BLACKROCK MUNICIPAL BOND TRUST
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment
Company Act file number: 811-21036
Name of Fund: BlackRock Municipal Bond Trust (BBK)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Bond
Trust, 55 East 52nd Street, New
York, NY 10055
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2018
Date of reporting period:
11/30/2017
Item 1 – Schedule of Investments
|
|
|
| Schedule of Investments (unaudited)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Municipal Bonds — 136.3% |
|
|
| Alabama — 0.7% |
|
| Opelika Utilities Board, Refunding RB, 4.00%, 06/01/41 |
|
$ |
960 |
|
|
$ |
1,006,387 |
|
| UAB Medicine Finance Authority, Refunding RB, Series B, 5.00%, 09/01/41 |
|
|
130 |
|
|
|
148,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,154,447 |
|
| Arizona — 7.5% |
|
| Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A,
5.00%, 02/01/42 |
|
|
2,200 |
|
|
|
2,340,602 |
|
| City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, 5.00%, 07/01/45(a) |
|
|
460 |
|
|
|
475,208 |
|
| County of Pinal Arizona Electric District No.3, Refunding RB: |
|
|
|
|
|
|
|
|
| 4.75%, 07/01/21(b) |
|
|
680 |
|
|
|
751,631 |
|
| 4.75%, 07/01/31 |
|
|
3,070 |
|
|
|
3,306,942 |
|
| Salt Verde Financial Corp., RB, Senior: |
|
|
|
|
|
|
|
|
| 5.00%, 12/01/32 |
|
|
1,500 |
|
|
|
1,809,555 |
|
| 5.00%, 12/01/37 |
|
|
2,065 |
|
|
|
2,514,427 |
|
| University Medical Center Corp., RB,
6.50%, 07/01/19(b) |
|
|
500 |
|
|
|
537,215 |
|
| University Medical Center Corp., Refunding RB, 6.00%, 07/01/21(b) |
|
|
900 |
|
|
|
1,030,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,765,873 |
|
| Arkansas — 2.3% |
|
| City of Benton Arkansas, RB, 4.00%, 06/01/39 |
|
|
505 |
|
|
|
530,023 |
|
| City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40 |
|
|
840 |
|
|
|
876,103 |
|
| City of Little Rock Arkansas, RB, 4.00%, 07/01/41 |
|
|
1,835 |
|
|
|
1,902,638 |
|
| County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42 |
|
|
465 |
|
|
|
517,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,826,444 |
|
| California — 25.5% |
|
| California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 08/15/31 |
|
|
1,900 |
|
|
|
2,125,359 |
|
| Carlsbad California Unified School District, GO, Election of 2006, Series B, 0.00%, 05/01/34(c) |
|
|
1,000 |
|
|
|
1,137,270 |
|
| Chaffey Joint Union High School District, GO, Election of 2012, Series C, 5.25%, 08/01/47 |
|
|
4,955 |
|
|
|
5,925,090 |
|
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| California (continued) |
|
| City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT, 5.75%, 03/01/34 |
|
$ |
2,000 |
|
|
$ |
2,224,880 |
|
| County of Los Angeles Metropolitan Transportation Authority, Refunding RB, Series A,
5.00%, 07/01/38 |
|
|
3,500 |
|
|
|
4,162,130 |
|
| County of San Diego Regional Airport Authority, RB, Subordinate, Series B, AMT, 5.00%, 07/01/42 |
|
|
2,405 |
|
|
|
2,800,502 |
|
| Hartnell Community College District California, GO, CAB, Election of 2002, Series D,
0.00%, 08/01/34(c) |
|
|
1,650 |
|
|
|
1,687,637 |
|
| Norwalk-La Mirada Unified School District, GO, Refunding, CAB,
Election of 2002, Series E (AGC), 0.00%, 08/01/38(d) |
|
|
8,000 |
|
|
|
3,522,240 |
|
| Palomar Community College District, GO, CAB, Election of 2006, Series B: |
|
|
|
|
|
|
|
|
| 0.00%, 08/01/30(d) |
|
|
1,500 |
|
|
|
1,018,740 |
|
| 0.00%, 08/01/33(d) |
|
|
4,000 |
|
|
|
1,624,920 |
|
| 0.00%, 08/01/39(c) |
|
|
2,605 |
|
|
|
2,486,472 |
|
| San Diego Community College District, GO, CAB, Election of 2002, 0.00%, 08/01/33(c) |
|
|
2,800 |
|
|
|
3,283,280 |
|
| State of California, GO, Refunding, Various Purposes, 5.00%, 02/01/38 |
|
|
3,000 |
|
|
|
3,385,560 |
|
| State of California, GO, Various Purposes: |
|
|
|
|
|
|
|
|
| 5.75%, 04/01/31 |
|
|
2,000 |
|
|
|
2,114,320 |
|
| 6.00%, 03/01/33 |
|
|
1,000 |
|
|
|
1,098,810 |
|
