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: 08/31/2012

 

Date of reporting period: 11/30/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

 

Schedule of Investments November 30, 2011 (Unaudited)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 4.2%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 6/01/34

 

$

1,150

 

$

1,263,413

 

6.00%, 6/01/39

 

 

450

 

 

490,365

 

Birmingham Water Works Board, RB,
4.75%, 1/01/36

 

 

2,100

 

 

2,121,546

 

Hoover City Board of Education, GO,
Refunding, 4.25%, 2/15/40

 

 

2,750

 

 

2,692,277

 

 

 

 

 

 

 

6,567,601

 

Arizona — 8.6%

 

 

 

 

 

 

 

Arizona Sports & Tourism Authority, RB,
Multipurpose Stadium Facilities,
Series A (NPFGC), 5.00%, 7/01/31

 

 

1,750

 

 

1,728,405

 

Arizona State University, RB, Series D,
5.50%, 7/01/26

 

 

200

 

 

230,078

 

County of Pinal Arizona Election District
#3, Refunding RB, 4.75%, 7/01/31

 

 

3,750

 

 

3,679,537

 

Mohave County Unified School District
No. 20 Kingman, GO, School
Improvement Project of 2006,
Series C (AGC), 5.00%, 7/01/26

 

 

200

 

 

215,956

 

Pima County IDA, Refunding IDRB,
Tucson Electric Power, 5.75%,
9/01/29

 

 

900

 

 

916,911

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

1,500

 

 

1,398,420

 

5.00%, 12/01/37

 

 

2,065

 

 

1,896,372

 

San Luis Facility Development Corp., RB,
Senior Lien, Regional Detention
Center Project:

 

 

 

 

 

 

 

6.25%, 5/01/15

 

 

245

 

 

238,245

 

7.00%, 5/01/20

 

 

300

 

 

295,458

 

7.25%, 5/01/27

 

 

600

 

 

539,466

 

State of Arizona, COP, Department of
Administration, Series A (AGM),
5.00%, 10/01/29

 

 

750

 

 

780,518

 

University Medical Center Corp. Arizona,
RB:

 

 

 

 

 

 

 

6.00%, 7/01/39

 

 

900

 

 

909,090

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Arizona (concluded)

 

 

 

 

 

 

 

University Medical Center Corp. Arizona,
RB (concluded):

 

 

 

 

 

 

 

6.50%, 7/01/39

 

$

500

 

$

522,140

 

 

 

 

 

 

 

13,350,596

 

Arkansas — 0.3%

 

 

 

 

 

 

 

City of Rogers Arkansas, Refunding RB,
Sales & Use Tax, 4.00%, 11/01/27

 

 

400

 

 

395,808

 

California — 17.5%

 

 

 

 

 

 

 

California County Tobacco Securitization
Agency, RB, CAB, Stanislaus, Sub-
Series C, 6.30%, 6/01/55 (a)

 

 

4,500

 

 

45,765

 

California Educational Facilities
Authority, RB, Santa Clara University,
5.00%, 2/01/40

 

 

1,000

 

 

1,039,350

 

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

 

 

1,900

 

 

2,053,653

 

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

 

 

2,285

 

 

2,159,394

 

Carlsbad Unified School District, GO,
Election of 2006, Series B, 6.09%,
5/01/34 (b)

 

 

1,000

 

 

676,790

 

City of San Jose California, RB, San Jose
Airport, Series A1, AMT, 5.75%,
3/01/34

 

 

2,000

 

 

2,063,500

 

Dinuba Unified School District, GO,
Election of 2006 (AGM):

 

 

 

 

 

 

 

5.63%, 8/01/31

 

 

250

 

 

273,995

 

5.75%, 8/01/33

 

 

500

 

 

551,025

 

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.46%, 8/01/34 (b)

 

 

1,650

 

 

987,657

 

Norwalk-La Mirada Unified School
District California, GO, Refunding,
CAB, Election of 2002, Series E (AGC),
6.47%, 8/01/38 (a)

 

 

8,000

 

 

1,486,960

 

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

 

 

 

 

 

 

 

6.09%, 8/01/30 (a)

 

 

1,500

 

 

468,600

 

6.44%, 8/01/39 (b)

 

 

2,000

 

 

884,340

 

 
 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

EDC

Economic Development Corp.

