Eaton Vance Municipal Bond Fund II

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21219

Investment Company Act File Number

Eaton Vance Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

December 31, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Bond Fund II

December 31, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 159.5%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 9.9%

      

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

    $ 2,200       $ 2,490,312   

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

      565         631,501   

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

      1,745         1,996,908   

Massachusetts Development Finance Agency, (Northeastern University), 5.25%, 3/1/37

      1,650         1,904,149   

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

      2,710         3,060,376   

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

      1,500         1,686,300   

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

      500         555,850   

University of Virginia, 5.00%, 6/1/40

      1,500         1,634,175   
     

 

 

  
      $ 13,959,571   
     

 

 

  

Electric Utilities — 3.3%

      

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

    $ 330       $ 381,071   

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

      1,300         1,443,429   

South Carolina Public Service Authority, 5.50%, 1/1/38

      1,310         1,459,065   

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

      685         761,918   

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

      500         595,230   
     

 

 

  
      $ 4,640,713   
     

 

 

  

Escrowed/Prerefunded — 0.9%

      

South Carolina Public Service Authority, Prerefunded to 1/1/19, 5.50%, 1/1/38

    $ 110       $ 124,681   

Tennessee School Bond Authority, Prerefunded to 5/1/18, 5.50%, 5/1/38

      1,000         1,106,100   
     

 

 

  
      $ 1,230,781   
     

 

 

  

General Obligations — 21.4%

      

California, 5.00%, 12/1/30

    $ 610       $ 735,020   

California, 5.00%, 10/1/33

      2,150         2,547,728   

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

      1,680         1,830,679   

Clark County, NV, 5.00%, 7/1/33

      500         579,120   

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

      2,500         3,150,025   

Hawaii, 5.00%, 12/1/29

      2,500         2,938,225   

Hawaii, 5.00%, 12/1/30

      1,000         1,175,290   

Kane, Cook and DuPage Counties School District No. 46, IL, 5.00%, 1/1/33

      2,000         2,253,820   

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

      1,725         2,003,243   

New York, 5.00%, 2/15/34(1)

      2,750         3,173,802   

New York, NY, 5.00%, 8/1/31

      2,000         2,336,540   

Oregon, 5.00%, 8/1/36

      1,000         1,167,650   

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

      5,250         6,133,995   
     

 

 

  
      $ 30,025,137   
     

 

 

  

Hospital — 4.0%

      

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

    $ 360       $ 422,025   

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

      1,285         1,338,623   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 1,120       $ 375,838   

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

      3,000         955,410   

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

      615         705,319   

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

      1,550         1,785,166   
     

 

 

  
      $ 5,582,381   
     

 

 

  

Industrial Development Revenue — 0.4%

      

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

    $ 595       $ 619,038   
     

 

 

  
      $ 619,038   
     

 

 

  

Insured-Education — 3.0%

      

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

    $ 3,900       $ 4,232,319   
     

 

 

  
      $ 4,232,319   
     

 

 

  

Insured-Electric Utilities — 7.1%

      

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

    $ 6,335       $ 5,246,520   

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

      735         846,852   

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

      2,205         2,222,398   

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

      1,465         1,631,702   
     

 

 

  
      $ 9,947,472   
     

 

 

  

Insured-Escrowed/Prerefunded — 9.5%

      

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

    $ 1,000       $ 1,144,810   

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/26

      670         746,936   

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.25%, 10/1/27

      420         468,228   

Bossier City, LA, Utilities Revenue, (BHAC), Prerefunded to 10/1/18, 5.50%, 10/1/38

      660         740,256   

Coast Community College District, CA, (Election of 2002), (AGM), Prerefunded to 8/1/16, 0.00%, 8/1/33

      12,000         4,780,680   

Miami-Dade County Educational Facilities Authority, FL, (University of Miami), (AMBAC), (BHAC), Prerefunded to 4/1/17, 5.00%, 4/1/31

      1,555         1,638,457   

New Jersey Economic Development Authority, (School Facilities Construction), (AGC), Prerefunded to 12/15/18, 5.50%, 12/15/34

