,359   

Nevada — 1.0%

      

City of Las Vegas Nevada, Special Assessment Bonds, Summerlin Area, 5.65%, 6/01/23

      1,265         1,265,000   

County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29

      575         632,742   
                1,897,742   

New Jersey — 11.0%

      

Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (d)(e)

      915         68,122   

New Jersey EDA, ARB, Continental Airlines, Inc. Project, AMT, 7.20%, 11/15/30 (i)

      3,000         3,011,370   

New Jersey EDA, Refunding RB, First Mortgage, Winchester, Series A, 5.80%, 11/01/31

      1,500         1,546,665   

New Jersey EDA, Refunding Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28

      7,500         9,129,450   

New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B:

      

7.13%, 12/01/23

      630         822,528   

7.50%, 12/01/32

      800         1,023,768   

New Jersey Health Care Facilities Financing Authority, Refunding RB, Barnabas Health, Series A:

      

4.63%, 7/01/23

      510         591,136   

5.63%, 7/01/37

      1,700         1,991,992   

New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.50%, 10/01/38

      485         511,733   

New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 6/15/36

      1,400         1,664,810   
                20,361,574   

New York — 5.5%

      

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%,
5/01/35 (d)(e)

      455         68,259   

Hudson New York Yards Infrastructure Corp., RB, Series A (NPFGC), 4.50%, 2/15/47

      750         789,195   
     Par
(000)		      Value  

Municipal Bonds

                  

New York (concluded)

      

New York City Industrial Development Agency, RB, American Airlines Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (d)(i)

    $   3,165       $ 3,340,942   

New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49

      800         941,688   

New York State Dormitory Authority, RB, Rochester Institute of Technology, Series A, 6.00%, 7/01/18 (a)

      1,000         1,282,280   

Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42

      400         407,840   

Onondaga Civic Development Corp., RB, Saint Joseph’s Hospital Health Center Project:

      

4.50%, 7/01/32

      1,110         1,110,822   

5.00%, 7/01/42

      540         559,964   

Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien, Series A, Remarketing, 5.00%, 11/01/30

      1,500         1,699,320   
                10,200,310   

North Carolina — 3.2%

      

Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35

      2,945         2,760,731   

North Carolina Capital Facilities Finance Agency, RB, Duke Energy Carolinas, Series B, 4.38%, 10/01/31

      1,000         1,100,480   

North Carolina Medical Care Commission, Refunding RB:

      

South Eastern Regional Medical Center, 3.25%, 6/01/27

      300         304,917   

South Eastern Regional Medical Center, 5.00%, 6/01/32

      660         769,032   

University Health System, Series D, 6.25%, 12/01/33

      800         980,760   
                5,915,920   

North Dakota — 1.1%

      

City of Fargo North Dakota, Refunding RB, University Facilities Development Foundation Project, 3.00%, 12/01/30

      400         408,780   

City of Grand Forks North Dakota, Refunding RB, Healthcare Systems, 5.00%, 12/01/32

      1,415         1,568,471   
                1,977,251   
 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    4        

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Ohio — 0.9%

      

Kent State University, RB, General Receipts, Series A, 5.00%, 5/01/42

    $ 800       $ 928,288   

Miami University/Oxford Ohio, RB, General Receipts, 3.25%, 9/01/34

      800         811,168   
                1,739,456   

Oregon — 1.4%

      

Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39

      750         880,238   

Oregon Health & Science University, Refunding RB, Series A, 3.00%, 7/01/24

      1,000         1,042,620   

Oregon State Facilities Authority, Refunding RB, Limited College Project, Series A, 5.25%, 10/01/40

      500         567,185   
                2,490,043   

Pennsylvania — 3.2%

      

County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27

      1,695         1,823,786   

Delaware River Port Authority, RB, Series D (AGM), 5.00%, 1/01/40

      2,600         2,968,862   

Pennsylvania Higher Educational Facilities Authority, RB, University Sciences Philadelphia, 5.00%, 11/01/42

      1,000         1,135,540   
                5,928,188   

Puerto Rico — 1.4%

      

Puerto Rico Sales Tax Financing Corp., RB:

      

CAB, Series A, 5.47%, 8/01/35 (b)

      1,000         294,290   

First Sub-Series A, 5.75%, 8/01/37

      1,000         1,114,500   

Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.42%, 8/01/41 (b)

      5,000         1,079,800   
                2,488,590   

Rhode Island — 1.2%

      

Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39

      1,000         1,233,000   

State of Rhode Island, COP, Series C, School for the Deaf (AGC), 5.38%, 4/01/28

      900         1,042,722   
                2,275,722   
    

Par

(000)

      Value  

Municipal Bonds

                  

Tennessee — 1.4%

      

Johnson City Health & Educational Facilities Board, RB, Mountain States Health, 5.00%, 8/15/42

    $ 800 $         897,312   

Memphis-Shelby County Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28

      275         317,108   

Shelby County Health Educational & Housing Facilities Board, RB, Methodist Le Bonheur Healthcare, 5.00%, 5/01/42

      1,200         1,363,980   
                2,578,400   

Texas — 15.8%

      

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B:

      

7.13%, 12/01/31

      500         648,210   

7.25%, 12/01/35

      1,750         2,218,492   

Harris County-Houston Sports Authority, Refunding RB, CAB, Senior Lien,
Series G (NPFGC), 5.80%, 11/15/41 (b)

      11,690         2,235,128   

Matagorda County Navigation District No. 1 Texas, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29

      1,500         1,785,600   

Midland County Fresh Water Supply District No 1, Refunding RB, City of Midland Project, 3.38%, 9/15/32

      1,575         1,622,880   

Midland County Fresh Water Supply District No 1, RB, CAB, City of Midland Project, Series A (b):

      

4.40%, 9/15/36

      4,900         1,741,705   

4.59%, 9/15/38

      10,760         3,338,398   

Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40

      2,000         2,512,820   

Texas State Turnpike Authority, RB, CAB (AMBAC), 6.00%, 8/15/35 (b)

      50,000         13,073,000   
                29,176,233   

Vermont — 1.7%

      

University of Vermont & State Agricultural College, Refunding RB, Series A, 4.00%, 10/01/38

      1,200         1,277,496   

Vermont Educational & Health Buildings Financing Agency, RB, Hospital, Fletcher Allen Health, Series A, 4.75%, 12/01/36

      800         837,960   
 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    5        

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

     Par
(000)		      Value  

Municipal Bonds

                  

Vermont (concluded)

      

Vermont Educational & Health Buildings Financing Agency, Refunding RB, St. Michaels College, 5.00%, 10/01/42

    $ 900       $ 1,016,280   
                3,131,736   

Virginia — 0.6%

      

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 5.50%, 1/01/42

      940         1,059,295   

Washington — 0.9%

      

Washington Healthcare Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/39

      1,400         1,671,614   

West Virginia — 0.7%

      

West Virginia State University, RB, West Virginia University Projects, Series B, 5.00%, 10/01/36

      1,100         1,310,056   

Wyoming — 0.8%

      

County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26

      1,200         1,389,756   

Total Municipal Bonds – 133.5%

               246,110,241   
     
     

Municipal Bonds Transferred to Tender Option Bond (TOB)

Trusts (j)

  

  

Colorado — 2.2%

      

Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 9/01/36

      3,750         4,085,250   

Massachusetts — 0.9%

      

Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41

      1,450         1,647,331   

Michigan — 2.3%

      

Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32

      4,000         4,290,960   

New York — 8.6%

      

Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

      2,500         3,036,539   

New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40

      450         556,618   

New York City Municipal Water Finance Authority, Refunding RB:

      

Series A, 4.75%, 6/15/30

      3,000         3,430,380   

Series FF-2, 5.50%, 6/15/40

      405         499,220   
    

Par

(000)

      Value  

Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts (j)

  

  

New York (concluded)

      

New York Liberty Development Corp., RB, 5.25%, 12/15/43

    $ 2,505       $ 2,976,727   

New York State Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/38

      2,199         2,464,913   

New York State Dormitory Authority, Refunding RB, State University Dormitory Facilities, Series A, 5.00%, 7/01/42

      760         911,012   

New York State Thruway Authority, Refunding RB, Transportation, Series A, 5.00%, 3/15/31

      1,560         1,899,035   
                15,774,444   

Ohio — 2.0%

      

County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41

      1,260         1,365,323   

Ohio Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic Health, Series A, 5.25%, 1/01/33

      2,000         2,238,780   
                3,604,103   

Total Municipal Bonds Transferred to Tender

Option Bond (TOB) Trusts – 16.0%

  

  

      29,402,088   

Total Long-Term Investments

(Cost – $245,495,840) – 149.5%

  