FGIC

Financial Guaranty Insurance Co.

GO

General Obligation Bonds

HFA

Housing Finance Agency

HRB

Housing Revenue Bonds

IDA

Industrial Development Authority

IDRB

Industrial Development Revenue Bonds

NPFGC

National Public Finance Guarantee Corp.

PILOT

Payment in Lieu of Taxes

RB

Revenue Bonds

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

1

 

 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

San Diego Community College District
California, GO, CAB, Election of 2002,
6.24%, 8/01/19 (b)

 

$

2,800

 

$

1,844,024

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.75%, 4/01/31

 

 

2,000

 

 

2,199,160

 

6.00%, 3/01/33

 

 

1,000

 

 

1,120,670

 

6.50%, 4/01/33

 

 

1,950

 

 

2,271,984

 

5.50%, 3/01/40

 

 

2,350

 

 

2,454,316

 

5.00%, 10/01/41

 

 

1,420

 

 

1,411,182

 

State of California, GO, Refunding:

 

 

 

 

 

 

 

(CIFG), 4.50%, 8/01/28

 

 

500

 

 

502,260

 

Veterans, AMT, 5.05%,
12/01/36

 

 

1,000

 

 

980,520

 

Val Verde Unified School District
California, Special Tax Bonds,
Refunding, Junior Lien, 6.25%,
10/01/28

 

 

1,585

 

 

1,579,928

 

 

 

 

 

 

 

27,055,073

 

Colorado — 1.5%

 

 

 

 

 

 

 

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

 

 

1,070

 

 

1,179,729

 

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

 

 

1,000

 

 

1,073,280

 

 

 

 

 

 

 

2,253,009

 

Connecticut — 2.4%

 

 

 

 

 

 

 

Connecticut State Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

Hartford Healthcare, Series A,
5.00%, 7/01/32

 

 

1,390

 

 

1,399,410

 

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

 

 

1,100

 

 

1,109,130

 

Sacred Heart University,
Series G, 5.38%, 7/01/31

 

 

400

 

 

410,988

 

Western Connecticut Health,
Series M, 5.38%, 7/01/41

 

 

700

 

 

725,704

 

 

 

 

 

 

 

3,645,232

 

Delaware — 0.8%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,206,192

 

District of Columbia — 1.9%

 

 

 

 

 

 

 

District of Columbia, Refunding RB,
Friendship Public Charter School Inc.
(ACA), 5.25%, 6/01/33

 

 

595

 

 

495,088

 

District of Columbia Tobacco Settlement
Financing Corp., Refunding RB,
Asset-Backed, 6.75%, 5/15/40

 

 

2,500

 

 

2,459,550

 

 

 

 

 

 

 

2,954,638

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida — 6.5%

 

 

 

 

 

 

 

County of Lee Florida, Refunding RB,
Lee Airport, Series A, AMT (AGM),
5.00%, 10/01/28

 

$

2,000

 

$

1,995,360

 

Palm Beach County Housing Finance
Authority, HRB, Indian Trace
Apartments, Series A, AMT (AGM),
5.63%, 1/01/44

 

 

7,255

 

 

7,256,959

 

Stevens Plantation Community
Development District, Special
Assessment Bonds, Series A, 7.10%,
5/01/35

 

 

925

 

 

752,950

 

 

 

 

 

 

 

10,005,269

 

Idaho — 1.3%

 

 

 

 

 

 

 

Idaho Health Facilities Authority,
Refunding RB, Trinity Health Group,
Series B, 6.25%, 12/01/33

