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, 2018

Date of Reporting Period

 

 

 


Item 1. Schedule of Investments


Eaton Vance

Municipal Bond Fund

December 31, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 166.3%

 

                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

Education — 17.8%

   

Connecticut Health and Educational Facilities Authority, (Fairfield University), 4.00%, 7/1/47

  $ 13,880     $ 13,939,545  

Connecticut Health and Educational Facilities Authority, (Fairfield University), 5.00%, 7/1/46

    3,250       3,555,467  

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

    3,985       4,368,915  

Massachusetts Development Finance Agency, (Boston College), 5.00%, 7/1/42

    20       22,803  

Massachusetts Development Finance Agency, (Boston College), 5.00%, 7/1/42(1)

    9,525       10,859,833  

Massachusetts Development Finance Agency, (Boston University), (LOC: TD Bank, N.A.), 1.60%, 10/1/42(2)

    1,750       1,750,000  

Massachusetts Development Finance Agency, (Harvard University), 5.00%, 7/15/33(1)

    3,000       3,536,850  

Massachusetts Development Finance Agency, (Milton Academy), 5.00%, 9/1/35

    750       783,293  

Massachusetts Development Finance Agency, (Williams College), 5.00%, 7/1/46(1)

    2,000       2,262,380  

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

    5,710       7,154,573  

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

    8,325       10,544,528  

Massachusetts Health and Educational Facilities Authority, (Northeastern University), 5.00%, 10/1/35

    870       906,871  

New Jersey Educational Facilities Authority, (Princeton University), 4.00%, 7/1/47(1)

    10,000       10,552,800  

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/38

    65       76,285  

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/38(1)

    8,500       9,975,685  

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

    15,300       15,514,812  

North Carolina Capital Facilities Finance Agency, (Duke University), 5.00%, 10/1/41(1)

    10,000       11,232,000  

South Carolina Educational Facilities Authority for Private Nonprofit Institutions of Higher Learning, (Furman University), (SPA: Wells Fargo Bank, N.A.), 1.65%, 10/1/39(2)

    12,650       12,650,000  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    720       729,900  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    2,460       2,493,825  

University of Cincinnati, OH, 5.00%, 6/1/45(1)

    6,000       6,762,480  

University of Massachusetts Building Authority, 5.00%, 11/1/39(1)

    14,175       15,433,456  

University of Michigan, 5.00%, 4/1/40(1)

    15,000       16,939,650  

University of Michigan, 5.00%, 4/1/48(1)

    3,500       4,033,855  
   

 

 

 
    $ 166,079,806  
   

 

 

 

Electric Utilities — 5.4%

   

Energy Northwest, WA, (Columbia Generating Station), 5.00%, 7/1/40

  $ 2,320     $ 2,574,504  

Michigan Public Power Agency, 5.00%, 1/1/43

    700       731,024  

Nebraska Public Power District, 5.00%, 1/1/34

    5,000       5,694,350  

Omaha Public Power District, NE, 5.00%, 2/1/40

    225       250,394  

Omaha Public Power District, NE, 5.00%, 2/1/40(1)

    10,000       11,128,600  

Omaha Public Power District, NE, 5.00%, 2/1/42(1)

    10,000       11,394,000  

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

    10,000       10,446,900  

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

    3,425       3,655,879  

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

    4,500       5,000,760  
   

 

 

 
    $ 50,876,411  
   

 

 

 

 

1

 

 


                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

Escrowed/Prerefunded — 19.8%

   

California Department of Water Resources, Prerefunded to 12/1/20, 5.25%, 12/1/35(1)

  $ 9,715     $ 10,379,700  

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), Prerefunded to 8/15/19, 5.00%, 8/15/39

    11,570       11,813,086  

Comstock Park Public Schools, MI, Prerefunded to 5/1/21, 5.25%, 5/1/33

    60       64,554  

Connecticut Health and Educational Facilities Authority, (Wesleyan University), Prerefunded to 7/1/20, 5.00%, 7/1/39(1)