| 6.50%, 04/01/33 |
|
|
1,950 |
|
|
|
2,080,865 |
|
| 5.50%, 03/01/40 |
|
|
2,350 |
|
|
|
2,543,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,221,433 |
|
| Colorado — 0.7% |
|
| Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D,
6.25%, 10/01/33 |
|
|
1,070 |
|
|
|
1,108,691 |
|
|
|
|
|
|
|
|
|
|
| Connecticut — 0.3% |
|
| Connecticut State Health & Educational Facility Authority, Refunding RB, Lawrence &
Memorial Hospital, Series F, 5.00%, 07/01/36 |
|
|
550 |
|
|
|
587,350 |
|
|
|
|
|
|
|
|
|
|
| Delaware — 1.4% |
|
| County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project,
6.00%, 10/01/40 |
|
|
1,200 |
|
|
|
1,271,412 |
|
|
|
|
|
|
| SCHEDULES OF INVESTMENTS |
|
|
1 |
|
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Delaware (continued) |
|
| Delaware Transportation Authority, RB, U.S. 301 Project, 5.00%, 06/01/55 |
|
$ |
950 |
|
|
$ |
1,072,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,343,962 |
|
| Florida — 3.9% |
|
| Broward County Florida Airport System Revenue, RB, AMT, 5.00%, 10/01/42 |
|
|
345 |
|
|
|
398,875 |
|
| Capital Trust Agency Inc., RB, M/F Housing, The Gardens Apartment Project, Series A,
4.75%, 07/01/40 |
|
|
600 |
|
|
|
627,576 |
|
| County of Miami-Dade Florida, RB, AMT, Seaport Department, Series B, 6.00%, 10/01/31 |
|
|
4,135 |
|
|
|
4,841,465 |
|
| County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%,
06/01/36 |
|
|
125 |
|
|
|
132,165 |
|
| Stevens Plantation Community Development District, RB, Special Assessment, Series A, 7.10%, 05/01/35(e)(f) |
|
|
860 |
|
|
|
602,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,602,081 |
|
| Hawaii — 0.3% |
|
| State of Hawaii Department of Budget & Finance, Refunding RB, Special Purpose, Senior Living, Kahala
Nui, 5.25%, 11/15/37 |
|
|
400 |
|
|
|
441,668 |
|
|
|
|
|
|
|
|
|
|
| Idaho — 0.3% |
|
| Idaho Health Facilities Authority, RB, St. Lukes Health System Project, Series A, 5.00%, 03/01/39 |
|
|
500 |
|
|
|
547,070 |
|
|
|
|
|
|
|
|
|
|
| Illinois — 8.1% |
|
| Chicago Board of Education, GO, Series H, 5.00%, 12/01/36 |
|
|
235 |
|
|
|
240,382 |
|
| Chicago Board of Education, GO, Refunding, Dedicated Revenues: |
|
|
|
|
|
|
|
|
| Series C, 5.00%, 12/01/25 |
|
|
425 |
|
|
|
443,479 |
|
| Series C, 5.00%, 12/01/34 |
|
|
235 |
|
|
|
240,757 |
|
| Series F, 5.00%, 12/01/23 |
|
|
310 |
|
|
|
326,033 |
|
| City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series
B, AMT, 4.00%, 01/01/29 |
|
|
1,600 |
|
|
|
1,659,040 |
|
| City of Chicago Illinois, Refunding GARB, O’Hare International Airport, Senior Lien: |
|
|
|
|
|
|
|
|
| Series B, 5.00%, 01/01/35 |
|
|
2,000 |
|
|
|
2,310,520 |
|
| Series B, 5.00%, 01/01/41 |
|
|
2,000 |
|
|
|
2,263,460 |
|
| Series C, 5.00%, 01/01/38 |
|
|
1,000 |
|
|
|
1,134,790 |
|
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Illinois (continued) |
|
| City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, AMT, 5.00%,
01/01/41 |
|
$ |
870 |
|
|
$ |
962,394 |
|
| City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40 |
|
|
665 |
|
|
|
712,867 |
|
| Illinois Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
|
| OSF Healthcare System, 6.00%, 05/15/39 |
|
|
295 |
|
|
|
315,308 |
|
| Roosevelt University Project, 6.50%, 04/01/44 |
|
|
1,000 |
|
|
|
1,067,360 |
|
| Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds,
Series A, 5.00%, 06/15/57(g) |
|
|
645 |
|
|
|
691,769 |
|
| Railsplitter Tobacco Settlement Authority, RB, 6.00%, 06/01/28 |
|
|
1,150 |
|
|
|
1,292,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,660,954 |
|
| Kansas — 2.6% |
|
| County of Seward Kansas Unified School District No. 480 Liberal, GO, Refunding: |
|
|
|
|
|
|
|
|
| 5.00%, 09/01/22(b) |
|
|
3,280 |
|
|
|
3,625,843 |
|
| 5.00%, 09/01/39 |
|
|
720 |
|
|
|
822,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,447,975 |
|
| Kentucky — 3.7% |
|
