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: Anne F. Ackerley, 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: 08/31/2010

 

Date of reporting period: 05/31/2010

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments May 31, 2010 (Unaudited)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Alabama — 2.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 6/01/34

 

$

1,150

 

$

1,255,236

 

6.00%, 6/01/39

 

 

450

 

 

490,698

 

Coosa Valley Water Supply District Inc.,
RB (AGC):

 

 

 

 

 

 

 

4.50%, 10/01/34

 

 

600

 

 

604,524

 

4.50%, 10/01/36

 

 

1,300

 

 

1,305,837

 

 

 

 

 

 

 

 

 

 

 

 

 

3,656,295

 

 

Arizona — 5.2%

 

 

 

 

 

 

 

City of Goodyear Arizona, GO (AGM),
4.25%, 7/01/37

 

 

1,135

 

 

1,090,792

 

Mohave County Unified School District
No. 20 Kingman, GO, School
Improvement Project of 2006,
Series C (AGC), 5.00%, 7/01/26

 

 

200

 

 

214,954

 

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

 

 

900

 

 

920,043

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

1,500

 

 

1,378,455

 

5.00%, 12/01/37

 

 

2,065

 

 

1,854,886

 

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

 

 

 

 

 

 

 

6.25%, 5/01/15

 

 

300

 

 

281,142

 

7.00%, 5/01/20

 

 

300

 

 

279,495

 

7.25%, 5/01/27

 

 

600

 

 

552,216

 

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

 

 

750

 

 

777,720

 

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

 

 

500

 

 

534,630

 

 

 

 

 

 

 

 

 

 

 

 

 

7,884,333

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Arkansas — 1.5%

 

 

 

 

 

 

 

Bentonville School District No. 6, GO,
Refunding, Construction, Series A,
4.25%, 6/01/34

 

$

2,250

 

$

2,213,370

 

 

California — 17.1%

 

 

 

 

 

 

 

California County Tobacco Securitization
Agency, RB, CAB, Stanislaus, Sub-
Series C, 6.30%, 6/01/55 (a)

 

 

4,500

 

 

51,570

 

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

 

 

2,835

 

 

2,636,975

 

California State Department of Veterans
Affairs, RB, Series B, AMT, 5.25%,
12/01/37

 

 

5,000

 

 

4,547,800

 

Carlsbad Unified School District, GO,
Election of 2006, Series B, 6.09%,
5/01/34 (b)

 

 

1,000

 

 

603,120

 

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

 

 

 

 

 

 

 

5.63%, 8/01/31

 

 

250

 

 

264,383

 

5.75%, 8/01/33

 

 

500

 

 

527,285

 

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.38%, 8/01/34 (a)

 

 

1,650

 

 

833,580

 

Norwalk-La Mirada Unified School
District California, GO, Refunding,
CAB, Election of 2002, Series E (AGC),
6.47%, 8/01/38 (a)

 

 

8,000

 

 

1,359,680

 

San Diego Community College District
California, GO, CAB, Election of 2002,
6.21%, 8/01/19 (b)

 

 

2,800

 

 

1,695,988

 

State of California, GO, Refunding:

 

 

 

 

 

 

 

(CIFG), 4.50%, 8/01/28

 

 

2,000

 

 

1,879,100

 

Veterans, AMT, 5.05%, 12/01/36

 

 

1,000

 

 

907,860

 

State of California, GO, Various
Purpose:

 

 

 

 

 

 

 

5.75%, 4/01/31

 

 

2,000

 

 

2,126,560

 

6.00%, 3/01/33

 

 

2,050

 

 

2,245,242

 

6.50%, 4/01/33

 

 

1,950

 

 

2,203,208

 

5.50%, 3/01/40

 

 

2,350

 

 

2,408,632

 

 

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:

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

FSA

Financial Security Assurance Inc.

GAN

Grant Anticipation Notes

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.