    14,700       15,395,016  

Delaware River Port Authority of Pennsylvania and New Jersey, Prerefunded to 1/1/20, 5.00%, 1/1/35

    8,275       8,531,525  

Honolulu City and County, HI, Wastewater System, Prerefunded to 7/1/21, 5.25%, 7/1/36(1)

    9,750       10,564,417  

Houston Higher Education Finance Corp., TX, (William Marsh Rice University), Prerefunded to 5/15/20, 5.00%, 5/15/35(1)

    15,000       15,640,650  

Kalamazoo Hospital Finance Authority, MI, (Bronson Healthcare Group), Prerefunded to 5/15/21, 5.25%, 5/15/33

    430       462,654  

King County, WA, Sewer Revenue, Prerefunded to 1/1/21, 5.00%, 1/1/34(1)

    4,000       4,251,280  

King County, WA, Sewer Revenue, Prerefunded to 1/1/21, 5.00%, 1/1/34(1)

    6,000       6,364,740  

Marco Island, FL, Utility System, Prerefunded to 10/1/20, 5.00%, 10/1/34

    1,445       1,524,533  

Marco Island, FL, Utility System, Prerefunded to 10/1/20, 5.00%, 10/1/40

    6,325       6,673,128  

Maryland Health and Higher Educational Facilities Authority, (Charlestown Community, Inc.), Prerefunded to 1/1/21, 6.125%, 1/1/30

    1,175       1,270,986  

Massachusetts Health and Educational Facilities Authority, (Isabella Stewart Gardner Museum), Prerefunded to 5/1/19, 5.00%, 5/1/29

    490       495,184  

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), Prerefunded to 7/1/19, 5.00%, 7/1/34

    500       508,040  

Massachusetts Health and Educational Facilities Authority, (Partners HealthCare System), Prerefunded to 7/1/19, 5.00%, 7/1/39

    750       762,060  

Metropolitan Transportation Authority, NY, Prerefunded to 11/15/20, 5.25%, 11/15/40

    4,735       5,042,444  

Metropolitan Transportation Authority, NY, Prerefunded to 11/15/21, 5.25%, 11/15/38

    4,640       5,094,766  

Mississippi, Prerefunded to 10/1/21, 5.00%, 10/1/30(1)

    10,000       10,847,300  

Mississippi, Prerefunded to 10/1/21, 5.00%, 10/1/36(1)

    12,075       13,098,115  

North Carolina Capital Facilities Finance Agency, (Duke University), Prerefunded to 4/1/19, 5.00%, 10/1/38(1)

    13,500       13,610,430  

North Carolina, Limited Obligation Bonds, Prerefunded to 5/1/21, 5.00%, 5/1/30(1)

    10,000       10,726,100  

Oregon, Prerefunded to 8/2/21, 5.00%, 8/1/36

    1,140       1,227,974  

Oregon Department of Administrative Services, Lottery Revenue, Prerefunded to 4/1/21, 5.25%, 4/1/30

    6,425       6,904,369  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 6.00%, 12/1/34

    720       776,124  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 6.00%, 12/1/34

    760       819,242  

Pennsylvania Turnpike Commission, Prerefunded to 12/1/20, 6.00%, 12/1/34

    3,520       3,794,384  

Tarrant County Cultural Education Facilities Finance Corp., TX, (Scott & White Healthcare), Prerefunded to 8/15/20, 5.25%, 8/15/40

    450       474,026  

Tarrant County Cultural Education Facilities Finance Corp., TX, (Scott & White Healthcare), Prerefunded to 8/15/20, 5.25%, 8/15/40

    5,655       5,956,920  

University of California, Prerefunded to 5/15/19, 5.25%, 5/15/39

    1,270       1,287,463  

University of Colorado, (University Enterprise Revenue), Prerefunded to 6/1/21,
5.25%, 6/1/36(1)