| County of Boyle Kentucky, Refunding RB, Centre College of Kentucky, 5.00%, 06/01/37 |
|
|
2,500 |
|
|
|
2,822,175 |
|
| Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A,
5.38%, 01/01/40 |
|
|
1,830 |
|
|
|
1,989,118 |
|
| Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st
Tier, Series C(c): |
|
|
|
|
|
|
|
|
| 0.00%, 07/01/34 |
|
|
500 |
|
|
|
463,765 |
|
| 0.00%, 07/01/39 |
|
|
830 |
|
|
|
761,143 |
|
| 0.00%, 07/01/43 |
|
|
270 |
|
|
|
247,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,284,199 |
|
| Louisiana — 1.5% |
|
| City of Alexandria Louisiana Utilities, RB, 5.00%, 05/01/39 |
|
|
860 |
|
|
|
955,340 |
|
|
|
|
| 2 |
|
2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS |
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Louisiana (continued) |
|
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake
Chemical Corp. Project, Series A-1, 6.50%, 11/01/35 |
|
$ |
1,050 |
|
|
$ |
1,183,780 |
|
| Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project,
6.50%, 05/01/31 |
|
|
400 |
|
|
|
431,416 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,570,536 |
|
| Maryland — 0.2% |
|
| County of Anne Arundel Maryland Consolidated, RB, Special Taxing District, Villages at Two Rivers
Project: |
|
|
|
|
|
|
|
|
| 5.13%, 07/01/36 |
|
|
170 |
|
|
|
172,407 |
|
| 5.25%, 07/01/44 |
|
|
170 |
|
|
|
171,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
344,386 |
|
| Massachusetts — 2.1% |
|
| Massachusetts Development Finance Agency, RB, Emerson College Issue, Series A: |
|
|
|
|
|
|
|
|
| 5.00%, 01/01/47 |
|
|
630 |
|
|
|
709,701 |
|
| 5.25%, 01/01/42 |
|
|
565 |
|
|
|
649,824 |
|
| Massachusetts Development Finance Agency, Refunding RB, International Charter School, 5.00%,
04/15/40 |
|
|
400 |
|
|
|
435,656 |
|
| Massachusetts Port Authority, Refunding ARB, Series A, AMT, 5.00%, 07/01/42 |
|
|
1,500 |
|
|
|
1,725,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,520,316 |
|
| Michigan — 5.1% |
|
| Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien,
Series 2014 C-2, AMT, 5.00%, 07/01/44 |
|
|
240 |
|
|
|
257,083 |
|
| Michigan Finance Authority, Refunding RB, Henry Ford Health System, 5.00%, 11/15/41 |
|
|
5,560 |
|
|
|
6,201,235 |
|
| Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%,
12/01/32 |
|
|
2,100 |
|
|
|
2,168,208 |
|
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Michigan (continued) |
|
| State of Michigan Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38 |
|
$ |
40 |
|
|
$ |
41,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,668,168 |
|
| Minnesota — 4.5% |
|
| City of Maple Grove Minnesota, Refunding RB, Maple Grove Hospital, Corp., 4.00%, 05/01/37 |
|
|
880 |
|
|
|
899,369 |
|
| City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC),
6.50%, 11/15/38 |
|
|
3,890 |
|
|
|
4,070,302 |
|
| Minneapolis-St. Paul Metropolitan Airports Commission, Refunding ARB,
Sub Series D, AMT, 5.00%, 01/01/41 |
|
|
290 |
|
|
|
329,115 |
|
| Minnesota Higher Education Facilities Authority, RB: |
|
|
|
|
|
|
|
|
| Augsburg College, Series B, 4.25%, 05/01/40 |
|
|
1,185 |
|
|
|
1,186,019 |
|
| College of St. Benedict, Series 8-K, 5.00%, 03/01/37 |
|
|
660 |
|
|
|
750,928 |
|
| College of St. Benedict, Series 8-K, 4.00%, 03/01/43 |
|
|
385 |
|
|
|
391,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,626,939 |
|
| Mississippi — 1.9% |
|
| County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project,
Series A, 5.38%, 12/01/35 |
|
|
400 |
|
|
|
446,656 |
|
| Mississippi Development Bank, RB, Special Obligation: |
|
|
|
|
|
|
|
|
| CAB, Hinds Community College District (AGM),
5.00%, 04/01/21(b) |
|
|
845 |
|
|
|
935,626 |
|
| County of Jackson Limited Tax Note (AGC), 5.50%, 07/01/32 |
|
|
1,750 |
|
|
|
1,850,503 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,232,785 |
|
| Missouri — 2.6% |
|
| Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B,
5.00%, 11/01/41 |
|
|
900 |
|