PILOT

Payment in Lieu of Taxes

RAN

Revenue Anticipation Notes

RB

Revenue Bonds

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2010

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

1,585

 

$

1,557,706

 

 

 

 

 

 

 

 

 

 

 

 

 

25,848,689

 

 

Colorado — 1.2%

 

 

 

 

 

 

 

City of Colorado Springs Colorado, RB,
Subordinate Lien, Improvement,
Series C (AGM), 5.00%, 11/15/45

 

 

635

 

 

650,837

 

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

 

 

1,070

 

 

1,184,832

 

 

 

 

 

 

 

 

 

 

 

 

 

1,835,669

 

 

Connecticut — 1.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational
Facility Authority, RB, Fairfield
University, New Money, Series O:

 

 

 

 

 

 

 

5.00%, 7/01/35

 

 

1,200

 

 

1,229,580

 

5.00%, 7/01/40

 

 

600

 

 

614,310

 

 

 

 

 

 

 

 

 

 

 

 

 

1,843,890

 

 

District of Columbia — 8.1%

 

 

 

 

 

 

 

District of Columbia, Refunding RB,
Friendship Public Charter School Inc.
(ACA), 5.25%, 6/01/33

 

 

595

 

 

517,680

 

District of Columbia, Tax Allocation
Bonds, Gallery Place Project (AGM),
5.40%, 7/01/31

 

 

6,000

 

 

6,111,660

 

District of Columbia Tobacco Settlement
Financing Corp., Refunding RB, Asset-
Backed, 6.75%, 5/15/40

 

 

5,580

 

 

5,579,777

 

 

 

 

 

 

 

 

 

 

 

 

 

12,209,117

 

 

Florida — 7.2%

 

 

 

 

 

 

 

County of Miami-Dade Florida, RB,
Water & Sewer System, 5.00%,
10/01/34

 

 

1,600

 

 

1,650,768

 

Miami Beach Health Facilities Authority,
RB, Mount Sinai Medical Center of
Florida, 6.75%, 11/15/21

 

 

1,255

 

 

1,294,809

 

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

 

 

7,255

 

 

7,306,655

 

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

 

 

940

 

 

743,606

 

 

 

 

 

 

 

 

 

 

 

 

 

10,995,838

 

 

Georgia — 3.5%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB (AGM),
5.00%, 11/01/37

 

 

3,000

 

 

3,017,610

 

Gainesville & Hall County Hospital
Authority, RB, Northeast Georgia
Healthcare, Series B, 5.00%, 2/15/33

 

 

2,000

 

 

1,952,100

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Georgia (concluded)

 

 

 

 

 

 

 

Gwinnett County Hospital Authority, RB,
Gwinnett Hospital System, Series C
(AGM), 5.50%, 7/01/42

 

$

350

 

$

358,785

 

 

 

 

 

 

 

 

 

 

 

 

 

5,328,495

 

 

Idaho — 1.7%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,922,970

 

Idaho Housing & Finance Association,
RB, GAN, RAN, Federal Highway Trust,
Series A, 5.00%, 7/15/27

 

 

600

 

 

644,538

 

 

 

 

 

 

 

 

 

 

 

 

 

2,567,508

 

 

Illinois — 7.3%

 

 

 

 

 

 

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

MJH Education Assistance IV LLC,
Sub-Series B, 5.38%,
6/01/35 (c)(d)

 

 

425

 

 

114,759

 

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

 

 

1,000

 

 

1,044,710

 

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

 

 

650

 

 

702,423

 

Illinois Finance Authority, Refunding RB,
Series A:

 

 

 

 

 

 

 

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

 

 

210

 

 

168,823

 

Lake Forest Hospital, 5.75%,
7/01/29

 

 

4,000

 

 

4,114,680

 

Village of Bolingbrook Illinois, GO,
Refunding, Series B (NPFGC), 6.22%,
1/01/36 (a)

 

 

23,065

 

 

4,871,097

 

 

 

 

 

 

 

 

 

 

 

 

 

11,016,492

 

 

