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
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2014
Date of reporting period: 11/30/2013
Item 1 Schedule of Investments
Schedule of Investments November 30, 2013 (Unaudited) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Alabama 2.8% |
||||||||
City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Childrens Hospital (AGC): |
||||||||
6.00%, 6/01/34 |
$ | 1,150 | $ | 1,286,079 | ||||
6.00%, 6/01/39 |
450 | 503,249 | ||||||
City of Hoover Alabama Board of Education, Refunding, Special Tax, Capital Outlay Warrants, 4.25%, 2/15/40 |
2,750 | 2,624,270 | ||||||
|
|
|||||||
4,413,598 | ||||||||
Arizona 8.7% |
||||||||
Arizona Board of Regents, RB, Arizona State University, Series C, 5.50%, 7/01/26 |
200 | 225,420 | ||||||
Arizona Health Facilities Authority, Refunding RB, Phoenix Childrens Hospital, Series A, 5.00%, 2/01/42 |
2,200 | 2,008,050 | ||||||
County of Pima Arizona IDA, Refunding, IDRB, Tucson Electric Power Co. Project, Remarketing, Series B, 5.75%, 9/01/29 |
900 | 915,345 | ||||||
County of Pinal Arizona Electric District No. 3, Refunding RB, Electric System, 4.75%, 7/01/31 |
3,750 | 3,768,825 | ||||||
Salt Verde Financial Corp., RB, Senior: |
||||||||
5.00%, 12/01/32 |
1,500 | 1,469,355 | ||||||
5.00%, 12/01/37 |
2,065 | 1,986,819 | ||||||
San Luis Facility Development Corp., RB, Senior Lien Project, Regional Detention Center Project: |
||||||||
6.25%, 5/01/15 |
125 | 121,958 | ||||||
7.00%, 5/01/20 |
300 | 268,623 | ||||||
7.25%, 5/01/27 |
600 | 471,798 | ||||||
State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/29 |
750 | 783,502 | ||||||
University Medical Center Corp., RB, 6.50%, 7/01/39 |
500 | 535,145 | ||||||
University Medical Center Corp., Refunding RB, 6.00%, 7/01/39 |
900 | 926,433 | ||||||
|
|
|||||||
13,481,273 | ||||||||
Municipal Bonds | Par (000) |
Value | ||||||
Arkansas 0.7% |
||||||||
Arkansas State University, RB, Jonesboro Campus, Series B (a): |
||||||||
4.00%, 12/01/28 |
$ | 400 | $ | 396,876 | ||||
4.88%, 12/01/43 |
690 | 685,156 | ||||||
|
|
|||||||
1,082,032 | ||||||||
California 19.8% |
||||||||
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31 |
1,900 | 2,146,563 | ||||||
California HFA, RB, Home Mortgage, Series G, AMT, 5.05%, 2/01/29 |
2,285 | 2,182,015 | ||||||
Carlsbad California Unified School District, GO, Election of 2006, Series B, 5.58%, 5/01/34 (b) |
1,000 | 773,710 | ||||||
City of Manteca California, Refunding RB, Sewer System, 4.00%, 12/01/33 |
2,000 | 1,901,980 | ||||||
City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34 |
2,000 | 2,111,320 | ||||||
County of Stanislaus California Tobacco Securitization Agency, RB, CAB, Sub-Series C, 12.16%, 6/01/55 (c) |
4,500 | 33,525 | ||||||
Dinuba California Unified School District, GO, Election of 2006 (AGM): |
||||||||
5.63%, 8/01/31 |
250 | 264,438 | ||||||
5.75%, 8/01/33 |
500 | 528,895 | ||||||
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 5.72%, 8/01/34 (b) |
1,650 | 1,124,211 | ||||||
Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 5.82%, 8/01/38 (c) |
8,000 | 1,942,560 | ||||||
Palomar Community College District, GO, CAB, Election of 2006, Series B: |
||||||||
5.16%, 8/01/30 (c) |
1,500 | 641,520 | ||||||
5.86%, 8/01/33 (c) |
4,000 | 1,284,760 | ||||||
5.76%, 8/01/39 (b) |
2,000 | 1,074,960 | ||||||
San Diego Community College District, GO, CAB, Election of 2002, 5.44%, 8/01/33 (b) |
2,800 | 2,177,700 |
BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 | 1 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
California (concluded) |
||||||||
San Jose California Evergreen Community College District, GO, Election of 2010, Series B, 3.50%, 8/01/32 |
$ | 1,200 | $ | 1,043,664 | ||||
State of California, GO, Refunding: |
||||||||
Various Purposes, 5.00%, 2/01/38 |
3,000 | 3,072,990 | ||||||
Veterans, AMT, 5.05%, 12/01/36 |
305 | 300,108 | ||||||
State of California, GO, Various Purposes: |