    10,000       10,807,800  
   

 

 

 
    $ 185,169,010  
   

 

 

 

General Obligations — 23.2%

   

Boston, MA, 5.00%, 5/1/38(1)

  $ 2,000     $ 2,353,540  

California, 5.00%, 10/1/33(1)

    18,800       21,203,204  

California, 5.00%, 8/1/46(1)

    15,000       16,911,300  

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

    8,320       8,596,474  

 

2

 

 


                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

Comstock Park Public Schools, MI, 5.125%, 5/1/31

  $ 205     $ 218,817  

Comstock Park Public Schools, MI, 5.25%, 5/1/33

    105       112,249  

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

    3,000       3,814,050  

District of Columbia, 5.00%, 6/1/43(1)

    12,000       13,774,560  

Humble Independent School District, TX, (PSF Guaranteed), 5.00%, 2/15/43(1)

    20,000       22,570,000  

Jackson Public Schools, MI, 5.00%, 5/1/48(1)

    2,150       2,404,667  

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

    2,000       2,113,940  

Massachusetts, 5.00%, 9/1/38(1)

    10,000       11,620,700  

Morgan Hill Unified School District, CA, (Election of 2012), 4.00%, 8/1/47(1)

    10,000       10,382,600  

New York, NY, 5.00%, 10/1/32

    10,000       10,902,900  

Ocean City, NJ, 1.00%, 11/15/28

    2,295       1,955,409  

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

    6,750       7,233,300  

Oregon, 5.00%, 8/1/36

    860       919,116  

Plymouth, MA, 5.00%, 5/1/31

    225       239,477  

Plymouth, MA, 5.00%, 5/1/32

    205       217,950  

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

    7,500       7,851,975  

Tacoma School District No. 10, WA, 5.00%, 12/1/39(1)

    10,000       11,253,000  

Trenton Public Schools, MI, 5.00%, 5/1/42(1)

    2,150       2,428,403  

Walled Lake Consolidated School District, MI, 5.00%, 5/1/34

    635       705,529  

Washington, 4.00%, 7/1/28(1)

    10,000       10,553,900  

Washington, 5.00%, 2/1/35(1)

    18,250       20,320,645  

Washington, 5.00%, 2/1/38(1)

    10,000       11,561,600  

Wayland, MA, 5.00%, 2/1/33

    340       360,295  

Wayland, MA, 5.00%, 2/1/36

    510       539,692  

Will County, IL, 5.00%, 11/15/45(1)

    12,100       13,377,639  

Winchester, MA, 5.00%, 4/15/36

    160       170,213  
   

 

 

 
    $ 216,667,144  
   

 

 

 

Hospital — 10.5%

   

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

  $ 1,000     $ 1,067,940  

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

    1,770       1,891,033  

Grand Traverse Hospital Finance Authority, MI, (Munson Healthcare Obligated Group), 5.375%, 7/1/35

    750       811,103  

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

    2,790       3,094,863  

Kent Hospital Finance Authority, MI, (Spectrum Health System), 5.00%, 1/15/31

    750       798,555  

Massachusetts Development Finance Agency, (Partners HealthCare System), 5.00%, 7/1/41(1)

    10,000       11,064,600  

Massachusetts Development Finance Agency, (Partners HealthCare System), 5.00%, 7/1/47(1)

    2,375       2,614,637  

Massachusetts Health and Educational Facilities Authority, (Dana-Farber Cancer Institute), 5.00%, 12/1/37

    775       780,898  

Massachusetts Health and Educational Facilities Authority, (Southcoast Health System), 5.00%, 7/1/29

    1,000       1,015,480  

Michigan Finance Authority, (Oakwood Obligated Group), 5.00%, 11/1/32

    500       544,580  

Michigan Finance Authority, (Trinity Health Credit Group), 5.00%, 12/1/42(1)

    7,300       8,167,386  

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

    4,385       4,867,043  

Ohio Higher Educational Facility Commission, (Cleveland Clinic Health System), 5.00%, 1/1/32