Indiana — 0.7%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,020,800

 

 

Iowa — 1.0%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A
(AGC), 5.63%, 8/15/37

 

 

1,400

 

 

1,491,518

 

 

Kansas — 3.8%

 

 

 

 

 

 

 

Kansas Development Finance Authority,
RB, University of Kansas Tenant,
Series O, 4.75%, 6/15/41

 

 

700

 

 

703,052

 

Kansas Development Finance Authority,
Refunding RB, Sisters of Leavenworth,
Series A, 5.00%, 1/01/28

 

 

730

 

 

747,856

 

Wichita Airport Authority, RB, Special,
Cessna Citation Service Center,
Series A, AMT, 6.25%, 6/15/32

 

 

5,000

 

 

4,341,900

 

 

 

 

 

 

 

 

 

 

 

 

 

5,792,808

 

 

 

 

 

2

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Kentucky — 0.4%

 

 

 

 

 

 

 

Kentucky Economic Development
Finance Authority, RB, Louisville
Arena, Sub-Series A-1 (AGC), 6.00%,
12/01/38

 

$

500

 

$

545,400

 

 

Louisiana — 0.3%

 

 

 

 

 

 

 

New Orleans Aviation Board, Refunding
RB, Passenger Facility Charge,
Series A, 5.13%, 1/01/36

 

 

400

 

 

398,004

 

 

Maryland — 3.7%

 

 

 

 

 

 

 

County of Frederick Maryland, Special
Tax Bonds, Urbana Community
Development Authority, Sub-Series B,
6.25%, 7/01/30

 

 

2,820

 

 

2,726,009

 

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

 

 

2,900

 

 

2,833,358

 

 

 

 

 

 

 

 

 

 

 

 

 

5,559,367

 

 

Michigan — 5.2%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,383,775

 

Michigan State Hospital Finance
Authority, Refunding RB:

 

 

 

 

 

 

 

Henry Ford Health System, Series A,
5.25%, 11/15/46

 

 

1,065

 

 

983,474

 

Hospital, Henry Ford Health, 5.75%,
11/15/39

 

 

2,000

 

 

2,010,080

 

Michigan State University, Refunding
RB, General, Series C, 4.25%,
8/15/32

 

 

1,250

 

 

1,218,325

 

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

 

 

1,950

 

 

2,327,598

 

 

 

 

 

 

 

 

 

 

 

 

 

7,923,252

 

 

Minnesota — 4.0%

 

 

 

 

 

 

 

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

 

 

5,350

 

 

6,012,009

 

 

Mississippi — 3.0%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,859,182

 

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

 

 

2,500

 

 

2,685,525

 

 

 

 

 

 

 

 

 

 

 

 

 

4,544,707

 

 

Montana — 1.8%

 

 

 

 

 

 

 

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

 

 

2,750

 

 

2,702,673

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Multi-State — 10.8%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust, 7.20%,
11/15/52 (e)(f)

 

$

10,500

 

$

11,500,650

 

Multifamily Housing Revenue Bond
Pass-Through Certificates, RB, AMT:

 

 

 

 

 

 

 

Series 1, Canterbury House
Apartments, Mandatory Put Bonds,
5.90%, 12/01/34

 

 

1,850

 

 

1,877,917

 

Series 6, 6.05%, 11/01/34

 

 

520

 

 

526,250

 

Series 9, Copperwood Ranch
Apartments, Mandatory Put Bonds,
5.95%, 11/01/35

 

 

2,440

 

 

2,488,434

 

 

 

 

 

 

 

 

 

 

 

 

 

16,393,251

 

 

Nebraska — 0.6%

 

 

 

 

 

 

 

Douglas County Hospital Authority No. 2,
RB, Health Facilities, Immanuel
Obligation Group, 5.50%, 1/01/30

 

 

425

 

 

434,189

 

Omaha Public Facilities Corp., RB,
Baseball Stadium Project, 4.38%,
6/01/36

 

 