||||||||
5.75%, 4/01/31 |
2,000 | 2,226,580 | ||||||
6.00%, 3/01/33 |
1,000 | 1,161,230 | ||||||
6.50%, 4/01/33 |
1,950 | 2,314,962 | ||||||
5.50%, 3/01/40 |
2,350 | 2,537,835 | ||||||
|
|
|||||||
30,845,526 | ||||||||
Colorado 1.3% |
||||||||
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33 |
1,070 | 1,191,434 | ||||||
Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax (AGM), 6.00%, 12/01/38 |
750 | 797,963 | ||||||
|
|
|||||||
1,989,397 | ||||||||
Connecticut 1.2% |
||||||||
Connecticut State Health & Educational Facility Authority, Refunding RB: |
||||||||
Hartford Healthcare, Series A, 5.00%, 7/01/32 |
1,250 | 1,260,150 | ||||||
Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36 |
550 | 554,466 | ||||||
|
|
|||||||
1,814,616 | ||||||||
Delaware 0.8% |
||||||||
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40 |
1,200 | 1,231,056 | ||||||
Florida 4.6% |
||||||||
County of Lee Florida, Refunding ARB, Series A, AMT (AGM), 5.00%, 10/01/28 |
2,000 | 2,042,180 | ||||||
County of Miami-Dade Florida, RB, AMT, Seaport, Series B, 6.00%, 10/01/31 |
4,135 | 4,354,362 | ||||||
Municipal Bonds | Par (000) |
Value | ||||||
Florida (concluded) |
||||||||
County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, Inc. Project, 5.00%, 6/01/36 |
$ | 125 | $ | 118,531 | ||||
Stevens Plantation Community Development District, Special Assessment, Series A, 7.10%, 5/01/35 (d)(e) |
910 | 678,077 | ||||||
|
|
|||||||
7,193,150 | ||||||||
Hawaii 0.3% |
||||||||
Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37 |
400 | 398,908 | ||||||
Idaho 1.3% |
||||||||
Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/33 |
1,750 | 1,978,147 | ||||||
Illinois 6.1% |
||||||||
City of Chicago Illinois, Refunding ARB, OHare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 1/01/29 |
4,000 | 3,548,360 | ||||||
City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 |
665 | 671,923 | ||||||
Illinois Finance Authority, RB, Rush University Medical Center, Series C, 6.63%, 11/01/39 |
650 | 716,430 | ||||||
Illinois Finance Authority, Refunding RB: |
||||||||
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37 |
210 | 182,582 | ||||||
OSF Healthcare System, Series A, 6.00%, 5/15/39 |
1,010 | 1,085,326 | ||||||
Roosevelt University Project, 6.50%, 4/01/44 |
1,000 | 1,023,230 | ||||||
Railsplitter Tobacco Settlement Authority, RB: |
||||||||
6.25%, 6/01/24 |
1,000 | 1,077,590 | ||||||
6.00%, 6/01/28 |
1,150 | 1,251,970 | ||||||
|
|
|||||||
9,557,411 |
2 | BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Indiana 0.6% |
||||||||
Indiana Finance Authority, Refunding RB, US Steel Corp. Project, 6.00%, 12/01/26 |
$ | 1,000 | $ | 977,960 | ||||
Iowa 1.0% |
||||||||
Iowa Higher Education Loan Authority, Refunding RB, Private College Facility, Upper Iowa University Project: |
||||||||
5.75%, 9/01/30 |
500 | 521,520 | ||||||
6.00%, 9/01/39 |
1,000 | 1,037,690 | ||||||
|
|
|||||||
1,559,210 | ||||||||
Kentucky 1.2% |
||||||||
Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40 |
1,830 | 1,842,334 | ||||||
Louisiana 2.3% |
||||||||
Lafayette Public Trust Financing Authority, Refunding RB, Ragin Cajun Facilities, Inc. Project (AGM), 3.75%, 10/01/32 |
270 | 241,529 | ||||||
Louisiana Local Government Environmental Facilities & Community Development Authority, RB: |
||||||||
Parish of Plaquemines Project (AGM), 4.00%, 9/01/42 |
280 | 234,746 | ||||||
Westlake Chemical Corp. Projects, Series A-1, 6.50%, 11/01/35 |
1,050 | 1,125,306 | ||||||
Louisiana Public Facilities Authority, RB: |
||||||||
Belle Chasse Educational Foundation Project, 6.50%, 5/01/31 |
400 | 426,092 | ||||||
Cleco Power LLC Project, Series B, 4.25%, 12/01/38 |
1,400 | 1,232,896 | ||||||
Terrebonne Levee & Conservation District, RB, Sales Tax, 4.25%, 7/01/32 |
385 | 370,940 | ||||||
|
|
|||||||
3,631,509 | ||||||||
Maryland 1.9% |
||||||||
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25 |
580 | 602,945 | ||||||