|
|
979,758 |
|
| Missouri State Health & Educational Facilities Authority, RB: |
|
|
|
|
|
|
|
|
| A.T. Still University of Health Sciences, 5.25%, 10/01/31 |
|
|
500 |
|
|
|
552,925 |
|
| A.T. Still University of Health Sciences, 4.25%, 10/01/32 |
|
|
320 |
|
|
|
337,715 |
|
| A.T. Still University of Health Sciences, 5.00%, 10/01/39 |
|
|
500 |
|
|
|
556,735 |
|
|
|
|
|
|
| SCHEDULES OF INVESTMENTS |
|
|
3 |
|
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Missouri (continued) |
|
| Heartland Regional Medical Center, 4.13%, 02/15/43 |
|
$ |
300 |
|
|
$ |
310,005 |
|
| University of Central Missouri, Series C-2,
5.00%, 10/01/34 |
|
|
1,000 |
|
|
|
1,130,070 |
|
| Missouri State Health & Educational Facilities Authority, Refunding RB, Kansas City University of
Medicine and Biosciences, Series A, 5.00%, 06/01/42 |
|
|
540 |
|
|
|
613,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,481,021 |
|
| Montana — 0.7% |
|
| County of Cascade Montana High School District A Great Falls, GO: |
|
|
|
|
|
|
|
|
| 4.00%, 07/01/34 |
|
|
570 |
|
|
|
618,114 |
|
| 4.00%, 07/01/35 |
|
|
550 |
|
|
|
594,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,212,158 |
|
| Nebraska — 1.1% |
|
| Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 09/01/42 |
|
|
600 |
|
|
|
653,754 |
|
| County of Douglas Nebraska Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist
Health System, 5.00%, 11/01/45 |
|
|
400 |
|
|
|
443,512 |
|
| Nebraska Public Power District, Refunding RB, Series A: |
|
|
|
|
|
|
|
|
| 5.00%, 01/01/32 |
|
|
250 |
|
|
|
276,827 |
|
| 4.00%, 01/01/44 |
|
|
400 |
|
|
|
408,900 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,782,993 |
|
| Nevada — 1.2% |
|
| City of Las Vegas Nevada, RB, Special Assessment, No. 809 Summerlin Area, 5.65%, 06/01/23 |
|
|
995 |
|
|
|
1,009,646 |
|
| County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 07/01/36 |
|
|
1,000 |
|
|
|
1,058,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,068,396 |
|
| New Jersey — 15.2% |
|
| New Jersey EDA, RB: |
|
|
|
|
|
|
|
|
| Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 |
|
|
660 |
|
|
|
748,994 |
|
| Goethals Bridge Replacement Project AMT (AGM), 5.13%, 07/01/42 |
|
|
200 |
|
|
|
221,680 |
|
| School Facilities Construction, Series UU, 5.00%, 06/15/40 |
|
|
425 |
|
|
|
451,971 |
|
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| New Jersey (continued) |
|
| New Jersey EDA, Refunding RB: |
|
|
|
|
|
|
|
|
| Series B, 5.50%, 06/15/30 |
|
$ |
2,500 |
|
|
$ |
2,896,825 |
|
| Special Assessment, Kapkowski Road Landfill Project, 6.50%, 04/01/28 |
|
|
7,500 |
|
|
|
8,846,325 |
|
| New Jersey Educational Facilities Authority, Refunding RB, College of New Jersey, Series G, 3.50%,
07/01/31 |
|
|
900 |
|
|
|
910,152 |
|
| New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series
A: |
|
|
|
|
|
|
|
|
| 4.63%, 07/01/21(b) |
|
|
510 |
|
|
|
561,525 |
|
| 5.63%, 07/01/21(b) |
|
|
1,700 |
|
|
|
1,930,469 |
|
| 5.00%, 07/01/25 |
|
|
500 |
|
|
|
561,495 |
|
| New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45 |
|
|
1,860 |
|
|
|
2,100,572 |
|
| New Jersey Transportation Trust Fund Authority, RB: |
|
|
|
|
|
|
|
|
| CAB, Transportation System, Series A,
0.00%, 12/15/35(d) |
|
|
1,000 |
|
|
|
450,640 |
|
| Transportation Program, Series AA, 5.00%, 06/15/45 |
|
|
900 |
|
|
|
961,632 |
|
| Transportation Program, Series AA, 5.00%, 06/15/46 |
|
|
400 |
|
|
|
427,124 |
|
| New Jersey Turnpike Authority, Refunding RB, Series B, 5.00%, 01/01/40 |
|
|
1,000 |
|
|
|
1,169,920 |
|
| South Jersey Port Corp., RB, Marine Terminal, Series B, AMT, 5.00%, 01/01/35(g) |
|
|
625 |
|
|
|
675,300 |
|
| Tobacco Settlement Financing Corp., Refunding RB, Series 1A, 5.00%, 06/01/41 |
|
|
3,000 |
|
|
|
2,887,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,802,274 |
|
| New Mexico — 1.1% |
|
| New Mexico Finance Authority, RB, Senior Lien, Series A: |