500

 

 

491,980

 

 

 

 

 

 

 

 

 

 

 

 

 

926,169

 

 

Nevada — 1.1%

 

 

 

 

 

 

 

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

 

 

1,320

 

 

1,122,264

 

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

 

 

575

 

 

577,634

 

 

 

 

 

 

 

 

 

 

 

 

 

1,699,898

 

 

New Jersey — 15.1%

 

 

 

 

 

 

 

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

 

 

915

 

 

169,193

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%, 6/15/24

 

 

3,710

 

 

3,680,171

 

Cigarette Tax (Radian), 5.50%,
6/15/31

 

 

1,500

 

 

1,445,655

 

Continental Airlines Inc. Project,
AMT, 7.20%, 11/15/30

 

 

3,000

 

 

3,006,240

 

Motor Vehicle Surcharge, Series A
(NPFGC), 5.00%, 7/01/27

 

 

1,000

 

 

1,018,450

 

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

 

 

1,500

 

 

1,492,635

 

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

 

 

7,500

 

 

8,218,950

 

New Jersey Educational Facilities
Authority, RB, Princeton University,
Series B, 4.25%, 7/01/40

 

 

1,400

 

 

1,385,860

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2010

3


 

 

 

 

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

 

 

 

 

 

 

 

7.13%, 12/01/23

 

$

630

 

$

733,200

 

7.50%, 12/01/32

 

 

800

 

 

921,680

 

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

 

 

810

 

 

886,772

 

 

 

 

 

 

 

 

 

 

 

 

 

22,958,806

 

 

New York — 9.6%

 

 

 

 

 

 

 

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

 

 

455

 

 

182,000

 

City of Troy New York, Refunding RB,
Rensselaer Polytechnic, Series A,
5.13%, 9/01/40

 

 

400

 

 

407,480

 

Long Island Power Authority, Refunding
RB, Series A, 6.25%, 4/01/33

 

 

300

 

 

348,138

 

Metropolitan Transportation Authority,
Refunding RB, Series A, 5.13%,
1/01/29

 

 

2,000

 

 

2,047,880

 

New York City Housing Development
Corp., RB, Series A, AMT, 5.50%,
11/01/34

 

 

3,000

 

 

3,025,980

 

New York City Industrial Development
Agency, RB:

 

 

 

 

 

 

 

American Airlines Inc., JFK
International Airport, AMT, 7.75%,
8/01/31

 

 

3,165

 

 

3,225,736

 

Queens Baseball Stadium, PILOT
(AGC), 6.50%, 1/01/46

 

 

700

 

 

777,217

 

New York City Municipal Water Finance
Authority, Refunding RB, Series A,
4.75%, 6/15/30

 

 

1,000

 

 

1,028,930

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

5.83%, 7/01/39 (b)

 

 

700

 

 

583,870

 

Rochester Institute of Technology,
Series A, 6.00%, 7/01/33

 

 

1,000

 

 

1,107,890

 

University of Rochester, Series A,
5.13%, 7/01/39

 

 

250

 

 

263,260

 

New York State Dormitory Authority,
Refunding RB, Mount Sinai Hospital,
Series A, 5.00%, 7/01/26 (g)

 

 

465

 

 

478,350

 

Port Authority of New York & New
Jersey, Refunding RB, Consolidated,
152nd Series, AMT, 5.75%,
11/01/30

 

 

1,000

 

 

1,087,180

 

 

 

 

 

 

 

 

 

 

 

 

 

14,563,911

 

 

North Carolina — 2.9%

 

 

 

 

 

 

 

City of Charlotte North Carolina,
Refunding RB, Series A, 5.50%,
7/01/34

 

 

225

 

 

240,442

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

North Carolina (concluded)

 

 

 

 

 

 

 

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

 

$

2,250,598

 

North Carolina Medical Care
Commission, RB, WakeMed, Series A
(AGC), 5.88%, 10/01/38

 

 

1,000

 

 

1,044,390

 

