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: Donald C. Burke, Chief Executive Officer, BlackRock Municipal Bond Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2008
Date of reporting period: 09/01/2007 11/30/2007
Item 1 Schedule of Investments
BlackRock Municipal Bond Trust | ||||
Schedule of Investments as of November 30, 2007 (Unaudited) |
(in Thousands) |
Face | ||||||||
State | Amount | Municipal Bonds | Value | |||||
Alabama - 6.3% | $ | 1,135 | Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5% due 11/15/2036 | $ | 1,137 | |||
815 | Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5% due 11/15/2039 | 816 | ||||||
7,500 | Huntsville, Alabama, Health Care Authority Revenue Bonds, Series A, 5.75% due 6/01/2011 (g) | 8,141 | ||||||
Arizona - 4.4% | 2,545 | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2032 | 2,454 | |||||
3,565 | Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2037 | 3,416 | ||||||
300 | San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center | |||||||
Project), 6.25% due 5/01/2015 | 294 | |||||||
300 | San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project), 7% due 5/01/2020 | 291 | ||||||
600 | San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project), 7.25% due 5/01/2027 | 583 | ||||||
California - 8.5% | 850 | California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding | ||||||
Corporation), Sub-Series B, 5.875% due 6/01/2046 (m) | 57 | |||||||
4,500 | California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding | |||||||
Corporation), Sub-Series C, 6.30% due 6/01/2055 (m) | 129 | |||||||
5,750 | California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding | |||||||
Corporation), Sub-Series D, 7.251% due 6/01/2055 (m) | 133 | |||||||
4,100 | California Health Facilities Financing Authority Revenue Bonds (Sutter Health), Series A, 5.25% due 11/15/2046 | 4,178 | ||||||
2,890 | California State, GO, Refunding, 5% due 6/01/2032 | 2,931 | ||||||
1,800 | California State, Various Purpose, GO, Refunding, 5% due 6/01/2034 | 1,819 | ||||||
2,660 | University of California Revenue Bonds, Series B, 4.75% due 5/15/2038 | 2,685 | ||||||
1,585 | Val Verde, California, Unified School District Financing Authority, Special Tax Refunding Bonds, Junior Lien, 6.25% due 10/01/2028 | 1,660 | ||||||
Colorado - 0.8% | 635 | Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Subordinate Lien, Series C, 5% due 11/15/2045 (d) | 655 | |||||
635 | Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported Revenue Refunding Bonds, 5.50% due 12/01/2037 | 612 | ||||||
District of Columbia - 11.7% | 33,450 | District of Columbia Revenue Bonds (Georgetown University), Series A, 6.071% due 4/01/2011 (f)(g)(m) | 6,004 | |||||
595 | District of Columbia, Revenue Refunding Bonds (Friendship Public Charter School, Inc.), 5.25% due 6/01/2033 (l) | 545 |
Portfolio Abbreviations | |||||||
To simplify the listings of BlackRock Municipal Bond Trust's portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of | |||||||
the securities according to the list below. | |||||||
AMT | Alternative Minimum Tax (subject to) | IDA | Industrial Development Authority | ||||
EDA | Economic Development Authority | IDR | Industrial Development Revenue Bonds | ||||
EDR | Economic Development Revenue Bonds | M/F | Multi-Family | ||||
GO | General Obligation Bonds | S/F | Single-Family | ||||
HFA | Housing Finance Agency | VRDN | Variable Rate Demand Notes |
1
BlackRock Municipal Bond Trust | ||||
Schedule of Investments as of November 30, 2007 (Unaudited) |
(in Thousands) |
Face | ||||||||
State | Amount | Municipal Bonds | Value | |||||
$ | 6,000 | District of Columbia, Tax Increment Revenue Bonds (Gallery Place Project), 5.40% due 7/01/2031 (d) | $ | 6,334 | ||||
5,580 | District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed Revenue Refunding Bonds, 6.75% due 5/15/2040 | 5,711 | ||||||
Florida - 20.0% | 1,535 | Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding Bonds, Series A, 5% due 6/01/2038 | 1,465 | |||||
6,200 | Martin County, Florida, IDA, IDR, Refunding (Indiantown Cogeneration Project), AMT, Series A, 7.875% due 12/15/2025 | 6,266 | ||||||
