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: 08/31/2011

 

Date of reporting period: 05/31/2011

 

Item 1 – Schedule of Investments

 


 

 

 

 

Schedule of Investments May 31, 2011 (Unaudited)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 3.4%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

6.00%, 6/01/34

 

$

1,150

 

$

1,229,752

 

6.00%, 6/01/39

 

 

450

 

 

478,643

 

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

 

 

3,750

 

 

3,318,337

 

 

 

 

 

 

 

 

 

 

 

 

 

5,026,732

 

Arizona — 5.9%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,766,120

 

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

 

 

200

 

 

218,196

 

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

 

 

200

 

 

211,286

 

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

 

 

900

 

 

904,473

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

1,500

 

 

1,355,325

 

5.00%, 12/01/37

 

 

2,065

 

 

1,817,468

 

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

 

 

 

 

 

 

 

6.25%, 5/01/15

 

 

245

 

 

237,312

 

7.00%, 5/01/20

 

 

300

 

 

295,074

 

7.25%, 5/01/27

 

 

600

 

 

538,998

 

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

 

 

750

 

 

748,163

 

University Medical Center Corp. Arizona,
RB, 6.50%, 7/01/39

 

 

500

 

 

508,120

 

 

 

 

 

 

 

 

 

 

 

 

 

8,600,535

 

California — 15.2%

 

 

 

 

 

 

 

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

 

 

4,500

 

 

34,110

 

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

 

 

2,285

 

 

2,034,336

 

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

 

 

1,900

 

 

1,967,393

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

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

 

$

1,000

 

$

621,880

 

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

 

 

 

 

 

 

 

5.63%, 8/01/31

 

 

250

 

 

266,040

 

5.75%, 8/01/33

 

 

500

 

 

534,180

 

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

 

 

1,650

 

 

844,784

 

Norwalk-La Mirada Unified School District
California, GO, Refunding, CAB, Election
of 2002, Series E (AGC), 6.47%,
8/01/34 (a)

 

 

8,000

 

 

1,270,240

 

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

 

 

 

 

 

 

 

6.09%, 8/01/30 (a)

 

 

1,500

 

 

422,580

 

6.37%, 8/01/39 (b)

 

 

2,000

 

 

784,260

 

San Diego Community College District
California, GO, CAB, Election of 2002,
6.24%, 8/01/33 (b)

 

 

2,800

 

 

1,680,616

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.75%, 4/01/31

 

 

2,000

 

 

2,142,920

 

6.00%, 3/01/33

 

 

2,050

 

 

2,230,010

 

6.50%, 4/01/33

 

 

1,950

 

 

2,176,297

 

5.50%, 3/01/40

 

 

2,350

 

 

2,410,489

 

State of California, GO, Refunding:

 

 

 

 

 

 

 

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

 

 

500

 

 

473,595

 

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

 

 

1,000

 

 

915,680

 

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

 

 

1,585

 

 

1,507,668

 

 

 

 

 

 

 

 

 

 

 

 

 

22,317,078

 

Colorado — 2.6%

 

 

 

 

 

 

 

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

 

 

1,070

 

 

1,155,268

 

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

 

 

1,000

 

 

1,022,510

 

Sand Creek Metropolitan District, GO,
Refunding, Limited Tax, Series B:

 

 

 

 

 

 

 

4.75%, 12/01/35

 

 

1,000

 

 

894,780

 

 

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.

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

MAY 31, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Colorado (concluded)

 

 

 

 

 

 

 

Sand Creek Metropolitan District, GO,
Refunding, Limited Tax, Series B
(concluded):

 

 

 

 

 

 

 

5.00%, 12/01/40

 

$

800

 

$

695,920

 

 

 

 

 

 

 

 

 

 

 

 

 

3,768,478

 

Delaware — 0.8%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,199,880

 

District Of Columbia — 6.0%

 

 

 

 

 

 

 

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

 

 

595

 

 

464,035

 

District of Columbia, Tax Allocation Bonds,
Gallery Place Project (AGM), 5.40%,
7/01/31

 

 

6,000

 

