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: 08/31/2011

 

Date of reporting period: 11/30/2010

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments November 30, 2010 (Unaudited)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 3.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 6/01/34

 

$

1,150

 

$

1,238,769

 

6.00%, 6/01/39

 

 

450

 

 

483,633

 

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

 

 

3,750

 

 

3,357,225

 

 

 

 

 

 

 

 

 

 

 

 

5,079,627

 

Arizona — 4.5%

 

 

 

 

 

 

 

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

 

 

200

 

 

210,836

 

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

 

 

900

 

 

907,794

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

1,500

 

 

1,353,630

 

5.00%, 12/01/37

 

 

2,065

 

 

1,825,646

 

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

 

 

 

 

 

 

 

6.25%, 5/01/15

 

 

300

 

 

289,308

 

7.00%, 5/01/20

 

 

300

 

 

287,052

 

7.25%, 5/01/27

 

 

600

 

 

554,076

 

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

 

 

750

 

 

743,625

 

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

 

 

500

 

 

528,915

 

 

 

 

 

 

 

 

 

 

 

 

6,700,882

 

California — 13.9%

 

 

 

 

 

 

 

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

 

 

4,500

 

 

39,330

 

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

 

 

2,835

 

 

2,588,979

 

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

 

 

1,000

 

 

597,090

 

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

 

 

 

 

 

 

 

5.63%, 8/01/31

 

 

250

 

 

261,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.75%, 8/01/33

 

$

500

 

$

521,435

 

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.47%, 8/01/34 (b)

 

 

1,650

 

 

836,649

 

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

 

 

8,000

 

 

1,295,200

 

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

 

 

 

 

 

 

 

6.09%, 8/01/30 (a)

 

 

1,500

 

 

428,700

 

6.30%, 8/01/39 (b)

 

 

2,000

 

 

766,540

 

San Diego Community College District
California, GO, CAB, Election of 2002,
6.24%, 8/01/19 (b)

 

 

2,800

 

 

1,677,172

 

State of California, GO, Refunding
(CIFG), 4.50%, 8/01/28

 

 

500

 

 

454,980

 

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

 

 

1,000

 

 

907,390

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.75%, 4/01/31

 

 

2,000

 

 

2,068,020

 

6.00%, 3/01/33

 

 

2,050

 

 

2,187,678

 

6.50%, 4/01/33

 

 

1,950

 

 

2,151,435

 

5.50%, 3/01/40

 

 

2,350

 

 

2,353,149

 

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

 

 

1,585

 

 

1,498,633

 

 

 

 

 

 

 

 

 

 

 

 

20,633,423

 

Colorado — 1.9%

 

 

 

 

 

 

 

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

 

 

1,070

 

 

1,163,122

 

Sand Creek Metropolitan District, GO,
Refunding, Limited Tax, Series B:

 

 

 

 

 

 

 

4.75%, 12/01/35

 

 

1,000

 

 

896,260

 

5.00%, 12/01/40

 

 

800

 

 

732,792

 

 

 

 

 

 

 

 

 

 

 

 

2,792,174

 

 

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

ACA Financial Guaranty 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

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.

PILOT

Payment in Lieu of Taxes

RB

Revenue Bonds

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2010

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

District of Columbia — 6.1%

 

 

 

 

 

 

 

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

 

$

2,500

 

$

2,504,800

 

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

 

 

595

 

 

496,057

 

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

 

 

6,000

 

 

6,051,720

 

 

 

 

 

 

 

 

 

 

 

 

9,052,577

 

Florida — 6.2%

 

 

 

 

 

 

 

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

 

 

1,180

 

 

1,211,152

 

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

 

 

7,255

 

 

7,276,185

 

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

 

 

940

 

 

749,189

 

 

 

 

 

 

 

 

 

 

 

 

9,236,526

 

Idaho — 1.6%

 

 

 

 

 

 

 

Idaho Health Facilities Authority, RB, St.
Luke’s Regional Medical Center
(AGM), 5.00%, 7/01/35

 

 

500

 

 

498,575

 

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

 

 

1,750

 

 

1,895,338

 

 

 

 

 

 

 

 

 

 

 

 

2,393,913

 

Illinois — 9.0%

 

 

 

 

 

 

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

425

 

 

114,185

 

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

 

 

1,285

 

 

1,294,265

 

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

 

 

1,000

 

 

1,023,480

 

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

 

 

650

 

 

691,067

 