 

 

1,750

 

 

1,942,185

 

Illinois — 7.9%

 

 

 

 

 

 

 

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

 

 

665

 

 

688,554

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

MJH Education Assistance IV
LLC, Sub-Series B, 5.38%,
6/01/35 (c)(d)

 

 

425

 

 

84,966

 

Navistar International,
Recovery Zone, 6.50%,
10/15/40

 

 

1,285

 

 

1,323,524

 

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

 

 

1,000

 

 

1,040,290

 

Rush University Medical
Center, Series C, 6.63%,
11/01/39

 

 

650

 

 

693,206

 

Illinois Finance Authority, Refunding RB,
Series A:

 

 

 

 

 

 

 

Friendship Village
Schaumburg, 5.63%, 2/15/37

 

 

210

 

 

171,240

 

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

 

 

1,040

 

 

1,075,474

 

Railsplitter Tobacco Settlement
Authority, RB:

 

 

 

 

 

 

 

6.25%, 6/01/24

 

 

1,000

 

 

1,056,850

 

6.00%, 6/01/28

 

 

1,150

 

 

1,210,364

 

Village of Bolingbrook Illinois, GO,
Refunding, Series B (NPFGC), 6.23%,
1/01/36 (a)

 

 

22,065

 

 

4,849,887

 

 

 

 

 

 

 

12,194,355

 

Indiana — 3.2%

 

 

 

 

 

 

 

County of Monroe Indiana, Multifamily
Housing Revenue Bond Pass-Through
Certificates, RB, Series 1, Canterbury
House Apartments, Mandatory Put
Bonds, AMT, 5.90%, 12/01/34 (e)

 

 

1,795

 

 

1,796,687

 

Indiana Finance Authority, Refunding
RB:

 

 

 

 

 

 

 

5.25%, 10/01/38

 

 

2,000

 

 

2,122,940

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

2


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Indiana (concluded)

 

 

 

 

 

 

 

Indiana Finance Authority, Refunding RB
(concluded):

 

 

 

 

 

 

 

Improvement, U.S. Steel Corp.,
6.00%, 12/01/26

 

$

1,000

 

$

979,690

 

 

 

 

 

 

 

4,899,317

 

Iowa — 1.6%

 

 

 

 

 

 

 

Iowa Higher Education Loan Authority,
RB, Private College Facility, Buena
Vista University Project, 5.00%,
4/01/31

 

 

875

 

 

899,264

 

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

 

 

 

 

 

 

 

5.75%, 9/01/30

 

 

500

 

 

509,585

 

6.00%, 9/01/39

 

 

1,000

 

 

997,610

 

 

 

 

 

 

 

2,406,459

 

Kentucky — 0.3%

 

 

 

 

 

 

 

Kentucky Economic Development
Finance Authority, RB, Louisville
Arena, Sub-Series A-1 (AGC), 6.00%,
12/01/38

 

 

500

 

 

526,615

 

Louisiana — 3.3%

 

 

 

 

 

 

 

Jefferson Parish Louisiana Hospital
Service District No. 1, Refunding RB,
West Jefferson Medical Center,
Series A (AGM), 6.00%, 1/01/39

 

 

1,450

 

 

1,521,296

 

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

 

 

1,050

 

 

1,093,365

 

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

 

 

400

 

 

420,076

 

Louisiana Public Facilities Authority,
Refunding RB, Entergy Gulf States
Louisiana, LLC Project, Series A,
5.00%, 9/01/28

 

 

2,000

 

 

2,048,600

 

 

 

 

 

 

 

5,083,337

 

Maryland — 1.9%

 

 

 

 

 

 

 

Maryland EDC, Refunding RB, CNX
Marine Terminals, Inc., 5.75%,
9/01/25

 

 

250

 

 

254,568

 

Maryland Health & Higher Educational
Facilities Authority, Refunding RB,
Doctor’s Community Hospital, 5.63%,
7/01/30

