N-Q 1 d100043dnq.htm BLACKROCK MUNICIPAL BOND TRUST 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: 08/31/2016

Date of reporting period: 11/30/2015


Item 1 – Schedule of Investments


Schedule of Investments November 30, 2015 (Unaudited)

  

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

Alabama — 1.8%

    

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

    

6.00%, 6/01/19

   $ 1,150      $ 1,341,452   

6.00%, 6/01/19

     450        524,916   

City of Hoover Alabama Board of Education, Refunding, Special Tax, Capital Outlay Warrants, 4.25%, 2/15/40

     1,275        1,313,072   
    

 

 

 
               3,179,440   

Arizona — 7.3%

    

Arizona Board of Regents, RB, Arizona State University, Series C, 5.50%, 7/01/26

     200        229,346   

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

     2,200        2,326,500   

City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/45 (b)

     460        460,327   

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

     3,750        4,065,037   

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     1,500        1,717,815   

5.00%, 12/01/37

     2,065        2,307,080   

University Medical Center Corp., RB, 6.50%, 7/01/19 (a)

     500        592,545   

University Medical Center Corp., Refunding RB, 6.00%, 7/01/21 (a)

     900        1,117,071   
    

 

 

 
        12,815,721   

Arkansas — 3.3%

    

Arkansas State University, RB, Jonesboro Campus, Series B, 4.00%, 12/01/28

     400        428,392   

City of Benton Arkansas, RB, 4.00%, 6/01/39

     905        948,893   

City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40 (c)

     500        503,705   

City of Hot Springs Arkansas, RB, Wastewater, 5.00%, 12/01/38

     1,200        1,350,540   
Municipal Bonds    Par  
(000)
    Value  

Arkansas (continued)

    

City of Little Rock Arkansas, RB, 4.00%, 7/01/41

   $ 2,025      $ 2,064,508   

County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42

     465        509,063   
    

 

 

 
        5,805,101   

California — 20.9%

    

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

     1,900        2,281,254   

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

     2,285        2,321,697   

California Infrastructure & Economic Development Bank, Refunding RB, 4.00%, 11/01/45

     3,350        3,422,695   

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

     1,000        1,004,050   

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34

     2,000        2,321,780   

Dinuba California Unified School District, GO, Election of 2006 (AGM), 5.75%, 8/01/33

     500        576,355   

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

     1,650        1,419,297   

Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 8/01/38 (e)

     8,000        3,104,160   

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

    

0.00%, 8/01/30 (e)

     1,500        891,315   

0.00%, 8/01/33 (e)

     4,000        1,499,800   

0.00%, 8/01/39 (d)

     2,000        1,700,600   

San Diego Community College District, GO, CAB, Election of 2002, 0.00%, 8/01/33 (d)

     2,800        3,019,464   

State of California, GO, Refunding, Various Purposes:

    

5.00%, 2/01/38

     3,000        3,419,640   

4.00%, 10/01/44

     1,080        1,124,032   

State of California, GO, Various Purposes:

    

5.75%, 4/01/31

     2,000        2,307,340   
 

 

                
   BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015    1


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

    

State of California, GO, Various Purposes (continued):

    

6.00%, 3/01/33

   $ 1,000      $ 1,200,250   

6.50%, 4/01/33

     1,950        2,310,185   

5.50%, 3/01/40

     2,350        2,716,905   
    

 

 

 
        36,640,819   

Colorado — 1.2%

    

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

     1,070        1,202,466   

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

     750        875,595   
    

 

 

 
        2,078,061   

Connecticut — 0.7%

    

Connecticut State Health & Educational Facility Authority, Refunding RB:

    

4.00%, 7/01/38

     570        584,609   

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

     550        597,328   
    

 

 

 
        1,181,937   

Delaware — 0.8%

    

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

     1,200        1,351,920   

Florida — 3.7%

    