 

6,040,440

 

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

 

 

2,500

 

 

2,301,525

 

 

 

 

 

 

 

 

 

 

 

 

 

8,806,000

 

Florida — 6.3%

 

 

 

 

 

 

 

Miami Beach Health Facilities Authority,
RB, Mount Sinai Medical Center of
Florida, 6.75%, 11/15/21

 

 

1,180

 

 

1,208,308

 

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

 

 

7,255

 

 

7,256,016

 

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

 

 

925

 

 

723,720

 

 

 

 

 

 

 

 

 

 

 

 

 

9,188,044

 

Idaho — 1.3%

 

 

 

 

 

 

 

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

 

 

1,750

 

 

1,891,103

 

Illinois — 10.1%

 

 

 

 

 

 

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

425

 

 

114,100

 

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

 

 

1,285

 

 

1,316,559

 

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

 

 

1,000

 

 

1,014,640

 

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

 

 

650

 

 

676,923

 

Illinois Finance Authority, Refunding RB,
Friendship Village Schaumburg, 5.63%,
2/15/37

 

 

210

 

 

163,229

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Illinois Finance Authority, Refunding RB,
Series A:

 

 

 

 

 

 

 

Lake Forest Hospital, 5.75%,
7/01/29

 

$

4,000

 

$

4,051,680

 

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

 

 

1,040

 

 

1,037,161

 

Railsplitter Tobacco Settlement Authority,
RB:

 

 

 

 

 

 

 

6.25%, 6/01/24

 

 

1,000

 

 

1,023,640

 

6.00%, 6/01/28

 

 

1,150

 

 

1,153,427

 

Village of Bolingbrook Illinois, GO,
Refunding, Series B (NPFGC), 6.22%,
1/01/36 (a)

 

 

23,065

 

 

4,311,079

 

 

 

 

 

 

 

 

 

 

 

 

 

14,862,438

 

Indiana — 1.9%

 

 

 

 

 

 

 

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)

 

 

1,815

 

 

1,823,585

 

Indiana Finance Authority, Refunding RB,
Improvement, U.S. Steel Corp., 6.00%,
12/01/26

 

 

1,000

 

 

996,910

 

 

 

 

 

 

 

 

 

 

 

 

 

2,820,495

 

Iowa — 1.6%

 

 

 

 

 

 

 

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

 

 

875

 

 

870,581

 

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

 

 

 

 

 

 

 

5.75%, 9/01/30

 

 

500

 

 

498,795

 

6.00%, 9/01/39

 

 

1,000

 

 

978,590

 

 

 

 

 

 

 

 

 

 

 

 

 

2,347,966

 

Kansas — 3.4%

 

 

 

 

 

 

 

Kansas Development Finance Authority,
RB, University Kansas Tenant, Series O,
4.75%, 6/15/41

 

 

550

 

 

520,559

 

Wichita Airport Authority, RB, Special,
Cessna Citation Service Center,
Series A, AMT, 6.25%, 6/15/32

 

 

5,000

 

 

4,395,550

 

 

 

 

 

 

 

 

 

 

 

 

 

4,916,109

 

Kentucky — 0.4%

 

 

 

 

 

 

 

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

 

 

500

 

 

513,490

 

Louisiana — 2.3%

 

 

 

 

 

 

 

Lafayette Consolidated Government, RB,
5.00%, 3/01/36 (f)

 

 

275

 

 

277,516

 

 

 

 

2

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Louisiana (concluded)

 

 

 

 

 

 

 

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

 

$

1,050

 

$

1,075,683

 

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

 

 

2,000

 

 

2,018,900

 

 

 

 

 

 

 

 

 

 

 

 

 

3,372,099

 

Maryland — 2.1%

 

 

 

 

 

 

 

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

 

 

500

 

 

486,315

 

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

 

 

2,900

 

 

2,541,386

 

 

 

 

 

 

 

 

 

 

 

 

 

3,027,701

 

Michigan — 2.4%

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,339,700

 

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

 

 

1,950

 

 

2,237,937

 

 

 

 

 

 

 