 

 

2,900

 

 

2,696,188

 

 

 

 

 

 

 

2,950,756

 

Michigan — 2.4%

 

 

 

 

 

 

 

Michigan State Building Authority,
Refunding RB, Facilities Program,
Series I, 6.25%, 10/15/38

 

 

1,250

 

 

1,388,963

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Michigan (concluded)

 

 

 

 

 

 

 

Royal Oak Hospital Finance Authority
Michigan, Refunding RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

$

1,950

 

$

2,314,104

 

 

 

 

 

 

 

3,703,067

 

Minnesota — 4.6%

 

 

 

 

 

 

 

City of Minneapolis Minnesota,
Refunding RB, Fairview Health
Services, Series B (AGC), 6.50%,
11/15/38

 

 

5,350

 

 

5,966,159

 

Minnesota State Higher Education
Facilities Authority, RB, College of St.
Benedict, Series 7-M, 5.13%,
3/01/36 (f)

 

 

275

 

 

270,295

 

Tobacco Securitization Authority
Minnesota, Refunding RB, Tobacco
Settlement, Series B, 5.25%, 3/01/31

 

 

800

 

 

808,152

 

 

 

 

 

 

 

7,044,606

 

Mississippi — 3.2%

 

 

 

 

 

 

 

Mississippi Development Bank, RB,
Hinds Community College District,
CAB (AGM), 5.00%, 4/01/36

 

 

845

 

 

869,725

 

Mississippi Development Bank Special
Obligation, RB, Jackson County
Limited Tax Note (AGC), 5.50%,
7/01/32

 

 

1,750

 

 

1,871,782

 

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

 

 

2,100

 

 

2,243,073

 

 

 

 

 

 

 

4,984,580

 

Missouri — 1.8%

 

 

 

 

 

 

 

Missouri State Development Finance
Board, RB, St. Joseph Sewage System
Improvements, 5.25%, 5/01/31 (f)

 

 

680

 

 

676,695

 

Missouri State Health & Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

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

 

 

500

 

 

511,145

 

A.T. Still University Health
Sciences, 5.25%, 10/01/41

 

 

650

 

 

655,421

 

Lutheran Senior Services,
6.00%, 2/01/41

 

 

1,000

 

 

1,002,000

 

 

 

 

 

 

 

2,845,261

 

Montana — 1.5%

 

 

 

 

 

 

 

Montana Facility Finance Authority,
Refunding RB, Sisters of Leavenworth,
Series A, 4.75%, 1/01/40

 

 

2,350

 

 

2,364,030

 

Multi-State — 7.4%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust, 7.20%,
11/15/52 (g)(h)

 

 

10,500

 

 

11,459,805

 

Nebraska — 3.3%

 

 

 

 

 

 

 

Nebraska Investment Finance Authority,
Refunding RB, Series A:

 

 

 

 

 

 

 

5.90%, 9/01/36

 

 

1,200

 

 

1,295,112

 

6.05%, 9/01/41

 

 

1,065

 

 

1,127,750

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

3


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nebraska (concluded)

 

 

 

 

 

 

 

Omaha Nebraska Sanitation Sewer
Revenue System, RB (f):

 

 

 

 

 

 

 

4.25%, 11/15/38

 

$

1,890

 

$

1,857,189

 

4.25%, 11/15/41

 

 

775

 

 

756,997

 

 

 

 

 

 

 

5,037,048

 

Nevada — 1.1%

 

 

 

 

 

 

 

City of Las Vegas Nevada, Special
Assessment Bonds, Summerlin Area,
5.65%, 6/01/23

 

 

1,305

 

 

1,175,962

 

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

 

 

575

 

 

584,861

 

 

 

 

 

 

 

1,760,823

 

New Jersey — 14.6%

 

 

 

 

 

 

 

Middlesex County Improvement
Authority, RB, Subordinate, Heldrich
Center Hotel, Series B, 6.25%,
1/01/37 (c)(d)