Municipal Bonds | Par (000) |
Value | ||||||
Maryland (concluded) |
||||||||
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Doctors Community Hospital, 5.63%, 7/01/30 |
$ | 2,400 | $ | 2,309,760 | ||||
|
|
|||||||
2,912,705 | ||||||||
Michigan 5.0% |
||||||||
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38 |
1,250 | 1,410,663 | ||||||
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32 |
3,100 | 2,761,325 | ||||||
Michigan Technological University, Refunding RB, General, Series A, 4.00%, 10/01/30 |
1,290 | 1,209,994 | ||||||
Royal Oak Hospital Finance Authority, Refunding RB, William Beaumont Hospital Obligated Group, Series V, 8.25%, 9/01/39 |
1,950 | 2,335,047 | ||||||
|
|
|||||||
7,717,029 | ||||||||
Minnesota 3.8% |
||||||||
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |
4,600 | 5,251,820 | ||||||
University of Minnesota, RB, Biomedical Science Research Facilities, Series C: |
||||||||
4.00%, 8/01/31 |
340 | 332,775 | ||||||
4.13%, 8/01/32 |
320 | 316,099 | ||||||
|
|
|||||||
5,900,694 | ||||||||
Mississippi 3.4% |
||||||||
County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35 |
400 | 389,040 | ||||||
Mississippi Development Bank, RB, Special Obligation: |
||||||||
CAB, Hinds Community College District (AGM), 5.00%, 4/01/36 |
845 | 863,159 | ||||||
County of Jackson Limited Tax Note (AGC), 5.50%, 7/01/32 |
1,750 | 1,848,823 |
BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 | 3 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Mississippi (concluded) |
||||||||
University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/36 |
$ | 2,100 | $ | 2,206,218 | ||||
|
|
|||||||
5,307,240 | ||||||||
Missouri 4.2% |
||||||||
Missouri Development Finance Board, RB: |
||||||||
Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41 |
900 | 895,932 | ||||||
St. Joseph Sewage System Improvements, Series E, 5.25%, 5/01/31 |
580 | 583,114 | ||||||
Missouri Development Finance Board, Refunding RB, Electric System Projects, Series F, 4.00%, 6/01/32 |
1,000 | 907,190 | ||||||
Missouri State Health & Educational Facilities Authority, RB: |
||||||||
A.T. Still University of Health Sciences, 5.25%, 10/01/31 |
500 | 521,825 | ||||||
Heartland Regional Medical Center, 4.13%, 2/15/43 |
770 | 643,774 | ||||||
University of Central Missouri, Series C-2, 4.00%, 10/01/28 (a) |
400 | 393,820 | ||||||
University of Central Missouri, Series C-2, 4.25%, 10/01/30 (a) |
800 | 790,480 | ||||||
University of Central Missouri, Series C-2, 5.00%, 10/01/34 (a) |
1,000 | 1,032,110 | ||||||
Missouri State Health & Educational Facilities Authority, Refunding RB, CoxHealth, Series A, 5.00%, 11/15/38 |
800 | 797,720 | ||||||
|
|
|||||||
6,565,965 | ||||||||
Montana 0.3% |
||||||||
Montana Facility Finance Authority, Refunding RB, Sisters of Charity of Leavenworth Health System, Series A, 4.75%, 1/01/40 |
450 | 447,318 | ||||||
Multi-State 7.1% |
||||||||
Centerline Equity Issuer Trust, Series B-2, 7.20%, 11/15/14 (f)(g) |
10,500 | 11,062,800 | ||||||
Municipal Bonds | Par (000) |
Value | ||||||
Nebraska 2.2% |
||||||||
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42 |
$ | 600 | $ | 574,386 | ||||
City of Omaha Nebraska, RB, Sanitary Sewerage System, 4.00%, 11/15/42 |
2,200 | 2,002,990 | ||||||
Nebraska Public Power District, Refunding RB, Series A: |
||||||||
5.00%, 1/01/32 |
250 | 263,587 | ||||||
5.00%, 1/01/33 |
500 | 525,425 | ||||||
|
|
|||||||
3,366,388 | ||||||||
Nevada 1.1% |
||||||||
City of Las Vegas Nevada, Special Assessment, No. 809 Summerlin Area, 5.65%, 6/01/23 |
1,240 | 1,192,421 | ||||||
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29 |
575 | 591,244 | ||||||
|
|
|||||||
1,783,665 | ||||||||
New Jersey 11.9% |
||||||||
County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (d)(e) |
915 | 63,913 | ||||||
New Jersey EDA, RB: |
||||||||
Continental Airlines, Inc. Project, AMT, 7.20%, 11/15/30 (h) |
3,000 | 2,999,670 | ||||||
Goethals Bridge Replacement Project, AMT, 5.13%, 7/01/42 |