 

 

 

 

 

 

3,577,637

 

Minnesota — 4.0%

 

 

 

 

 

 

 

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

 

 

5,350

 

 

5,788,860

 

Mississippi — 3.6%

 

 

 

 

 

 

 

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

 

 

845

 

 

850,822

 

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

 

 

1,750

 

 

1,824,060

 

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

 

 

2,500

 

 

2,593,325

 

 

 

 

 

 

 

 

 

 

 

 

 

5,268,207

 

Montana — 1.8%

 

 

 

 

 

 

 

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

 

 

2,750

 

 

2,609,860

 

Multi-State — 7.9%

 

 

 

 

 

 

 

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

 

 

10,500

 

 

11,550,210

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nebraska — 1.6%

 

 

 

 

 

 

 

Nebraska Investment Finance Authority,
Refunding RB, Series A:

 

 

 

 

 

 

 

5.90%, 9/01/36

 

$

1,200

 

$

1,246,656

 

6.05%, 9/01/41

 

 

1,130

 

 

1,161,527

 

 

 

 

 

 

 

 

 

 

 

 

 

2,408,183

 

Nevada — 1.2%

 

 

 

 

 

 

 

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

 

 

1,315

 

 

1,120,985

 

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

 

 

575

 

 

572,292

 

 

 

 

 

 

 

 

 

 

 

 

 

1,693,277

 

New Jersey — 13.9%

 

 

 

 

 

 

 

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

 

 

915

 

 

90,356

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax, 5.50%,
6/15/24

 

 

3,710

 

 

3,508,473

 

Cigarette Tax (Radian), 5.50%,
6/15/31

 

 

1,500

 

 

1,337,850

 

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

 

 

3,000

 

 

3,001,680

 

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

 

 

1,500

 

 

1,424,310

 

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

 

 

7,500

 

 

7,603,575

 

New Jersey Educational Facilities
Authority, Refunding RB:

 

 

 

 

 

 

 

College Of New Jersey, Series D
(AGM), 5.00%, 7/01/35

 

 

1,000

 

 

1,008,260

 

University of Medicine &
Dentistry, Series B, 7.13%,
12/01/23

 

 

630

 

 

726,226

 

University of Medicine &
Dentistry, Series B, 7.50%,
12/01/32

 

 

800

 

 

898,040

 

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

 

 

700

 

 

757,736

 

 

 

 

 

 

 

 

 

 

 

 

 

20,356,506

 

New Mexico — 1.5%

 

 

 

 

 

 

 

Village of Los Ranchos de Albuquerque
New Mexico, Refunding RB,
Albuquerque Academy Project, 4.50%,
9/01/40

 

 

2,500

 

 

2,241,700

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New York — 6.7%

 

 

 

 

 

 

 

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

 

$

455

 

$

113,777

 

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

 

 

1,000

 

 

893,200

 

New York City Housing Development
Corp., RB, Series A, AMT, 5.50%,
11/01/34

 

 

3,000

 

 

3,004,080

 

New York City Industrial Development
Agency, RB:

 

 

 

 

 

 

 

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

 

 

3,165

 

 

3,222,635

 

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

 

 

700

 

 

720,174

 

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

 

 

800

 

 

824,944

 

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

 

 

1,000

 

 

1,076,890

 

 

 

 

 

 

 

 

 

 

 

 

 

9,855,700

 

North Carolina — 8.4%

 

 

 

 

 

 

 

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

 

 

225

 

 

234,290

 

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

 

 

2,267,915

 

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

 

 

2,475

 

 

2,323,951

 

North Carolina Medical Care Commission,
RB:

 

 

 

 

 

 

 

Novant Health Obligation,
4.75%, 11/01/43

 

 

4,720

 

 

3,921,801

 

WakeMed, Series A (AGC), 5.88%,
10/01/38

 

 

1,000

 

 

1,025,560

 

North Carolina Medical Care Commission,
Refunding RB:

 

 

 

 

 

 

 

Caromont Health (AGC), 4.50%,
2/15/30

 

 

750

 

 

708,907

 

