Eaton Vance Municipal Bond Fund II

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21219

Investment Company Act File Number

Eaton Vance Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

December 31, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Bond Fund II

December 31, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 171.0%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 11.9%

      

Connecticut Health and Educational Facilities Authority, (Wesleyan University), 5.00%, 7/1/39(1)

    $ 2,200       $ 2,287,780   

Houston, TX, Higher Education Finance Corp., (St. John’s School), 5.25%, 9/1/33

      565         578,786   

Houston, TX, Higher Education Finance Corp., (William Marsh Rice University), 5.00%, 5/15/35

      1,745         1,861,933   

Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.50%, 11/15/36

      2,710         3,002,734   

New Jersey Educational Facilities Authority, (Georgian Court University), 5.25%, 7/1/37

      1,500         1,501,425   

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40(1)

      1,500         1,570,380   

North Carolina Capital Facilities Finance Agency, (Duke University), 5.00%, 10/1/38(1)

      500         529,310   

Tennessee School Bond Authority, 5.50%, 5/1/38

      1,000         1,068,180   

University of Virginia, 5.00%, 6/1/40

      1,500         1,585,950   
     

 

 

  
      $ 13,986,478   
     

 

 

  

Electric Utilities — 3.5%

      

Pima County, AZ, Industrial Development Authority, (Tucson Electric Power Co.), 5.25%, 10/1/40

    $ 1,300       $ 1,278,420   

South Carolina Public Service Authority, (Santee Cooper), 5.50%, 1/1/38

      1,420         1,520,578   

Utility Debt Securitization Authority, NY, 5.00%, 12/15/35

      500         539,865   

Wyandotte County/Kansas City, KS, Unified Government Board of Public Utilities, 5.00%, 9/1/36

      685         704,276   
     

 

 

  
      $ 4,043,139   
     

 

 

  

General Obligations — 15.4%

      

Chicago Park District, IL, (Harbor Facilities), 5.25%, 1/1/37(1)

    $ 1,680       $ 1,689,778   

Delaware Valley, PA, Regional Finance Authority, 5.75%, 7/1/32

      2,500         2,595,625   

Hawaii, 5.00%, 12/1/29

      2,500         2,740,975   

Hawaii, 5.00%, 12/1/30

      1,000         1,088,480   

Mississippi, 5.00%, 10/1/36(1)

      1,725         1,818,874   

New York, 5.00%, 2/15/34(1)

      2,750         2,918,850   

New York, NY, 5.00%, 8/1/31

      3,500         3,699,920   

Oregon, 5.00%, 8/1/36

      1,000         1,055,450   

Virginia Beach, VA, 4.00%, 4/1/27

      220         227,179   

Virginia Beach, VA, 4.00%, 4/1/28

      220         224,763   
     

 

 

  
      $ 18,059,894   
     

 

 

  

Hospital — 4.4%

      

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35

    $ 870       $ 803,228   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27

      545         543,049   

Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.50%, 7/1/38

      360         366,260   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), 5.25%, 11/15/36

      1,285         1,310,970   

Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/38

      1,850         418,470   

Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/39

      5,000         1,056,400   

New Jersey Health Care Facilities Financing Authority, (Robert Wood Johnson University Hospital), 5.25%, 7/1/35

      615         631,900   
     

 

 

  
      $ 5,130,277   
     

 

 

  

 

1

 

 

                                                 
Security   Principal
Amount
(000’s omitted)		     Value  

Industrial Development Revenue — 0.4%

    

Maricopa County, AZ, Pollution Control Corp., (El Paso Electric Co.), 4.50%, 8/1/42

   $ 595      $ 507,458   
   

 

 

  
    $ 507,458   
   

 

 

  

Insured – Education — 7.1%

    

Massachusetts Development Finance Agency, (Boston University), (XLCA), 6.00%, 5/15/59

   $ 2,500      $ 2,718,275   

Miami-Dade County, FL, Educational Facilities Authority, (University of Miami), (AMBAC), (BHAC), 5.00%, 4/1/31

