Eaton Vance Municipal Bond Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21142

Investment Company Act File Number

Eaton Vance Municipal Bond Fund

(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, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Bond Fund

December 31, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 161.7%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 15.0%

  

California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/38(1)

    $ 9,750       $ 11,402,137   

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

      14,700         16,540,587   

Houston, TX, Higher Education Finance Corp., (William Marsh Rice University), 5.00%, 5/15/35(1)

      15,000         17,438,850   

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/27

      5,810         7,789,874   

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/30

      8,325         11,179,476   

Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)

      2,000         2,291,040   

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

      8,790         10,510,555   

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

      15,300         17,302,311   

New York Dormitory Authority, (State University Educational Facilities), 4.00%, 5/15/28

      8,025         8,672,778   

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

      13,500         15,798,780   

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

      5,000         5,789,050   

University of California, 5.25%, 5/15/39

      4,450         5,122,751   

University of Colorado, (University Enterprise Revenue), 5.25%, 6/1/36(1)

      10,000         11,805,000   

University of North Carolina at Charlotte, 5.00%, 4/1/32

      2,090         2,482,000   
     

 

 

  
      $ 144,125,189   
     

 

 

  
Electric Utilities — 2.3%      

JEA St. Johns River Power Park System Revenue, FL, 4.00%, 10/1/32(1)

    $ 10,000       $ 10,428,000   

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

      7,110         8,203,802   

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

      3,425         3,884,087   
     

 

 

  
      $ 22,515,889   
     

 

 

  
Escrowed/Prerefunded — 0.9%      

Lehigh County, PA, General Purpose Authority, (Lehigh Valley Health Network), Prerefunded to 7/1/13, 5.25%, 7/1/32

    $ 8,165       $ 8,448,081   
     

 

 

  
      $ 8,448,081   
     

 

 

  
General Obligations — 16.9%      

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

    $ 8,320       $ 9,524,902   

City & County of San Francisco, CA, (Earthquake Safety & Emergency Response), 4.00%, 6/15/27

      9,080         9,994,628   

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

      3,000         3,662,430   

Florida Board of Education, 5.00%, 6/1/31

      10,000         11,832,600   

Frisco, TX, Independent School District, (PSF Guaranteed), 5.00%, 8/15/37

      6,465         7,485,953   

Georgia, 5.00%, 7/1/29

      10,000         12,155,600   

Hawaii, 5.00%, 12/1/29

      7,620         9,184,691   

Hawaii, 5.00%, 12/1/30

      6,500         7,800,130   

Klein, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/1/36(1)

      2,000         2,306,120   

Mississippi, (Capital Improvements Projects), 5.00%, 10/1/30(1)

      10,000         11,966,500   

Mississippi, (Capital Improvements Projects), 5.00%, 10/1/36

      15         17,299   

Mississippi, 5.00%, 10/1/36(1)

      12,075         13,925,856   

New York, 5.00%, 12/15/30

      7,660         9,232,292   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

New York, 5.00%, 2/15/36

    $ 5,000       $ 5,752,850   

North East Independent School District, TX, (PSF Guaranteed), 5.25%, 2/1/28

      2,000         2,680,060   

Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35

      180         199,762   

Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35(1)

      12,250         13,594,928   

Oregon, 5.00%, 8/1/35(1)

      6,750         7,951,973   

Oregon, 5.00%, 8/1/36

      2,000         2,344,420   

Pasadena, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/15/35

      4,355         5,123,396   

Port of Houston Authority of Harris County, TX, 5.00%, 10/1/35

      7,500         9,015,225   

Virginia Beach, VA, 4.00%, 4/1/27

      2,690         3,043,385   

Virginia Beach, VA, 4.00%, 4/1/28

      2,820         3,168,552   
     

 

 

  
   $ 161,963,552   
     

 

 

  
Hospital — 6.4%      

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

    $ 1,000       $ 1,152,860   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

      1,770         2,026,827   

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39

      11,760         12,841,332   

California Statewide Communities Development Authority, (John Muir Health), 5.00%, 8/15/36