|
|
|
|
|
|
|
|
| 3.25%, 06/01/33 |
|
|
545 |
|
|
|
552,575 |
|
| 3.25%, 06/01/34 |
|
|
840 |
|
|
|
848,224 |
|
| New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%,
08/01/44 |
|
|
450 |
|
|
|
508,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,909,326 |
|
| New York — 6.6% |
|
| City of New York New York Industrial Development Agency, RB, PILOT (AMBAC), 5.00%, 01/01/39 |
|
|
925 |
|
|
|
939,652 |
|
|
|
|
| 4 |
|
2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS |
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| New York (continued) |
|
| Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 06/01/41(a) |
|
$ |
900 |
|
|
$ |
929,871 |
|
| Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45 |
|
|
1,160 |
|
|
|
1,105,086 |
|
| Hudson Yards Infrastructure Corp., Refunding RB, Series A, 5.00%, 02/15/37 |
|
|
2,190 |
|
|
|
2,549,248 |
|
| New York Liberty Development Corp., Refunding RB: |
|
|
|
|
|
|
|
|
| 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49 |
|
|
800 |
|
|
|
850,304 |
|
| 3 World Trade Center Project, Class 2,
5.38%, 11/15/40(a) |
|
|
405 |
|
|
|
445,694 |
|
| New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A,
AMT, 5.00%, 07/01/41 |
|
|
1,000 |
|
|
|
1,097,860 |
|
| New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%,
08/01/31 |
|
|
1,295 |
|
|
|
1,377,582 |
|
| Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series
A, AMT, 5.25%, 11/01/42(a) |
|
|
400 |
|
|
|
400,256 |
|
| Port Authority of New York & New Jersey, Refunding ARB, Consolidated, 206th Series, AMT, 5.00%,
11/15/37 |
|
|
1,250 |
|
|
|
1,453,100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,148,653 |
|
| North Carolina — 0.2% |
|
| North Carolina Medical Care Commission, Refunding RB, The United Methodist Retirement Homes, Series A,
5.00%, 10/01/42(g) |
|
|
300 |
|
|
|
330,345 |
|
|
|
|
|
|
|
|
|
|
| North Dakota — 0.3% |
|
| County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A,
5.00%, 07/01/21(b) |
|
|
480 |
|
|
|
532,066 |
|
|
|
|
|
|
|
|
|
|
| Ohio — 2.4% |
|
| Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2, 6.50%, 06/01/47 |
|
|
2,000 |
|
|
|
1,982,260 |
|
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Ohio (continued) |
|
| City of Dayton Ohio Airport Revenue, Refunding ARB, James M. Cox Dayton International Airport, Series A AMT
(AGM), , 4.00%, 12/01/32 |
|
$ |
2,000 |
|
|
$ |
2,057,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,039,420 |
|
| Oklahoma — 1.8% |
|
| Norman Oklahoma Regional Hospital Authority, Refunding RB, 4.00%, 09/01/37 |
|
|
1,275 |
|
|
|
1,310,011 |
|
| Oklahoma City Public Property Authority, Refunding RB, 5.00%, 10/01/39 |
|
|
720 |
|
|
|
825,142 |
|
| Oklahoma Development Finance Authority, RB, Provident Oklahoma Education Resources, Inc., Cross Village
Student Housing Project, Series A, 5.25%, 08/01/57 |
|
|
820 |
|
|
|
902,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,037,251 |
|
| Oregon — 1.7% |
|
| County of Lane Oregon School District No. 19 Springfield, GO, CAB, Series B, 0.00%, 06/15/40(d) |
|
|
1,000 |
|
|
|
437,790 |
|
| Oregon Health & Science University, RB, Series A, 4.00%, 07/01/37 |
|
|
675 |
|
|
|
714,076 |
|
| State of Oregon State Facilities Authority, Refunding RB, University of Portland Project, Series A,
5.00%, 04/01/45 |
|
|
1,475 |
|
|
|
1,651,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,803,040 |
|
| Pennsylvania — 7.8% |
|
| County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27 |
|
|
1,695 |
|
|
|
1,765,376 |
|
| Delaware River Port Authority, RB: |
|
|
|
|
|
|
|
|
| 4.50%, 01/01/32 |
|
|
1,500 |
|
|
|
1,645,905 |
|
| Series D (AGM), 5.00%, 01/01/40 |
|
|
2,600 |
|
|
|
2,763,202 |
|
| Pennsylvania Turnpike Commission, RB,
Sub-Series B-1, 5.00%, 06/01/42 |
|
|
5,000 |
|
|
|
5,627,050 |
|
| Pottsville Hospital Authority, Refunding RB, Lehigh Valley Health Network, Series B, 5.00%, 07/01/45 |
