STATEMENT
OF INVESTMENTS
BNY Mellon Strategic Municipal Bond Fund, Inc.
August 31, 2021 (Unaudited)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Bonds and Notes - .4% | |||||||||
Collateralized Municipal-Backed Securities - .4% | |||||||||
Arizona
Industrial Development Authority, Revenue Bonds, Ser. 2019-2 | 3.63 | 5/20/2033 | 1,259,662 | 1,435,758 | |||||
| |||||||||
Long-Term Municipal Investments - 143.2% | |||||||||
Alabama - 5.6% | |||||||||
Alabama Special Care Facilities Financing Authority, Revenue Bonds (Methodist Home for the Aging Obligated Group) | 5.50 | 6/1/2030 | 1,800,000 | 1,942,205 | |||||
Alabama Special Care Facilities Financing Authority, Revenue Bonds (Methodist Home for the Aging Obligated Group) | 5.75 | 6/1/2045 | 1,250,000 | 1,323,139 | |||||
Alabama Special Care Facilities Financing Authority, Revenue Bonds (Methodist Home for the Aging Obligated Group) | 6.00 | 6/1/2050 | 1,500,000 | 1,598,390 | |||||
Jefferson County, Revenue Bonds, Refunding, Ser. F | 7.75 | 10/1/2046 | 6,000,000 | a | 6,186,557 | ||||
Southeast Energy Authority, Revenue Bonds (Project No. 2) Ser. B | 4.00 | 12/1/2031 | 1,500,000 | b | 1,854,853 | ||||
The Lower Alabama Gas District, Revenue Bonds, Ser. A | 5.00 | 9/1/2046 | 5,000,000 | 7,438,834 | |||||
University of Alabama at Birmingham, Revenue Bonds, Ser. B | 4.00 | 10/1/2036 | 2,745,000 | 3,268,183 | |||||
23,612,161 | |||||||||
Arizona - 7.1% | |||||||||
Arizona Industrial Development Authority, Revenue Bonds (Equitable School Revolving Fund Obligated Group) Ser. A | 4.00 | 11/1/2050 | 1,500,000 | 1,722,621 | |||||
Arizona Industrial Development Authority, Revenue Bonds (Legacy Cares Project) Ser. A | 7.75 | 7/1/2050 | 4,305,000 | c | 5,189,086 | ||||
Arizona Industrial Development Authority, Revenue Bonds (Phoenix Children's Hospital Obligated Group) | 4.00 | 2/1/2050 | 1,500,000 | 1,751,168 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Arizona - 7.1% (continued) | |||||||||
Arizona Industrial Development Authority, Revenue Bonds, Refunding (BASIS Schools Projects) Ser. A | 5.25 | 7/1/2047 | 1,500,000 | c | 1,728,595 | ||||
Glendale Industrial Development Authority, Revenue Bonds, Refunding (Sun Health Services Obligated Group) Ser. A | 5.00 | 11/15/2054 | 1,500,000 | 1,738,113 | |||||
Maricopa County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Traditional Schools Project) | 5.00 | 7/1/2049 | 1,775,000 | c | 2,074,997 | ||||
Salt Verde Financial Corp., Revenue Bonds | 5.00 | 12/1/2037 | 1,345,000 | 1,902,749 | |||||
Tender Option Bond Trust Receipts (Series 2018-XF2537), (Salt Verde Financial Corporation, Revenue Bonds) Recourse, Underlying Coupon Rate (%) 5.00 | 17.31 | 12/1/2037 | 4,550,000 | c,d,e | 6,342,200 | ||||
The Phoenix Industrial Development Authority, Revenue Bonds (Legacy Traditional Schools Project) Ser. A | 6.75 | 7/1/2044 | 1,000,000 | c | 1,151,409 | ||||
The Phoenix Industrial Development Authority, Revenue Bonds, Refunding (BASIS Schools Projects) Ser. A | 5.00 | 7/1/2046 | 3,000,000 | c | 3,339,592 | ||||
The Pima County Industrial Development Authority, Revenue Bonds (American Leadership Academy Project) | 5.00 | 6/15/2047 | 3,000,000 | c | 3,045,432 | ||||
29,985,962 | |||||||||
California - 9.1% | |||||||||
Golden State Tobacco Securitization Corp., Revenue Bonds, Refunding, Ser. A1 | 5.00 | 6/1/2047 | 1,000,000 | 1,033,330 | |||||
Jefferson Union High School District, COP (Teacher & Staff Housing Project) (Insured; Build America Mutual) | 4.00 | 8/1/2055 | 1,500,000 | 1,734,468 | |||||
Tender Option Bond Trust Receipts (Series 2016-XM0379), (Los Angeles Department of Water & Power, Revenue Bonds, Refunding) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.53 | 7/1/2043 | 5,000,000 | c,d,e | 5,187,247 | ||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
California - 9.1% (continued) | |||||||||
Tender Option Bond Trust Receipts (Series 2016-XM0387), (Los Angeles Department of Airports, Revenue Bonds (Los Angeles International Airport)) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.47 | 5/15/2038 | 6,000,000 | c,d,e | 6,442,233 | ||||
Tender Option Bond Trust Receipts (Series 2016-XM0390), (The Regents of the University of California, Revenue Bonds, Refunding) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.53 | 5/15/2036 | 6,260,000 | c,d,e | 6,753,120 | ||||
Tender Option Bond Trust Receipts (Series 2020-XF1220), (North Texas Tollway Authority, Revenue Bonds, Refunding, Ser. B) Non-recourse, Underlying Coupon Rate (%) 3.00 | -1.75 | 1/1/2051 | 10,000,000 | c,d,e | 10,567,006 | ||||