      4,215         4,555,277   

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

      2,520         2,599,960   

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

      860         897,393   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.75%, 2/15/34

      4,535         4,734,177   

Hawaii Department of Budget and Finance, (Hawaii Pacific Health), 5.60%, 7/1/33

      3,900         3,932,916   

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

      7,190         7,932,295   

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

      8,310         2,423,861   

Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/41

      10,000         2,486,900   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46

      5,355         5,660,556   

Orange County, FL, Health Facilities Authority, (Orlando Health, Inc.), 5.00%, 10/1/42

      2,000         2,194,600   

South Miami, FL, Health Facilities Authority, (Baptist Health South Florida Obligated Group), 5.00%, 8/15/42

      100         109,110   

South Miami, FL, Health Facilities Authority, (Baptist Health South Florida Obligated Group), 5.00%, 8/15/42(1)

      900         981,990   

Tarrant County, TX, Cultural Education Facilities Finance Corp., (Scott & White Healthcare), 5.25%, 8/15/40

      6,105         6,717,576   
     

 

 

  
   $ 61,247,630   
     

 

 

  
Industrial Development Revenue — 0.6%      

St. Charles Parish, LA, (Valero Energy Corp.), 4.00% to 6/1/22 (Put Date), 12/1/40

    $ 1,000       $ 1,103,060   

St. John Baptist Parish, LA, (Marathon Oil Corp.), 5.125%, 6/1/37

      4,370         4,661,829   
     

 

 

  
   $ 5,764,889   
     

 

 

  
Insured-Education — 2.9%      

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32

    $ 14,400       $ 19,327,680   

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

      7,865         8,679,578   
     

 

 

  
   $ 28,007,258   
     

 

 

  
Insured-Electric Utilities — 3.5%      

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

    $ 5,000       $ 5,735,000   

Long Island Power Authority, NY, Electric System Revenue, (BHAC), 5.50%, 5/1/33

      1,350         1,596,915   

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

      13,895         14,208,193   

Paducah, KY, Electric Plant Board, (AGC), 5.25%, 10/1/35

      2,735         3,046,079   

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

      7,840         9,347,554   
     

 

 

  
   $ 33,933,741   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Escrowed/Prerefunded — 0.6%

  

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

    $ 3,950       $ 4,370,952   

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

      1,050         1,164,345   
     

 

 

  
   $ 5,535,297   
     

 

 

  
Insured-General Obligations — 10.9%      

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

    $ 3,750       $ 5,072,325   

Clark County, NV, (AMBAC), 2.50%, 11/1/36

      11,845         9,713,492   

Frisco, TX, Independent School District, (AGM), (PSF Guaranteed), 2.75%, 8/15/39

      9,530         9,002,800   

Frisco, TX, Independent School District, (AGM), (PSF Guaranteed), 4.00%, 8/15/40

      1,010         1,038,967   

Kane, Cook and DuPage Counties, IL, School District No. 46, (AMBAC), 0.00%, 1/1/22

      39,750         30,689,783   

King County, WA, Public Hospital District No. 1, (AGC), 5.00%, 12/1/37(1)

      7,000         7,776,650   

Palm Springs, CA, Unified School District, (AGC), 5.00%, 8/1/32

      8,955         10,169,208   

Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38

      95         105,862   

Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38(1)

      10,950         12,202,023   

Schaumburg, IL, (BHAC), (FGIC), 5.00%, 12/1/38(1)

      12,750         13,527,240   

Yuma and La Paz Counties, AZ, Community College District, (Arizona Western College), (NPFG), 3.75%, 7/1/31

      4,835         4,983,048   
     

 

 

  
   $ 104,281,398   
     

 

 

  
Insured-Hospital — 16.1%      

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

    $ 8,250       $ 9,216,405   

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

      11,000         12,436,490   

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

      11,500         12,577,320   

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

      15,500         17,154,625   

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

      3,795         4,096,247   

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

      15,000         16,128,000   

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

      2,500         2,701,575   

Iowa Finance Authority, Health Facilities, (Iowa Health System), (AGC), 5.625%, 8/15/37