Capital Trust Agency Inc, RB, M/F Housing, The Gardens Apartment Project, Series A, 4.75%, 7/01/40

     600        596,532   

County of Miami-Dade Florida, RB, AMT, Seaport Department, Series B, 6.00%, 10/01/31

     4,135        5,034,032   

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

     125        132,767   
Municipal Bonds   

Par  

(000)

    Value  

Florida (continued)

    

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

   $ 910      $ 636,900   
    

 

 

 
        6,400,231   

Georgia — 2.6%

    

City of Atlanta Georgia Water & Wastewater Revenue, 5.00%, 11/01/43

     4,000        4,546,600   

Hawaii — 0.3%

    

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

     400        432,876   

Idaho — 1.9%

    

Idaho Health Facilities Authority, RB, St. Lukes Health System Project Series A, 5.00%, 3/01/39

     1,230        1,339,101   

Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/18 (a)

     1,750        2,021,950   
    

 

 

 
        3,361,051   

Illinois — 4.8%

    

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

     1,600        1,613,040   

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41

     870        934,545   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

     665        711,902   

Illinois Finance Authority, RB, Rush University Medical Center, Series C, 6.63%, 5/01/19 (a)

     650        770,036   

Illinois Finance Authority, Refunding RB:

    

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

     1,010        1,161,005   

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

     1,000        1,086,910   

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28

     1,150        1,366,085   
 

 

                
2    BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds   

Par  

(000)

    Value  

Illinois (continued)

    

State of Illinois, GO, 5.00%, 2/01/39

   $ 665      $ 687,018   
    

 

 

 
        8,330,541   

Iowa — 0.9%

    

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

    

5.75%, 9/01/30

     500        519,930   

6.00%, 9/01/39

     1,000        1,037,470   
    

 

 

 
        1,557,400   

Kansas — 2.5%

    

County of Seward Kansas Unified School District No. 480, GO, Refunding, 5.00%, 9/01/39

     4,000        4,446,800   

Kentucky — 1.8%

    

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40

     1,830        2,043,634   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C (d):

    

0.00%, 7/01/34

     500        375,025   

0.00%, 7/01/39

     830        608,681   

0.00%, 7/01/43

     270        196,263   
    

 

 

 
        3,223,603   

Louisiana — 1.5%

    

City of Alexandria Louisiana Utilities, RB, 5.00%, 5/01/39

     860        960,654   

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

     1,050        1,236,869   
Municipal Bonds   

Par  

(000)

    Value  

Louisiana (continued)

    

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 5/01/31

   $ 400      $ 440,904   
    

 

 

 
        2,638,427   

Maryland — 0.2%

    

County of Anne Arundel Maryland Consolidated, Special Tax District, Villages at Two Rivers Project:

    

5.13%, 7/01/36

     170        173,124   

5.25%, 7/01/44

     170        172,812   
    

 

 

 
        345,936   

Massachusetts — 1.2%

    

Massachusetts Development Finance Agency, Refunding RB:

    

Emerson College, 5.00%, 1/01/41

     1,600        1,739,904   

International Charter School, 5.00%, 4/15/40

     400        424,888   
    

 

 

 
        2,164,792   

Michigan — 3.5%

    

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44

     240        251,078   

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

     2,100        2,180,409   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)

     1,950        2,331,888   

State of Michigan Building Authority, Refunding RB, Facilities Program Series I:

    

6.25%, 10/15/18 (a)

     755        867,012   

6.25%, 10/15/38

     495        560,122   
    

 

 

 
        6,190,509   

Minnesota — 3.0%

    

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

    

6.50%, 11/15/18 (a)

     710        821,853   
 

 

                
   BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015    3


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds   

Par  

(000)

    Value  

Minnesota (continued)

    

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC) (continued):

    

6.50%, 11/15/38

   $ 3,890      $ 4,405,542   
    

 

 

 
        5,227,395   

Mississippi — 3.2%

    

