FORM N-Q
Investment Company Act file number: 811-21036
BlackRock Municipal Bond Trust
(Exact name of registrant as specified in charter)
100 Bellevue Parkway, Wilmington, DE | 19809 |
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Registrant's telephone number, including area code: 888-825-2257
Date of fiscal year end: August 31, 2006
Date of reporting period: May 31, 2006
Item 1. Schedule of Investments.
The Registrants unaudited schedule of investments as of the close of the reporting period pursuant to Rule 30b1-5 under the Investment Company Act of 1940 is as follows:
PORTFOLIO OF INVESTMENTS (unaudited)
MAY 31, 2006
BlackRock Municipal Bond Trust (BBK)
Principal | |||||||||
Amount | Option Call | ||||||||
Rating1 | (000) | Description | Provisions2 | Value | |||||
LONG-TERM INVESTMENTS151.7% | |||||||||
Alabama6.5% | |||||||||
Birmingham Wtr. Wks. & Swr. Brd. RB, | |||||||||
AAA | $ 470 | Ser. A, 4.50%, 1/01/35, FSA | 01/16 @ 100 | $ 453,141 | |||||
AAA | 1,485 | Ser. A, 5.00%, 1/01/40, FSA | 01/16 @ 100 | 1,520,120 | |||||
AAA | 895 | Ser. A, 5.00%, 1/01/43, FSA | 01/16 @ 100 | 914,780 | |||||
A2 | 7,500 | Huntsville Hlth. Care Auth. RB, Ser. A, 5.75%, 6/01/31 | 06/11 @ 101 | 7,831,350 | |||||
10,719,391 | |||||||||
Arizona0.7% | |||||||||
San. Luis Fac. Dev. Corp. RB, Regl. Detention Ctr. Proj., | |||||||||
NR | 300 | 6.25%, 5/01/15 | 05/10 @ 107 | 299,229 | |||||
NR | 300 | 7.00%, 5/01/20 | 05/10 @ 107 | 298,986 | |||||
NR | 600 | 7.25%, 5/01/27 | 05/10 @ 107 | 602,484 | |||||
1,200,699 | |||||||||
California9.5% | |||||||||
California Cnty. Tobacco RB, | |||||||||
BBB- | 850 | Ser. B, Zero Coupon, 6/01/46 | 06/16 @ 17.602 | 71,425 | |||||
BB | 4,500 | Ser. C, Zero Coupon, 6/01/55 | 06/16 @ 8.90 | 170,820 | |||||
NR | 5,750 | Ser. D, Zero Coupon, 6/01/55 | 06/16 @ 6.219 | 146,050 | |||||
California St. GO, | |||||||||
A+ | 3,000 | 5.00%, 2/01/32 | 08/13 @ 100 | 3,046,680 | |||||
A+ | 1,800 | 5.00%, 6/01/34 | 12/14 @ 100 | 1,829,862 | |||||
Golden St. Tobacco Sec. Corp. RB, 5.00%, 6/01/45, AMBAC | 06/15 @ 100 | 6,076,615 | |||||||
AA- | 2,660 | Univ. of California Ltd. Proj. RB, Ser. B, 4.75%, 5/15/38 | 05/13 @ 101 | 2,625,447 | |||||
NR | 1,585 | Val Verde Unified Sch. Dist. Fin. Auth. ST, 6.25%, 10/01/28 | 10/13 @ 102 | 1,647,909 | |||||
15,614,808 | |||||||||
Colorado0.8% | |||||||||
Baa2 | 635 | Park Creek Met. Dist. Ppty. Tax RB, 5.50%, 12/01/37 | 12/15 @ 101 | 646,976 | |||||
AAA | 635 | Springs Co. Utils. RB, Ser. C, 5.00%, 11/15/45, FSA | 11/15 @ 100 | 645,986 | |||||
1,292,962 | |||||||||
District of Columbia11.1% | |||||||||
A | 595 | Friendship Pub. Charter Sch. RB, Income Proj., 5.25%, 6/01/33, ACA | 06/14 @ 100 | 598,856 | |||||
AAA | 6,000 | TA, Gallary Place Proj., 5.40%, 7/01/31, FSA | 07/12 @ 100 | 6,287,160 | |||||
AAA | 33,450 | Georgetown Univ. RB, Ser. A, Zero Coupon, 4/01/38, MBIA | 04/11 @ 20.243 | 5,274,061 | |||||
BBB | 5,580 | Tobacco Settlement Financing Corp. RB, 6.75%, 5/15/40 | 05/11 @ 101 | 6,014,236 | |||||
18,174,313 | |||||||||
Florida18.9% | |||||||||
