UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number:

       811-21036

   

 

BlackRock Municipal Bond Trust
(Exact name of registrant as specified in charter)

 

100 Bellevue Parkway, Wilmington, DE
19809
(Address of principal executive offices)
(Zip code)

 

Robert S. Kapito, President
 BlackRock Municipal Bond Trust

 40 East 52nd Street, New York, NY 10022
(Name and address of agent for service)

 

Registrant's telephone number, including area code:        888-825-2257
 
Date of fiscal year end: August 31
 
Date of reporting period: November 30, 2004
 
   

 

Item 1. Schedule of Investments.

The registrant's 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
NOVEMBER 30, 2004 (Unaudited)

BlackRock Municipal Bond Trust (BBK)

    Principal          
    Amount     Option Call      
Rating1    (000)                                                                Description  Provisions2   Value   
 
      LONG-TERM INVESTMENTS—155.7%       
      Alabama—11.3%       
BBB    $ 9,250   Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.50%, 9/01/25  09/05 @ 102    $ 9,598,910   
A2    7,500   Huntsville Hlth. Care Auth., Ser. A, 5.75%, 6/01/31  06/11 @ 101    7,762,725   
 
          17,361,635   
 
      California—14.8%       
      Golden St. Tobacco Sec. Corp., Ser. B,       
A-    7,300      5.50%, 6/01/43  06/13 @ 100    7,571,633   
A-    4,200      5.625%, 6/01/38  06/13 @ 100   4,404,246   
B-    8,000   Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines, Inc. Proj., Ser. B,       
         7.50%, 12/01/24  12/12 @ 102   7,746,720   
      San Marcos Spl. Tax, Cmnty. Facs. Dist. No. 02-01,       
NR    465      5.90%, 9/01/28  09/10 @ 102   466,669   
NR    865      5.95%, 9/01/35  09/10 @ 102   868,097   
NR    1,585   Val Verde Unified Sch. Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28  10/13 @ 102   1,631,330   
 
          22,688,695   
 
      Connecticut—2.7%       
      Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR,       
A3    2,200      Ser. A, 5.85%, 9/01/28  10/08 @ 102   2,339,524   
A3    1,750      Ser. B, 5.95%, 9/01/28  10/08 @ 102   1,851,185   
 
          4,190,709   
 
      District of Columbia—11.1%       
AAA    6,000   District of Columbia, Tax Incr. Rev., Gallary Place Proj., 5.40%, 7/01/31, FSA  07/12 @ 100   6,249,420   
A    595   Friendship Pub. Charter Sch., Inc., 5.25%, 6/01/33, ACA  06/14 @ 100    593,251   
AAA    33,450   Georgetown Univ., Ser. A, Zero Coupon, 4/01/38, MBIA  04/11 @ 20.243   4,744,883   
BBB    5,580   Tobacco Settlement Fin. Corp., 6.75%, 5/15/40  05/11 @ 101    5,491,445   
 
          17,078,999   
 
      Florida—19.3%       
BBB-    6,200   Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25  12/04 @ 102   6,353,760   
BB    2,810   Miami Beach Hlth. Facs. Auth., Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21  11/14 @ 100   2,974,188   
A    10,000   Orange Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys. Proj., 5.625%, 11/15/32  11/12 @ 101   10,473,100   
AAA    7,255   Palm Beach Cnty. Hsg. Fin. Auth., Multi-Fam. Rev., Indian Trace Apts., Ser. A,       
         5.625%, 1/01/44, FSA  01/12 @ 100   7,431,006   
NR    1,470   Reunion West Cmnty. Dev. Dist., Spl. Assmt., 6.25%, 5/01/36  05/12 @ 101   1,502,899   
NR    1,000   Stevens Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35  05/14 @ 100   1,015,930   
 
          29,750,883   
 
      Georgia—12.9%       
AAA    3,000   Atlanta Arpt. Passenger Fac., Ser. J, 5.00%, 1/01/34, FSA  01/15 @ 100   3,012,660   
      Atlanta Wtr. & Wstwtr., FSA,       
AAA    5,000      5.00%, 11/01/37  11/14 @ 100    5,034,750   
AAA    11,770      5.00%, 11/01/43  11/14 @ 100   11,787,655   
 