      565         638,862   

Philadelphia, PA, (AGC), Prerefunded to 7/15/16, 7.00%, 7/15/28

      1,250         1,294,725   

South Carolina Public Service Authority, (BHAC), Prerefunded to 1/1/19, 5.50%, 1/1/38

      130         147,350   

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

      1,545         1,811,451   
     

 

 

  
      $ 13,411,755   
     

 

 

  

Insured-General Obligations — 2.9%

      

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

    $ 750       $ 975,990   

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

      2,750         3,070,512   
     

 

 

  
      $ 4,046,502   
     

 

 

  

Insured-Hospital — 13.5%

      

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

    $ 1,750       $ 1,862,735   

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

      1,500         1,597,635   

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

      2,200         2,319,790   

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

      2,500         2,679,424   

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

      1,750         1,854,685   

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 750       $ 794,865   

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

      2,090         2,208,231   

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

      500         538,305   

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

      2,245         2,524,727   

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

      2,300         2,526,895   
     

 

 

  
   $ 18,907,292   
     

 

 

  

Insured-Industrial Development Revenue — 1.1%

      

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

    $ 1,340       $ 1,496,204   
     

 

 

  
      $ 1,496,204   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 4.9%

      

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

    $ 1,000       $ 1,331,550   

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

      310         340,557   

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

      3,250         3,529,890   

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

      1,500         1,618,005   
     

 

 

  
      $ 6,820,002   
     

 

 

  

Insured-Other Revenue — 1.6%

      

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

    $ 2,540       $ 1,141,578   

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

      1,000         1,169,980   
     

 

 

  
      $ 2,311,558   
     

 

 

  

Insured-Solid Waste — 0.9%

      

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

    $ 740       $ 836,718   

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

      425         477,487   
     

 

 

  
      $ 1,314,205   
     

 

 

  

Insured-Special Tax Revenue — 5.1%

      

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

    $ 3,000       $ 3,364,980   

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

      2,540         3,205,937   

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

      4,440         666,311   
     

 

 

  
      $ 7,237,228   
     

 

 

  

Insured-Student Loan — 0.9%

      

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

    $ 1,105       $ 1,208,726   
     

 

 

  
      $ 1,208,726   
     

 

 

  

Insured-Transportation — 19.4%

      

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

    $ 260       $ 299,520   

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

      400         464,784   

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

      180         207,326   

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

      100         116,486   

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

      1,585         1,772,363   

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

      7,800         6,683,040   

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

      1,305         1,389,590   

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 10,000       $ 10,873,700   

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

      1,000         1,124,660   

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

      535         602,340   

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

      1,040         1,134,068   

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

      255         281,334   

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

      290         321,691   

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

      210         228,260   

North Texas Tollway Authority, (BHAC), Prerefunded to 1/1/18, 5.75%, 1/1/48

      1,540         1,684,329   
     

 

 

  
      $ 27,183,491   
     

 

 

  

Insured-Water and Sewer — 6.9%

      

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

    $ 1,635       $ 1,745,313   

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

      205         205,355   

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

      1,250         1,360,512   

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

      435         466,842   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/35(2)

      1,000         1,343,080   

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

      230         261,331   

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

      195         220,787   

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

      240         269,460   

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

      195         217,560   

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

      2,205         2,446,734   

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

      1,220         1,230,797   
     

 

 

  
      $ 9,767,771   
     

 

 

  

Lease Revenue/Certificates of Participation — 10.5%

      

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

    $ 2,235       $ 2,477,296   

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

      5,000         5,815,600   

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

      5,250         6,405,368   
     

 

 

  
      $ 14,698,264   
     

 

 

  

Other Revenue — 1.3%

      

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

    $ 1,300       $ 1,518,894   

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

      260         286,757   
     

 

 

  
      $ 1,805,651   
     

 

 

  

Senior Living/Life Care — 0.2%

      

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

    $ 235       $ 263,473   
     

 

 

  
      $ 263,473   
     

 

 

  

Special Tax Revenue — 9.4%

      