North Carolina Medical Care
Commission, Refunding RB, University
Health System, Series D, 6.25%,
12/01/33

 

 

800

 

 

887,320

 

 

 

 

 

 

 

 

 

 

 

 

 

4,422,750

 

 

Ohio — 1.3%

 

 

 

 

 

 

 

County of Lucas Ohio, GO, Various
Purpose, 5.00%, 10/01/40 (g)

 

 

400

 

 

414,604

 

Kent State University, Refunding RB,
General Receipts, Series B (AGC),
4.25%, 5/01/31

 

 

1,100

 

 

1,099,065

 

Ohio Higher Educational Facility
Commission, Refunding RB, Summa
Health System, 2010 Project (AGC),
5.25%, 11/15/40

 

 

400

 

 

399,448

 

 

 

 

 

 

 

 

 

 

 

 

 

1,913,117

 

 

Oklahoma — 1.1%

 

 

 

 

 

 

 

Tulsa Airports Improvement Trust, RB,
Series A, Mandatory Put Bonds, AMT,
7.75%, 6/01/35 (h)

 

 

1,725

 

 

1,735,350

 

 

Oregon — 1.4%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,328,075

 

Port of Morrow Oregon, RB, Portland
General Electric, Series A, 5.00%,
5/01/33

 

 

800

 

 

815,664

 

 

 

 

 

 

 

 

 

 

 

 

 

2,143,739

 

 

Pennsylvania — 1.2%

 

 

 

 

 

 

 

Pennsylvania Economic Development
Financing Authority, RB, Reliant
Energy, Series A, AMT, 6.75%,
12/01/36

 

 

1,455

 

 

1,500,920

 

South Fork Municipal Authority, RB,
Conemaugh Valley Memorial, Series A
(AGC), 6.00%, 7/01/26

 

 

300

 

 

328,011

 

 

 

 

 

 

 

 

 

 

 

 

 

1,828,931

 

 

Puerto Rico — 1.9%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 5.75%,
8/01/37

 

 

2,000

 

 

2,127,300

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A (NPFGC),
5.77%, 8/01/41 (a)

 

 

5,000

 

 

786,200

 

 

 

 

 

 

 

 

 

 

 

 

 

2,913,500

 

 

 

 

 

4

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Rhode Island — 2.7%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,156,820

 

Rhode Island Housing & Mortgage
Finance Corp., RB, Homeownership
Opportunity, Series 54, AMT, 4.85%,
10/01/41

 

 

1,500

 

 

1,426,245

 

Rhode Island Turnpike & Bridge
Authority, RB, Series A, 5.00%,
12/01/35

 

 

500

 

 

507,350

 

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

 

 

900

 

 

962,964

 

 

 

 

 

 

 

 

 

 

 

 

 

4,053,379

 

 

Tennessee — 0.4%

 

 

 

 

 

 

 

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

 

 

525

 

 

545,633

 

 

Texas — 13.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

500

 

 

563,665

 

7.25%, 12/01/35

 

 

1,750

 

 

1,977,448

 

Harris County-Houston Sports Authority,
Refunding RB, CAB, Senior Lien,
Series G (NPFGC), 6.17%,
11/15/41 (a)

 

 

11,690

 

 

1,224,878

 

Lower Colorado River Authority,
Refunding RB (NPFGC), 5.00%,
5/15/13 (i)

 

 

15

 

 

16,692

 

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

 

 

1,500

 

 

1,632,375

 

San Antonio Energy Acquisition Public
Facility Corp., RB, Gas Supply, 5.50%,
8/01/24

 

 

1,620

 

 

1,643,636

 

Texas State Turnpike Authority, RB
(AMBAC):

 

 

 

 

 

 

 

CAB, 6.08%, 8/15/35 (a)

 

 

60,000

 

 

11,699,400

 

First Tier, Series A, 5.00%, 8/15/42

 

 

2,115

 

 

2,020,459

 

 

 

 

 

 