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

     400        442,340   

Mississippi Development Bank, RB, Special Obligation:

    

CAB, Hinds Community College District (AGM), 5.00%, 4/01/36

     845        922,495   

County of Jackson Limited Tax Note (AGC), 5.50%, 7/01/32

     1,750        1,958,040   

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

     2,100        2,348,472   
    

 

 

 
        5,671,347   

Missouri — 2.8%

    

Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41

     900        973,089   

Missouri State Health & Educational Facilities Authority, RB:

    

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

     500        552,750   

A.T. Still University of Health Sciences, 4.25%, 10/01/32

     320        338,787   

A.T. Still University of Health Sciences, 5.00%, 10/01/39

     500        560,080   

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

     400        407,776   

University of Central Missouri, Series C-2, 5.00%, 10/01/34

     1,000        1,131,240   
Municipal Bonds   

Par  

(000)

    Value  

Missouri (continued)

    

Missouri State Health & Educational Facilities Authority, Refunding RB, CoxHealth, Series A, 5.00%, 11/15/38

   $ 800      $ 879,216   
    

 

 

 
        4,842,938   

Nebraska — 3.4%

    

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

     600        647,316   

Douglas County Hospital Authority No. 2, RB, Madonna Rehabilitation Hospital Project, 4.00%, 5/15/33

     1,095        1,100,453   

Douglas County Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist Health System, 5.00%, 11/01/45

     400        439,004   

Minden Public Schools, GO, 4.00%, 12/15/39

     500        507,900   

Nebraska Public Power District, Refunding RB, Series A:

    

5.00%, 1/01/32

     250        282,515   

4.00%, 1/01/44

     400        412,284   

Omaha School District, GO, 4.00%, 12/15/39

     2,500        2,578,500   
    

 

 

 
        5,967,972   

Nevada — 1.6%

    

City of Las Vegas Nevada, Special Assessment, No. 809 Summerlin Area, 5.65%, 6/01/23

     1,110        1,116,583   

County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 7/01/36

     1,000        1,040,440   

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

     575        584,700   
    

 

 

 
        2,741,723   

New Jersey — 13.2%

    

County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (f)(g)

     915        36,509   
 

 

                
4    BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

    

New Jersey EDA, RB:

    

AMT Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30

   $ 660      $ 738,566   

AMT The Goethals Bridge Replacement Project (AGM), 5.13%, 7/01/42

     200        214,836   

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

     7,500        9,148,650   

New Jersey Educational Facilities Authority, Refunding RB:

    

The College of New Jersey, 3.50%, 7/01/31

     1,225        1,224,387   

University of Medicine & Dentistry, Series B, 7.13%, 6/01/19 (a)

     630        756,019   

University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (a)

     800        970,272   

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

    

4.63%, 7/01/23

     510        564,351   

5.00%, 7/01/25

     500        571,715   

5.63%, 7/01/37

     1,700        1,942,930   

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

     100        103,603   

New Jersey Transportation Trust Fund Authority, RB:

    

CAB, Transportation System, Series A, 0.00%, 12/15/35 (e)

     1,000        340,900   

Transportation Program, Series AA, 5.00%, 6/15/44

     3,030        3,086,873   

Transportation Program, Series AA, 5.00%, 6/15/45 (c)

     900        917,766   

Transportation Program, Series AA, 5.00%, 6/15/46 (c)

     400     

 

407,864

  

Municipal Bonds   

Par  

(000)

    Value  

New Jersey (continued)

    

New Jersey Turnpike Authority, RB, Series E, 5.00%, 1/01/45

   $ 1,860      $ 2,075,500   
    

 

 

 
        23,100,741   

New Mexico — 0.3%

    

New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 8/01/44

     450        502,596   

New York — 9.5%

    

City of New York New York, GO, Fiscal 2014, Sub-Series A-1, 5.00%, 8/01/35

     1,580        1,827,791   

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT (h):

    