Illinois Finance Authority, Refunding RB,
Series A:

 

 

 

 

 

 

 

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

 

 

210

 

 

170,604

 

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

 

 

4,000

 

 

4,074,920

 

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

 

 

1,050

 

 

1,049,968

 

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

 

 

23,065

 

 

4,865,792

 

 

 

 

 

 

 

 

 

 

 

 

13,284,281

 

Indiana — 1.9%

 

 

 

 

 

 

 

County of Monroe Indiana, Multifamily
Housing Revenue Bond Pass-Through
Certificates, RB, Series 1, Canterbury
House Apartments, Mandatory Put
Bonds, AMT, 5.90%, 12/01/34 (e)

 

 

1,835

 

 

1,854,891

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana (concluded)

 

 

 

 

 

 

 

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

 

$

1,000

 

$

977,900

 

 

 

 

 

 

 

 

 

 

 

 

2,832,791

 

Iowa — 1.0%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

5.75%, 9/01/30

 

 

500

 

 

491,840

 

6.00%, 9/01/39

 

 

1,000

 

 

986,810

 

 

 

 

 

 

 

 

 

 

 

 

1,478,650

 

Kansas — 3.5%

 

 

 

 

 

 

 

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

 

 

700

 

 

674,849

 

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

 

 

5,000

 

 

4,478,300

 

 

 

 

 

 

 

 

 

 

 

 

5,153,149

 

Kentucky — 0.4%

 

 

 

 

 

 

 

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

 

 

500

 

 

525,855

 

Louisiana — 2.5%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Southeastern Louisiana University,
Series A (AGM), 5.00%, 10/01/40

 

 

700

 

 

690,340

 

Westlake Chemical Corp.,
Series A-1, 6.50%, 11/01/35 (f)

 

 

1,050

 

 

1,069,047

 

Louisiana Public Facilities Authority,
Refunding RB, Entergy Gulf States
Louisiana, LLC Project, Series A,
5.00%, 9/01/28

 

 

2,000

 

 

1,949,320

 

 

 

 

 

 

 

 

 

 

 

 

3,708,707

 

Maryland — 2.2%

 

 

 

 

 

 

 

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

 

 

500

 

 

491,180

 

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

 

 

2,900

 

 

2,730,988

 

 

 

 

 

 

 

 

 

 

 

 

3,222,168

 

Michigan — 3.8%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,353,138

 

Michigan State Hospital Finance
Authority, Refunding RB:

 

 

 

 

 

 

 

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

 

 

1,065

 

 

947,445

 

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

 

 

1,000

 

 

986,090

 

 

 

 

2

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

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

 

$

1,950

 

$

2,281,831

 

 

 

 

 

 

 

 

 

 

 

 

5,568,504

 

Minnesota — 4.3%

 

 

 

 

 

 

 

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

 

 

5,350

 

 

5,823,849

 

Minnesota Higher Education Facilities
Authority, RB, Gustavus Adolphus
Child & Family Services, Inc.,
Series 7-B, 4.75%, 10/01/35

 

 

625

 

 

598,588

 

 

 

 

 

 

 

 

 

 

 

 

6,422,437

 

Mississippi — 3.0%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,819,055

 

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

 

 

2,500

 

 

2,601,550

 

 

 

 

 

 

 

 

 

 

 

 

4,420,605

 

Montana — 1.8%

 

 

 

 

 

 

 

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

 

 

2,750

 

 

2,690,463

 

Multi-State — 7.8%

 

 

 

 

 

 

 

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

 

 

10,500

 

 

11,534,355

 

Nebraska — 0.3%

 

 

 

 

 

 

 

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

 

 

425

 

 

428,910

 

Nevada — 1.1%

 

 

 

 

 

 

 

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

 

 

1,315

 

 

1,125,548

 

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

 

 

575

 

 

563,448

 

 

 

 

 

 

 

 

 

 

 

 

1,688,996

 

New Jersey — 13.5%

 

 

 

 

 

 

 

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

 

 

915

 

 

135,942

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%, 6/15/24

 

 

3,710

 

 

3,592,949

 

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

 

 

1,500

 

 

1,410,720

 

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

 

 

3,000

 

 

3,008,880

 

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

 

 

1,500

 

 

1,480,245

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey (concluded)

 

 

 

 

 

 

 

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

 

$

7,500

 

$

7,855,275

 

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

 

 

 

 

 

 

 

7.13%, 12/01/23

 

 

630

 

 