     1,555        1,633,652   

University of South Alabama, (BHAC), 5.00%, 8/1/38

     3,900        3,926,637   
   

 

 

  
    $ 8,278,564   
   

 

 

  

Insured – Electric Utilities — 8.7%

    

American Municipal Power-Ohio, Inc., OH, (Prairie State Energy Campus), (AGC), 5.75%, 2/15/39

   $ 1,000      $ 1,055,630   

Chelan County, WA, Public Utility District No. 1, (Columbia River), (NPFG), 0.00%, 6/1/23

     6,335        4,490,755   

Louisiana Energy and Power Authority, (AGM), 5.25%, 6/1/38

     735        755,301   

Mississippi Development Bank, (Municipal Energy), (XLCA), 5.00%, 3/1/41

     2,205        2,101,012   

South Carolina Public Service Authority, (Santee Cooper), (BHAC), 5.50%, 1/1/38

     1,595        1,748,598   
   

 

 

  
    $ 10,151,296   
   

 

 

  

Insured – Escrowed/Prerefunded — 7.1%

    

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.125%, 11/15/39

   $ 1,695      $ 1,782,852   

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.25%, 11/15/44

     450        473,814   

Washington, (AGM), Prerefunded to 7/1/16, 5.00%, 7/1/25(1)

     5,500        6,114,845   
   

 

 

  
    $ 8,371,511   
   

 

 

  

Insured – General Obligations — 8.9%

    

Cincinnati, OH, City School District, (AGM), (FGIC), 5.25%, 12/1/30

   $ 750      $ 856,935   

Coast Community College District, CA, (Election of 2002), (AGM), 0.00%, 8/1/33

     12,000        4,123,320   

Goodyear, AZ, (NPFG), 3.00%, 7/1/26

     1,315        1,217,940   

Palm Springs, CA, Unified School District, (Election of 2008), (AGC), 5.00%, 8/1/33

     2,750        2,855,325   

Philadelphia, PA, (AGC), 7.00%, 7/15/28

     1,250        1,390,725   
   

 

 

  
    $ 10,444,245   
   

 

 

  

Insured – Hospital — 20.7%

    

Arizona Health Facilities Authority, (Banner Health), (BHAC), 5.375%, 1/1/32

   $ 1,750      $ 1,832,862   

California Statewide Communities Development Authority, (Sutter Health), (AGM), 5.05%, 8/15/38(1)

     1,500        1,495,725   

Colorado Health Facilities Authority, (Catholic Health), (AGM), 5.10%, 10/1/41(1)

     2,200        2,204,488   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1)

     3,000        3,154,320   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35

     1,490        1,502,218   

Illinois Finance Authority, (Children’s Memorial Hospital), (AGC), 5.25%, 8/15/47(1)

     2,500        2,497,874   

Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41(1)

     750        754,418   

Indiana Health and Educational Facility Finance Authority, (Sisters of St. Francis Health Services), (AGM), 5.25%, 5/15/41

     1,750        1,760,308   

Maricopa County, AZ, Industrial Development Authority, (Catholic Healthcare West), (BHAC), 5.25%, 7/1/32

     2,090        2,214,522   

New Jersey Health Care Facilities Financing Authority, (Meridian Health System), Series V, (AGC), 5.00%, 7/1/38(1)

     500        506,120   

New Jersey Health Care Facilities Financing Authority, (Virtua Health), (AGC), 5.50%, 7/1/38

     2,245        2,308,713   

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

     1,545        1,646,182   

Washington Health Care Facilities Authority, (Providence Health Care), (AGM), 5.25%, 10/1/33

     2,300        2,428,731   
   

 

 

  
    $ 24,306,481   
   

 

 

  

 

2

 

 

                                                 
Security   Principal
Amount
(000’s omitted)		     Value  

Insured – Industrial Development Revenue — 1.2%

    

Pennsylvania Economic Development Financing Authority, (Aqua Pennsylvania, Inc.), (BHAC), 5.00%, 10/1/39