7.75%, 8/01/31

     3,165        3,316,698   

Series B, 2.00%, 8/01/28

     500        500,735   

City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39

     925        949,309   

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)

     900        935,271   

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

     975        1,074,548   

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

     1,160        1,100,098   

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/39

     2,300        2,665,424   

New York City Water & Sewer System, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2016, Series BB, 4.00%, 6/15/46

     1,950        2,010,898   

New York Liberty Development Corp., Refunding RB:

    

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

     800        901,176   
 

 

                
   BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015    5


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds   

Par  

(000)

    Value  

New York (continued)

    

New York Liberty Development Corp., Refunding RB (continued):

    

3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)

   $ 405      $ 425,396   

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)

     400        402,692   

Utility Debt Securitization Authority, Refunding RB, Restructuring, 3.00%, 12/15/32

     580        579,136   
    

 

 

 
        16,689,172   

North Carolina — 3.1%

    

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

     2,695        2,704,406   

County of Miami-Dade Educational Facilities Authority, Refunding RB, University of Miami-Dade, Series A, 5.00%, 4/01/45

     920        1,012,120   

County of Union North Carolina Enterprise System Revenue, RB (c):

    

3.25%, 6/01/36

     520        500,042   

3.25%, 6/01/37

     370        350,723   

North Carolina Medical Care Commission, Refunding RB, University Health System, Series D, 6.25%, 12/01/18 (a)

     800        923,760   
    

 

 

 
        5,491,051   

North Dakota — 0.3%

    

County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A, 5.00%, 7/01/21 (a)

     480        570,134   

Ohio — 2.1%

    

City of Cleveland Ohio, RB, Sub Lien, Series A-2, 5.00%, 10/01/37

     1,500        1,699,095   
Municipal Bonds   

Par  

(000)

    Value  

Ohio (continued)

    

City of Dayton Ohio Airport Revenue, Refunding ARB, James M Cox Dayton International Airport, AMT, 4.00%, 12/01/32

   $ 2,000      $ 2,044,800   
    

 

 

 
        3,743,895   

Oklahoma — 0.8%

    

Oklahoma City Public Property Authority, Refunding RB, 5.00%, 10/01/39

     720        804,103   

Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38

     620        641,260   
    

 

 

 
        1,445,363   

Oregon — 2.7%

    

County of Umatilla Pendleton Oregon School District No. 16R, GO, Series A, 4.00%, 6/15/38

     265        277,500   

Lane County School District No. 19 Springfield, GO, CAB, Series B, 0.00%, 6/15/40 (e)

     1,000        368,840   

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

     750        853,695   

State of Oregon State Facilities Authority, Refunding RB, Series A, 5.00%, 4/01/45

     2,960        3,251,471   
    

 

 

 
        4,751,506   

Pennsylvania — 4.5%

    

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

     1,695        1,298,319   

Delaware County Authority, RB, Villanova University, 4.00%, 8/01/45

     2,000        2,030,080   

Delaware River Port Authority, RB:

    

4.50%, 1/01/32

     1,500        1,654,785   

Series D (AGM), 5.00%, 1/01/40

     2,600        2,892,630   
    

 

 

 
        7,875,814   

Rhode Island — 3.4%

    

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

     1,000        1,159,710   
 

 

                
6    BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds   

Par  

(000)

    Value  

Rhode Island (continued)

    

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

   $ 900      $ 993,744   

Tobacco Settlement Financing Corp., Refunding RB:

    

Series A, 5.00%, 6/01/40

     1,000        1,031,290   

Series B, 4.50%, 6/01/45

     2,730        2,707,942   
    

 

 

 
        5,892,686   

Tennessee — 2.4%

    

Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/40

     1,950        2,159,878   

County of Chattanooga-Hamilton Hospital Authority, Refunding RB, 5.00%, 10/01/44

     875        931,499   

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

     275        312,353   

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

     800        857,800   
    

 