AAA | 770 | JEA Wtr. & Swr. Sys. RB, Ser. A, 4.75%, 10/01/36, MBIA | 04/11 @ 100 | 760,198 | |||||
BB+ | 6,200 | Martin Cnty. Indl. Dev. Auth. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%, | |||||||
12/15/25 | 07/06 @ 101 | 6,340,492 | |||||||
BB+ | 2,810 | Miami Beach Hlth. Facs. Auth. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21 | 11/14 @ 100 | 3,132,082 | |||||
A+ | 10,000 | Orange Cnty. Hlth. Facs. Auth. RB, Adventist Hlth. Sys. Hosp. Proj., 5.625%, | |||||||
11/15/32 | 11/12 @ 101 | 10,548,800 | |||||||
AAA | 1,845 | Orange Cnty. Tourist Dev. Tax RB, 4.75%, 10/01/32 | 10/16 @ 100 | 1,842,122 | |||||
AAA | 7,255 | Palm Beach Cnty. Hsg. Fin. Auth. Multi-Fam. RB, Indian Trace Apts. Proj., Ser. A, | |||||||
5.625%, 1/01/44, FSA | 01/12 @ 100 | 7,416,278 | |||||||
NR | 990 | Stevens Plantation Cmnty. Dev. Dist. SA, Ser. A, 7.10%, 5/01/35 | 05/14 @ 100 | 1,028,046 | |||||
31,068,018 | |||||||||
Georgia5.0% | |||||||||
AAA | 3,000 | Atlanta Arpt. Passenger Fac. RB, Ser. J, 5.00%, 1/01/34, FSA | 01/15 @ 100 | 3,075,570 | |||||
AAA | 5,000 | Atlanta Wtr. & Wstwtr. RB, 5.00%, 11/01/37, FSA | 11/14 @ 100 | 5,113,400 | |||||
8,188,970 | |||||||||
Illinois20.8% | |||||||||
AAA | 23,065 | Bolingbrook GO, Ser. B, Zero Coupon, 1/01/36, FGIC | 01/12 @ 23.018 | 4,102,802 | |||||
NR | 1,150 | 3 | Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23 | No Opt. Call | 1,150,264 |
1
BlackRock Municipal Bond Trust (BBK) (continued)
Principal | |||||||||
Amount | Option Call | ||||||||
Rating1 | (000) | Description | Provisions2 | Value | |||||
Illinois(contd) | |||||||||
Chicago GO, | |||||||||
AAA | $ 4,285 | 4 | 5.50%, 1/01/11, MBIA | N/A | $ 4,639,069 | ||||
AAA | 1,540 | 5.50%, 1/01/38, MBIA | 01/11 @ 101 | 1,625,963 | |||||
AAA | 55 | 4 | Ser. A, 5.50%, 1/01/11, MBIA | N/A | 59,545 | ||||
BBB | 6,000 | Edl. Facs. Auth. Student Hsg. RB, Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, | |||||||
5/01/34 | 05/07 @ 100 | 6,112,680 | |||||||
Fin. Auth. RB, | |||||||||
BB+ | 420 | Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37 | 02/15 @ 100 | 422,789 | |||||
Baa2 | 525 | Student Hsg., MJH Ed. Asst. Living Proj., Ser. A, 5.125%, 6/01/35 | 06/14 @ 100 | 525,289 | |||||
Baa3 | 425 | Student Hsg., MJH Ed. Asst. Living Proj., Ser. B, 5.375%, 6/01/35 | 06/14 @ 100 | 425,166 | |||||
A | 6,000 | Hlth. Facs. Auth. RB, Lake Forest Hosp. Proj., Ser. A, 5.75%, 7/01/29 | 07/12 @ 100 | 6,316,260 | |||||
Met. Pier & Exposition Auth. Ded. St. Tax RB, McCormick Place Expansion Proj., | |||||||||
AAA | 10,000 | Ser. A, Zero Coupon, 6/15/35, MBIA | No Opt. Call | 2,425,500 | |||||
AAA | 10,000 | Ser. A, Zero Coupon, 12/15/36, MBIA | No Opt. Call | 2,247,600 | |||||
AAA | 10,000 | Ser. A, Zero Coupon, 12/15/37, MBIA | No Opt. Call | 2,133,800 | |||||
OHare Intl. Arpt. RB, | |||||||||
AAA | 1,000 | Ser. A, 5.00%, 1/01/29, MBIA | 01/15 @ 100 | 1,024,480 | |||||
AAA | 1,000 | Ser. A, 5.00%, 1/01/30, MBIA | 01/15 @ 100 | 1,023,060 | |||||
34,234,267 | |||||||||
Indiana2.4% | |||||||||
Aa2 | 1,970 | Multi-Fam. Hsg. RB, Canterbury House Apts. Proj., Ser. 1, 5.90%, 12/01/34 | 12/11 @ 100 | 2,039,206 | |||||