 

 

915

 

 

81,893

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%,
6/15/24

 

 

3,710

 

 

3,706,550

 

Continental Airlines Inc.
Project, AMT, 7.20%,
11/15/30 (e)

 

 

3,000

 

 

3,001,200

 

New Jersey EDA, Refunding RB, First
Mortgage, Winchester, Series A,
5.80%, 11/01/31

 

 

1,500

 

 

1,481,445

 

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

 

 

7,500

 

 

7,783,875

 

New Jersey Educational Facilities
Authority, Refunding RB, University of
Medicine & Dentistry, Series B:

 

 

 

 

 

 

 

7.13%, 12/01/23

 

 

630

 

 

754,494

 

7.50%, 12/01/32

 

 

800

 

 

933,648

 

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

 

 

 

 

 

 

 

4.63%, 7/01/23

 

 

510

 

 

494,843

 

5.63%, 7/01/37

 

 

1,700

 

 

1,687,369

 

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

 

 

615

 

 

666,223

 

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

 

 

1,900

 

 

1,964,790

 

 

 

 

 

 

 

22,556,330

 

New York — 4.6%

 

 

 

 

 

 

 

Albany Industrial Development Agency,
RB, New Covenant Charter School
Project, Series A, 7.00%,
5/01/35 (c)(d)

 

 

455

 

 

113,750

 

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

 

 

1,500

 

 

1,487,265

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corp., RB,
Series A, 5.00%, 2/15/47

 

$

385

 

$

373,196

 

New York City Industrial Development
Agency, RB:

 

 

 

 

 

 

 

American Airlines Inc., JFK
International Airport, AMT,
7.75%, 8/01/31 (d)(e)

 

 

3,165

 

 

2,721,837

 

Queens Baseball Stadium, PILOT
(AGC), 6.50%, 1/01/46

 

 

450

 

 

481,806

 

New York Liberty Development Corp.,
Refunding RB, Second Priority, Bank
of America Tower at One Bryant Park
Project, 6.38%, 7/15/49

 

 

800

 

 

830,448

 

New York State Dormitory Authority, RB,
Rochester Institute of Technology,
Series A, 6.00%, 7/01/33

 

 

1,000

 

 

1,099,570

 

 

 

 

 

 

 

7,107,872

 

North Carolina — 5.7%

 

 

 

 

 

 

 

City of Charlotte North Carolina,
Refunding RB, Series A, 5.50%,
7/01/34

 

 

225

 

 

240,538

 

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

 

 

2,945

 

 

2,282,846

 

North Carolina Capital Facilities Finance
Agency, RB, Duke Energy Carolinas,
Series B, 4.38%, 10/01/31

 

 

1,000

 

 

994,040

 

North Carolina Medical Care
Commission, RB, Novant Health
Obligation, Series A, 4.75%,
11/01/43

 

 

4,720

 

 

4,418,534

 

North Carolina Medical Care
Commission, Refunding RB, University
Health System, Series D, 6.25%,
12/01/33

 

 

800

 

 

886,840

 

 

 

 

 

 

 

8,822,798

 

Oklahoma — 0.5%

 

 

 

 

 

 

 

Tulsa Airports Improvement Trust, RB,
Series A, Mandatory Put Bonds, AMT,
7.75%, 6/01/35 (d)(e)

 

 

1,225

 

 

854,438

 

Oregon — 1.8%

 

 

 

 

 

 

 

City of Portland Oregon, Multifamily
Housing Revenue Bond Pass-Through
Certificates, RB, Pacific Tower
Apartments, Series 6, AMT, 6.05%,
11/01/34

 

 

505

 

 

506,752

 

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

 

 

750

 

 

814,673

 

Oregon State Facilities Authority,
Refunding RB, Limited College Project,
Series A:

 

 

 

 

 

 

 

5.00%, 10/01/34

 

 

850

 

 

874,403

 