Tender Option Bond Trust Receipts (Series 2020-XF2876), (San Francisco California City & County Airport Commission, Revenue Bonds, Refunding, Ser. E) Recourse, Underlying Coupon Rate (%) 5.00 | 17.51 | 5/1/2050 | 5,190,000 | c,d,e | 6,339,361 | ||||
38,056,765 | |||||||||
Colorado - 6.4% | |||||||||
Belleview Station Metropolitan District No. 2, GO, Refunding | 5.13 | 12/1/2046 | 2,375,000 | 2,457,152 | |||||
Colorado Educational & Cultural Facilities Authority, Revenue Bonds, Refunding (Johnson & Wales University) Ser. B | 5.00 | 4/1/2023 | 2,685,000 | f | 2,884,719 | ||||
Colorado Health Facilities Authority, Revenue Bonds, Refunding (Covenant Living Communities & Services Obligated Group) Ser. A | 4.00 | 12/1/2050 | 4,000,000 | 4,595,974 | |||||
Denver City & County Airport System, Revenue Bonds, Refunding, Ser. A | 5.00 | 12/1/2048 | 2,300,000 | 2,812,253 | |||||
Dominion Water & Sanitation District, Revenue Bonds | 6.00 | 12/1/2046 | 3,100,000 | 3,194,201 | |||||
Sterling Ranch Community Authority Board, Revenue Bonds (Insured; Municipal Government Guaranteed) Ser. A | 5.00 | 12/1/2047 | 1,250,000 | 1,320,635 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Colorado - 6.4% (continued) | |||||||||
Tender Option Bond Trust Receipts (Series 2016-XM0385), (Board of Governors of the Colorado State University, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.50 | 3/1/2038 | 4,960,000 | c,d,e | 5,076,662 | ||||
Tender Option Bond Trust Receipts (Series 2020-XM0829), (Colorado Health Facilities Authority, Revenue Bonds, Refunding (CommonSpirit Health Obligated Group, Ser. A1)) Recourse, Underlying Coupon Rate (%) 4.00 | 16.91 | 8/1/2044 | 3,260,000 | c,d,e | 4,463,864 | ||||
26,805,460 | |||||||||
Connecticut - 1.5% | |||||||||
Connecticut, Revenue Bonds, Ser. A | 5.00 | 5/1/2034 | 1,500,000 | 2,010,439 | |||||
Connecticut, Special Tax Bonds, Ser. A | 5.00 | 5/1/2038 | 1,000,000 | 1,296,418 | |||||
Connecticut Health & Educational Facilities Authority, Revenue Bonds, Refunding, Ser. S | 4.00 | 6/1/2051 | 2,000,000 | 2,389,272 | |||||
Connecticut Housing Finance Authority, Revenue Bonds, Refunding, Ser. A1 | 3.65 | 11/15/2032 | 790,000 | 820,094 | |||||
6,516,223 | |||||||||
District of Columbia - 4.0% | |||||||||
Metropolitan Washington Airports Authority, Revenue Bonds, Refunding, Ser. B | 4.00 | 10/1/2049 | 1,000,000 | 1,151,633 | |||||
Tender Option Bond Trust Receipts (Series 2016-XM0437), (District of Columbia, Revenue Bonds) Recourse, Underlying Coupon Rate (%) 5.00 | 17.84 | 12/1/2035 | 14,834,680 | c,d,e | 15,668,647 | ||||
16,820,280 | |||||||||
Florida - 8.4% | |||||||||
Alachua County Health Facilities Authority, Revenue Bonds (Shands Teaching Hospital & Clinics Obligated Group) | 4.00 | 12/1/2049 | 1,600,000 | 1,859,109 | |||||
Atlantic Beach, Revenue Bonds (Fleet Landing Project) Ser. A | 5.00 | 11/15/2048 | 2,500,000 | 2,868,691 | |||||
Florida Higher Educational Facilities Financial Authority, Revenue Bonds (Ringling College Project) | 5.00 | 3/1/2049 | 2,000,000 | 2,372,721 | |||||
Greater Orlando Aviation Authority, Revenue Bonds, Ser. A | 4.00 | 10/1/2044 | 1,500,000 | 1,744,009 | |||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Florida - 8.4% (continued) | |||||||||
Lee County Industrial Development Authority, Revenue Bonds (Shell Point/Waterside Health Project) | 5.00 | 11/15/2049 | 1,540,000 | 1,818,111 | |||||
Palm Beach County Health Facilities Authority, Revenue Bonds (ACTS Retirement-Life Communities Obligated Group) | 5.00 | 11/15/2045 | 5,775,000 | 6,698,324 | |||||
Palm Beach County Health Facilities Authority, Revenue Bonds (Lifespace Communities Obligated Group) Ser. B | 4.00 | 5/15/2053 | 2,000,000 | 2,219,039 | |||||
Seminole County Industrial Development Authority, Revenue Bonds, Refunding (Legacy Pointe at UCF Project) | 5.75 | 11/15/2054 | 1,000,000 | 1,122,977 | |||||
Tender Option Bond Trust Receipts (Series 2019-XF0813), (Fort Myers Florida Utility, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 4.00 | 12.26 | 10/1/2049 | 2,980,000 | c,d,e | 3,424,858 | ||||
Tender Option Bond Trust Receipts (Series 2019-XM0782), (Palm Beach County Florida Health Facilities Authority, Revenue Bonds, Refunding (Baptist Health South Florida Obligated Group)) Recourse, Underlying Coupon Rate (%) 4.00 | 14.08 | 8/15/2049 | 5,535,000 | c,d,e | 6,359,534 | ||||