AAA | 1,950 | Mun. Pwr. Sply. Sys., RB, Ser. A, 4.50%, 1/01/32, AMBAC | 01/16 @ 100 | 1,861,529 | |||||
3,900,735 | |||||||||
Kansas3.2% | |||||||||
A- | 5,000 | Wichita Arpt. Auth. Arpt. Facs. RB, Cessna Citation Svc. Ctr. Proj., Ser. A, 6.25%, 6/15/32 | 06/12 @ 101 | 5,310,600 | |||||
Maryland3.3% | |||||||||
NR | 1,250 | Baltimore ST, Harborview Lot No. 2 Proj., 6.50%, 7/01/31 | 07/13 @ 101 | 1,322,400 | |||||
NR | 3,000 | Frederick Cnty. Urbana Cmnty. Dev. Auth. ST, Ser. B, 6.25%, 7/01/30 | 07/07 @ 102 | 3,033,960 | |||||
BBB+ | 1,040 | Hlth. & Higher Edl. Facs. Auth. RB, Medstar Hlth. Proj., 5.50%, 8/15/33 | 08/14 @ 100 | 1,075,235 | |||||
5,431,595 | |||||||||
Massachusetts0.2% | |||||||||
AA | 365 | St. Wtr. Res. Auth. Gen. RB, Ser. A, 5.00%, 8/01/41 | 08/16 @ 100 | 374,037 | |||||
Multi-State7.2% | |||||||||
Baa1 | 10,500 3 | Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52 | 10/14 @ 100 | 11,762,835 | |||||
Nebraska1.0% | |||||||||
AA | 1,760 | Omaha Pub. Pwr. Dist. Elec. Sys. RB, Ser. A, 4.75%, 2/01/44 | 02/14 @ 100 | 1,717,672 | |||||
Nevada0.9% | |||||||||
NR | 1,400 | Las Vegas Spec. Impvt. Dist. No. 809 RB, Summerlin Area Proj., 5.65%, 6/01/23 | 12/06 @ 103 | 1,420,132 | |||||
New Jersey9.7% | |||||||||
Econ. Dev. Auth., | |||||||||
BBB | 1,500 | RB, Cigarette Tax, 5.50%, 6/15/31 | 06/14 @ 100 | 1,558,245 | |||||
B | 3,000 | RB, Continental Airlines, Inc. Proj., 7.20%, 11/15/30 | 11/10 @ 101 | 3,050,250 | |||||
BBB- | 1,500 | RB, Winchester Proj., Ser. A, 5.80%, 11/01/31 | 11/14 @ 100 | 1,575,600 | |||||
Baa3 | 7,500 | SA, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/28 | No Opt. Call | 8,816,475 | |||||
NR | 915 | Middlesex Cnty. Impvt. Auth. RB, Heldrich Ctr. Hotel Proj., Ser. B, 6.25%, 1/01/37 | 01/15 @ 100 | 927,206 | |||||
15,927,776 | |||||||||
New York15.4% | |||||||||
NR | 455 | Albany Indl. Dev. Agcy. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35 | 05/15 @ 102 | 424,060 | |||||
AAA | 1,225 | Convention Ctr. Dev. RB, Hotel Unit Fee Secured, 5.00%, 11/15/44, AMBAC | 11/15 @ 100 | 1,256,495 | |||||
AAA | 1,330 | Env. Facs. Corp. St. Clean Wtr. & Drinking Wtr. RB, NYC Mun. Wtr. Proj., Ser. B, | |||||||
5.00%, 6/15/31 | 06/12 @ 100 | 1,367,572 | |||||||
AA- | 10,630 | Liberty Dev. Corp. RB, 5.25%, 10/01/35 | No Opt. Call | 11,501,128 | |||||
AAA | 1,760 | Met. Transp. Auth. Svc. Contract RB, Ser. A, 5.00%, 7/01/30, AMBAC | 07/12 @ 100 | 1,806,253 | |||||
B- | 8,100 | New York City Indl. Dev. Agcy. RB, American Airlines, JFK Intl. Arpt. Proj., 7.75%, 8/01/31 | 08/16 @ 101 | 9,025,506 | |||||
25,381,014 | |||||||||
2
BlackRock Municipal Bond Trust (BBK) (continued)
Principal | |||||||||
Amount | Option Call | ||||||||
Rating1 | (000) | Description | Provisions2 | Value | |||||
North Carolina1.9% | |||||||||
NR | $ 2,945 | Gaston Cnty. Indl. Facs. Fin. Auth. PCRB, 5.75%, 8/01/35 | 08/15 @ 100 | $ 3,074,963 | |||||
Ohio2.6% | |||||||||
AAA | 4,220 | Air Qual. Dev. Auth. RB, 4.80%, 1/01/34, FGIC | 07/15 @ 100 | 4,200,672 | |||||
Oklahoma1.2% | |||||||||