5.25%, 10/01/40

 

 

500

 

 

517,105

 

 

 

 

 

 

 

2,712,933

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

4


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Pennsylvania — 4.1%

 

 

 

 

 

 

 

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

 

$

1,695

 

$

1,708,221

 

Delaware River Port Authority, RB,
Series D (AGM), 5.00%, 1/01/40

 

 

2,600

 

 

2,674,776

 

Pennsylvania Economic Development
Financing Authority, RB, Aqua
Pennsylvania Inc. Project, Series B,
4.50%, 12/01/42

 

 

2,000

 

 

1,983,460

 

 

 

 

 

 

 

6,366,457

 

Puerto Rico — 1.2%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 5.75%,
8/01/37

 

 

1,000

 

 

1,058,960

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A (NPFGC),
5.74%, 8/01/41 (a)

 

 

5,000

 

 

773,550

 

 

 

 

 

 

 

1,832,510

 

Rhode Island — 1.6%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,131,580

 

Rhode Island Housing & Mortgage
Finance Corp., RB, Rental Housing
Project, Series A-1, AMT (FGIC),
4.75%, 10/01/43

 

 

500

 

 

440,505

 

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

 

 

900

 

 

972,018

 

 

 

 

 

 

 

2,544,103

 

South Dakota — 1.8%

 

 

 

 

 

 

 

State of South Dakota Board of Regents
Housing & Auxiliary Facility System
Revenue, RB, 4.25%, 4/01/33

 

 

2,935

 

 

2,849,797

 

Tennessee — 0.2%

 

 

 

 

 

 

 

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

 

 

275

 

 

290,683

 

Texas — 14.6%

 

 

 

 

 

 

 

Harris County Health Facilities
Development Corp., Refunding RB,
Memorial Hermann Healthcare
System, Series B:

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

500

 

 

561,815

 

7.25%, 12/01/35

 

 

1,750

 

 

1,964,865

 

Harris County Housing Finance Corp.,
Multifamily Housing Revenue Bond
Pass-Through Certificates, RB, Series
9, Copperwood Ranch Apartments,
Mandatory Put Bonds, AMT, 5.95%,
11/01/35 (e)

 

 

2,380

 

 

2,394,613

 

Harris County Metropolitan Transit
Authority Sales and Use Tax, RB,
Series A, 5.00%, 11/01/36

 

 

940

 

 

996,550

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Harris County-Houston Sports Authority,
Refunding RB, CAB, Senior Lien,
Series G (NPFGC), 6.18%,
11/15/41 (a)

 

$

11,690

 

$

1,554,186

 

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

 

 

1,500

 

 

1,643,400

 

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

 

 

2,163,160

 

Texas State Turnpike Authority, RB
(AMBAC):

 

 

 

 

 

 

 

CAB, 6.08%, 8/15/35 (a)

 

 

50,000

 

 

10,626,500

 

First Tier, Series A, 5.00%,
8/15/42

 

 

750

 

 

712,740

 

 

 

 

 

 

 

22,617,829

 

Vermont — 1.1%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings
Financing Agency, RB, Hospital,
Fletcher Allen Health, Series A, 4.75%,
12/01/36

 

 

2,000

 

 

1,777,640

 

Washington — 1.0%

 

 

 

 

 

 

 

Washington Health Care Facilities
Authority, RB, MultiCare Health
System, Series B (AGC), 6.00%,
8/15/39

 

 

1,400

 

 

1,512,112

 

West Virginia — 1.0%

 

 

 

 

 

 

 

West Virginia State University, RB, West
Virginia University Projects, Series B,
5.00%, 10/01/36

 

 

1,500

 

 

1,593,315

 

Wyoming — 0.8%

 

 

 

 

 

 

 

County of Sweetwater Wyoming,
Refunding RB, Idaho Power Co.
Project, 5.25%, 7/15/26

 

 

1,200

 

 

1,302,084

 