      2,625         2,991,135   

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

      1,675         1,873,303   

Maryland Health and Higher Educational Facilities Authority, (LifeBridge Health), (AGC), 4.75%, 7/1/47(1)

      19,150         19,902,403   

New Jersey Health Care Facilities Financing Authority, (Hackensack University Medical Center), (AGC), 5.25%, 1/1/36(1)

      5,250         5,684,385   

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

      545         585,439   

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

      410         440,422   

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

      3,250         3,491,150   

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

      13,115         14,640,275   

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

      5,795         6,785,945   

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

      8,700         9,611,151   

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

      12,605         13,918,936   
     

 

 

  
   $ 154,235,206   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  
Insured-Industrial Development Revenue — 1.0%      

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

    $ 9,000       $ 10,089,180   
     

 

 

  
   $ 10,089,180   
     

 

 

  
Insured-Lease Revenue/Certificates of Participation — 9.1%      

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

    $ 2,910       $ 3,373,650   

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

      24,000         26,846,640   

San Jose, CA, Financing Authority, (Civic Center), (AMBAC), (BHAC), 5.00%, 6/1/37(1)

      42,750         42,881,243   

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

      13,000         14,325,350   
     

 

 

  
   $ 87,426,883   
     

 

 

  
Insured-Other Revenue — 4.2%      

Golden State Tobacco Securitization Corp., CA, (AGC), 5.00%, 6/1/45(1)

    $ 25,875       $ 27,019,710   

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

      16,795         5,215,351   

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

      6,750         8,245,328   
     

 

 

  
   $ 40,480,389   
     

 

 

  
Insured-Solid Waste — 0.5%      

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

    $ 2,760       $ 3,252,632   

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

      1,575         1,840,482   
     

 

 

  
   $ 5,093,114   
     

 

 

  
Insured-Special Tax Revenue — 7.0%      

Alabama Public School and College Authority, (AGM), 2.50%, 12/1/27

    $ 17,940       $ 17,514,642   

Houston, TX, Hotel Occupancy Tax, (AMBAC), 0.00%, 9/1/24

      18,035         11,073,310   

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

      15,000         12,849,750   

Puerto Rico Sales Tax Financing Corp., (AMBAC), 0.00%, 8/1/54

      79,275         6,393,529   

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

      47,740         7,412,112   

Utah Transportation Authority, Sales Tax Revenue, (AGM), 4.75%, 6/15/32(1)

      10,800         12,229,164   
     

 

 

  
   $ 67,472,507   
     

 

 

  
Insured-Student Loan — 0.9%      

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

    $ 7,615       $ 8,657,037   
     

 

 

  
   $ 8,657,037   
     

 

 

  
Insured-Transportation — 20.3%      

Chicago, IL, (O’Hare International Airport), (AGM), 4.75%, 1/1/34(1)

    $ 21,640       $ 23,316,433   

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

      8,080         9,103,332   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/23(2)

      10,070         875,184   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/28(2)

      3,100         182,621   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40(2)

      15,000         3,665,850   

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/21

      10,200         7,264,236   

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/39

      25,000         6,070,500   

Harris County, TX, Toll Road, Senior Lien, (BHAC), (NPFG), 5.00%, 8/15/33(1)

      7,800         8,770,398   

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

      6,710         7,446,825   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/35(1)

      20,995         23,751,418   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/36(1)

      14,000         15,838,060   

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

      1,785         2,043,236   

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

      11,700         13,487,526   

 

4

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 1,015       $ 1,166,905   

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

      1,160         1,335,009   

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

      20,000         23,205,600   

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/26(1)

      10,000         11,362,500   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/24

      1,605         813,526   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/25

      1,950         921,063   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/26

      1,000         438,910   

San Joaquin Hills, Transportation Corridor Agency, CA, (Toll Road Bonds), (NPFG), 0.00%, 1/15/25