Caromont Health (AGC), 4.63%,
2/15/35

 

 

1,000

 

 

930,860

 

University Health System,
Series D, 6.25%, 12/01/33

 

 

800

 

 

861,904

 

 

 

 

 

 

 

 

 

 

 

 

 

12,275,188

 

Ohio — 0.3%

 

 

 

 

 

 

 

County of Hancock Ohio, Refunding RB,
Blanchard Valley Regional Health
Center, 5.75%, 12/01/26

 

 

395

 

 

395,000

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Oklahoma — 1.2%

 

 

 

 

 

 

 

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

 

$

1,725

 

$

1,769,919

 

Oregon — 1.8%

 

 

 

 

 

 

 

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

 

 

510

 

 

511,566

 

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

 

 

750

 

 

783,945

 

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

 

 

 

 

 

 

 

5.00%, 10/01/34

 

 

850

 

 

816,025

 

5.25%, 10/01/40

 

 

500

 

 

485,400

 

 

 

 

 

 

 

 

 

 

 

 

 

2,596,936

 

Pennsylvania — 3.1%

 

 

 

 

 

 

 

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

 

 

2,600

 

 

2,592,044

 

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

 

 

2,000

 

 

1,875,320

 

 

 

 

 

 

 

 

 

 

 

 

 

4,467,364

 

Puerto Rico — 1.8%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

2,016,920

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A (NPFGC),
5.75%, 8/01/41 (a)

 

 

5,000

 

 

691,850

 

 

 

 

 

 

 

 

 

 

 

 

 

2,708,770

 

Rhode Island — 2.3%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,117,820

 

Rhode Island Housing & Mortgage
Finance Corp., RB, Homeownership
Opportunity, Series 54, AMT, 4.85%,
10/01/41

 

 

1,500

 

 

1,354,770

 

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

 

 

900

 

 

948,411

 

 

 

 

 

 

 

 

 

 

 

 

 

3,421,001

 

South Carolina — 0.9%

 

 

 

 

 

 

 

County of Florence South Carolina, RB,
McLeod Regional Medical Center,
Series A, 5.00%, 11/01/37

 

 

1,350

 

 

1,265,396

 

 

 

 

4

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Tennessee — 0.2%

 

 

 

 

 

 

 

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

 

$

275

 

$

283,335

 

Texas — 15.6%

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

500

 

 

551,320

 

7.25%, 12/01/35

 

 

1,750

 

 

1,925,997

 

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)

 

 

2,400

 

 

2,421,984

 

Harris County-Houston Sports Authority,
Refunding RB, CAB, Senior Lien, Series
G (NPFGC), 6.17%, 11/15/41 (a)

 

 

11,690

 

 

1,316,645

 

Love Field Airport Modernization Corp.,
RB, Southwest Airlines Co. Project,
5.25%, 11/01/40

 

 

2,500

 

 

2,245,125

 

Lower Colorado River Authority, Refunding
RB (NPFGC), 5.00%, 5/15/13 (i)

 

 

15

 

 

16,291

 

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

 

 

1,500

 

 

1,563,540

 

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

 

 

2,119,680

 

Texas State Turnpike Authority, RB
(AMBAC):

 

 

 

 

 

 

 

CAB, 6.84%, 8/15/35 (a)

 

 

50,000

 

 

10,096,000

 

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

 

 

750

 

 

665,827

 

 

 

 

 

 

 

 

 

 

 

 

 

22,922,409

 

Vermont — 1.1%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,680,180

 

Virginia — 0.5%

 

 

 

 

 

 

 

Henrico County EDA, RB, Bon Secours
Health, Series B-1 (AGC), 4.50%,
11/01/42

 

 

860

 

 

758,830

 

Washington — 1.0%

 

 

 

 

 

 

 

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

 

 

1,400

 

 

1,462,888

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Wisconsin — 0.9%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities
Authority, RB, Aurora Health Care,
6.40%, 4/15/33

 

$

1,350

 

$

1,368,833

 

Wyoming — 0.9%

 

 

 

 

 

 

 

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

 

 