|
|
1,250 |
|
|
|
1,396,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,198,471 |
|
| Puerto Rico — 1.0% |
|
| Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds: |
|
|
|
|
|
|
|
|
| 5.50%, 05/15/39 |
|
|
940 |
|
|
|
911,208 |
|
|
|
|
|
|
| SCHEDULES OF INVESTMENTS |
|
|
5 |
|
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Puerto Rico (continued) |
|
| Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds (continued): |
|
|
|
|
|
|
|
|
| 5.63%, 05/15/43 |
|
$ |
890 |
|
|
$ |
857,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,768,776 |
|
| Rhode Island — 4.6% |
|
| Rhode Island Health & Educational Building Corp., Refunding RB, Series A (AGM), 3.75%,
05/15/32 |
|
|
1,155 |
|
|
|
1,188,356 |
|
| Rhode Island Turnpike & Bridge Authority, Refunding RB, Series A, 5.00%, 10/01/40 |
|
|
1,540 |
|
|
|
1,753,182 |
|
| State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 04/01/19(b) |
|
|
900 |
|
|
|
944,586 |
|
| Tobacco Settlement Financing Corp., Refunding RB: |
|
|
|
|
|
|
|
|
| Series A, 5.00%, 06/01/40 |
|
|
1,000 |
|
|
|
1,068,850 |
|
| Series B, 4.50%, 06/01/45 |
|
|
2,730 |
|
|
|
2,752,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,707,442 |
|
| Tennessee — 2.9% |
|
| Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A,
5.25%, 01/01/40 |
|
|
1,950 |
|
|
|
2,108,301 |
|
| County of Chattanooga-Hamilton Tennessee Hospital Authority, Refunding RB, Series A, 5.00%, 10/01/44 |
|
|
875 |
|
|
|
946,837 |
|
| County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A,
5.38%, 11/01/28 |
|
|
275 |
|
|
|
293,626 |
|
| Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A,
5.00%, 08/15/42 |
|
|
800 |
|
|
|
851,168 |
|
| Metropolitan Government of Nashville & Davidson County Health & Educational Facilities
Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40 |
|
|
675 |
|
|
|
758,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,958,403 |
|
| Texas — 8.7% |
|
| County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%,
11/15/41(d) |
|
|
11,690 |
|
|
|
3,638,396 |
|
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Texas (continued) |
|
| County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co.,
Project, Series A, 6.30%, 11/01/29 |
|
$ |
1,500 |
|
|
$ |
1,626,585 |
|
| County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A,
0.00%, 09/15/38(d) |
|
|
10,760 |
|
|
|
4,446,247 |
|
| Leander ISD, GO, Refunding CAB, Series D (PSF-GTD)(d): |
|
|
|
|
|
|
|
|
| 0.00%, 08/15/24(b) |
|
|
370 |
|
|
|
192,548 |
|
| 0.00%, 08/15/35 |
|
|
3,630 |
|
|
|
1,750,822 |
|
| Red River Texas Education Financing Corp., RB, Texas Christian University Project,
5.25%, 03/15/38 |
|
|
760 |
|
|
|
863,162 |
|
| Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC,
7.00%, 06/30/40 |
|
|
2,000 |
|
|
|
2,248,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,766,680 |
|
| Utah — 0.2% |
|
| Utah State Charter School Finance Authority, Refunding RB, Mountainville Academy,
4.00%, 04/15/42 |
|
|
400 |
|
|
|
409,244 |
|
|
|
|
|
|
|
|
|
|
| Vermont — 0.8% |
|
| University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/37 |
|
|
500 |
|
|
|
523,395 |
|
| Vermont Student Assistance Corp., RB, Series A, 4.13%, 06/15/30 |
|
|
735 |
|
|
|
763,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,286,737 |
|
| Virginia — 2.2% |
|
| Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A,
5.38%, 03/01/36 |
|
|
490 |
|
|
|
507,091 |
|
| Virginia Small Business Financing Authority, RB, AMT: |
|
|
|
|
|
|
|
|
| Senior Lien, Elizabeth River Crossings OpCo LLC Project, 6.00%, 01/01/37 |
|
|
725 |
|
|
|
822,288 |
|
| Transform 66 P3 Project, 5.00%, 12/31/49 |
|
|
2,135 |
|
|
|
2,393,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,722,906 |
|
| Wisconsin — 0.6% |
|
| Public Finance Authority, Refunding RB, National Gypsum Co., AMT, 4.00%, 08/01/35 |
|
|
280 |
|
|