Tender Option Bond Trust Receipts (Series 2020-XF2877), (Greater Orlando Aviation Authority, Revenue Bonds, Ser. A) Recourse, Underlying Coupon Rate (%) 4.00 | 13.96 | 10/1/2049 | 4,065,000 | c,d,e | 4,677,188 | ||||
35,164,561 | |||||||||
Georgia - 5.4% | |||||||||
Atlanta Water & Wastewater, Revenue Bonds, Ser. D | 3.50 | 11/1/2028 | 800,000 | c | 873,900 | ||||
Georgia Municipal Electric Authority, Revenue Bonds, Refunding (Plant Vogtle Units 3&4 Project) Ser. A | 4.00 | 1/1/2051 | 500,000 | 575,528 | |||||
Tender Option Bond Trust Receipts (Series 2016-XM0435), (Private Colleges & Universities Authority, Revenue Bonds, Refunding (Emory University)) Recourse, Underlying Coupon Rate (%) 5.00 | 17.85 | 10/1/2043 | 6,000,000 | c,d,e | 6,524,130 | ||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Georgia - 5.4% (continued) | |||||||||
Tender Option Bond Trust Receipts (Series 2019-XF2847), (Municipal Electric Authority of Georgia, Revenue Bonds (Plant Vogtle Unis 3&4 Project, Ser. A)) Recourse, Underlying Coupon Rate (%) 5.00 | 17.70 | 1/1/2056 | 2,720,000 | c,d,e | 3,277,540 | ||||
Tender Option Bond Trust Receipts (Series 2020-XM0825), (Brookhaven Development Authority, Revenue Bonds (Children's Healthcare of Atlanta, Ser. A)) Recourse, Underlying Coupon Rate (%) 4.00 | 15.39 | 7/1/2044 | 4,220,000 | c,d,e | 5,275,282 | ||||
The Atlanta Development Authority, Revenue Bonds, Ser. A1 | 5.25 | 7/1/2040 | 1,000,000 | 1,158,710 | |||||
The Burke County Development Authority, Revenue Bonds, Refunding (Oglethorpe Power Corp.) Ser. D | 4.13 | 11/1/2045 | 4,200,000 | 4,778,341 | |||||
22,463,431 | |||||||||
Hawaii - .7% | |||||||||
Hawaii Department of Budget & Finance, Revenue Bonds, Refunding (Hawaiian Electric Co.) | 4.00 | 3/1/2037 | 2,500,000 | 2,785,514 | |||||
Illinois - 13.7% | |||||||||
Chicago Board of Education, GO, Refunding, Ser. A | 5.00 | 12/1/2033 | 1,250,000 | 1,556,688 | |||||
Chicago Board of Education, GO, Refunding, Ser. B | 5.00 | 12/1/2032 | 400,000 | 508,570 | |||||
Chicago Board of Education, GO, Refunding, Ser. B | 5.00 | 12/1/2031 | 500,000 | 637,940 | |||||
Chicago II, GO, Refunding, Ser. A | 6.00 | 1/1/2038 | 3,000,000 | 3,732,856 | |||||
Chicago II, GO, Refunding, Ser. C | 5.00 | 1/1/2024 | 1,265,000 | 1,395,538 | |||||
Chicago II, GO, Ser. A | 5.00 | 1/1/2044 | 3,000,000 | 3,633,515 | |||||
Chicago II Wastewater Transmission, Revenue Bonds, Refunding, Ser. C | 5.00 | 1/1/2039 | 2,330,000 | 2,653,490 | |||||
Chicago O'Hare International Airport, Revenue Bonds, Refunding, Ser. A | 5.00 | 1/1/2048 | 4,000,000 | 4,885,093 | |||||
Chicago Transit Authority, Revenue Bonds, Refunding, Ser. A | 5.00 | 12/1/2045 | 1,000,000 | 1,246,039 | |||||
Illinois, GO, Refunding, Ser. A | 5.00 | 10/1/2029 | 1,000,000 | 1,244,346 | |||||
Illinois, GO, Ser. A | 5.00 | 5/1/2038 | 2,850,000 | 3,424,318 | |||||
Illinois, GO, Ser. B | 5.00 | 11/1/2030 | 1,500,000 | 1,904,129 | |||||
Illinois, GO, Ser. D | 5.00 | 11/1/2028 | 3,000,000 | 3,665,327 | |||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Illinois - 13.7% (continued) | |||||||||
Illinois Finance Authority, Revenue Bonds, Refunding (Plymouth Place Obligated Group) | 5.25 | 5/15/2025 | 1,000,000 | f | 1,175,250 | ||||
Illinois Toll Highway Authority, Revenue Bonds, Ser. A | 4.00 | 1/1/2044 | 1,500,000 | 1,751,268 | |||||
Metropolitan Pier & Exposition Authority, Revenue Bonds (McCormick Place Expansion Project) | 5.00 | 6/15/2057 | 2,500,000 | 2,968,590 | |||||
Metropolitan Pier & Exposition Authority, Revenue Bonds (McCormick Place Project) (Insured; National Public Finance Guarantee Corp.) Ser. A | 0.00 | 12/15/2036 | 2,500,000 | g | 1,779,116 | ||||
Metropolitan Pier & Exposition Authority, Revenue Bonds, Refunding (McCormick Place Project) Ser. B | 5.00 | 6/15/2052 | 3,550,000 | 3,680,894 | |||||
Metropolitan Pier & Exposition Authority, Revenue Bonds, Refunding (McCormick Place Project) Ser. B | 5.00 | 12/15/2028 | 2,500,000 | 2,592,179 | |||||
Sales Tax Securitization Corp., Revenue Bonds, Refunding, Ser. A | 4.00 | 1/1/2039 | 2,250,000 | 2,655,013 | |||||
Tender Option Bond Trust Receipts (Series 2017-XM0492), (Illinois Finance Authority, Revenue Bonds, Refunding (The University of Chicago)) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.50 | 10/1/2040 | 9,000,000 | c,d,e | 10,499,001 | ||||
57,589,160 | |||||||||
Indiana - 2.1% | |||||||||
Indiana Finance Authority, Revenue Bonds (Green Bond) (RES Polyflow Indiana) | 7.00 | 3/1/2039 | 4,575,000 | c | 4,436,211 | ||||
Indiana Finance Authority, Revenue Bonds (Parkview Health System Obligated Group) Ser. A | 5.00 | 11/1/2043 | 3,500,000 | 4,349,076 | |||||