   $ 1,340      $ 1,355,236   
   

 

 

  
    $ 1,355,236   
   

 

 

  

Insured – Lease Revenue/Certificates of Participation — 6.0%

    

Essex County, NJ, Improvement Authority, (NPFG), 5.50%, 10/1/30

   $ 1,000      $ 1,139,570   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), 5.50%, 12/15/34

     875        950,530   

San Diego County, CA, Water Authority, Certificates of Participation, (AGM), 5.00%, 5/1/38(1)

     3,250        3,370,217   

Tri-Creek Middle School Building Corp., IN, (AGM), 5.25%, 1/15/34(1)

     1,500        1,540,125   
   

 

 

  
    $ 7,000,442   
   

 

 

  

Insured – Other Revenue — 1.6%

    

Harris County-Houston, TX, Sports Authority, (NPFG), 0.00%, 11/15/34

   $ 2,540      $ 686,841   

New York, NY, Industrial Development Agency, (Yankee Stadium), (AGC), 7.00%, 3/1/49

     1,000        1,137,800   
   

 

 

  
    $ 1,824,641   
   

 

 

  

Insured – Solid Waste — 1.1%

    

Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/24

   $ 740      $ 836,792   

Palm Beach County, FL, Solid Waste Authority, (BHAC), 5.00%, 10/1/26

     425        473,106   
   

 

 

  
    $ 1,309,898   
   

 

 

  

Insured – Special Tax Revenue — 2.4%

    

Miami-Dade County, FL, Professional Sports Franchise Facilities, (AGC), 7.00%, (0.00% until 10/1/19), 10/1/39

   $ 3,000      $ 2,340,420   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

     4,440        490,220   
   

 

 

  
    $ 2,830,640   
   

 

 

  

Insured – Student Loan — 1.3%

    

Maine Educational Loan Authority, (AGC), 5.625%, 12/1/27

   $ 1,400      $ 1,490,244   
   

 

 

  
    $ 1,490,244   
   

 

 

  

Insured – Transportation — 25.3%

    

Chicago, IL, (O’Hare International Airport), (AGM), 5.00%, 1/1/29

   $ 260      $ 261,310   

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/30

     200        201,218   

Chicago, IL, (O’Hare International Airport), (AGM), 5.125%, 1/1/31

     180        180,450   

Chicago, IL, (O’Hare International Airport), (AGM), 5.25%, 1/1/32

     100        100,713   

Clark County, NV, (Las Vegas-McCarran International Airport), (AGM), 5.25%, 7/1/39

     1,585        1,626,781   

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/22

     7,800        5,367,180   

Manchester, NH, (Manchester-Boston Regional Airport), (AGM), 5.125%, 1/1/30

     1,305        1,352,385   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/41(1)

     10,000        10,315,800   

Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/24

     1,000        1,125,040   

Metropolitan Washington, D.C., Airports Authority, (BHAC), 5.00%, 10/1/29

     535        567,624   

Nevada Department of Business and Industry, (Las Vegas Monorail -1st Tier), (AMBAC), 0.00%, 1/1/20(2)

     13,885        2,218,823   

New Jersey Transportation Trust Fund Authority, (AGC), 5.50%, 12/15/38

     1,040        1,111,989   

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.50%, 1/1/29

     255        275,295   

North Carolina Turnpike Authority, (Triangle Expressway System), (AGC), 5.75%, 1/1/39

     290        309,813   

North Texas Tollway Authority, (BHAC), 5.75%, 1/1/48

     1,750        1,913,555   

Pennsylvania Turnpike Commission, (AGM), 5.25%, 7/15/30

     2,540        2,755,849   
   

 

 

  
    $ 29,683,825   
   

 

 

  

Insured – Water and Sewer — 9.1%

    

Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/26

   $ 670      $ 724,458   

Bossier City, LA, Utilities Revenue, (BHAC), 5.25%, 10/1/27

     420        457,544   

Bossier City, LA, Utilities Revenue, (BHAC), 5.50%, 10/1/38

     660        708,358   

Chicago, IL, Wastewater Transmission Revenue, (BHAC), 5.50%, 1/1/38

     1,635        1,752,785   

Detroit, MI, Water Supply System, (NPFG), 5.00%, 7/1/34

     705        633,978   

District of Columbia Water and Sewer Authority, (AGC), 5.00%, 10/1/34(1)

     1,250        1,295,850   

Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33

     435        456,793   

 

3

 

 

                                                 
Security   Principal
Amount
(000’s omitted)		     Value  

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/35

   $ 1,000      $ 1,102,110   

New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40

     2,205        2,429,734   

Pearland, TX, Waterworks and Sewer Systems, (NPFG), 3.50%, 9/1/31

     1,220        1,088,838   
   

 

 

  
    $ 10,650,448   
   

 

 

  

Lease Revenue/Certificates of Participation — 6.7%

    

New Jersey Health Care Facilities Financing Authority, (Hospital Asset Transformation Program), 5.75%, 10/1/31

   $ 2,235      $ 2,479,062   

North Carolina, Capital Improvement Limited Obligation Bonds, 5.00%, 5/1/30

     5,000        5,403,900   
   

 

 

  
    $ 7,882,962   
   

 

 

  

Other Revenue — 1.8%

    

Oregon Department of Administrative Services, Lottery Revenue, 5.25%, 4/1/30

   $ 1,300      $ 1,438,359   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/29

     485        471,047   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/30

     260        250,234   
   

 

 

  
    $ 2,159,640   
   

 

 

  

Senior Living/Life Care — 0.2%

    

Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), 6.125%, 1/1/30

   $ 235      $ 247,831   
   

 

 

  
    $ 247,831   
   

 

 

  

Special Tax Revenue — 9.6%

    

Homewood, AL, City Board of Education, 5.00%, 4/1/32

   $ 1,880      $ 1,959,543   

Maryland State Department of Transportation, 5.00%, 2/15/28

     1,500        1,654,485   

Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.25%, 7/1/33

     750        838,650   

Michigan Trunk Line Fund, 5.00%, 11/15/30

     110        116,751   

Michigan Trunk Line Fund, 5.00%, 11/15/31

     125        132,067   

Michigan Trunk Line Fund, 5.00%, 11/15/33

     105        109,432   

Michigan Trunk Line Fund, 5.00%, 11/15/36

     80        82,998   

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/34

     465        491,310   

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/35

     1,710        1,798,766   

New York, NY, Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(3)

     3,800        4,132,918   
   

 

 

  
    $ 11,316,920   
   

 

 

  

Transportation — 12.5%

    

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/30

   $ 640      $ 679,328   

Dallas and Fort Worth, TX, (Dallas/Fort Worth International Airport), 5.25%, 11/1/31

     990        1,043,579   

Delaware River Port Authority of Pennsylvania and New Jersey, 5.00%, 1/1/35

     1,715        1,774,236   

Los Angeles, CA, Department of Airports, (Los Angeles International Airport), 5.25%, 5/15/28

     465        500,368   

Metropolitan Transportation Authority, NY, 5.25%, 11/15/38

     865        890,794   

Miami-Dade County, FL, (Miami International Airport), 5.00%, 10/1/41

     2,095        2,076,208   

New York Liberty Development Corp., (4 World Trade Center), 5.00%, 11/15/31

     1,070        1,114,437   

Orlando-Orange County, FL, Expressway Authority, Series A, 5.00%, 7/1/35

     420        426,283   

Orlando-Orange County, FL, Expressway Authority, Series A, 5.00%, 7/1/40

     375        377,689   

Port Authority of New York and New Jersey, 5.00%, 12/1/34(1)

     2,040        2,169,479   

South Carolina Transportation Infrastructure Bank, 5.25%, 10/1/40

     1,000        1,035,100   

Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/37

     2,500        2,575,975   
   

 

 