200 | 195,732 | ||||||
Rutgers - The State University of New Jersey, College Avenue Redevelopment Project, 5.00%, 6/15/38 |
450 | 475,884 | ||||||
New Jersey EDA, Refunding RB, 1st Mortgage, Winchester, Series A, 5.80%, 11/01/31 |
1,500 | 1,501,305 | ||||||
New Jersey EDA, Refunding, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28 |
7,500 | 8,236,575 | ||||||
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B (i): |
||||||||
7.13%, 6/01/19 |
630 | 814,678 | ||||||
7.50%, 6/01/19 |
800 | 1,050,288 |
4 | BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
New Jersey (concluded) |
||||||||
New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series A: |
||||||||
4.63%, 7/01/23 |
$ | 510 | $ | 530,844 | ||||
5.00%, 7/01/25 |
500 | 527,470 | ||||||
5.63%, 7/01/37 |
1,700 | 1,741,531 | ||||||
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA, 6.50%, 10/01/38 |
325 | 329,758 | ||||||
|
|
|||||||
18,467,648 | ||||||||
New York 7.1% |
||||||||
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (d)(e) |
455 | 68,254 | ||||||
City of New York New York, GO, Fiscal 2014, Sub-Series A-1: |
||||||||
5.00%, 8/01/29 |
400 | 433,472 | ||||||
5.00%, 8/01/35 |
1,580 | 1,659,016 | ||||||
City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (h) |
3,165 | 3,425,448 | ||||||
City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39 |
1,500 | 1,263,975 | ||||||
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A, 5.00%, 11/01/30 |
1,500 | 1,527,435 | ||||||
Hudson Yards Infrastructure Corp., RB, Series A (NPFGC), 5.00%, 2/15/47 |
750 | 749,265 | ||||||
New York Liberty Development Corp., Refunding RB, Liberty, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49 |
800 | 844,008 | ||||||
Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 |
400 | 352,084 |
Municipal Bonds | Par (000) |
Value | ||||||
New York (concluded) |
||||||||
State of New York Dormitory Authority, Refunding RB, State University Dormitory Facilities, Series A, 5.00%, 7/01/42 |
$ | 750 | $ | 778,065 | ||||
|
|
|||||||
11,101,022 | ||||||||
North Carolina 3.0% |
||||||||
County of Gaston Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |
2,695 | 2,348,800 | ||||||
North Carolina Medical Care Commission, Refunding RB: |
||||||||
Health Care Facilities, Novant Health Obligated Group, Series A, 4.00%, 11/01/46 |
900 | 726,984 | ||||||
Southeastern Regional Medical Center, 5.00%, 6/01/32 |
660 | 665,914 | ||||||
University Health System, Series D, 6.25%, 12/01/33 |
800 | 894,144 | ||||||
|
|
|||||||
4,635,842 | ||||||||
North Dakota 0.2% |
||||||||
City of Fargo North Dakota, Refunding RB, University Facilities Development Foundation Project, 3.00%, 12/01/30 |
400 | 330,532 | ||||||
Oklahoma 1.0% |
||||||||
Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38 |
1,690 | 1,474,086 | ||||||
Oregon 2.9% |
||||||||
City of Madras Oregon, GO, Refunding, 4.00%, 2/15/33 |
500 | 425,990 | ||||||
County of Clackamas Oregon Housing Authority, HRB, M/F, Easton Ridge Apartments Project, Series A: |
||||||||
3.50%, 9/01/33 |
755 | 637,454 | ||||||
4.00%, 9/01/43 |
660 | 567,442 | ||||||
4.00%, 9/01/49 |
750 | 624,982 | ||||||
County of Klamath Oregon School District, GO, 4.00%, 6/15/33 |
420 | 408,324 | ||||||
Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39 |
750 | 815,805 |
BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 | 5 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Oregon (concluded) |
||||||||
Oregon Health & Science University, Refunding RB, Series A, 3.00%, 7/01/24 |
$ | 600 | $ | 574,668 | ||||
Oregon State Facilities Authority, Refunding RB, Linfield College Project, Series A, 5.25%, 10/01/40 |
500 | 500,815 | ||||||
|
|
|||||||
4,555,480 | ||||||||
Pennsylvania 2.8% |
||||||||
County of Allegheny Pennsylvania IDA, Refunding RB, US Steel Corp. Project, 6.55%, 12/01/27 |
1,695 | 1,737,358 | ||||||
Delaware River Port Authority, RB, Series D (AGM), 5.00%, 1/01/40 |