8,785,287 | |||||||||
Iowa - 2.3% | |||||||||
Iowa Finance Authority, Revenue Bonds, Refunding (Iowa Fertilizer Co. Project) | 5.25 | 12/1/2025 | 5,125,000 | 5,590,932 | |||||
Iowa Finance Authority, Revenue Bonds, Refunding (Lifespace Communities Obligated Group) Ser. A | 4.00 | 5/15/2046 | 1,000,000 | 1,121,393 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Iowa - 2.3% (continued) | |||||||||
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser. A2 | 4.00 | 6/1/2049 | 1,400,000 | 1,629,300 | |||||
Iowa Tobacco Settlement Authority, Revenue Bonds, Refunding, Ser. B1 | 4.00 | 6/1/2049 | 1,000,000 | 1,159,015 | |||||
9,500,640 | |||||||||
Kentucky - 1.4% | |||||||||
Christian County, Revenue Bonds, Refunding (Jennie Stuart Medical Center Obligated Group) | 5.50 | 2/1/2044 | 2,800,000 | 3,211,304 | |||||
Kentucky Public Energy Authority, Revenue Bonds, Ser. A1 | 4.00 | 6/1/2025 | 2,560,000 | b | 2,879,172 | ||||
6,090,476 | |||||||||
Louisiana - 3.0% | |||||||||
Louisiana Local Government Environmental Facilities & Community Development Authority, Revenue Bonds, Refunding (Westlake Chemical Project) | 3.50 | 11/1/2032 | 2,400,000 | 2,680,060 | |||||
Tender Option Bond Trust Receipts (Series 2018-XF2584), (Louisiana Public Facilities Authority, Revenue Bonds (Franciscan Missionaries of Our Lady Health System Project)) Non-recourse, Underlying Coupon Rate (%) 5.00 | 17.64 | 7/1/2047 | 8,195,000 | c,d,e | 9,751,840 | ||||
12,431,900 | |||||||||
Maryland - 2.3% | |||||||||
Maryland Health & Higher Educational Facilities Authority, Revenue Bonds (Adventist Healthcare Obligated Group) Ser. A | 5.50 | 1/1/2046 | 3,250,000 | 3,899,639 | |||||
Maryland Health & Higher Educational Facilities Authority, Revenue Bonds, Refunding (Stevenson University Project) | 4.00 | 6/1/2051 | 1,000,000 | 1,158,975 | |||||
Tender Option Bond Trust Receipts (Series 2016-XM0391), (Mayor & City Council of Baltimore, Revenue Bonds, Refunding (Water Projects)) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.50 | 7/1/2042 | 4,000,000 | c,d,e | 4,439,849 | ||||
9,498,463 | |||||||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Massachusetts - 4.7% | |||||||||
Massachusetts Development Finance Agency, Revenue Bonds, Refunding (UMass Memorial Health Care Obligated Group) Ser. K | 5.00 | 7/1/2038 | 2,130,000 | 2,542,913 | |||||
Massachusetts Development Finance Agency, Revenue Bonds, Refunding, Ser. A | 5.00 | 7/1/2029 | 1,000,000 | 1,268,131 | |||||
Massachusetts Development Finance Agency, Revenue Bonds, Refunding, Ser. G | 4.00 | 7/1/2046 | 1,250,000 | 1,472,659 | |||||
Tender Option Bond Trust Receipts (Series 2016-XM0386), (University of Massachusetts Building Authority, Revenue Bonds, Refunding) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.48 | 5/1/2043 | 7,409,991 | c,d,e | 7,986,773 | ||||
Tender Option Bond Trust Receipts (Series 2018-XF0610), (Massachusetts Transportation Fund, Revenue Bonds (Rail Enhancement & Accelerated Bridge Programs)) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.76 | 6/1/2047 | 5,250,000 | c,d,e | 6,444,114 | ||||
19,714,590 | |||||||||
Michigan - 4.9% | |||||||||
Great Lakes Water Authority Sewage Disposal System, Revenue Bonds, Refunding, Ser. C | 5.00 | 7/1/2036 | 2,000,000 | 2,400,317 | |||||
Michigan Building Authority, Revenue Bonds, Refunding | 4.00 | 4/15/2054 | 2,500,000 | 2,923,905 | |||||
Michigan Finance Authority, Revenue Bonds, Refunding (Insured; National Public Finance Guarantee Corp.) Ser. D6 | 5.00 | 7/1/2036 | 1,000,000 | 1,122,923 | |||||
Michigan Strategic Fund, Revenue Bonds (AMT-I-75 Improvement Project) | 5.00 | 6/30/2048 | 5,000,000 | 6,018,674 | |||||
Pontiac School District, GO | 4.00 | 5/1/2050 | 3,000,000 | 3,542,412 | |||||
Tender Option Bond Trust Receipts (Series 2019-XF2837), (Michigan State Finance Authority, Revenue Bonds (Henry Ford Health System)) Recourse, Underlying Coupon Rate (%) 4.00 | 14.02 | 11/15/2050 | 3,900,000 | c,d,e | 4,483,782 | ||||
20,492,013 | |||||||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Minnesota - 1.1% | |||||||||
Duluth Economic Development Authority, Revenue Bonds, Refunding (Essentia Health Obligated Group) Ser. A | 5.00 | 2/15/2058 | 4,000,000 | 4,787,124 | |||||
Missouri - 2.4% | |||||||||
St. Louis Land Clearance for Redevelopment Authority, Revenue Bonds | 5.13 | 6/1/2046 | 4,755,000 | 5,361,251 | |||||
The Missouri Health & Educational Facilities Authority, Revenue Bonds (Lutheran Senior Services Projects) Ser. A | 5.00 | 2/1/2042 | 1,000,000 | 1,117,900 | |||||