 

 

 

 

 

 

 

20,778,553

 

 

Washington — 1.0%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,500,520

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Wisconsin — 1.8%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB, Aurora Health
Care, 6.40%, 4/15/33

 

$

1,350

 

$

1,379,335

 

Wisconsin Housing & EDA, Refunding
RB, Series A, AMT, 4.75%, 9/01/33

 

 

1,340

 

 

1,289,335

 

 

 

 

 

 

 

 

 

 

 

 

 

2,668,670

 

 

Wyoming — 0.8%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,273,800

 

 

Total Municipal Bonds – 147.7%

 

 

 

 

 

223,710,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (j)

 

 

 

 

 

 

 

 

Colorado — 2.5%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

3,786,487

 

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

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

 

 

1,450

 

 

1,501,272

 

 

New York — 2.1%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series A, 5.75%,
6/15/40

 

 

450

 

 

510,228

 

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

 

 

405

 

 

451,592

 

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

 

 

2,199

 

 

2,302,069

 

 

 

 

 

 

 

 

 

 

 

 

 

3,263,889

 

 

Ohio — 2.2%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,265,670

 

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

 

 

2,000

 

 

2,079,820

 

 

 

 

 

 

 

 

 

 

 

 

 

3,345,490

 

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 7.8%

 

 

 

 

 

11,897,138

 

 

Total Long-Term Investments
(Cost – $230,890,030) – 155.5%

 

 

 

 

 

235,607,349

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2010

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

 

FFI Institutional Tax-Exempt Fund,
0.25% (k)(l)

 

 

563,879

 

$

563,879

 

 

Total Short-Term Securities
(Cost – $563,879) – 0.4%

 

 

 

 

 

563,879

 

 

Total Investments
(Cost – $231,453,909*) – 155.9%

 

 

 

 

 

236,171,228

 

Other Assets Less Liabilities – 0.7%

 

 

 

 

 

1,150,170

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (3.9)%

 

 

 

 

 

(5,903,537

)

Preferred Shares, at Redemption Value – (52.7)%

 

 

 

 

 

(79,908,368

)

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

151,509,493

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of May 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

225,775,920

 

 

 

 

 

 

 

Gross unrealized appreciation

 

 

 

 

$

10,972,429

 

Gross unrealized depreciation

 

 

 

 

 

(6,476,268

)

 

 

 

 

 

 

Net unrealized appreciation

 

 

 

 

$

4,496,161

 

 

 

 

 

 

 

 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(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)

Non-income producing security.

 

 

(d)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(e)

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.

 

 

(f)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(g)

When-issued security. Unsettled when-issued transactions were as follows:

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

Goldman Sachs

 

$

478,350

 

$

2,288

 

Stifel, Nicolaus & Co., Inc.

 

$

414,604

 

$

1,456

 

 

 

 

(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)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(k)

Investments in companies considered to be an affiliate of the Trust, during the period 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, 2009

 

Net Activity

 

Shares Held
at May 31,
2010

 

Income

 

 

FFI Institutional
Tax-Exempt Fund

 

3,400,718

 

 

(2,836,839

)

 

563,879

 

$

3,881

 

 

 

 

 

(l)

Represents the current yield as of report date.

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

•

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

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 inputs or methodologies used for valuing securities are not necessarily an indication of the risk 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 semi-annual report.

The following table summarizes the inputs used as of May 31, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

235,607,349

 

 

—

 

$

235,607,349

 

Short-Term
Securities

 

$

563,879

 

 

—

 

 

—

 

 

563,879

 

 

 

 

Total

 

$

563,879

 

$

235,607,349

 

 

—

 

$

236,171,228

 

 

 

 

 

 

1

See above Schedule of Investments for values in each state or political classification.

 

 

 

6

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2010

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 13(a)-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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock Municipal Bond Trust
   
  Date: July 23, 2010
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Bond Trust
   
  Date: July 23, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Bond Trust
     
  Date: July 23, 2010