          19,835,065   
 
      Illinois—19.3%       
AAA    23,065   Bolingbrook, GO, Ser. B, Zero Coupon, 1/01/36, FGIC  01/12 @ 23.018   3,606,213   
NR    1,150   Centerpoint Intermodal Ctr., Ser. A, 8.00%, 6/15/23  No Opt. Call   1,143,767   
AAA    5,880  3 Chicago, GO, Ser. A, 5.50%, 1/01/38, MBIA  01/11 @ 101   6,246,265   
BBB    6,000   Illinois Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj.,       
         6.25%, 5/01/34  05/07 @ 100    6,117,600   
A    6,000   Illinois Hlth. Facs. Auth., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29  07/12 @ 100    6,128,880   
      Met. Pier & Exposition Auth., Ded. St. Tax Rev., McCormick Place Expansion Proj., Ser. A, MBIA,       
AAA    10,000      Zero Coupon, 6/15/35  No Opt. Call   1,924,800   
AAA    10,000      Zero Coupon, 12/15/36  No Opt. Call   1,775,200   
AAA    10,000      Zero Coupon, 12/15/37  No Opt. Call   1,676,500   
AAA    1,085   Schaumburg, Ser. B, 5.00%, 12/01/38, FGIC  12/14 @ 100    1,088,385   
 
          29,707,610   
 

1

BlackRock Municipal Bond Trust (BBK) (continued)

    Principal          
    Amount     Option Call      
Rating1    (000)                                                              Description  Provisions2   Value   
 
      Indiana—1.3%       
Aaa    $ 2,010   Multi-Fam. Hsg., Canterbury House Apts., Ser. 1, 5.90%, 12/01/34  12/11 @ 100   $ 1,938,886   
 
      Kansas—3.4%       
A-    5,000   Wichita Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr., Ser. A, 6.25%, 6/15/32  06/12 @ 101    5,263,000   
 
      Louisiana—4.1%       
Baa1    1,165   Louisiana Local Gov’t. Env. Facs. & Cmnty. Dev. Auth., Oakleigh Apts. Proj., Ser. A,       
         6.375%, 6/01/38  06/13 @ 102   1,163,392   
AAA    5,000   Louisiana Pub. Fac. Auth., Baton Rouge Gen. Proj., 5.25%, 7/01/33, MBIA  07/14 @ 100   5,116,950   
 
          6,280,342   
 
      Maryland—3.5%       
NR    1,250   Baltimore, Spec. Oblig. Rev., Harborview Lot No. 2 Proj., 6.50%, 7/01/31  07/13 @ 101    1,298,300   
NR    3,000   Frederick Cnty. Spl. Oblig., Urbana Cmnty. Dev. Auth., Ser. B, 6.25%, 7/01/30  07/07 @ 102   3,001,770   
BBB    1,040   Maryland Hlth. & Higher Edl. Facs. Auth., Medstar Hlth., 5.50%, 8/15/33  08/14 @ 100   1,047,686   
 
          5,347,756   
 
      Nevada—2.2%       
AAA    2,050   Clark Cnty. Arpt., Ser. A-2, 5.00%, 7/01/36, FGIC  07/14 @ 100   2,034,461   
NR    1,400   Las Vegas Spec. Impvt. Dist. No. 809, Summerlin Area, 5.65%, 6/01/23  06/05 @ 103   1,391,726   
 
          3,426,187   
 
      New Jersey—11.4%       
      New Jersey Econ. Dev. Auth.,       
BBB    1,500      Cigarette Tax Rev., 5.50%, 6/15/31  06/14 @ 100   1,489,380   
BBB    3,500      Cigarette Tax Rev., 5.75%, 6/15/29  06/14 @ 100   3,557,960   
B    3,000      Continental Airlines, Inc. Proj., 7.20%, 11/15/30  11/10 @ 101   2,455,920   
Baa3    7,500      Kapkowski Road Landfill Proj., 6.50%, 4/01/28  No Opt. Call   8,481,000   
BBB-    1,500      Winchester Proj., Ser. A, 5.80%, 11/01/31  11/14 @ 100   1,534,800   
 
          17,519,060   
 
      New York—5.8%       
AAA    1,330   Env. Facs. Corp., St. Clean Wtr. & Drinking Wtr. Rev., NYC Mun. Wtr. Proj., Ser. B,       
         5.00%, 6/15/31  06/12 @ 100   1,348,301   
AAA    1,760   Met. Transp. Auth., Svc. Contract, Ser. A, 5.00%, 7/01/30, AMBAC  07/12 @ 100   1,779,835   
AAA    5,000   New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Sys. Rev., Ser. B, 5.00%, 6/15/36, FSA  12/14 @ 100   5,019,500   
AAA    765   New York Dorm. Auth., Montefiore Hosp. Proj., 5.00%, 8/01/33, FGIC  02/15 @ 100   771,013   
 
          8,918,649   
 
      Ohio—1.0%       
NR    1,500   Port Greater Cincinnati Dev. Auth., Cooperative Pub. Pkg. Infrastructure Proj., 6.40%, 2/15/34  02/14 @ 102   1,515,210   
 
      Oklahoma—1.1%       
B-    1,725   Tulsa Mun. Arpt. Trust, Variable Refdg., Ser. A, 7.75%, 6/01/35  No Opt. Call   1,753,894   
 