The Missouri Health & Educational Facilities Authority, Revenue Bonds (Mercy Health) | 4.00 | 6/1/2050 | 2,000,000 | 2,324,299 | |||||
The Missouri Health & Educational Facilities Authority, Revenue Bonds, Refunding (Lutheran Senior Services Projects) | 5.00 | 2/1/2046 | 1,200,000 | 1,355,680 | |||||
10,159,130 | |||||||||
Multi-State - .6% | |||||||||
Federal Home Loan Mortgage Corp. Multifamily Variable Rate Certificates, Revenue Bonds, Ser. M048 | 3.15 | 1/15/2036 | 2,395,000 | c | 2,666,741 | ||||
Nevada - 1.6% | |||||||||
Clark County School District, GO (Insured; Assured Guaranty Municipal Corp.) Ser. A | 4.00 | 6/15/2039 | 950,000 | 1,133,111 | |||||
Reno, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) | 4.00 | 6/1/2058 | 5,000,000 | 5,546,519 | |||||
6,679,630 | |||||||||
New Hampshire - .4% | |||||||||
New Hampshire Business Finance Authority, Revenue Bonds, Refunding (Springpoint Senior Living Obligated Group) | 4.00 | 1/1/2051 | 1,500,000 | 1,643,286 | |||||
New Jersey - 5.1% | |||||||||
New Jersey, GO (COVID-19 Emergency Bonds) Ser. A | 4.00 | 6/1/2031 | 1,000,000 | 1,250,070 | |||||
New Jersey Housing & Mortgage Finance Agency, Revenue Bonds, Refunding, Ser. D | 4.00 | 10/1/2024 | 2,370,000 | 2,582,738 | |||||
New Jersey Transportation Trust Fund Authority, Revenue Bonds | 5.00 | 6/15/2046 | 1,365,000 | 1,680,415 | |||||
New Jersey Transportation Trust Fund Authority, Revenue Bonds | 5.25 | 6/15/2043 | 1,500,000 | 1,876,955 | |||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
New Jersey - 5.1% (continued) | |||||||||
New Jersey Turnpike Authority, Revenue Bonds, Ser. A | 4.00 | 1/1/2051 | 2,400,000 | 2,824,440 | |||||
South Jersey Port Corp., Revenue Bonds, Ser. B | 5.00 | 1/1/2042 | 2,025,000 | 2,421,390 | |||||
Tender Option Bond Trust Receipts (Series 2018-XF2538), (New Jersey Economic Development Authority, Revenue Bonds) Recourse, Underlying Coupon Rate (%) 5.25 | 18.33 | 6/15/2040 | 4,250,000 | c,d,e | 4,910,431 | ||||
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. A | 5.25 | 6/1/2046 | 1,500,000 | 1,836,982 | |||||
Tobacco Settlement Financing Corp., Revenue Bonds, Refunding, Ser. B | 5.00 | 6/1/2046 | 1,670,000 | 1,985,826 | |||||
21,369,247 | |||||||||
New York - 10.3% | |||||||||
Monroe County Industrial Development Corp., Revenue Bonds, Refunding (University of Rochester Project) Ser. A | 4.00 | 7/1/2050 | 1,500,000 | 1,754,624 | |||||
New York City, GO, Ser. D1 | 4.00 | 3/1/2050 | 4,750,000 | 5,500,095 | |||||
New York Convention Center Development Corp., Revenue Bonds (Insured; Assured Guaranty Municipal Corp.) Ser. B | 0.00 | 11/15/2049 | 5,600,000 | g | 2,832,476 | ||||
New York Liberty Development Corp., Revenue Bonds, Refunding (Class 1-3 World Trade Center Project) | 5.00 | 11/15/2044 | 3,400,000 | c | 3,759,433 | ||||
New York State Dormitory Authority, Revenue Bonds, Refunding (Montefiore Obligated Group) Ser. A | 4.00 | 9/1/2045 | 1,000,000 | 1,143,900 | |||||
New York Transportation Development Corp., Revenue Bonds (LaGuardia Airport Terminal B Redevelopment Project) Ser. A | 5.25 | 1/1/2050 | 3,000,000 | 3,374,449 | |||||
New York Transportation Development Corp., Revenue Bonds, Refunding (JFK International Air Terminal) Ser. A | 5.00 | 12/1/2035 | 1,100,000 | 1,413,816 | |||||
Niagara Area Development Corp., Revenue Bonds, Refunding (Covanta Holding Project) Ser. A | 4.75 | 11/1/2042 | 1,000,000 | c | 1,055,837 | ||||
Port Authority of New York & New Jersey, Revenue Bonds, Refunding, Ser. 223 | 4.00 | 7/15/2051 | 2,250,000 | 2,611,731 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
New York - 10.3% (continued) | |||||||||
Tender Option Bond Trust Receipts (Series 2016-XM0436), (New York City Municipal Water Finance Authority, Revenue Bonds, Refunding) Recourse, Underlying Coupon Rate (%) 5.00 | 17.85 | 6/15/2044 | 12,600,000 | c,d,e | 12,769,370 | ||||
Tender Option Bond Trust Receipts (Series 2020-XM0826), (Metropolitan Transportation Authority, Revenue Bonds, Refunding (Green Bond) (Insured; Assured Guaranty Municipal Corp., Ser. C)) Non-recourse, Underlying Coupon Rate (%) 4.00 | 12.14 | 11/15/2046 | 6,100,000 | c,d,e | 7,112,968 | ||||
43,328,699 | |||||||||
North Carolina - .9% | |||||||||
North Carolina Medical Care Commission, Revenue Bonds, Refunding (Lutheran Services for the Aging Obligated Group) | 4.00 | 3/1/2051 | 2,000,000 | 2,199,328 | |||||
North Carolina Turnpike Authority, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.) | 4.00 | 1/1/2055 | 1,500,000 | 1,736,550 | |||||