725,250

 

7.50%, 12/01/32

 

 

800

 

 

899,416

 

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

 

 

810

 

 

873,852

 

 

 

 

 

 

 

 

 

 

 

 

19,982,529

 

New Mexico — 1.5%

 

 

 

 

 

 

 

Village of Los Ranchos de Albuquerque
New Mexico, Refunding RB,
Albuquerque Academy Project, 4.50%,
9/01/40

 

 

2,500

 

 

2,275,000

 

New York — 8.5%

 

 

 

 

 

 

 

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

 

 

455

 

 

181,386

 

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

 

 

1,500

 

 

1,513,170

 

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

 

 

3,000

 

 

3,012,030

 

New York City Industrial Development
Agency, RB:

 

 

 

 

 

 

 

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

 

 

3,165

 

 

3,318,122

 

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

 

 

700

 

 

759,892

 

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

 

 

800

 

 

833,664

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

The New School (AGM), 5.50%,
7/01/43 (f)

 

 

1,550

 

 

1,595,291

 

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

 

 

1,000

 

 

1,080,780

 

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

 

 

250

 

 

255,300

 

 

 

 

 

 

 

 

 

 

 

 

12,549,635

 

North Carolina — 8.7%

 

 

 

 

 

 

 

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

 

 

225

 

 

234,344

 

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

 

 

2,305,376

 

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

 

 

3,475

 

 

3,223,271

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

North Carolina (concluded)

 

 

 

 

 

 

 

North Carolina Medical Care
Commission, RB, Series A:

 

 

 

 

 

 

 

Novant Health Obligation, 4.75%,
11/01/43

 

$

4,000

 

$

3,555,760

 

WakeMed, (AGC), 5.88%, 10/01/38

 

 

1,000

 

 

1,032,940

 

North Carolina Medical Care
Commission, Refunding RB:

 

 

 

 

 

 

 

Caromont Health (AGC), 4.50%,
2/15/30

 

 

750

 

 

706,470

 

Caromont Health (AGC), 4.63%,
2/15/35

 

 

1,000

 

 

924,890

 

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

 

 

800

 

 

857,720

 

 

 

 

 

 

 

 

 

 

 

 

12,840,771

 

Ohio — 0.3%

 

 

 

 

 

 

 

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

 

 

400

 

 

403,328

 

Oklahoma — 1.2%

 

 

 

 

 

 

 

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

 

 

1,725

 

 

1,776,733

 

Oregon — 2.1%

 

 

 

 

 

 

 

City of Portland Oregon, Multifamily
Housing Revenue Bond Pass-Through
Certificates, RB, Series 6, Pacific
Tower Apartments, AMT, 6.05%,
11/01/34

 

 

515

 

 

518,368

 

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

 

 

1,250

 

 

1,304,975

 

Oregon State Facilities Authority,
Refunding RB, Limited College
Project, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/34

 

 

850

 

 

810,127

 

5.25%, 10/01/40

 

 

500

 

 

486,020

 

 

 

 

 

 

 

 

 

 

 

 

3,119,490

 

Pennsylvania — 4.0%

 

 

 

 

 

 

 

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

 

 

2,600

 

 

2,622,568

 

Pennsylvania Economic Development
Financing Authority, RB:

 

 

 

 

 

 

 

Aqua Pennsylvania Inc. Project,
Series B, 4.50%, 12/01/42

 

 

2,000

 

 

1,850,160

 

Reliant Energy, Series A, AMT,
6.75%, 12/01/36

 

 

1,455

 

 

1,503,451

 

 

 

 

 

 

 

 

 

 

 

 

5,976,179

 

Puerto Rico — 1.9%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,063,140

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A (NPFGC),
5.76%, 8/01/41 (a)

 

 

5,000

 

 

721,000

 

 

 

 

 

 

 

 

 

 

 

 

2,784,140

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Rhode Island — 2.3%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,135,510

 

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

 

 

1,500

 

 

1,410,465

 

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

 

 

900

 

 

943,974

 

 

 

 

 

 

 

 

 

 

 

 

3,489,949

 

South Carolina — 1.5%

 

 

 

 

 

 

 

County of Florence South Carolina, RB,
McLeod Regional Medical Center,
Series A, 5.00%, 11/01/37

 

 

2,300

 

 

2,173,224

 

Tennessee — 0.4%

 

 

 

 

 

 

 

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

 

 

525

 

 

543,974

 

Texas — 14.7%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

500

 