|
272,034 |
|
|
|
|
| 6 |
|
2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS |
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| Wisconsin (continued) |
|
| WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 07/01/37 |
|
$ |
665 |
|
|
$ |
750,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,022,194 |
|
| Total Municipal Bonds — 136.3%
(Cost — $214,092,490) |
|
|
|
230,943,073 |
|
|
|
|
|
|
|
|
|
|
|
| Municipal Bonds Transferred to Tender Option Bond Trusts(h) — 23.3% |
|
|
| Colorado — 2.3% |
|
| Colorado Health Facilities Authority, RB, Catholic Health,
Series C-7 (AGM), 5.00%, 05/01/18(b) |
|
|
3,750 |
|
|
|
3,805,725 |
|
|
|
|
|
|
|
|
|
|
| Connecticut — 1.8% |
|
| Connecticut State Health & Educational Facility Authority, Refunding RB, Trinity Health Credit
Group, 5.00%, 12/01/45 |
|
|
2,611 |
|
|
|
2,956,144 |
|
|
|
|
|
|
|
|
|
|
| Georgia — 2.7% |
|
| City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/43 |
|
|
4,003 |
|
|
|
4,611,544 |
|
|
|
|
|
|
|
|
|
|
| New Jersey — 0.9% |
|
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36(i) |
|
|
1,400 |
|
|
|
1,493,850 |
|
|
|
|
|
|
|
|
|
|
| New York — 12.7% |
|
| City of New York New York, GO, Fiscal 2015, Series B, 4.00%, 08/01/32 |
|
|
3,990 |
|
|
|
4,313,948 |
|
| Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 02/15/47(i) |
|
|
2,500 |
|
|
|
2,798,168 |
|
|
|
|
|
|
|
|
|
|
| Security |
|
Par
(000) |
|
|
Value |
|
| New York (continued) |
|
| New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds,
5.25%, 12/15/43 |
|
$ |
2,505 |
|
|
$ |
2,793,080 |
|
| State of New York Dormitory Authority, RB, State University Dormitory Facilities, New York University, Series
A, 5.00%, 07/01/18(b) |
|
|
2,199 |
|
|
|
2,244,286 |
|
| State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A,
5.00%, 03/15/31 |
|
|
1,560 |
|
|
|
1,738,530 |
|
| City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009,
Series A: |
|
|
|
|
|
|
|
|
| 5.75%, 06/15/18(b) |
|
|
104 |
|
|
|
105,956 |
|
| 5.75%, 06/15/40 |
|
|
346 |
|
|
|
354,323 |
|
| City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd
General Resolution: |
|
|
|
|
|
|
|
|
| Fiscal 2013, Series CC, 5.00%, 06/15/47 |
|
|
6,000 |
|
|
|
6,729,722 |
|
| Series FF-2, 5.50%, 06/15/40 |
|
|
405 |
|
|
|
428,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,506,145 |
|
|
|
|
|
|
|
|
|
|
| Ohio — 1.9% |
|
| County of Montgomery Ohio, RB, Catholic Health, Series C-1
(AGM), 5.00%, 04/28/18(b) |
|
|
1,260 |
|
|
|
1,278,396 |
|
| Ohio Higher Educational Facility Commission, RB, Cleveland Clinic Health, Series A, 5.25%, 01/01/18(b) |
|
|
2,000 |
|
|
|
2,002,810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,281,206 |
|
|
|
|
|
|
|
|
|
|
| Texas — 1.0% |
|
| City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien,
5.00%, 02/01/43 |
|
|
1,580 |
|
|
|
1,754,965 |
|
|
|
|
|
|
|
|
|
|
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.3%
(Cost
— $37,831,644) |
|
|
|
39,409,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SCHEDULES OF INVESTMENTS |
|
|
7 |
|
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK)
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Value |
|
| Total Long-Term Investments — 159.6%
(Cost — $251,924,134) |
|
|
|
|
|
$ |
270,352,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Value |
|
| Other Assets Less Liabilities — 0.9% |
|
|
|
|
|
$ |
1,351,074 |
|
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable —
(13.3)% |
|
|
|
|
|
|
(22,450,971 |
) |
| VMTP Shares, at Liquidation Value — (47.2)% |
|
|
|
|
|
|
(79,900,000 |
) |
|
|
|
|
|
|
|
|
|
| Net Assets Applicable to Common Shares — 100.0% |
|
|
|
|
|
$ |
169,352,755 |
|
|
|
|
|
|
|
|
|
|
| (a) |
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. |
| (b) |
U.S. 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. |
| (c) |
Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods.