  

      275,512,329   
     
     
     
     Shares      

Short-Term Securities

                  

FFI Institutional Tax-Exempt Fund, 0.01%, (k)(l)

      3,630,292         3,630,292   

Total Short-Term Securities

(Cost – $3,630,292) – 2.0%

  

  

      3,630,292   

Total Investments (Cost—$249,126,132*) – 151.5%

   

      279,142,621   

Other Assets Less Liabilities – 0.1%

  

      111,921   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable – (8.2)%

   

      (15,069,985)   

VMTP Shares, at Liquidation Value – (43.4)%

  

      (79,900,000)   

Net Assets Applicable to Common
Shares– 100.0%

   

    $ 184,284,557   

    

                  
 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    6        

 

 

Schedule of Investments (continued)

  

 

BlackRock Municipal Bond Trust (BBK)

 

* As of November 30, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

Tax cost

    $     233,312,424   
  

 

 

  

Gross unrealized appreciation

    $ 32,639,813   

Gross unrealized depreciation

      (1,868,488)   
  

 

 

  

Net unrealized appreciation

    $ 30,771,325   
  

 

 

  

 

(a) US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(c) Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(d) Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(e) Non-income producing security.
(f) When-issued security. Unsettled when-issued transactions were as follows:

 

   

Counterparty

      Value        
 		 Unrealized
Appreciation		   
  
   

    

                  
 

D.A. Davidson & Co.

    $     4,723,952       $     50,408   
   

Piper Jaffray

    $ 727,484       $ 7,529   
(g) Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.
(h) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(i) Variable rate security. Rate shown is as of report date.
(j) Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.
(k) Investments in issuers considered to be an affiliate of the Trust during the period ended November 30, 2012, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

    Shares
Held at
August 31,
2012		    Net
Activity		    Shares

Held at

November 30,

2012

    Income

FFI Institutional Tax-Exempt Fund

    583,607    3,046,685    3,630,292    $      136

 

(l) Represents the current yield as of report date.

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

AGC   Assured Guaranty Corp.
AGM   Assured Guaranty Municipal Corp.
AMBAC   American Municipal Bond Assurance Corp.
AMT   Alternative Minimum Tax (subject to)
ARB   Airport Revenue Bonds
CAB   Capital Appreciation Bonds
COP   Certificates of Participation
EDA   Economic Development Authority
EDC   Economic Development Corp.
GO   General Obligation Bonds
HFA   Housing Finance Agency
HRB   Housing Revenue Bonds
IDA   Industrial Development Authority
IDRB   Industrial Development Revenue Bonds
NPFGC   National Public Finance Guarantee Corp.
RB   Revenue Bonds
 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    7        

 

 

Schedule of Investments (concluded)

  

 

BlackRock Municipal Bond Trust (BBK)

 

—  

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  —  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

  —  

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  —  

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of November 30, 2012:

      Level 1        Level 2        Level 3        Total   

Assets:

        

Investments:
Long-Term
Investments1

     —      $  275,512,329        —      $  275,512,329   

Short-Term
Securities

   $  3,630,292        —        —        3,630,292   
 

 

 

  

Total

   $ 3,630,292      $ 275,512,329        —      $ 279,142,621   
 

 

 

  
1 

See above Schedule of Investments for values in each state or political sub-division.

Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of November 30, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

       Level 1         Level 2         Level 3         Total   

Liabilities:

            

TOB trust
certificates

      —       $  (15,058,872)         —       $   (15,058,872)   

VMTP
Shares

      —         (79,900,000)         —         (79,900,000)   
  

 

 

  

Total

      —       $  (94,958,872)         —         $ (94,958,872)   
  

 

 

  

There were no transfers between levels during the period ended November 30, 2012.

 

 

                 
      BLACKROCK MUNICIPAL BOND TRUST       NOVEMBER 30, 2012    8        

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 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) 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 Municipal Bond Trust

 

By:  

/s/ John M. Perlowski

  John M. Perlowski
  Chief Executive Officer (principal executive officer) of BlackRock Municipal Bond Trust

Date: January 23, 2013

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/ John M. Perlowski

  John M. Perlowski
  Chief Executive Officer (principal executive officer) of BlackRock Municipal Bond Trust

Date: January 23, 2013

 

By:  

/s/ Neal J. Andrews

  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of BlackRock Municipal Bond Trust

Date: January 23, 2013