B- | 1,725 | Tulsa Mun. Arpt. Trust RB, Ser. A, 7.75%, 6/01/35 | No Opt. Call | 1,884,373 | |||||
Oregon0.4% | |||||||||
Aa2 | 555 | Multi-Fam. Hsg. RB, Pacific Tower Apts. Proj., Ser. 6, 6.05%, 11/01/34 | 12/11 @ 100 | 574,614 | |||||
Pennsylvania3.2% | |||||||||
BB- | 4,895 | Econ. Dev. Fin. Auth. Exempt Facs. RB, Reliant Energy Conv. Proj., Ser. A, 6.75%, | |||||||
12/01/36 | 12/09 @ 103 | 5,239,070 | |||||||
South Carolina0.7% | |||||||||
Jobs Econ. Dev. Auth. Hosp. Facs. RB, Palmetto Hlth. Proj., | |||||||||
BBB+ | 890 | 4 | Ser. C, 7.00%, 8/01/13 | N/A | 1,053,439 | ||||
BBB+ | 110 | Ser. C, 7.00%, 8/01/30 | 08/13 @ 100 | 125,861 | |||||
1,179,300 | |||||||||
Texas19.1% | |||||||||
BBB | 850 | Alliance Arpt. Auth., Inc. Spl. Fac. RB, Fedex Corp. Proj., 4.85%, 4/01/21 | 04/16 @ 100 | 841,092 | |||||
AAA | 940 | Dallas Area Rapid Trans. RB, 5.00%, 12/01/31, AMBAC | 12/11 @ 100 | 957,136 | |||||
AAA | 11,690 | Harris Cnty. Houston Sports Auth. RB, Ser. G, Zero Coupon, 11/15/41, MBIA | 11/31 @ 53.779 | 1,648,758 | |||||
AAA | 605 | Lower Colorado River Auth. RB, 5.00%, 5/15/31, MBIA | 05/13 @ 100 | 619,593 | |||||
AAA | 430 | Montgomery Cnty. Mun. Util. Dist. No. 46 Wtr. Wks. & Swr. Sys. GO, 4.75%, 3/01/30, | |||||||
MBIA | 03/14 @ 100 | 426,943 | |||||||
Aa2 | 2,825 | Multi-Fam. Hsg. RB, Copperwood Ranch Apts. Proj., Ser. 9, 5.95%, 11/01/35 | 12/11 @ 100 | 2,923,253 | |||||
Tpke. Auth. Central Sys. RB, | |||||||||
AAA | 60,000 | Zero Coupon, 8/15/35, AMBAC | 08/12 @ 25.665 | 11,421,000 | |||||
AAA | 4,230 | Ser. A, 5.00%, 8/15/42, AMBAC | 08/12 @ 100 | 4,283,636 | |||||
AAA | 1,075 | Transp. Comm. St. Hwy. RB, 5.00%, 4/01/26 | 04/16 @ 100 | 1,116,355 | |||||
BBB+ | 6,840 | Tyler Cnty. Hlth. Facs. Dev. RB, Mother Frances Hosp. Proj., 6.00%, 7/01/31 | 07/12 @ 100 | 7,205,119 | |||||
31,442,885 | |||||||||
West Virginia0.3% | |||||||||
AAA | 520 | 4 | Econ. Dev. Auth. RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA | 06/14 @ 100 | 536,578 | ||||
Wisconsin5.7% | |||||||||
Hlth. & Edl. Facs. Auth. RB, | |||||||||
A- | 1,350 | Aurora Hlth. Care Proj., 6.40%, 4/15/33 | 04/13 @ 100 | 1,474,079 | |||||
A | 7,000 | Wheaton Franciscan Svcs. Proj., 5.75%, 8/15/30 | 02/12 @ 101 | 7,351,820 | |||||
AAA | 530 | Pub. Pwr, Inc. Sys. RB, Ser. A, 5.00%, 7/01/37, AMBAC | 07/15 @ 100 | 542,794 | |||||
9,368,693 | |||||||||
Total Long-Term Investments (cost $234,552,708) | 249,220,972 | ||||||||
SHORT-TERM INVESTMENTS3.7% | |||||||||
Massachusetts0.1% | |||||||||
A-1+ | 200 | 6 | Hlth. & Edl. Fac. Auth. RB, Harvard Univ. Proj., Ser. R, 3.47%, 6/01/06, FRDD | N/A | 200,000 | ||||
Nebraska1.9% | |||||||||
A-1+ | 3,159 | 6 | American Pub. Energy Agcy. Gas Sply. RB, 3.50%, 6/01/06, FRWD | N/A | 3,159,000 | ||||
Money Market Funds1.7% | |||||||||
NR | 2,800 | AIM Tax Free Investment Co. Cash Reserve Portfolio | N/A | 2,800,000 | |||||
Total Short-Term Investments (cost $6,159,000) | 6,159,000 | ||||||||
Total Investments155.4% (cost $240,711,7087) | $255,379,972 | ||||||||
Liabilities in excess of other assets(0.3)% | (524,628) | ||||||||