 

560,275

 

7.25%, 12/01/35

 

 

1,750

 

 

1,955,712

 

Harris County Housing Finance Corp.,
Multifamily Housing Revenue Bond
Pass-Through Certificates, RB,
Series 9, Copperwood Ranch
Apartments, Mandatory Put Bonds,
AMT, 5.95%, 11/01/35 (e)

 

 

2,420

 

 

2,456,736

 

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

 

 

11,690

 

 

1,203,602

 

Love Field Airport Modernization Corp.,
RB, Southwest Airlines Co. Project,
5.25%, 11/01/40

 

 

2,500

 

 

2,315,650

 

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

 

 

15

 

 

16,508

 

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

 

 

1,500

 

 

1,598,970

 

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

 

 

2,065,020

 

Texas State Turnpike Authority, RB
(AMBAC):

 

 

 

 

 

 

 

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

 

 

50,000

 

 

8,983,000

 

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

 

 

750

 

 

697,140

 

 

 

 

 

 

 

 

 

 

 

 

21,852,613

 

 

 

 

4

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2010


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Virginia — 0.5%

 

 

 

 

 

 

 

Henrico County EDA, RB, Bon Secours
Health, Series B-1 (AGC), 4.50%,
11/01/42

 

$

860

 

$

769,141

 

Washington — 1.0%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,476,916

 

Wisconsin — 1.8%

 

 

 

 

 

 

 

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

 

 

1,350

 

 

1,373,598

 

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

 

 

1,340

 

 

1,285,891

 

 

 

 

 

 

 

 

 

 

 

 

2,659,489

 

Wyoming — 0.8%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,258,968

 

Total Municipal Bonds – 144.9%

 

 

 

 

 

214,781,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

3,712,200

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

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

 

 

1,450

 

 

1,477,840

 

New York — 4.2%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

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

 

 

450

 

 

488,510

 

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

 

 

405

 

 

433,930

 

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

 

 

3,000

 

 

3,060,780

 

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

 

 

2,199

 

 

2,235,365

 

 

 

 

 

 

 

 

 

 

 

 

6,218,585

 

Ohio — 2.2%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,230,869

 

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

 

 

2,000

 

 

2,051,020

 

 

 

 

 

 

 

 

 

 

 

 

3,281,889

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 9.9%

 

 

 

 

 

14,690,514

 

Total Long-Term Investments
(Cost – $230,770,432) – 154.8%

 

 

 

 

 

229,471,586

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

FFI Institutional Tax-Exempt Fund,
0.13% (k)(l)

 

 

3,524,103

 

$

3,524,103

 

Total Short-Term Securities
(Cost – $3,524,103) – 2.4%

 

 

 

 

 

3,524,103

 

Total Investments
(Cost – $234,294,535*) – 157.2%

 

 

 

 

 

232,995,689

 

Other Assets Less Liabilities – 1.7%

 

 

 

 

 

2,577,009

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (5.0)%

 

 

 

 

 

(7,406,586

)

Preferred Shares, at Redemption Value – (53.9)%

 

 

 

 

 

(79,905,805

)

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

148,260,307

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

226,238,151

 

 

 

Gross unrealized appreciation

 

$

7,977,767

 

Gross unrealized depreciation

 

 

(8,619,377

)

 

 

Net unrealized depreciation

 

$

(641,610

)

 

 

 

 

(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)

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

 

 

(d)

Non-income producing security.

 

 

(e)

Variable rate security. Rate shown is as of report date.

 

 

(f)

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

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

JPMorgan Securities

 

$

2,664,338

 

$

98,857

 

 

 

(g)

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.

 

 

(h)

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.

 

 

(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.

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2010

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Bond Trust (BBK)

 

 

(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,
2010

 

Net
Activity

 

Shares
Held at
November 30,
2010

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

4,831,353

 

 

(1,307,250

)

 

3,524,103

 

$

1,239

 

 

 

 

(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 annual report.

 

 

The following table summarizes the inputs used as of November 30, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

229,471,586

 

 

—

 

$

229,471,586

 

Short-Term
Securities

 

$

3,524,103

 

 

—

 

 

—

 

 

3,524,103

 

Total

 

$

3,524,103

 

$

229,471,586

 

 

—

 

$

232,995,689

 

 

 

 

 

1

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

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2010

6

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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Bond Trust
   
  Date: January 26, 2011
   
  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: January 26, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Bond Trust
     
  Date: January 26, 2011