    10,950       11,807,385  

Royal Oak Hospital Finance Authority, MI, (William Beaumont Hospital), 5.00%, 9/1/39

    1,000       1,081,010  

Tampa, FL, (BayCare Health System), 5.00%, 11/15/46(1)

    12,000       13,282,680  

Tarrant County Cultural Education Facilities Finance Corp., TX, (Baylor Scott & White Health), 5.00%, 11/15/45(1)

    10,000       11,027,700  

Vermont Educational and Health Buildings Financing Agency, (University of Vermont Medical Center), 4.00%, 12/1/42

    2,000       2,037,220  

 

3

 

 


                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

Vermont Educational and Health Buildings Financing Agency, (University of Vermont Medical Center), 5.00%, 12/1/33

  $ 1,600     $ 1,819,152  

West Virginia Hospital Finance Authority, (West Virginia United Health System Obligated Group), 5.375%, 6/1/38

    7,605       8,309,679  

Wisconsin Health and Educational Facilities Authority, (Ascension Health Alliance Senior Credit Group), 5.00%, 11/15/41(1)

    11,500       12,254,055  
   

 

 

 
    $ 98,336,999  
   

 

 

 

Housing — 0.4%

   

Seattle Housing Authority, WA, 3.50%, 12/1/38

  $ 2,245     $ 2,175,922  

Seattle Housing Authority, WA, 3.625%, 12/1/43

    1,000       965,690  

Tennessee Housing Development Agency, 3.90%, 7/1/42

    990       992,841  
   

 

 

 
    $ 4,134,453  
   

 

 

 

Industrial Development Revenue — 0.5%

   

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

  $ 4,245     $ 4,346,286  
   

 

 

 
    $ 4,346,286  
   

 

 

 

Insured – Bond Bank — 0.1%

   

Puerto Rico Municipal Finance Agency, (AGM), 5.00%, 8/1/27

  $ 700     $ 721,602  
   

 

 

 
    $ 721,602  
   

 

 

 

Insured – Education — 2.5%

   

Massachusetts College Building Authority, (XLCA), 5.50%, 5/1/39

  $ 700     $ 910,000  

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

    1,105       1,362,089  

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

    15,900       20,171,694  

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

    750       951,495  
   

 

 

 
    $ 23,395,278  
   

 

 

 

Insured – Electric Utilities — 0.8%

   

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

  $ 4,905     $ 5,402,416  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/23

    1,095       1,142,096  

Puerto Rico Electric Power Authority, (NPFG), 5.25%, 7/1/26

    610       639,140  
   

 

 

 
    $ 7,183,652  
   

 

 

 

Insured – Escrowed/Prerefunded — 5.7%

   

American Municipal Power-Ohio, Inc., OH, (Prairie State Energy Campus), (AGC), Prerefunded to 2/15/19, 5.75%, 2/15/39

  $ 5,000     $ 5,024,000  

Iowa Finance Authority, Health Facilities, (Iowa Health System), (AGC), Prerefunded to 8/15/19, 5.625%, 8/15/37

    2,625       2,686,582  

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

    13,145       12,344,207  

Massachusetts College Building Authority, (NPFG), Escrowed to Maturity, 0.00%, 5/1/26

    1,600       1,327,904  

Massachusetts Health and Educational Facilities Authority, (Cape Cod Healthcare), (AGC), Prerefunded to 11/15/19, 5.00%, 11/15/25

    220       226,061  

Michigan Hospital Finance Authority, (St. John Health System), (AMBAC), Escrowed to Maturity, 5.00%, 5/15/28

    1,135       1,213,440  

Michigan House of Representatives, (AMBAC), Escrowed to Maturity, 0.00%, 8/15/23

    2,615       2,357,292  

Paducah Electric Plant Board, KY, (AGC), Prerefunded to 4/1/19, 5.25%, 10/1/35

    2,735       2,758,630  

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/24

    1,985       2,032,898  

 