  
    $ 14,663,476   
   

 

 

  

Water and Sewer — 4.1%

    

Chicago, IL, Water Revenue, 5.00%, 11/1/42

   $ 1,000      $ 967,320   

Detroit, MI, Sewage Disposal System, 5.00%, 7/1/32

     1,555        1,400,309   

Detroit, MI, Sewage Disposal System, 5.25%, 7/1/39

     380        345,040   

Detroit, MI, Water Supply System, 5.25%, 7/1/41

     300        271,743   

Marco Island, FL, Utility System, 5.00%, 10/1/34

     205        210,535   

Marco Island, FL, Utility System, 5.00%, 10/1/40

     910        924,514   

New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/37

     720        730,210   
   

 

 

  
    $ 4,849,671   
   

 

 

  

Total Tax-Exempt Municipal Securities — 171.0%
(identified cost $202,212,334)

     $ 200,545,217   
   

 

 

  

 

4

 

 

                                                 

Corporate Bonds & Notes — 0.0%(4)

    
Security   Principal
Amount
(000’s omitted)		     Value  

Municipal — 0.0%(4)

    

Las Vegas Monorail Co., Jr. Subordinated Notes, 3.00% to 12/31/15, 5.50%, 7/15/55(5)(6)

   $ 47      $ 4,725   

Las Vegas Monorail Co., Sr. Secured Notes, 5.50%, 7/15/19(5)(6)

     164        24,809   
   

 

 

  

Total Corporate Bonds & Notes — 0.0%(4)
(identified cost $8,357)

     $ 29,534   
   

 

 

  

Total Investments — 171.0%
(identified cost $202,220,691)

     $ 200,574,751   
   

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (38.1)%

     $ (44,700,907 ) 
   

 

 

  

Other Assets, Less Liabilities — (32.9)%

     $ (38,544,759 ) 
   

 

 

  

Net Assets Applicable to Common Shares — 100.0%

     $ 117,329,085   
   

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

At December 31, 2013, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments, is as follows:

 

                        

New York

      13.1 % 

Others, representing less than 10% individually

      86.9 % 

The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at December 31, 2013, 58.7% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.4% to 21.8% of total investments.

 

(1) Security represents the municipal bond held by a trust that issues residual interest bonds.

 

(2) Defaulted security. Issuer has defaulted on the payment of interest or has filed for bankruptcy.

 

(3) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,282,918.

 

(4) Amount is less than 0.05%.

 

(5) For fair value measurement disclosure purposes, security is categorized as Level 3.

 

5

 

 

(6) Represents a payment-in-kind security which may pay all or a portion of interest in additional principal.

A summary of open financial instruments at December 31, 2013 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
3/14    44 U.S. Long Treasury Bond    Short    $     (5,739,857 )    $     (5,645,750 )    $     94,107   

At December 31, 2013, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

The Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Fund holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Fund purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

At December 31, 2013, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is interest rate risk was $94,107.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2013, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     160,110,755   
  

 

 

  

Gross unrealized appreciation

    $ 7,820,480   

Gross unrealized depreciation

      (9,651,484 ) 
  

 

 

  

Net unrealized depreciation

    $ (1,831,004 ) 
  

 

 

  

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

•  

Level 1 — 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 a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At December 31, 2013, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3*      Total  

Tax-Exempt Municipal Securities

    $ —       $ 200,545,217       $ —       $ 200,545,217   

Corporate Bonds & Notes

      —         —         29,534         29,534   

Total Investments

    $ —       $ 200,545,217       $ 29,534       $ 200,574,751   

Futures Contracts

    $ 94,107       $ —       $ —       $ 94,107   

Total

    $     94,107       $     200,545,217       $     29,534       $     200,668,858   

 

* None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the fiscal year to date ended December 31, 2013 is not presented.

At December 31, 2013, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

 

6

 

 

Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form
N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Signatures

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.

Eaton Vance Municipal Bond Fund II

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 24, 2014

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/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 24, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 24, 2014