8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
     PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) January 14, 2005
                                                 ----------------

                        1838 BOND-DEBENTURE TRADING FUND
             (Exact name of registrant as specified in its charter)

          DELAWARE                   811-02201                 231745238
- ----------------------------        -----------           --------------------
(State or other jurisdiction        (Commission              (IRS Employer
       of incorporation)            File Number)           Identification No.)

2701 Renaissance Boulevard, 4th Floor, King of Prussia, PA       19406
- ----------------------------------------------------------     ----------
      (Address of principal executive offices)                 (Zip Code)

Registrant's telephone number, including area code 1-800-232-1838
                                                   --------------

- --------------------------------------------------------------------------------
         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))





SECTION 8-OTHER EVENTS

ITEM 8.01 OTHER EVENTS.

Please see attached Press Release for information regarding the announcement of
the Board of Directors of 1838 Bond-Debenture Trading Fund (the "Fund") that the
Fund's investment adviser, 1838 Investment Advisors, LP has entered into an
interim investment sub-advisory agreement with MBIA Capital Management Corp. in
connection with the resignation of the Fund's portfolio manager from the
Adviser. A copy of the press release issued by the Fund on January 14, 2005 is
attached hereto as Exhibit 99.1.

SECTION 9-FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibit 99.1 Press release dated January 14, 2005.






                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report on Form 8-K to be signed on its behalf by
the undersigned hereunto duly authorized.


                                           1838 BOND-DEBENTURE TRADING FUND

Date: January 14, 2005
                                           /s/ W. Thacher Brown
                                           ---------------------------------
                                           W. Thacher Brown, Chairman






                                  Exhibit Index
 Exhibit
 Number
 -------
  99.1            Press release dated January 14, 2005 announcing the
                  appointment of MBIA Capital Management Corp. as sub-adviser to
                  the Fund in connection with the resignation of John H.
                  Donaldson as portfolio manager of the Fund.

EX-99

                                                                    EXHIBIT 99.1

          1838 BOND-DEBENTURE TRADING FUND ANNOUNCES THE APPOINTMENT OF
                  MBIA CAPITAL MANAGEMENT CORP. AS SUB-ADVISER

FOR IMMEDIATE RELEASE
KING OF PRUSSIA, PA (BUSINESS WIRE) -- January 14, 2005

                  The Board of Directors of 1838 Bond-Debenture Trading Fund
(NYSE: BDF) (the "Fund") today announced that the Fund's investment adviser,
1838 Investment Advisors, LP (the "Adviser") has entered into an interim
investment sub-advisory agreement with MBIA Capital Management Corp. ("MBIA
Capital Management") in connection with the pending departure of Mr. John H.
Donaldson from the Adviser. The Board also announced the election of Ross K.
Chapin as President of the Fund, Clifford D. Corso as Vice President of the Fund
and Daniel N. Mullen as the Treasurer, Secretary and Chief Compliance Officer of
the Fund. Mr. Donaldson had acted as the Fund's portfolio manager since 1988 and
was employed by the Adviser, or its predecessors since 1988. The Adviser will
continue to manage the Fund, however, effective January 14, 2005, the day-to-day
management of the Fund's investments will be the responsibility of MBIA Capital
Management's team of investment management professionals headed by Clifford D.
Corso, President and head of fixed income trading for MBIA Capital Management.
MBIA Capital Management, founded in 1993, provides fixed income management to a
variety of institutional clients including corporations, governmental entities,
employee benefit plans and registered investment companies. MBIA Capital
Management currently has approximately $40 billion of assets under management.

                  MBIA Capital Management will employ investment strategies that
are substantially similar to those previously employed by Mr. Donaldson to
manage the Fund. As a result, the Fund's portfolio of investments is not
expected to change dramatically. Accordingly, the Fund is not expected to
experience increased portfolio turnover due to the change in portfolio
management.

                  At a special meeting of the Board of Directors held on January
13, 2005, the Board of Directors of the Fund, including a majority of the
Directors who are not "interested persons" as defined in the Investment Company
Act of 1940, as amended (the "Act"), approved the selection of MBIA Capital
Management as interim investment sub-adviser to the Fund pursuant to an interim
advisory agreement effective January 14, 2005 (the "Interim Agreement"). The
Board of Directors concluded that, in light of the resignation of the portfolio
manager, approval of the Interim Agreement was in the best interests of the
Fund's shareholders. The interim agreement will remain in effect until the
earlier of the approval by Fund shareholders of new investment advisory
arrangements or June 13, 2005. The Board of Directors will consider any
recommendation from the Adviser as well as other possible arrangements. If an
investment advisory and/or sub-advisory agreements are approved by the Board of
Directors and recommended to shareholders for their approval, it is expected
that shareholders of the Fund will be asked to vote on such arrangements at the
Annual Meeting of Shareholders to be held in May 2005.

                  The Fund is a closed-end, diversified management investment
company whose primary investment objective is to seek a high rate of return,
primarily from interest income and trading activity gains, from investments
principally consisting of debt securities. The Fund is managed by 1838
Investment Advisors, LP, an affiliate of Orca Bay Partners. Orca Bay Partners
was founded in 1998 and is a Seattle, Washington based private equity investment
firm focused on investing in financial services companies. MBIA Capital
Management is an indirect, wholly-owned subsidiary of MBIA, Inc. Shares of MBIA,
Inc. are listed on the New York Stock Exchange, and trade under the symbol
"MBI."

                  CONTACT: DANIEL N. MULLEN, (484) 322-4300.