      Oregon—0.6%       
Aaa    1,000   Multi-Fam. Hsg., Pacific Tower Apts., Ser. 6, 6.05%, 11/01/34  06/12 @ 100   953,550   
 
      South Carolina—0.7%       
BBB    1,000   So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth. Alliance, Ser. C,       
         7.00%, 8/01/30  08/13 @ 100   1,105,780   
 
      Texas—15.4%       
BBB    880   Brazos River Auth., PCR, TXU Elec. Co. Proj., Ser. C, 6.75%, 10/01/38  10/13 @ 101   933,222   
AAA    940   Dallas Area Rapid Trans., 5.00%, 12/01/31, AMBAC  12/11 @ 100   941,645   
AAA    11,690   Harris Cnty. Houston Sports Auth., Ser. G, Zero Coupon, 11/15/41, MBIA  11/31 @ 53.779   1,315,242   
Aaa    2,840   Multi-Fam. Hsg., Copperwood Ranch Apts., Ser. 9, 5.95%, 11/01/35  06/12 @ 100   2,733,898   
BBB    1,000   Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B, 6.15%, 8/01/22  08/13 @ 101    1,072,780   
AAA    60,000   Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/35, AMBAC  08/12 @ 25.665   9,693,600   
BBB+    6,840   Tyler Cnty. Hlth. Facs. Dev., Mother Frances Hosp., 6.00%, 7/01/31  07/12 @ 100   7,027,963   
 
          23,718,350   
 
      West Virginia—0.3%       
AAA    520   West Virginia Econ. Dev. Auth., Correctional Juvenile Safety, Ser. A, 5.00%, 6/01/29, MBIA  06/14 @ 100   527,457   
 

2

BlackRock Municipal Bond Trust (BBK) (continued)

  Principal        
  Amount     Option Call    
Rating1   (000)                                                              Description  Provisions2   Value  
    Wisconsin—5.7%     
    Wisconsin Hlth. & Edl. Facs. Auth.,     
A-   $ 1,350      Aurora Hlth. Care, 6.40%, 4/15/33  04/13 @ 100    $ 1,457,716  
A   7,000      Wheaton Franciscan Svcs., 5.75%, 8/15/30  02/12 @ 101   7,286,930  
 
        8,744,646  
 
    Multi-State—7.8%     
Baa1   10,500 4 Charter Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52  10/14 @ 100    11,969,895  
 
    Total Long-Term Investments (cost $230,539,439)    239,596,258  
       
 
    SHORT-TERM INVESTMENTS—5.8%     
    New York—1.2%     
A1+   1,900 5 New York City Transl. Fin. Auth., Ser. A-1, 1.67%, 12/01/04, FRWD  N/A   1,900,000  
 
    Ohio—3.3%     
VMIG1   5,000 5 Hamilton Cnty. Hosp. Facs., Ser. A, 1.66%, 12/01/04, FRWD  N/A   5,000,000  
     
 
 
 
       
  Shares        
  (000)         
 
 
    MONEY MARKET FUND—1.3%     
  1,950   AIM Tax Free Investment Co. Cash Reserve Portfolio  N/A   1,950,000  
 
    Total Short-Term Investments (cost $8,850,000)    8,850,000  
 
    Total Investments—161.5% (cost $239,389,439)    $ 248,446,258  
    Liabilities in excess of other assets—(2.7)%    (4,082,379 ) 
    Preferred shares at redemption value, including dividends payable—(58.8)%    (90,523,610 ) 
       
 
    Net Assets Applicable to Common Shareholders—100%    $ 153,840,269  
 

 
1  Using the higher of S&P’s, Moody’s or Fitch’s 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  Entire or partial principal amount pledged as collateral for financial futures contracts.
   
4 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 November 30, 2004, the Trust held 7.8% of its net assets, with a current market value of $11,969,895, in securities restricted as to resale.
   
5  For purposes of amortized cost valuation, the maturity date of these instruments 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 as of November 30, 2004.

 

KEY TO ABBREVIATIONS
ACA  — American Capital Access  FSA  — Financial Security Assurance 
AMBAC  — American Municipal Bond Assurance Corporation  GO  — General Obligation 
FGIC  — Financial Guaranty Insurance Company  PCR  — Pollution Control Revenue 
FRWD  — Floating Rate Weekly Demand  MBIA  — Municipal Bond Insurance Association 

3

Item 2. Controls and Procedures.

(a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures are effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely.

(b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3. Exhibits.

Separate certifications of the registrant's 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
Date: January 20, 2005

 

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: Principal Executive Officer
Date: January 20, 2005

 

By: /s/ Henry Gabbay
 
Name: Henry Gabbay
Title: Principal Executive Officer
Date: January 20, 2005