      26,215         14,398,065   

Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20

      23,845         19,238,861   
     

 

 

  
   $ 194,696,058   
     

 

 

  
Insured-Water and Sewer — 14.9%      

Austin, TX, Water and Wastewater, (AGM), (BHAC), 5.00%, 11/15/33(1)

    $ 2,000       $ 2,232,820   

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

      3,185         3,687,306   

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

      1,985         2,298,054   

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

      3,170         3,655,169   

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

      3,060         3,474,324   

Chicago, IL, Wastewater Transmission Revenue, (NPFG), 0.00%, 1/1/23

      13,670         9,657,582   

DeKalb County, GA, Water and Sewer, (AGM), 5.25%, 10/1/32(1)

      10,000         12,629,200   

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

      8,500         9,776,105   

Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33(1)

      27,570         31,087,360   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/32

      5,540         7,449,749   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/38

      1,070         1,459,191   

Massachusetts Water Resources Authority, (AMBAC), (BHAC), 4.00%, 8/1/40

      9,095         9,353,298   

New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40(1)

      9,500         11,384,135   

San Luis Obispo County, CA, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40

      3,535         3,658,265   

Seattle, WA, Drain and Wastewater Revenue, (AGM), 5.00%, 6/1/38(1)

      27,670         31,250,752   
     

 

 

  
   $ 143,053,310   
     

 

 

  
Lease Revenue/Certificates of Participation — 1.6%      

Hudson Yards Infrastructure Corp., NY, 5.75%, 2/15/47

    $ 2,565       $ 3,048,041   

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

      335         397,501   

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

      10,000         11,865,700   
     

 

 

  
   $ 15,311,242   
     

 

 

  
Other Revenue — 2.7%      

New York, NY, Transitional Finance Authority, Building Aid Revenue, 5.00%, 7/15/36(1)

    $ 10,750       $ 12,354,545   

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

      9,200         11,232,372   

Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/31

      1,440         1,547,093   

Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/32

      1,200         1,284,168   
     

 

 

  
   $ 26,418,178   
     

 

 

  
Senior Living/Life Care — 0.1%      

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

    $ 1,175       $ 1,369,427   
     

 

 

  
   $ 1,369,427   
     

 

 

  
Special Tax Revenue — 5.2%   

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

    $ 1,390       $ 1,653,363   

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

      1,500         1,781,595   

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

      1,285         1,508,449   

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

      1,020         1,184,312   

New York City Transitional Finance Authority, Future Tax Revenue, 5.00%, 2/1/37(1)

      20,000         23,116,200   

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 12/15/32

      7,180         8,568,181   

New York Urban Development Corp., Personal Income Tax Revenue, 5.00%, 3/15/31

      10,000         11,783,000   
     

 

 

  
   $ 49,595,100   
     

 

 

  

 

5

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  
Transportation — 10.4%      

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

    $ 8,275       $ 9,349,178   

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

      3,285         3,912,829   

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

      4,640         5,283,011   

Metropolitan Transportation Authority, NY, 5.25%, 11/15/40

      6,735         7,566,705   

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

      10,940         12,119,223   

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.00%, 12/15/24

      10,000         12,287,200   

New York Thruway Authority, 5.00%, 1/1/37

      780         880,909   

New York Thruway Authority, 5.00%, 1/1/42

      4,695         5,255,865   

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

      2,915         3,267,569   

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

      2,590         2,874,071   

Pennsylvania Turnpike Commission, 6.00%, (0.00% until 12/1/15), 12/1/34

      5,000         4,884,200   

Port Authority of New York and New Jersey, 4.00%, 7/15/32(1)

      9,650         10,476,619   

Port Authority of New York and New Jersey, 4.75%, 7/15/31

      4,300         4,770,506   

Port Authority of New York and New Jersey, 5.00%, 7/15/39

      5,000         5,682,800   

Texas Transportation Commission, (Central Texas Turnpike System), 5.00%, 8/15/41

      5,320         5,787,734   

Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/33

      5,000         5,634,000   
     

 