2,600 | 2,664,298 | ||||||
|
|
|||||||
4,401,656 | ||||||||
Rhode Island 2.5% |
||||||||
Rhode Island Health & Educational Building Corp., RB: |
||||||||
City of Newport Issue, Series C, 4.00%, 5/15/33 |
980 | 955,118 | ||||||
Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39 |
1,000 | 1,107,920 | ||||||
Rhode Island Health & Educational Building Corp., Refunding RB, Brown University, 4.50%, 9/01/32 (a) |
800 | 826,120 | ||||||
State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 4/01/28 |
900 | 955,800 | ||||||
|
|
|||||||
3,844,958 | ||||||||
Tennessee 1.9% |
||||||||
Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/40 |
1,950 | 1,941,674 | ||||||
County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28 |
275 | 290,892 | ||||||
Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 8/15/42 |
800 | 768,152 | ||||||
|
|
|||||||
3,000,718 | ||||||||
Municipal Bonds | Par (000) |
Value | ||||||
Texas 19.9% |
||||||||
City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43 |
$ | 1,580 | $ | 1,638,728 | ||||
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB, Young Mens Christian Association of the Greater Houston Area, Series A, 5.00%, 6/01/38 |
345 | 316,724 | ||||||
County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B (i): |
||||||||
7.13%, 12/01/18 |
500 | 642,400 | ||||||
7.25%, 12/01/18 |
1,750 | 2,258,987 | ||||||
County of Harris Texas-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 6.60%, 11/15/41 (c) |
11,690 | 1,902,314 | ||||||
County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29 |
1,500 | 1,658,580 | ||||||
County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A (c): |
||||||||
5.02%, 9/15/36 |
4,900 | 1,581,083 | ||||||
5.14%, 9/15/38 |
10,760 | 3,057,239 | ||||||
County of Midland Texas Fresh Water Supply District No. 1, Refunding RB, City of Midland Project, 3.38%, 9/15/32 |
1,575 | 1,348,909 | ||||||
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 |
760 | 817,806 | ||||||
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 | 2,186,820 | ||||||
Texas State Turnpike Authority, RB, CAB (AMBAC), 6.09%, 8/15/35 (c) |
50,000 | 13,603,000 | ||||||
|
|
|||||||
31,012,590 |
6 | BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Vermont 2.7% |
||||||||
University of Vermont & State Agricultural College, Refunding RB, Series A, 4.00%, 10/01/38 |
$ | 1,200 | $ | 1,059,276 | ||||
Vermont Educational & Health Buildings Financing Agency, RB, Fletcher Allen Health Hospital, Series A, 4.75%, 12/01/36 |
800 | 764,416 | ||||||
Vermont Educational & Health Buildings Financing Agency, Refunding RB, Fletcher Allen Health Hospital, Series B, 5.00%, 12/01/34 |
2,400 | 2,420,208 | ||||||
|
|
|||||||
4,243,900 | ||||||||
Virginia 1.2% |
||||||||
County of Prince William Virginia IDA, Refunding RB, Novant Health Obligation Group, Series B, 4.00%, 11/01/46 |
1,200 | 977,364 | ||||||
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37 |
880 | 906,110 | ||||||
|
|
|||||||
1,883,474 | ||||||||
Washington 1.0% |
||||||||
Washington Health Care Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/39 |
1,400 | 1,495,452 | ||||||
West Virginia 1.3% |
||||||||
City of Wheeling West Virginia Waterworks & Sewerage System, RB, 5.00%, 6/01/38 |
2,000 | 2,018,080 | ||||||
Wyoming 0.8% |
||||||||
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, Remarketing, 5.25%, 7/15/26 |
1,200 | 1,283,412 | ||||||
Total Municipal Bonds 141.9% |
220,808,781 | |||||||
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (j) |
||||||||
Colorado 2.4% |
||||||||
Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 9/01/36 |
3,750 | 3,766,087 | ||||||
Massachusetts 1.0% |
||||||||
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41 |
$ | 1,450 | $ | 1,507,681 | ||||
New Jersey 0.9% |
||||||||
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (k) |
1,400 | 1,457,751 | ||||||
New York 12.5% |
||||||||
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System: |