4

 

 


                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

Palm Beach County Solid Waste Authority, FL, (BHAC), Prerefunded to 10/1/19, 5.00%, 10/1/26

  $ 1,575     $ 1,613,005  

Palm Springs Unified School District, CA, (AGC), Prerefunded to 8/1/19, 5.00%, 8/1/32

    8,955       9,134,010  

Revere, MA, (AGC), Prerefunded to 4/1/19, 5.00%, 4/1/39

    1,000       1,008,150  

Texas Transportation Commission, (Central Texas Turnpike System), (AMBAC), Escrowed to Maturity, 0.00%, 8/15/20

    5,570       5,397,943  

Washington Health Care Facilities Authority, (MultiCare Health System), (AGC), Prerefunded to 8/15/19, 6.00%, 8/15/39

    5,795       5,942,367  
   

 

 

 
    $ 53,066,489  
   

 

 

 

Insured – General Obligations — 6.3%

   

Bay City Brownfield Redevelopment Authority, (BAM), 5.375%, 10/1/38

  $ 500     $ 553,060  

Chicago Park District, IL, (Limited Tax Park), (BAM), 5.00%, 1/1/39

    35       37,353  

Chicago Park District, IL, (Limited Tax Park), (BAM), 5.00%, 1/1/39(1)

    13,600       14,514,464  

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

    3,750       4,753,425  

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

    11,845       10,370,061  

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

    9,530       8,294,721  

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

    16,605       15,391,673  

Livonia Public Schools, MI, (AGM), 5.00%, 5/1/43

    750       824,490  

Massachusetts, (AMBAC), 5.50%, 8/1/30

    1,900       2,425,920  

Okemos Public Schools, MI, (NPFG), 0.00%, 5/1/19

    1,330       1,320,903  

Westland Tax Increment Finance Authority, MI, (BAM), 5.25%, 4/1/34

    500       546,795  
   

 

 

 
    $ 59,032,865  
   

 

 

 

Insured – Hospital — 1.4%

   

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

  $ 13,115     $ 13,348,840  
   

 

 

 
    $ 13,348,840  
   

 

 

 

Insured – Industrial Development Revenue — 1.0%

   

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

  $ 9,000     $ 9,188,100  
   

 

 

 
    $ 9,188,100  
   

 

 

 

Insured – Other Revenue — 1.7%

   

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

  $ 16,795     $ 8,688,557  

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

    6,750       6,815,813  
   

 

 

 
    $ 15,504,370  
   

 

 

 

Insured – Special Tax Revenue — 5.5%

   

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

  $ 15,975     $ 15,785,696  

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

    18,035       15,511,904  

Massachusetts, Dedicated Tax Revenue, (NPFG), 5.50%, 1/1/29

    750       946,380  

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

    15,000       19,349,250  
   

 

 

 
    $ 51,593,230  
   

 

 

 

Insured – Student Loan — 0.4%

   

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

  $ 3,270     $ 3,313,033  
   

 

 

 
    $ 3,313,033  
   

 

 

 

Insured – Transportation — 8.0%

   

Chicago, IL, (O’Hare International Airport), (AGM), 5.00%, 1/1/28

  $ 2,500     $ 2,744,175  

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

    1,000       1,094,870  

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

    1,800       1,977,120  

 

5

 

 


                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

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

  $ 1,570     $ 1,721,364  

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

    1,015       1,113,993  

Chicago, IL, (O’Hare International Airport), (AGM), 5.25%, 1/1/33

    1,150       1,259,883  

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

    8,080       8,296,059  

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

    10,200       9,559,950  

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

    25,000       9,614,750  

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

    1,785       1,825,519  

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

    1,605       1,290,484  

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

    1,950       1,498,809  

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

    1,000       733,320  

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

    26,215       21,696,845  

Texas Transportation Commission, (Central Texas Turnpike System), (AMBAC), 0.00%, 8/15/20