2,810 | Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75% due 11/15/2021 | 2,972 | ||||||
10,000 | Orange County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health System), 5.625% due 11/15/2012 (g) | 11,077 | ||||||
1,845 | Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds, 4.75% due 10/01/2032 (k) | 1,846 | ||||||
7,255 | Palm Beach County, Florida, HFA, M/F Housing Revenue Bonds (Indian Trace Apartment Project), AMT, Series A, 5.625% due 1/01/2044 (d) | 7,315 | ||||||
980 | Stevens Plantation Community Development District, Florida, Special Assessment Revenue Bonds, Series A, 7.10% due 5/01/2035 | 1,011 | ||||||
Georgia - 3.8% | 940 | Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General Revenue Bonds, Series J, 5% due 1/01/2034 (d) | 964 | |||||
5,000 | Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5% due 11/01/2037 (d) | 5,153 | ||||||
Illinois - 17.7% | 23,065 | Bolingbrook, Illinois, GO, Refunding, Series B, 6.196% due 1/01/2036 (c)(m) | 4,444 | |||||
1,150 | Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8% due 6/15/2023 (j) | 1,128 | ||||||
4,340 | Chicago, Illinois, GO, Refunding, Series A, 5.50% due 1/01/2011 (f)(g) | 4,664 | ||||||
1,540 | Chicago, Illinois, GO, Refunding, Series A, 5.50% due 1/01/2038 (f) | 1,620 | ||||||
425 | Illinois Financing Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC), Sub-Series B, 5.375% due 6/01/2035 | 292 | ||||||
6,000 | Illinois Health Facilities Authority, Revenue Refunding Bonds (Lake Forest Hospital), Series A, 5.75% due 7/01/2029 | 6,202 | ||||||
2,005 | Illinois Municipal Electric Agency, Power Supply Revenue Bonds, 4.50% due 2/01/2035 (c) | 1,914 | ||||||
420 | Illinois State Finance Authority Revenue Bonds (Friendship Village of Schaumburg), Series A, 5.625% due 2/15/2037 | 386 | ||||||
10,000 | Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion), Series A, 6.03% due 6/15/2035 (f)(m) | 2,679 | ||||||
10,000 | Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion), Series A, 6.05% due 12/15/2036 (f)(m) | 2,486 | ||||||
10,000 | Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick Place Expansion), Series A, 6.06% due 12/15/2037 (f)(m) | 2,363 | ||||||
Indiana - 1.2% | 1,925 | AIG SunAmerica, Inc., Bloomington, Indiana, M/F Housing Revenue Bonds (Canterbury House Apartments), Pass- Through Certificates of Beneficial Ownership, AMT, Series 1, 5.90% due 12/01/2034 | 1,948 | |||||
Kansas - 3.2% | 5,000 | Wichita, Kansas, Airport Authority, Airport Facilities Revenue Bonds (Cessna Citation Service Center), AMT, Series A, 6.25% due 6/15/2032 | 5,158 | |||||
Maryland - 3.3% | 1,250 | Baltimore, Maryland, Special Obligation Tax Bonds (Harborview Lot Number 2), 6.50% due 7/01/2031 | 1,296 |
2
BlackRock Municipal Bond Trust | ||||
Schedule of Investments as of November 30, 2007 (Unaudited) |
(in Thousands) |
Face | ||||||||
State | Amount | Municipal Bonds | Value | |||||
$ | 2,955 | Frederick County, Maryland, Special Obligation Tax Bonds (Urbana Community Development Authority), Series B, 6.25% due 7/01/2030 | $ | 2,972 | ||||
1,040 | Maryland State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (MedStar Health, Inc.), 5.50% due 8/15/2033 | 1,052 | ||||||
Massachusetts - 0.9% | 1,450 | Massachusetts State Water Resource Authority, General Revenue Refunding Bonds, Series A, 5% due 8/01/2041 | 1,497 | |||||
Michigan - 0.7% | 1,065 | Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford Health System), Series A, 5.25% due 11/15/2046 | 1,071 | |||||
Mississippi - 0.7% | 1,205 | Mississippi Business Finance Corporation Revenue Bonds (Northrop Grumman Ship System), 4.55% due 12/01/2028 | 1,105 | |||||
Multi-State - 7.5% | 10,500 | Charter Mac Equity Issuer Trust, 7.20% due 10/31/2052 (j) | 11,963 | |||||
Nebraska - 1.1% | 1,760 | Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series A, 4.75% due 2/01/2044 | 1,745 | |||||
Nevada - 1.7% | 1,325 | Clark County, Nevada, EDR, Refunding (Alexander Dawson School of Nevada Project), 5% due 5/15/2029 | 1,320 | |||||
1,385 | Las Vegas, Nevada, Special Improvement District Number 809 Revenue Bonds (Summerlin Area), 5.65% due 6/01/2023 | 1,354 | ||||||