||||||||
2nd General Resolution, Series FF-2, 5.50%, 6/15/40 |
405 | 431,553 | ||||||
Fiscal 2009, Series A, 5.75%, 6/15/40 |
450 | 498,604 | ||||||
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System: |
||||||||
2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47 |
6,000 | 6,140,280 | ||||||
Series A, 4.75%, 6/15/30 |
3,000 | 3,118,830 | ||||||
Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (k) |
2,500 | 2,667,130 | ||||||
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43 |
2,505 | 2,615,095 | ||||||
New York State Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/38 |
2,199 | 2,301,475 | ||||||
State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31 |
1,560 | 1,669,964 | ||||||
|
|
|||||||
19,442,931 | ||||||||
Ohio 2.2% |
||||||||
County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41 |
1,260 | 1,259,912 |
BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 | 7 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (j) |
Par (000) |
Value | ||||||
Ohio (concluded) |
||||||||
Ohio Higher Educational Facility Commission, RB, Cleveland Clinic Health, Series A, 5.25%, 1/01/33 |
$ | 2,000 | $ | 2,065,920 | ||||
|
|
|||||||
3,325,832 | ||||||||
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts 19.0% |
29,500,282 | |||||||
Total Long-Term Investments (Cost $246,986,078) 160.9% |
250,309,063 | |||||||
Short-Term Securities | Shares | Value | ||||||
FFI Institutional Tax-Exempt Fund, 0.03% (l)(m) |
3,926,600 | $ | 3,926,600 | |||||
Total Short-Term Securities (Cost $3,926,600) 2.5% |
3,926,600 | |||||||
Total Investments (Cost $250,912,678*) 163.4% | 254,235,663 | |||||||
Liabilities in Excess of Other Assets (1.1)% | (1,672,996 | ) | ||||||
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable (11.0%) |
|
(17,047,139 | ) | |||||
VMTP Shares, at Liquidation Value (51.3%) | (79,900,000 | ) | ||||||
|
|
|||||||
Net Assets Applicable to Common Shares 100.0% | $ | 155,615,528 | ||||||
* As of November 30, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows: |
| |||||||
Tax cost |
$ | 233,262,894 | ||||||
|
|
|||||||
Gross unrealized appreciation |
$ | 11,218,528 | ||||||
Gross unrealized depreciation |
(7,285,083 | ) | ||||||
|
|
|||||||
Net unrealized appreciation |
$ | 3,933,445 | ||||||
|
|
Notes to Schedule of Investments |
(a) | When-issued security. Unsettled when-issued transactions were as follows: |
Counterparty | Value | Unrealized Appreciation |
||||||
JPMorgan Securities LLC |
$ | 826,120 | $ | 1,976 | ||||
Piper Jaffray & Co. |
$ | 2,216,410 | $ | 16,056 | ||||
Stephens, Inc. |
$ | 1,082,032 | $ | 4,539 |
(b) | 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 reflects the current yield as of report date. |
(c) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
(d) | Non-income producing security. |
(e) | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
(f) | 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. |
(g) | 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. |
(h) | Variable rate security. Rate shown is as of report date. |
(i) | 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. |
(j) | Represent bonds transferred to a TOB. In exchange the Trust acquired residual interest certificates. These bonds serve as collateral in a financing transaction. |
(k) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from February 15, 2019 to June 15, 2019 is $2,411,773. |
(l) | Represents the current yield as of report date. |
8 | BlackRock Municipal Bond Trust (BBK) | November 30, 2013 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK)
|
(m) | Investments in issuers considered to be an affiliate of the Trust during the period ended November 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliate |
Shares Held at 2013 |
Net Activity |
Shares Held at November 30, 2013 |
Income | ||||||||||||
FFI Institutional Tax-Exempt Fund |
1,669,953 | 2,256,647 | 3,926,600 | $260 |