Total Municipal Bonds – 143.1%

 

 

 

 

 

221,376,563

 

 

 

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (i)

 

 

 

 

 

 

 

Colorado — 2.4%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

3,782,625

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series A, 5.00%, 8/01/41

 

 

1,450

 

 

1,498,633

 

New York — 5.8%

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corp., RB,
Series A, 5.75%, 2/15/47

 

 

2,500

 

 

2,644,152

 

 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

5


 

 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (i)

 

Par
(000)

 

Value

 

New York (concluded)

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

Fiscal 2009, Series A, 5.75%,
6/15/40

 

$

450

 

$

504,710

 

Series FF-2, 5.50%, 6/15/40

 

 

405

 

 

444,096

 

New York City Municipal Water Finance
Authority, Refunding RB, Series A,
4.75%, 6/15/30

 

 

3,000

 

 

3,135,810

 

New York State Dormitory Authority, RB,
New York University, Series A, 5.00%,
7/01/38

 

 

2,199

 

 

2,288,077

 

 

 

 

 

 

 

9,016,845

 

Ohio — 2.2%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,266,955

 

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

 

 

2,000

 

 

2,063,960

 

 

 

 

 

 

 

3,330,915

 

Total Municipal Bonds Transferred to Tender Option
Bond (TOB) Trusts – 11.4%

 

 

 

 

 

17,629,018

 

Total Long-Term Investments
(Cost – $235,187,130) – 154.5%

 

 

 

 

 

239,005,581

 

 

 

 

 

 

 

 

 
 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (j)(k)

 

 

7,346,926

 

 

7,346,926

 

Total Short-Term Securities
(Cost – $7,346,926) – 4.8%

 

 

 

 

 

7,346,926

 

Total Investments (Cost — $242,534,056*) - 159.3%

 

 

 

 

 

246,352,507

 

Liabilities in Excess of Other Assets – (2.0)%

 

 

 

 

 

(3,108,106

)

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (5.6)%

 

 

 

 

 

(8,653,283

)

AMPS, at Redemption Value – (51.7)%

 

 

 

 

 

(79,901,730

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

154,689,388

 

 

 
 

*

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

234,278,689

 

Gross unrealized appreciation

 

$

9,855,507

 

Gross unrealized depreciation

 

 

(6,430,625

)

Net unrealized appreciation

 

$

3,424,882

 

 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

(b)

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 report date.

 

(c)

Non-income producing security.

 

(d)

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

 

(e)

Variable rate security. Rate shown is as of report date.

 

(f)

When-issued security. Unsettled when-issued transactions were as follows:


 

 

 

 

 

 

 

 

 
 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

D.A. Davidson & Co.

 

$

2,614,186

 

$

7,141

 

 

Morgan Stanley

 

$

1,964,790

 

$

21,926

 

 

Piper Jaffray

 

$

946,990

 

$

471

 

 

Wells Fargo Bank, N.A.

 

$

1,487,265

 

$

3,615

 

 

 

(g)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(h)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(i)

Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(j)

Investments in companies considered to be an affiliate of the Trust during the period, 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,
2011

 

Net
Activity

 

Shares
Held at
November 30,
2011

 

Income

 

 

FFI Institutional
Tax-Exempt
Fund

 

 

2,247,948

 

 

5,098,978

 

 

7,346,926

 

$

150

 

 

 

(k)

Represents the current yield as of report date.


 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

6


 

 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Bond Trust (BBK)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

•

Level 1 —unadjusted price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of November 30, 2011 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

239,005,581

 

 

—

 

$

239,005,581

 

Short-Term
Securities

 

$

7,346,926

 

 

—

 

 

—

 

 

7,346,926

 

Total

 

$

7,346,926

 

$

239,005,581

 

 

—

 

$

246,352,507

 

 

 

1

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


 

 

 

 

 

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

7

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 23, 2012
   
  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 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Bond Trust
     
  Date: January 23, 2012