New Jersey - 11.9% | 915 | Middlesex County, New Jersey, Improvement Authority, Subordinate Revenue Bonds (Heldrich Center Hotel/Conference Project), Series B, 6.25% due 1/01/2037 | 883 | |||||
3,710 | New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2024 | 3,670 | ||||||
1,500 | New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50% due 6/15/2031 | 1,479 | ||||||
7,500 | New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill Reclamation Improvement District Project), 6.50% due 4/01/2028 | 8,308 | ||||||
1,500 | New Jersey EDA, First Mortgage Revenue Refunding Bonds (The Winchester Gardens at Ward Homestead Project), Series A, 5.80% due 11/01/2031 | 1,520 | ||||||
3,000 | New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7.20% due 11/15/2030 | 3,058 | ||||||
New York - 9.6% | 455 | Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A, 7% due 5/01/2035 | 373 | |||||
1,760 | Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A, 5% due 7/01/2030 (a) | 1,810 | ||||||
1,085 | Nanuet, New York, Union Free School District, GO, Refunding, 4.30% due 6/15/2029 (d) | 1,060 | ||||||
1,130 | Nanuet, New York, Union Free School District, GO, Refunding, 4.30% due 6/15/2030 (d) | 1,101 | ||||||
6,165 | New York City, New York, City IDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7.75% due 8/01/2031 | 6,790 | ||||||
2,610 | New York Liberty Development Corporation Revenue Bonds (Goldman Sachs Headquarters), 5.25% due 10/01/2035 | 2,768 | ||||||
1,330 | New York State Environmental Facilities Corporation, State Clean Water and Drinking Revenue Bonds (New York City Water Project), Series B, 5% due 6/15/2031 | 1,366 | ||||||
North Carolina - 1.8% | 2,945 | Gaston County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Bonds (National Gypsum Company Project), AMT, 5.75% due 8/01/2035 | 2,855 | |||||
Ohio - 3.4% | 1,125 | Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Bonds, Series A-2, 6.50% due 6/01/2047 | 1,158 |
3
BlackRock Municipal Bond Trust | ||||
Schedule of Investments as of November 30, 2007 (Unaudited) |
(in Thousands) |
Face | ||||||||
State | Amount | Municipal Bonds | Value | |||||
$ | 4,220 | Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power and Light Company Project), Series B, 4.80% due 1/01/2034 (c) | $ | 4,201 | ||||
Oklahoma - 2.0% | 1,355 | Oklahoma State Development Finance Authority, Revenue Refunding Bonds (Saint John Health System), 5% due 2/15/2042 | 1,355 | |||||
1,725 | Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A, 7.75% due 6/01/2035 | 1,859 | ||||||
Oregon - 0.3% | 540 | AIG SunAmerica, Inc., Portland, Oregon, M/F Housing Revenue Bonds (Pacific Tower Apartments), Pass-Through Certificates of Beneficial Ownership, AMT, Series 6, 6.05% due 11/01/2034 | 548 | |||||
Pennsylvania - 2.6% | 3,870 | Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Reliant Energy), AMT, Series A, 6.75% due 12/01/2036 | 4,114 | |||||
South Carolina - 0.7% | 1,000 | South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance), Series C, 7% due 8/01/2013 (g) | 1,180 | |||||
Texas - 19.6% | 2,540 | AIG SunAmerica, Inc., Texas, M/F Housing Revenue Bonds (Copperwood Ranch Apartments), Pass-Through Certificates of Beneficial Ownership, AMT, Series 9, 5.95% due 11/01/2035 | 2,576 | |||||
11,690 | Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien, Series G, 6.121% due 11/15/2041 (f)(m) | 1,851 | ||||||
605 | Lower Colorado River Authority, Texas, Revenue Refunding Bonds, Series A, 5% due 5/15/2031 (f) | 622 | ||||||
430 | Montgomery County, Texas, Municipal Utility District Number 46, Waterworks and Sewer System, GO, 4.75% due 3/01/2030 (f) | 434 | ||||||
1,775 | SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50% due 8/01/2023 | 1,861 | ||||||
1,620 | SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50% due 8/01/2024 | 1,692 | ||||||
60,000 | Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, 6.09% due 8/15/2035 (a)(m) | 12,598 | ||||||
2,115 | Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5% due 8/15/2042 (a) | 2,134 | ||||||
6,840 | Tyler, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Mother Frances Hospital Regional Health Care Center), 6% due 7/01/2012 (g) | 7,598 | ||||||
Washington - 1.9% | 905 | King County, Washington, Sewer Revenue Refunding Bonds, 5% due 1/01/2036 (d) | 942 | |||||