 

 
        4,261,530   

Texas — 9.4%

    

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B (a):

    

7.13%, 12/01/18

     500        590,260   

7.25%, 12/01/18

     1,750        2,072,367   

County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%, 11/15/41 (e)

     11,690        3,183,421   

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

     1,500        1,701,735   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/38 (e)

     10,760        3,968,826   

Leander Texas Independent School District, GO, Refunding, Refunding, CAB Series D, 0.00%, 8/15/35 (e)

     4,000        1,774,160   
Municipal Bonds   

Par  

(000)

    Value  

Texas (continued)

    

Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

   $ 760      $ 868,536   

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        2,399,300   
    

 

 

 
        16,558,605   

U.S. Virgin Islands — 0.8%

    

Virgin Islands Public Finance Authority, Refunding RB, Virgin Islands Gross Receipts, Series C, 4.50%, 10/01/44

     1,360        1,380,754   

Utah — 0.2%

    

Utah State Charter School Finance Authority, Refunding RB, Mountainville Academy, 4.00%, 4/15/42

     400        401,900   

Vermont — 2.9%

    

University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/37

     2,360        2,452,583   

Vermont Educational & Health Buildings Financing Agency, Refunding RB, Fletcher Allen Health Hospital, Series B (AGM), 5.00%, 12/01/34

     1,590        1,680,296   

Vermont Student Assistance Corp., RB, Series A, 4.13%, 6/15/30

     1,000        1,021,670   
    

 

 

 
        5,154,549   

Virginia — 0.6%

    

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37

     880        1,009,492   

Washington — 0.9%

    

Washington Health Care Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/19 (a)

     1,400        1,645,098   

West Virginia — 0.3%

    

West Virginia Hospital Finance Authority, Refunding RB, Valley Health System Obligation Group Series 2014, 5.00%, 1/01/44

     500        550,190   
 

 

                
   BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015    7


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds   

Par  

(000)

    Value  

Wisconsin — 0.7%

    

WPPI Energy Power Supply Systems, Refunding RB, Series A:

    

5.00%, 7/01/36

   $ 330      $ 374,279   

5.00%, 7/01/37

     665        751,563   
    

 

 

 
        1,125,842   
Total Municipal Bonds — 133.0%        233,294,058   
    
                  

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

              

Colorado — 2.3%

    

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

     3,750        3,951,525   

New Jersey — 0.8%

    

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

     1,400        1,462,469   

New York — 14.3%

    

City of New York New York, GO, Fiscal 2015, Series B, 4.00%, 8/01/32

     3,990        4,239,176   

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

     450        501,002   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System:

    

2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

     6,000        6,744,646   

2nd General Resolution, Series FF-2, 5.50%, 6/15/40

     405        459,437   

Series A, 4.75%, 6/15/30

     3,000        3,169,380   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j)

     2,500        2,852,543   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

     2,505        2,878,375   

Municipal Bonds Transferred to

Tender Option Bond Trusts (i)

  

Par  

(000)

    Value  

New York (continued)

    

State of New York Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/18 (a)

   $ 2,199      $ 2,426,435   

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

     1,560        1,831,144   
    

 

 

 
        25,102,138   

Ohio — 2.0%

    

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

     1,260        1,325,067   

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

     2,000        2,162,480   
    

 

 

 
        3,487,547   

Texas — 1.0%

    

City of San Antonio Texas Public Service Board, RB, Electric & Gas Systems, Junior Lien, 5.00%, 2/01/43

     1,580        1,755,506   

Total Municipal Bonds Transferred to

Tender Option Bond Trusts — 20.4%

             35,759,185   
Total Long-Term Investments
(Cost — $245,659,148) — 153.4%
        269,053,243   
    
                  
Short-Term Securities    Shares         

FFI Institutional Tax-Exempt Fund, 0.02% (k)(l)