3,935,878 | |||||||||
Ohio - 4.0% | |||||||||
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Refunding, Ser. A2 | 4.00 | 6/1/2048 | 1,250,000 | 1,436,694 | |||||
Buckeye Tobacco Settlement Financing Authority, Revenue Bonds, Refunding, Ser. B2 | 5.00 | 6/1/2055 | 10,650,000 | 12,393,336 | |||||
Centerville, Revenue Bonds, Refunding (Graceworks Lutheran Services Obligated Group) | 5.25 | 11/1/2047 | 1,500,000 | 1,675,161 | |||||
Cuyahoga County, Revenue Bonds, Refunding (The MetroHealth System) | 5.00 | 2/15/2052 | 1,000,000 | 1,172,834 | |||||
16,678,025 | |||||||||
Oregon - .6% | |||||||||
Medford Hospital Facilities Authority, Revenue Bonds, Refunding (Asante Project) Ser. A | 4.00 | 8/15/2039 | 1,000,000 | 1,197,998 | |||||
Yamhill County Hospital Authority, Revenue Bonds, Refunding (Friendsview Manor Obligated Group) Ser. A | 5.00 | 11/15/2056 | 1,000,000 | 1,175,051 | |||||
2,373,049 | |||||||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Pennsylvania - 3.7% | |||||||||
Allentown School District, GO, Refunding (Insured; Build America Mutual) Ser. B | 5.00 | 2/1/2031 | 1,510,000 | 1,948,010 | |||||
Crawford County Hospital Authority, Revenue Bonds, Refunding (Meadville Medical Center Project) Ser. A | 6.00 | 6/1/2046 | 1,000,000 | 1,085,837 | |||||
Franklin County Industrial Development Authority, Revenue Bonds (Menno-Haven Project) | 5.00 | 12/1/2054 | 1,000,000 | 1,079,582 | |||||
Pennsylvania Economic Development Financing Authority, Revenue Bonds, Refunding | 4.00 | 7/1/2046 | 1,000,000 | 1,127,340 | |||||
Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Refunding (University of Sciences) | 5.00 | 11/1/2033 | 2,805,000 | 3,207,119 | |||||
Pennsylvania Housing Finance Agency, Revenue Bonds, Refunding, Ser. 114A | 3.35 | 10/1/2026 | 1,000,000 | 1,002,445 | |||||
Pennsylvania Turnpike Commission, Revenue Bonds, Ser. A | 4.00 | 12/1/2050 | 1,500,000 | 1,760,061 | |||||
Philadelphia Water & Wastewater, Revenue Bonds, Ser. A | 5.00 | 11/1/2050 | 1,500,000 | 1,902,006 | |||||
The Philadelphia School District, GO (Insured; State Aid Withholding) Ser. A | 4.00 | 9/1/2039 | 2,000,000 | 2,346,582 | |||||
15,458,982 | |||||||||
Rhode Island - .1% | |||||||||
Providence Public Building Authority, Revenue Bonds (Insured; Assured Guaranty Municipal Corp.) Ser. A | 5.00 | 9/15/2037 | 500,000 | 624,801 | |||||
South Carolina - 2.9% | |||||||||
South Carolina Jobs-Economic Development Authority, Revenue Bonds (Bishop Gadsden Episcopal Retirement Community Obligated Group) | 5.00 | 4/1/2054 | 1,000,000 | 1,147,009 | |||||
Tender Option Bond Trust Receipts (Series 2016-XM0384), (South Carolina Public Service Authority, Revenue Bonds, Refunding (Santee Cooper)) Non-recourse, Underlying Coupon Rate (%) 5.13 | 11.96 | 12/1/2043 | 10,200,000 | c,d,e | 11,192,304 | ||||
12,339,313 | |||||||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Tennessee - .8% | |||||||||
Tender Option Bond Trust Receipts (Series 2016-XM0388), (Metropolitan Government of Nashville & Davidson County, Revenue Bonds, Refunding) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.29 | 7/1/2040 | 3,000,000 | c,d,e | 3,245,115 | ||||
Texas - 10.6% | |||||||||
Central Texas Regional Mobility Authority, Revenue Bonds | 5.00 | 1/1/2048 | 2,500,000 | 3,020,125 | |||||
Central Texas Regional Mobility Authority, Revenue Bonds, Ser. A | 5.00 | 1/1/2045 | 1,500,000 | 1,723,149 | |||||
Clifton Higher Education Finance Corp., Revenue Bonds (International Leadership) Ser. A | 5.75 | 8/15/2045 | 2,500,000 | 2,877,185 | |||||
Clifton Higher Education Finance Corp., Revenue Bonds (International Leadership) Ser. D | 6.13 | 8/15/2048 | 3,000,000 | 3,491,633 | |||||
Clifton Higher Education Finance Corp., Revenue Bonds (Uplift Education) Ser. A | 4.50 | 12/1/2044 | 2,500,000 | 2,682,801 | |||||
Grand Parkway Transportation Corp., Revenue Bonds, Refunding | 4.00 | 10/1/2049 | 2,000,000 | 2,323,936 | |||||
Harris County-Houston Sports Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A | 0.00 | 11/15/2051 | 7,500,000 | g | 2,075,022 | ||||
Love Field Airport Modernization Corp., Revenue Bonds (Southwest Airlines Co. Project) | 5.00 | 11/1/2028 | 1,000,000 | 1,053,664 | |||||
Tarrant County Cultural Education Facilities Finance Corp., Revenue Bonds, Refunding (MRC Stevenson Oaks Project) | 6.75 | 11/15/2051 | 1,000,000 | 1,189,641 | |||||
Tender Option Bond Trust Receipts (Series 2016-XM0377), (San Antonio, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 5.00 | 15.50 | 2/1/2043 | 12,450,000 | c,d,e | 13,269,674 | ||||