    10,275       9,925,855  
   

 

 

 
    $ 74,352,996  
   

 

 

 

Insured – Water and Sewer — 4.9%

   

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

  $ 13,670     $ 12,189,676  

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

    10,000       11,878,500  

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

    5,540       7,114,911  

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

    1,070       1,392,766  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/31

    1,500       1,662,945  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/32

    2,615       2,892,059  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/33

    2,240       2,471,347  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/35

    2,730       3,010,507  

Michigan Finance Authority, (Detroit Water and Sewerage Department), (AGM), 5.00%, 7/1/37

    2,240       2,461,805  

Puerto Rico Aqueduct and Sewer Authority, (AGC), 5.00%, 7/1/28

    355       365,657  
   

 

 

 
    $ 45,440,173  
   

 

 

 

Lease Revenue/Certificates of Participation — 2.5%

   

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

  $ 755     $ 809,466  

Hudson Yards Infrastructure Corp., NY, Prerefunded to 2/15/21, 5.75%, 2/15/47

    1,225       1,326,626  

Michigan State Building Authority, 5.00%, 10/15/51(1)

    2,200       2,423,036  

North Carolina, Limited Obligation Bonds, 5.00%, 5/1/26

    10       11,454  

North Carolina, Limited Obligation Bonds, 5.00%, 5/1/26(1)

    16,000       18,326,880  
   

 

 

 
    $ 22,897,462  
   

 

 

 

Other Revenue — 1.6%

   

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

  $ 10,750     $ 11,451,975  

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

    1,275       1,364,008  

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

    1,700       1,835,609  
   

 

 

 
    $ 14,651,592  
   

 

 

 

Senior Living/Life Care — 0.1%

   

Delaware Economic Development Authority, (ACTS Retirement-Life Communities, Inc. Obligated Group), 5.00%, 11/15/48

  $ 1,250     $ 1,348,912  
   

 

 

 
    $ 1,348,912  
   

 

 

 

 

6

 

 


                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

Special Tax Revenue — 19.6%

   

Central Puget Sound Regional Transit Authority, WA, Sales and Use Tax Revenue, Green Bonds, 5.00%, 11/1/30(1)

  $ 12,575     $ 14,528,023  

Central Puget Sound Regional Transit Authority, WA, Sales and Use Tax Revenue, Green Bonds, 5.00%, 11/1/41(1)

    10,000       11,326,000  

Connecticut, Special Tax Obligation, (Transportation Infrastructure), 5.00%, 1/1/31(1)

    20,000       21,534,200  

Denver City and County, CO, Dedicated Tax Revenue, 5.00%, 8/1/41(1)

    10,000       11,259,800  

Massachusetts School Building Authority, Dedicated Sales Tax Revenue, 5.00%, 8/15/37(1)

    20,200       22,736,716  

Massachusetts School Building Authority, Dedicated Sales Tax Revenue, 5.00%, 11/15/46(1)

    1,500       1,693,080  

Massachusetts, (Rail Enhancement and Accelerated Bridge Programs), 5.00%, 6/1/47(1)

    2,000       2,262,000  

Metropolitan Transportation Authority, NY, Dedicated Tax Revenue, Green Bonds, 5.00%, 11/15/47

    5,450       6,188,421  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 4.00%, 8/1/37(1)

    10,000       10,445,200  

New York City Transitional Finance Authority, NY, Future Tax Revenue, 4.00%, 5/1/42

    2,725       2,801,900  

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

    20,000       21,441,200  

New York Convention Center Development Corp., Hotel Occupancy Tax, 5.00%, 11/15/45(1)

    13,000       14,457,170  

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 6/15/31

    10,000       11,013,800  

New York Dormitory Authority, Sales Tax Revenue, 4.00%, 3/15/46(1)

    14,000       14,353,920  

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

    3,285       3,618,657  

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

    12,040       13,232,562  
   

 