Rate as of period end. |
| (e) |
Issuer filed for bankruptcy and/or is in default. |
| (f) |
Non-income producing security. |
| (g) |
When-issued security. |
| (h) |
Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured
borrowing. |
| (i) |
All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between February 15, 2019 to
June 15, 2019, is $2,411,645. |
During the period ended November 30, 2017, investments in
issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Affiliate |
|
Shares
Held at
08/31/17 |
|
|
Net
Activity |
|
|
Shares
Held at
11/30/17 |
|
|
Value at
11/30/17 |
|
|
Income |
|
|
Net
Realized
Gain (Loss) (a) |
|
|
Change in
Unrealized
Appreciation
(Depreciation) |
|
| BlackRock Liquidity Funds, MuniCash, Institutional Class |
|
|
136,442 |
|
|
|
(136,442 |
) |
|
|
— |
|
|
$ |
— |
|
|
$ |
1,316 |
|
|
$ |
(24 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(a) |
Includes net capital gain distributions, if applicable. |
|
|
|
|
| 8 |
|
2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS |
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK) |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Description |
|
Number of
Contracts |
|
|
Expiration
Date |
|
|
Notional
Amount (000) |
|
|
Value/
Unrealized
Appreciation
(Depreciation) |
|
| Short Contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 10-Year U.S. Treasury Note |
|
|
22 |
|
|
|
03/20/18 |
|
|
$ |
2,729 |
|
|
$ |
19,662 |
|
| Long U.S. Treasury Bond |
|
|
39 |
|
|
|
03/20/18 |
|
|
|
5,917 |
|
|
|
62,047 |
|
| 5-Year U.S. Treasury Note |
|
|
17 |
|
|
|
03/29/18 |
|
|
|
1,978 |
|
|
|
7,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
89,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Abbreviations
|
|
|
|
|
| AGC |
|
Assured Guarantee Corp. |
| AGM |
|
Assured Guaranty Municipal Corp. |
| AMBAC |
|
American Municipal Bond Assurance Corp. |
| AMT |
|
Alternative Minimum Tax (subject to) |
| ARB |
|
Airport Revenue Bonds |
| CAB |
|
Capital Appreciation Bonds |
| COP |
|
Certificates of Participation |
| EDA |
|
Economic Development Authority |
| GARB |
|
General Airport Revenue Bonds |
| GO |
|
General Obligation Bonds |
| IDA |
|
Industrial Development Authority |
| ISD |
|
Independent School District |
| M/F |
|
Multi-Family |
| NPFGC |
|
National Public Finance Guarantee Corp. |
| PILOT |
|
Payment in Lieu of Taxes |
| PSF-GTD |
|
Permanent School Fund Guaranteed |
| RB |
|
Revenue Bonds |
|
|
|
|
|
| SCHEDULES OF INVESTMENTS |
|
|
9 |
|
|
|
|
|
Schedule of Investments (unaudited) (continued)
November 30, 2017 |
|
BlackRock Municipal Bond Trust (BBK) |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to
valuation techniques are categorized into a fair value 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 Trust’s 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. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued
Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect
illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.
Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In
accordance with the Trust’s policy, transfers between different levels of the fair value 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 investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the
Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Trust’s most recent financial statements as contained in its annual report.
The following tables summarize the Trust’s investments and derivative financial instruments categorized in the
disclosure hierarchy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Assets: |
|
| Investments: |
|
| Long-Term Investments(a) |
|
$ |
— |
|
|
$ |
270,352,652 |
|
|
$ |
— |
|
|
$ |
270,352,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative Financial
Instruments(b) |
|
| Assets: |
|
| Interest rate contracts |
|
$ |
89,220 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
89,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(a) |
See above Schedule of Investments for values in each state or political subdivision. |
|
| |
(b) |
Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument. |
|
The Trust may hold assets and/or liabilities in which the fair value approximates
the carrying for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Liabilities: |
|
| TOB Trust Certificates |
|
$ |
— |
|
|
$ |
(22,403,733 |
) |
|
$ |
— |
|
|
$ |
(22,403,733 |
) |
| VMTP Shares at Liquidation Value |
|
|
— |
|
|
|
(79,900,000 |
) |
|
|
— |
|
|
|
(79,900,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
— |
|
|
$ |
(102,303,733 |
) |
|
$ |
— |
|
|
$ |
(102,303,733 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the period ended November 30, 2017, there were no transfers between levels.
|
|
|
| 10 |
|
2017 BLACKROCK QUARTERLY REPORT TO SHAREHOLDERS |
Item 2 – Controls and Procedures
| 2(a) – |
The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended. |
| 2(b) – |
There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the
registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 3 – Exhibits
Certifications –
Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
| BlackRock Municipal Bond Trust |
|
|
| By: |
|
/s/ John M. Perlowski |
| |
|
John M. Perlowski |
| |
|
Chief Executive Officer (principal executive officer) of
BlackRock Municipal Bond Trust |
Date: January 22, 2018
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 22, 2018
|
|
|
| By: |
|
/s/ Neal J. Andrews |
| |
|
Neal J. Andrews |
| |
|
Chief Financial Officer (principal financial officer) of
BlackRock Municipal Bond Trust |
Date: January 22, 2018