     5,059,745        5,059,745   
Total Short-Term Securities
(Cost — $5,059,745) — 2.9%
        5,059,745   
Total Investments
(Cost — $250,718,893) — 156.3%
        274,112,988   
Other Assets Less Liabilities — 0.3%        712,078   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (11.1)%

   

    (19,500,519
VMTP Shares, at Liquidation Value — (45.5)%        (79,900,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 175,424,547   
    

 

 

 
 

 

                
8    BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015   


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

*   As of November 30, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

  $ 231,082,838   
 

 

 

 

Gross unrealized appreciation

  $ 25,080,045   

Gross unrealized depreciation

    (1,544,591
 

 

 

 

Net unrealized appreciation

  $ 23,535,454   
 

 

 

 
 
Notes to Schedule of Investments

 

(a)   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.

 

(b)   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.

 

(c)   When-issued security.

 

(d)   Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of period end.

 

(e)   Zero-coupon bond.

 

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

 

(g)   Non-income producing security.

 

(h)   Variable rate security. Rate shown is as of period end.

 

(i)   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.

 

(j)   All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB Trust Certificates and proceeds received from the sale of the security contributed to the TOB Trust or in the event of a default on the security. In the case of a shortfall or default, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between February 12, 2019 to June 15, 2019 is $2,411,645.

 

(k)   During the period ended November 30, 2015, 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 August 31,
2015
       Net
Activity
       Shares Held
at November 30,
2015
       Income  

FFI Institutional Tax-Exempt Fund

       6,015,344           (955,599        5,059,745         $ 197   

 

(l)   Represents the current yield as of period end.

 

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
HFA    Housing Finance Agency
IDA    Industrial Development Authority
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
PILOT    Payment in Lieu of Taxes
RB    Revenue Bonds
S/F    Single-Family

 

                
   BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015    9


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

 

Derivative Financial Instruments Outstanding as of Period End

Financial Futures Contracts

 

Contracts Short     Issue   Expiration   Notional
Value
    Unrealized
Depreciation
 
  (11)      5-Year U.S. Treasury Note   March 2016   $ 1,305,477        (188
  (16)      10-Year U.S. Treasury Note   March 2016   $ 2,023,000      $ (4,023
  (10)      Long U.S. Treasury Bond   March 2016   $ 1,540,000        (5,015
  (3)      Ultra U.S. Treasury Bond   March 2016   $ 475,312        (1,926

 

Total

  

  $ (11,152
       

 

 

 

 

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 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. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as level 3.

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.

As of period end, 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 1

            $ 269,053,243              $ 269,053,243   

Short-Term Securities

  $ 5,059,745                          5,059,745   
 

 

 

 

Total

  $ 5,059,745         $ 269,053,243              $ 274,112,988   
 

 

 

 

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

       

 

                
10    BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015   


Schedule of Investments (concluded)

  

BlackRock Municipal Bond Trust (BBK)

 

 

     Level 1        Level 2        Level 3      Total  
Derivative Financial Instruments 1                 

Liabilities:

                

Interest rate contracts

  $ (11,152                     $ (11,152

1    Derivative financial instruments are financial 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 amount 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  

Assets:

                

Cash pledged for financial futures contracts

  $ 78,050                        $ 78,050   

Liabilities:

                

Bank overdraft

            $ (5,522             (5,522

TOB Trust Certificates

              (19,494,696             (19,494,696

VMTP Shares

              (79,900,000             (79,900,000
 

 

 

 

Total

  $ 78,050         $ (99,400,218           $ (99,322,168
 

 

 

 

    During the period ended November 30, 2015, there were no transfers between levels.

       

 

                
   BLACKROCK MUNICIPAL BOND TRUST    NOVEMBER 30, 2015    11


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, 2016

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, 2016
By:    /s/ Neal J. Andrews                    
   Neal J. Andrews
   Chief Financial Officer (principal financial officer) of
   BlackRock Municipal Bond Trust
Date:    January 22, 2016