 

 
    $ 182,892,649  
   

 

 

 

Transportation — 14.4%

   

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/36

  $ 6,000     $ 6,648,240  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/38

    2,105       2,318,594  

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/38

    1,500       1,701,915  

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

    3,205       3,583,254  

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

    4,950       5,517,567  

Illinois Toll Highway Authority, 5.00%, 1/1/37(1)

    10,000       11,113,400  

Illinois Toll Highway Authority, 5.00%, 1/1/41(1)

    10,425       11,534,845  

Kansas Department of Transportation, 5.00%, 9/1/35(1)

    10,000       11,406,300  

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

    3,285       3,441,366  

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/32

    1,000       1,028,190  

Massachusetts Department of Transportation, (Metropolitan Highway System), 5.00%, 1/1/37

    500       513,795  

Massachusetts Port Authority, 5.00%, 7/1/34

    435       452,744  

Metropolitan Transportation Authority, NY, 5.25%, 11/15/32

    4,380       4,897,234  

Metropolitan Transportation Authority, NY, Green Bonds, 4.00%, 11/15/38

    1,595       1,623,662  

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

    10,825       11,244,144  

Miami-Dade County, FL, Aviation Revenue, 5.00%, 10/1/37

    4,615       5,090,807  

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

    10,000       11,065,000  

New Jersey Turnpike Authority, 4.00%, 1/1/43

    3,500       3,587,780  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/35

    2,305       2,410,477  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/35

    610       638,377  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/40

    1,010       1,056,218  

Orlando-Orange County Expressway Authority, FL, Prerefunded to 7/1/20, 5.00%, 7/1/40

    1,580       1,653,502  

Port Authority of New York and New Jersey, 4.00%, 9/1/43(1)

    10,000       10,348,400  

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

    14,360       16,093,826  

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

    5,000       5,209,150  
   

 

 

 
    $ 134,178,787  
   

 

 

 

 

7

 

 


                                                 
Security   Principal
Amount
(000’s omitted)
    Value  

Water and Sewer — 12.2%

   

Charleston, SC, Waterworks and Sewer Revenue, 5.00%, 1/1/45(1)

  $ 25,000     $ 27,928,000  

Dallas, TX, Waterworks and Sewer System Revenue, 5.00%, 10/1/41(1)

    15,000       16,915,200  

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

    1,070       1,147,479  

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

    1,965       2,109,958  

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

    2,910       3,096,531  

Grand Rapids, MI, Sanitary Sewer System Revenue, 5.00%, 1/1/43(1)

    2,500       2,838,850  

Massachusetts Water Resources Authority, Green Bonds, 5.00%, 8/1/40(1)

    2,000       2,254,840  

Metropolitan St. Louis Sewer District, MO, 5.00%, 5/1/35(1)

    8,750       9,951,287  

Metropolitan St. Louis Sewer District, MO, 5.00%, 5/1/36(1)

    7,925       8,973,478  

New York City Municipal Water Finance Authority, NY, 5.00%, 6/15/31

    10,000       10,960,100  

New York City Municipal Water Finance Authority, NY, (Water and Sewer System), (SPA: State Street Bank and Trust Co.), 1.68%, 6/15/49(2)

    4,500       4,500,000  

Port Huron, Water Supply System, MI, 5.25%, 10/1/31

    250       268,805  

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

    5,385       5,736,533  

Texas Water Development Board, 5.00%, 10/15/40(1)

    15,500       17,470,360  
   

 

 

 
    $ 114,151,421  
   

 

 

 

Total Tax-Exempt Investments — 166.3%
(identified cost $1,480,923,462)

    $ 1,551,871,560  
   

 

 

 

Other Assets, Less Liabilities — (66.3)%

 

  $ (618,716,182
   

 

 

 

Net Assets — 100.0%

 

  $ 933,155,378  
   

 

 

 

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

At December 31, 2018, the concentration of the Fund’s investments in the various states and territories, determined as a percentage of total investments, is as follows:

 

                        

New York

     14.4

Texas

     10.5

Others, representing less than 10% individually

     75.1

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, 2018, 22.9% 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 0.3% to 6.2% of total investments.