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

    $ 1,850       $ 2,260,256   

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/35

      405         479,427   

Dallas Area Rapid Transit, TX, Sales Tax Revenue, 5.00%, 12/1/36

      215         253,577   

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

      1,880         2,113,045   

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

      750         1,005,330   

 

4

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 465       $ 539,042   

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

      1,710         1,976,196   

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

      3,800         4,537,618   
     

 

 

  
      $ 13,164,491   
     

 

 

  

Transportation — 15.5%

      

Chicago, IL, (O’Hare International Airport), 5.00%, 1/1/34

    $ 1,000       $ 1,143,160   

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

      640         756,653   

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

      990         1,167,893   

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

      1,715         1,905,554   

Illinois Toll Highway Authority, 5.00%, 12/1/31(4)

      375         444,862   

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

      465         540,893   

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

      620         739,790   

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

      865         1,022,836   

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

      2,095         2,271,378   

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

      1,385         1,588,692   

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

      1,070         1,230,992   

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

      420         470,417   

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

      375         419,670   

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

      2,040         2,412,239   

Port Authority of New York and New Jersey, 5.00%, 10/15/41

      1,600         1,866,672   

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

      1,000         1,117,110   

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

      2,500         2,717,400   
     

 

 

  
      $ 21,816,211   
     

 

 

  

Water and Sewer — 5.9%

      

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

    $ 1,000       $ 1,072,190   

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

      1,555         1,719,053   

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

      380         420,922   

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

      300         327,786   

New York, NY, Municipal Water Finance Authority, (Water and Sewer System), 5.00%, 6/15/36

      4,000         4,699,560   
     

 

 

  
      $ 8,239,511   
     

 

 

  

Total Tax-Exempt Investments — 159.5%
(identified cost $203,108,993)

       $ 223,929,747   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (3.4)%

       $ (4,750,244 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (28.5)%

       $ (39,950,000 ) 
     

 

 

  

Other Assets, Less Liabilities — (27.6)%

       $ (38,812,801 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 140,416,702   
     

 

 

  

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

At December 31, 2015, 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

      14.8 % 

Others, representing less than 10% individually

      85.2 % 

 

5

 

 

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, 2015, 48.2% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution or financial guaranty assurance agency ranged from 0.4% to 19.2% of total investments.

 

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

 

(2) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

(3) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $1,687,618.

 

(4) When-issued security.

Futures Contracts

 

Description

    Contracts    Position    Expiration
Month/Year		      Aggregate Cost     Value     Net Unrealized
Depreciation		  

Interest Rate Futures

                

U.S. Long Treasury Bond

    29    Short      Mar-16       $     (4,453,711 )    $     (4,458,750 )    $     (5,039 ) 
               

 

 

  
  $ (5,039 ) 
               

 

 

  

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

At December 31, 2015, 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 objective. 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, 2015, 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 $5,039.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     159,384,494   
  

 

 

  

Gross unrealized appreciation

    $ 21,591,651   

Gross unrealized depreciation

      (386,398 ) 
  

 

 

  

Net unrealized appreciation

    $ 21,205,253   
  

 

 

  

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)

 

6

 

 

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, 2015, 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

    $ —       $ 223,929,747       $ —       $ 223,929,747   

Total Investments

    $ —       $     223,929,747       $ —       $     223,929,747   
Liability Description                                

Futures Contracts

    $ (5,039 )     $ —       $     —       $ (5,039 ) 

Total

    $     (5,039 )     $ —       $ —       $ (5,039 ) 

The carrying amount of the Institutional MuniFund Term Preferred Shares (iMTP Shares) at December 31, 2015 approximated its fair value. If measured at fair value, iMTP Shares would have been considered as Level 2 in the fair value hierarchy at December 31, 2015.

The Fund held no investments or other financial instruments as of September 30, 2015 whose fair value was determined using Level 3 inputs. At December 31, 2015, 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.

 

7

 

 

Item 2. Controls and Procedures

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

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

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Municipal Bond Fund II

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 22, 2016

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 22, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 22, 2016