1,200

 

 

1,262,880

 

Total Municipal Bonds – 147.9%

 

 

 

 

 

216,647,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (j)

 

 

 

 

 

 

 

Colorado — 2.5%

 

 

 

 

 

 

 

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

 

 

3,750

 

 

3,665,550

 

Massachusetts — 1.0%

 

 

 

 

 

 

 

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

 

 

1,450

 

 

1,479,652

 

New York — 4.2%

 

 

 

 

 

 

 

New York City Municipal Water Finance
Authority, RB:

 

 

 

 

 

 

 

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

 

 

450

 

 

490,860

 

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

 

 

405

 

 

431,666

 

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

 

 

3,000

 

 

3,059,880

 

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

 

 

2,199

 

 

2,228,083

 

 

 

 

 

 

 

 

 

 

 

 

 

6,210,489

 

Ohio — 2.2%

 

 

 

 

 

 

 

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

 

 

1,260

 

 

1,175,158

 

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

 

 

2,000

 

 

2,023,200

 

 

 

 

 

 

 

 

 

 

 

 

 

3,198,358

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 9.9%

 

 

 

 

 

14,554,049

 

Total Long-Term Investments
(Cost – $234,168,382) – 157.8%

 

 

 

 

 

231,201,266

 

 

 

 

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2011

5


 

 

 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

FFI Institutional Tax-Exempt Fund, 0.11%
(k)(l)

 

 

950,207

 

$

950,207

 

Total Short-Term Securities
(Cost – $950,207) – 0.6%

 

 

 

 

 

950,207

 

Total Investments
(Cost – $235,118,589*) – 158.4%

 

 

 

 

 

232,151,473

 

Other Assets Less Liabilities – 1.1%

 

 

 

 

 

1,684,722

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (5.1)%

 

 

 

 

 

(7,406,470

)

Preferred Shares, at Redemption Value – (54.5)%

 

 

 

 

 

(79,904,121

)

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

146,525,604

 

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of May 31, 2011, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

227,062,205

 

 

 

 

Gross unrealized appreciation

 

$

7,551,046

 

Gross unrealized depreciation

 

 

(9,860,926

)

 

 

 

Net unrealized depreciation

 

$

(2,309,880

)

 

 

 

 

 

(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 reflects the current yield as of report date.

 

 

(c)

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

 

 

(d)

Non-income producing security.

 

 

(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

 

Morgan Keegan & Co.

 

$

277,516

 

$

1,491

 

 

 

(g)

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

 

 

(h)

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.

 

 

(i)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(j)

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

 

 

(k)

Represents the current yield as of report date.

 

 

(l)

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,
2010

 

Net
Activity

 

Shares
Held at
May 31, 2011

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

 

4,831,353

 

 

(3,881,146

)

 

950,207

 

$

2,419

 

 

 

•

Financial futures contracts sold as of May 31, 2011 were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contracts

 

Issue

 

Exchange

 

Expiration

 

Notional
Value

 

Unrealized
Depreciation

 

     79

 

30-Year U.S.
Treasury
Bond

 

Chicago
Board of
Trade

 

September
2011

 

$

9,412,037

 

$

(554,306

)

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are summarized in three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — 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 and derivative financial instruments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the inputs used as of May 31, 2011 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

231,201,266

 

 

—

 

$

231,201,266

 

Short-Term
Securities

 

$

950,207

 

 

—

 

 

—

 

 

950,207

 

 

 

Total

 

$

950,207

 

$

231,201,266

 

 

—

 

$

232,151,473

 

 

 

 

 

 

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

 

 

 

6

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 2011


 

 

 

 

Schedule of Investments (concluded)

BlackRock Municipal Bond Trust (BBK)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Derivative Financial
   Instruments2

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate
contracts

 

$

(554,306

)

 

—

 

 

—

 

$

(554,306

)

 

 

 

 

 

2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


 

 

 

BLACKROCK MUNICIPAL BOND TRUST

MAY 31, 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: July 26, 2011
   
  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: July 26, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Bond Trust
     
  Date: July 26, 2011