 

(1)

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

 

(2)

Variable rate demand obligation that may be tendered at par on any day for payment the same or next business day. The stated interest rate, which generally resets daily, is determined by the remarketing agent and represents the rate in effect at December 31, 2018.

 

8

 

 


Futures Contracts

 

                                                                                                                            

Description

   Number of
Contracts
     Position      Expiration
Date
     Notional
Amount
    Value/
Unrealized
Depreciation
 

Interest Rate Futures

             

U.S. Long Treasury Bond

     229        Short        3/20/19      $ (33,434,000   $ (1,570,024
             

 

 

 
              $ (1,570,024
             

 

 

 

Abbreviations:

 

AGC

  -   Assured Guaranty Corp.

AGM

  -   Assured Guaranty Municipal Corp.

AMBAC

  -   AMBAC Financial Group, Inc.

BAM

  -   Build America Mutual Assurance Co.

BHAC

  -   Berkshire Hathaway Assurance Corp.

FGIC

  -   Financial Guaranty Insurance Company

LOC

  -   Letter of Credit

NPFG

  -   National Public Finance Guarantee Corp.

PSF

  -   Permanent School Fund

SPA

  -   Standby Bond Purchase Agreement

XLCA

  -   XL Capital Assurance, Inc.
 

 

At December 31, 2018, the Fund had sufficient cash and/or securities to cover commitments under open derivative contracts.

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

At December 31, 2018, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is interest rate risk was $1,570,024.

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, 2018, 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 Investments

   $      $ 1,551,871,560      $     —      $     1,551,871,560  

Total Investments

   $      $     1,551,871,560      $      $ 1,551,871,560  
Liability Description                                

Futures Contracts

   $     (1,570,024    $      $      $ (1,570,024

Total

   $ (1,570,024    $      $      $ (1,570,024

 

9

 

 


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.

Reorganizations

As of the close of business on December 14, 2018, the Fund acquired the net assets of Eaton Vance Massachusetts Municipal Bond Fund (Massachusetts Fund) and Eaton Vance Michigan Municipal Bond Fund (Michigan Fund) pursuant to Agreements and Plans of Reorganization approved by the respective shareholders of Massachusetts Fund and Michigan Fund. The investment portfolios of Massachusetts Fund and Michigan Fund, with a fair value of $38,996,775 and $34,639,956, respectively, and identified cost of $37,519,639 and $33,730,348, respectively, were the principal assets acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the identified cost of the investments received from Massachusetts Fund and Michigan Fund were carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The aggregate net assets of the Fund immediately before the acquisition were $877,422,524. The net assets of Massachusetts Fund and Michigan Fund at that date of $25,238,430 and $21,836,875, respectively, were combined with those of the Fund, resulting in combined net assets of $924,497,829.

Subsequent Events

On December 20, 2018, the shareholders of Eaton Vance Ohio Municipal Bond Fund (Ohio Fund), Eaton Vance New Jersey Municipal Bond Fund (New Jersey Fund) and Eaton Vance Pennsylvania Municipal Bond Fund (Pennsylvania Fund) approved Agreements and Plans of Reorganization providing for the reorganization of the Ohio Fund, New Jersey Fund and Pennsylvania Fund into the Fund. The transactions were completed as of the close of business on January 18, 2019.

The Special Meeting of Shareholders held on December 20, 2018 relating to the reorganization of Eaton Vance Municipal Bond Fund II into the Fund was adjourned until January 24, 2019. At the January 24, 2019 reconvened meeting, the meeting was further adjourned until February 8, 2019, at which time the meeting was adjourned to February 28, 2019.

 

10

 

 


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.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.


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/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 25, 2019

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 25, 2019
By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 25, 2019