Texas Private Activity Bond Surface Transportation Corp., Revenue Bonds (Segment 3C Project) | 5.00 | 6/30/2058 | 6,150,000 | 7,475,571 | |||||
Texas Private Activity Bond Surface Transportation Corp., Revenue Bonds, Refunding (LBJ Infrastructure Group) | 4.00 | 6/30/2040 | 1,350,000 | 1,593,249 | |||||
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Texas - 10.6% (continued) | |||||||||
Texas Private Activity Bond Surface Transportation Corp., Revenue Bonds, Refunding (LBJ Infrastructure Group) | 4.00 | 6/30/2039 | 1,500,000 | 1,775,793 | |||||
44,551,443 | |||||||||
U.S. Related - 2.4% | |||||||||
Puerto Rico, GO, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. A | 5.00 | 7/1/2035 | 2,500,000 | 2,567,694 | |||||
Puerto Rico, GO, Refunding, Ser. A | 8.00 | 7/1/2035 | 5,965,000 | h | 5,077,706 | ||||
Puerto Rico Highway & Transportation Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) Ser. CC | 5.25 | 7/1/2034 | 2,000,000 | 2,239,184 | |||||
9,884,584 | |||||||||
Utah - .6% | |||||||||
Utah Infrastructure Agency, Revenue Bonds, Refunding, Ser. A | 5.00 | 10/15/2037 | 2,000,000 | 2,374,571 | |||||
Virginia - 5.4% | |||||||||
Chesterfield County Economic Development Authority, Revenue Bonds, Refunding (Brandermill Woods Project) | 5.13 | 1/1/2043 | 700,000 | 704,460 | |||||
Henrico County Economic Development Authority, Revenue Bonds, Refunding (Insured; Assured Guaranty Municipal Corp.) | 11.40 | 8/23/2027 | 4,700,000 | d | 6,263,451 | ||||
Tender Option Bond Trust Receipts (Series 2018-XM0593), (Hampton Roads Transportation Accountability Commission, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 5.50 | 17.51 | 7/1/2057 | 7,500,000 | c,d,e | 9,272,540 | ||||
Virginia College Building Authority, Revenue Bonds (Green Bond) (Marymount University Project) | 5.00 | 7/1/2045 | 1,000,000 | c | 1,080,102 | ||||
Virginia Small Business Financing Authority, Revenue Bonds (Transform 66 P3 Project) | 5.00 | 12/31/2052 | 4,350,000 | 5,217,956 | |||||
22,538,509 | |||||||||
Washington - 4.5% | |||||||||
King County School District No. 210, GO (Insured; School Bond Guaranty) | 4.00 | 12/1/2034 | 2,000,000 | 2,372,901 | |||||
Port of Seattle, Revenue Bonds | 4.00 | 4/1/2044 | 1,000,000 | 1,136,594 | |||||
STATEMENT OF INVESTMENTS (Unaudited) (continued)
Description | Coupon | Maturity Date | Principal Amount ($) |
| Value ($) | ||||
Long-Term Municipal Investments - 143.2% (continued) | |||||||||
Washington - 4.5% (continued) | |||||||||
Tender Option Bond Trust Receipts (Series 2018-XM0680), (Washington Convention Center Public Facilities District, Revenue Bonds) Non-recourse, Underlying Coupon Rate (%) 5.00 | 9.01 | 7/1/2058 | 10,000,000 | c,d,e | 12,156,793 | ||||
Washington Higher Education Facilities Authority, Revenue Bonds (Seattle University Project) | 4.00 | 5/1/2050 | 1,200,000 | 1,380,506 | |||||
Washington Housing Finance Commission, Revenue Bonds (Transforming Age Project) Ser. A | 5.00 | 1/1/2055 | 1,465,000 | c | 1,655,196 | ||||
18,701,990 | |||||||||
Wisconsin - 2.6% | |||||||||
Public Finance Authority, Revenue Bonds (Appalachian State University Project) (Insured; Assured Guaranty Municipal Corp.) Ser. A | 4.00 | 7/1/2055 | 1,750,000 | 1,964,015 | |||||
Public Finance Authority, Revenue Bonds (CHF - Wilmington) (Insured; Assured Guaranty Municipal Corp.) | 5.00 | 7/1/2058 | 3,665,000 | 4,373,839 | |||||
Public Finance Authority, Revenue Bonds (Gannon University Project) | 5.00 | 5/1/2042 | 750,000 | 867,818 | |||||
Public Finance Authority, Revenue Bonds, Refunding (Mary's Woods At Marylhurst Project) | 5.25 | 5/15/2042 | 750,000 | c | 828,545 | ||||
Wisconsin Health & Educational Facilities Authority, Revenue Bonds (Children's Hospital of Wisconsin Obligated Group) | 4.00 | 8/15/2050 | 1,135,000 | 1,332,168 | |||||
Wisconsin Health & Educational Facilities Authority, Revenue Bonds, Refunding (St. Camillus Health System Obligated Group) | 5.00 | 11/1/2054 | 1,250,000 | 1,345,016 | |||||
10,711,401 | |||||||||
Total Long-Term
Municipal Investments | 600,364,404 | ||||||||
Total Investments (cost $545,216,728) | 143.6% | 601,800,162 | |||||||
Liabilities, Less Cash and Receivables | (31.8%) | (133,329,206) | |||||||
Preferred Stock, at redemption value | (11.8%) | (49,300,000) | |||||||
Net Assets Applicable to Common Shareholders | 100.0% | 419,170,956 | |||||||
GO—General Obligation
a Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity.