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 Guarantee Corp. | HFA | Housing Finance Agency | ||||
AGM | Assured Guaranty Municipal Corp. | HRB | Housing Revenue Bonds | |||||
AMBAC | American Municipal Bond Assurance Corp. | IDA | Industrial Development Authority | |||||
AMT | Alternative Minimum Tax (subject to) | IDRB | Industrial Development Revenue Bonds | |||||
ARB | Airport Revenue Bonds | M/F | Multi-Family | |||||
CAB | Capital Appreciation Bonds | NPFGC | National Public Finance Guarantee Corp. | |||||
COP | Certificates of Participation | PILOT | Payment in Lieu of Taxes | |||||
EDA | Economic Development Authority | RB | Revenue Bonds | |||||
EDC | Economic Development Corp. | S/F | Single-Family | |||||
GO | General Obligation Bonds |
| Financial futures contracts as of November 30, 2013 were as follows: |
Contracts Sold | Issue | Exchange | Expiration | Notional Value |
Unrealized Appreciation | |||||||
(64 | ) | 10-Year US Treasury Note | Chicago Board of Trade | December 2013 | $8,105,000 | $40,930 |
BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 | 9 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK)
|
| Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. 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 or 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 Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
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 fair value hierarchy classification 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 Trusts 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 and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments, please refer to the Trusts most recent financial statements as contained in its annual report.
The following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure hierarchy as of November 30, 2013:
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: |
||||||||||||||
Investments: | ||||||||||||||
Long-Term Investments 1 |
| $ | 250,309,063 | | $ | 250,309,063 | ||||||||
Short-Term Securities |
$ | 3,926,600 | | | 3,926,600 | |||||||||
|
|
|
|
|
|
|
||||||||
Total | $ | 3,926,600 | $ | 250,309,063 | | $ | 254,235,663 | |||||||
|
|
|
|
|
|
|
||||||||
1 See above Schedule of Investments for values in each state or political subdivision. |
| |||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Derivative Financial Instruments 2 | ||||||||||||||
Assets: |
||||||||||||||
Interest rate contracts |
$ | 40,930 | | | $ | 40,930 | ||||||||
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
|
10 | BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 |
Schedule of Investments (concluded) |
BlackRock Municipal Bond Trust (BBK)
|
Certain of the Trusts assets and/or liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of November 30, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets: |
| |||||||||||||
Cash pledged for financial futures contracts |
$ | 114,000 | | | $ | 114,000 | ||||||||
Liabilities: |
||||||||||||||
Bank overdraft |
| $ | (4,984 | ) | | (4,984 | ) | |||||||
TOB trust certificates |
| (17,039,324 | ) | | (17,039,324 | ) | ||||||||
VMTP Shares |
| (79,900,000 | ) | | (79,900,000 | ) | ||||||||
|
|
|
|
|
|
|
||||||||
Total |
$ | 114,000 | $ | (96,944,308 | ) | | $ | (96,830,308 | ) | |||||
|
|
|
|
|
|
|
There were no transfers between levels during the period ended November 30, 2013.
BLACKROCK MUNICIPAL BOND TRUST | NOVEMBER 30, 2013 | 11 |
Item 2 Controls and Procedures
2(a) | The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants 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 registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants 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 24, 2014 | ||||||
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 24, 2014 | ||||||
By: | /s/ Neal J. Andrews |
|||||
Neal J. Andrews |
||||||
Chief Financial Officer (principal financial officer) of | ||||||
BlackRock Municipal Bond Trust |
||||||
Date: January 24, 2014 |