 

  
   $ 100,032,419   
     

 

 

  
Water and Sewer — 7.7%      

California Department of Water Resources, (Central Valley Project), 5.25%, 12/1/35(1)

    $ 10,000       $ 12,173,100   

Charleston, SC, Waterworks and Sewer Revenue, 5.00%, 1/1/35

      2,735         3,192,374   

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

      5,000         5,661,450   

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

      1,070         1,137,785   

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

      1,785         1,929,853   

Honolulu, HI, City and County Wastewater System, 5.25%, 7/1/36(1)

      9,750         11,509,387   

King County, WA, Sewer Revenue, 5.00%, 1/1/34(1)

      10,000         11,539,900   

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

      1,445         1,622,735   

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

      6,325         7,038,713   

New York Municipal Water Finance Authority, 5.00%, 6/15/34

      10,000         11,568,600   

Portland, OR, Water System, 5.00%, 5/1/36

      5,385         6,253,385   
     

 

 

  
   $ 73,627,282   
     

 

 

  

Total Tax-Exempt Municipal Securities — 161.7%
(identified cost $1,420,632,310)

       $ 1,553,380,256   
     

 

 

  

Corporate Bonds & Notes — 0.0%(3)

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Municipal — 0.0%(3)

  

Las Vegas Monorail Co., Jr. Subordinated Notes, 3.00% to 12/31/15, 5.50%, 7/15/55(4)(5)

    $ 125       $ 0   

Las Vegas Monorail Co., Sr. Secured Notes, 5.50%, 7/15/19(4)(5)

      416         208,140   
     

 

 

  

Total Corporate Bonds & Notes — 0.0%(3)
(identified cost $0)

       $ 208,140   
     

 

 

  

Total Investments — 161.7%
(identified cost $1,420,632,310)

       $ 1,553,588,396   
     

 

 

  

Other Assets, Less Liabilities — (61.7)%

       $ (592,981,498 ) 
     

 

 

  

Net Assets — 100.0%

       $ 960,606,898   
     

 

 

  

 

6

 

 

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

 

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.
PSF   -   Permanent School Fund
XLCA   -   XL Capital Assurance, Inc.

At December 31, 2012, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments, is as follows:

 

California

      12.9 % 

Texas

      12.7 % 

New York

      12.2 % 

Others, representing less than 10% individually

      62.2 % 

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, 2012, 56.8% 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 ranged from 1.1% to 20.2% 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) Amount is less than 0.05%.

 

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

 

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

A summary of open financial instruments at December 31, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
3/13    333 U.S. 30-Year Treasury Bond    Short    $ (49,946,789 )    $ (49,117,500 )    $ 829,289   

At December 31, 2012, 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, 2012, 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 $829,289.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     804,822,106   
  

 

 

  

Gross unrealized appreciation

    $ 159,681,064   

Gross unrealized depreciation

      (24,244,774 ) 
  

 

 

  

Net unrealized appreciation

    $ 135,436,290   
  

 

 

  

 

7

 

 

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, 2012, 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

    $ —       $ 1,553,380,256       $ —       $ 1,553,380,256   

Corporate Bonds & Notes

      —         —         208,140         208,140   

Total Investments

    $ —       $     1,553,380,256       $     208,140       $     1,553,588,396   

Futures Contracts

    $     829,289       $ —       $ —       $ 829,289   

Total

    $ 829,289       $ 1,553,380,256       $ 208,140       $ 1,554,417,685   

 

* 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, 2012 is not presented. At December 31, 2012, 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.

 

8

 

 

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

 

By:   /s/ Thomas M. Metzold
  Thomas M. Metzold
  President
Date:   February 22, 2013

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/ Thomas M. Metzold
  Thomas M. Metzold
  President
Date:   February 22, 2013

 

By:   /s/ Barbara E. Campbell
  Barbara E. Campbell
  Treasurer
Date:   February 22, 2013