b These securities have a put feature; the date shown represents the put date and the bond holder can take a specific action to retain the bond after the put date.
c Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2021, these securities were valued at $246,798,502 or 58.88% of net assets.
d The Variable Rate shall be determined by the Remarketing Agent in its sole discretion based on prevailing market conditions and may, but need not, be established by reference to one or more financial indices.
e Collateral for floating rate borrowings. The coupon rate given represents the current interest rate for the inverse floating rate security.
f These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date.
g Security issued with a zero coupon. Income is recognized through the accretion of discount.
h Non-income producing—security in default.
STATEMENT
OF FINANCIAL FUTURES
BNY Mellon Strategic Municipal Bond Fund, Inc.
August 31, 2021 (Unaudited)
The following is a summary of the inputs used as of August 31, 2021 in valuing the fund’s investments:
Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | |
Assets ($) |
|
|
|
|
Investments in Securities: † | ||||
Collateralized Municipal-Backed Securities | - | 1,435,758 | - | 1,435,758 |
Municipal Securities | - | 600,364,404 | - | 600,364,404 |
Liabilities ($) | ||||
Floating Rate Notes†† | - | (138,704,671) | - | (138,704,671) |
† See Statement of Investments for additional detailed categorizations, if any.
†† Certain of the fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund is an investment company and applies the accounting and reporting guidance of the FASB ASC Topic 946 Financial Services-Investment Companies. The fund’s financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This 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).
Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.
Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:
Level 1—unadjusted quoted prices in active markets for identical investments.
Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).
Level 3—significant unobservable inputs (including the fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:
Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the fund's Board Members (the “Board”). Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as
calculated by the Service based upon its evaluation of the market for such securities). Debt investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All of the preceding securities are generally categorized within Level 2 of the fair value hierarchy.
The Service is engaged under the general oversight of the Board.
When market quotations or official closing prices are not readily available, or are determined not to accurately reflect fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized within Level 2 or 3 of the fair value hierarchy depending on the relevant inputs used.
For securities where observable inputs are limited, assumptions about market activity and risk are used and such securities are generally categorized within Level 3 of the fair value hierarchy.
Inverse Floater Securities: The fund participates in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred to a trust (the “Inverse Floater Trust”). The Inverse Floater Trust typically issues two variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals (“Trust Certificates”). A residual interest tax-exempt security is also created by the Inverse Floater Trust, which is transferred to the fund, and is paid interest based on the remaining cash flows of the Inverse Floater Trust, after payment of interest on the other securities and various expenses of the Inverse Floater Trust. An Inverse Floater Trust may be collapsed without the consent of the fund due to certain termination events such as bankruptcy, default or other credit event.
The fund accounts for the transfer of bonds to the Inverse Floater Trust as secured borrowings, with the securities transferred remaining in the fund’s investments, and the Trust Certificates reflected as fund liabilities in the Statement of Assets and Liabilities.
The fund may invest in inverse floater securities on either a non-recourse or recourse basis. These securities are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the Trust Certificates to tender their certificates in exchange for payment from the Liquidity
Provider of par plus accrued interest on any business day prior to a termination event. When the fund invests in inverse floater securities on a non-recourse basis, the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event to the holders of the Trust Certificates. When this occurs, the Liquidity Provider typically liquidates all or a portion of the municipal securities held in the Inverse Floater Trust. A liquidation shortfall occurs if the Trust Certificates exceed the proceeds of the sale of the bonds in the Inverse Floater Trust (“Liquidation Shortfall”). When a fund invests in inverse floater securities on a recourse basis, the fund typically enters into a reimbursement agreement with the Liquidity Provider where the fund is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a fund investing in a recourse inverse floater security bears the risk of loss with respect to any Liquidation Shortfall.
At August 31, 2021, accumulated net unrealized appreciation on investments was $56,583,434, consisting of $56,789,051 gross unrealized appreciation and $205,617 gross unrealized depreciation.
At August 31, 2021, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).
Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the SEC on Form N-CSR.