Preferred shares at redemption value, including dividends payable(55.1)% | (90,529,115) | ||||||||
Net Assets Applicable to Common Shareholders100% | $ 164,326,229 |
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3
BlackRock Municipal Bond Trust (BBK) (continued)
1 | Using the higher of Standard & Poors, Moodys Investors Service or Fitchs rating. | ||
2 | Date (month/year) and price of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. | ||
3 | Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of May 31, 2006, the Trust held 7.9% of its net assets, with a current market value of $12,913,099, in securities restricted as to resale. | ||
4 | This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. | ||
5 | Security pledged as collateral. | ||
6 | For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Rate shown is rate as of May 31, 2006. | ||
7 | Cost for Federal income tax purposes is $240,711,537. The net unrealized appreciation on a tax basis is $14,668,435, consisting of $15,305,083 gross unrealized appreciation and $636,648 gross unrealized depreciation. |
KEY TO ABBREVIATIONS
ACA | American Capital Access | MBIA | Municipal Bond Insurance Assoc. |
AMBAC | American Municipal Bond Assurance Corp. | PCRB | Pollution Control Revenue Bond |
FGIC | Financial Guaranty Insurance Co. | RB | Revenue Bonds |
FRDD | Floating Rate Daily Demand | SA | Special Assessment |
FRWD | Floating Rate Weekly Demand | ST | Special Tax |
FSA | Financial Security Assurance | TA | Tax Allocation |
GO | General Obligation | ||
4
Item 2. Controls and Procedures.
(a)
The Registrant's principal executive and principal financial officers have evaluated
the Registrant's disclosure controls and procedures within 90 days of this filing
and have concluded, as of that date, that the Registrants disclosure controls
and procedures were reasonably designed to ensure that information required to
be disclosed by the Registrant in this Form N-Q was recorded, processed, summarized,
and reported within the required time periods and that information to be disclosed
by the Registrant in this Form N-Q was accumulated and communicated to the Registrants
management, including its principal executive and principal financial officers,
as appropriate, to allow timely decisions regarding required disclosure.
(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 (17 CFR 270.30a-3(d)) 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.
Separate
certifications of the Registrants Principal
Executive and Financial Officers pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 are attached as EX-99.CERT.
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.
(Registrant) BlackRock Municipal Bond Trust
By: /s/ Henry
Gabbay
Name: Henry Gabbay
Title: Treasurer and Principal Financial Officer
Date: July 26, 2006
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/ Robert
S. Kapito
Name: Robert S. Kapito
Title: President and Principal Executive Officer
Date: July 26, 2006
By: /s/ Henry
Gabbay
Name: Henry Gabbay
Title: Treasurer and Principal Financial Officer
Date: July 26, 2006