2,220 | Washington State Health Care Facilities Authority, Revenue Refunding Bonds (Providence Health System), Series A, 4.625% due 10/01/2034 (c) | 2,136 | ||||||
West Virginia - 0.3% | 520 | West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile and Public Safety Facilities), Series A, 5% due 6/01/2029 (f) | 537 | |||||
Wisconsin - 5.7% | 1,350 | Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Aurora Health Care, Inc.), 6.40% due 4/15/2033 | 1,421 | |||||
7,000 | Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Wheaton Franciscan Services, Inc.), 5.75% due 2/15/2012 (g) | 7,718 | ||||||
Puerto Rico - 1.4% | 1,070 | Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25% due 7/01/2034 (b) | 1,185 | |||||
900 | Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25% due 7/01/2036 (b) | 996 | ||||||
Total Municipal Bonds (Cost - $233,720) - 154.7% | 247,070 |
4
BlackRock Municipal Bond Trust | ||||
Schedule of Investments as of November 30, 2007 (Unaudited) |
(in Thousands) |
Face | |||||||||
State | Amount | Short-Term Securities | Value | ||||||
Arizona - 0.1% | $ | 158 | Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, VRDN, AMT, 5.23% due 4/25/2008 (i) | $ | 158 | ||||
Texas - 0.4% | 680 | Harris County, Texas, Health Facilities Development Corporation, Hospital Revenue Bonds (Texas Children's | |||||||
Hospital), VRDN, Series B-1, 3.52% due 10/01/2029 (f)(i) | 680 | ||||||||
Shares Held | |||||||||
Money Market - 2.6% | 4,200 | Merrill Lynch Institutional Tax-Exempt Fund, 3.43% (e)(h) | 4,200 | ||||||
Total Short-Term Securities (Cost - $5,038) - 3.1% | 5,038 | ||||||||
Total Investments (Cost - $238,758*) - 157.8% | 252,108 | ||||||||
Liabilities in Excess of Other Assets - (1.1%) | (1,767 | ) |
|||||||
Preferred Shares, at Redemption Value - (56.7%) | (90,606 | ) |
|||||||
Net Assets Applicable to Common Shares - 100.0% | $ | 159,735 |
* |
The cost and unrealized appreciation (depreciation) of investments as of November 30, 2007, as computed for federal income tax purposes, were as follows: |
Aggregate cost | $ | 239,292 | ||
Gross unrealized appreciation | $ | 14,585 | ||
Gross unrealized depreciation | (1,769 | ) | ||
Net unrealized appreciation | $ | 12,816 |
(a) |
AMBAC Insured. |
(b) |
Assured Guaranty Insured. |
(c) |
FGIC Insured. |
(d) |
FSA Insured. |
(e) |
Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: |
Affiliate |
Net Activity |
Interest Income |
||
Merrill Lynch Institutional Tax-Exempt Fund |
(3,400) |
$55 |
(f) |
MBIA Insured. | |
(g) |
Prerefunded. |
|
(h) |
Represents the current yield as of November 30, 2007. |
|
(i) |
Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. The rate disclosed is that currently in effect. This rate changes periodically based upon prevailing market rates. |
|
(j) |
The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933. |
|
(k) |
XL Capital Insured. |
|
(l) |
ACA Insured. |
|
(m) |
Represents a zero-coupon bond. |
Forward interest rate swaps outstanding as of November 30, 2007 were as follows: | ||||
Notional |
Unrealized |
|||
Amount | Depreciation | |||
Pay a fixed rate of 3.588%
and receive a floating rate based on 1-week (SIFMA) Municipal Swap Index rate |
||||
Broker, JPMorgan Chase | ||||
Expires January 2018 |
$ 35,000 |
$ (703) |
5
Item 2 Controls and Procedures
2(a) The registrants principal executive and principal financial officers or persons performing similar functions have concluded that the registrants 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 and Exchange Act of 1934, as amended.
2(b) There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants 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/ Donald C. Burke |
Donald C. Burke, | |
Chief
Executive Officer of |
|
BlackRock Municipal Bond Trust |
Date: January 16, 2008
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/ Donald C. Burke | |
Donald C. Burke, | ||
Chief Executive Officer (principal executive officer) of | ||
BlackRock Municipal Bond Trust |
Date: January 16, 2008
By: | /s/ Neal J. Andrews | |
Neal J. Andrews, | ||
Chief Financial Officer (principal financial officer) of | ||
BlackRock Municipal Bond Trust |
Date: January 16, 2008