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 811-22426
Name of Fund: |
BlackRock Taxable Municipal Bond Trust (BBN) | |
Fund Address: |
100 Bellevue Parkway, Wilmington, DE 19809 |
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Taxable
Municipal Bond Trust, 55 East 52nd Street, New York, NY 10055
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2018
Date of reporting period: 04/30/2018
Item 1 Schedule of Investments
Schedule of Investments (unaudited) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) (Percentages shown are based on Net Assets) |
1 |
Schedule of Investments (unaudited) (continued) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) (Percentages shown are based on Net Assets) |
2 |
Schedule of Investments (unaudited) (continued) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) (Percentages shown are based on Net Assets) |
3 |
Schedule of Investments (unaudited) (continued) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) (Percentages shown are based on Net Assets) |
4 |
Schedule of Investments (unaudited) (continued) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) (Percentages shown are based on Net Assets) |
(a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
5 |
Schedule of Investments (unaudited) (continued) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) |
(b) | All or a portion of the security has been pledged as collateral in connection with outstanding reverse repurchase agreements. |
(c) | U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
(d) | Annualized 7-day yield as of period end. |
(e) | During the period ended April 30, 2018, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliated | Shares Held at 07/3/17 |
Net Activity |
Shares Held at 04/30/18 |
Value at 04/30/18 |
Income | Net Realized |
Change in Unrealized Appreciation (Depreciation) |
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BlackRock Liquidity Funds, T-Fund, Institutional Class |
27,137,361 | (24,962,210 | ) | 2,175,151 | $ | 2,175,151 | $ | 109,302 | $ | 88 | $ | | ||||||||||||||||
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(a) | Includes net capital gain distributions, if applicable. |
Reverse Repurchase Agreements
Counterparty | Interest Rate |
Trade Date |
Maturity Date (a) |
Face Value | Face Value Including Accrued Interest |
Type of Non-Cash Collateral |
Remaining Contractual Maturity of the Agreements (a) | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | % | 12/15/16 | Open | $ | 28,710,788 | $ | 29,259,084 | Municipal Bonds | Open/Demand | ||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 14,190,000 | 14,460,990 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 8,583,750 | 8,747,676 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 9,765,919 | 9,960,206 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 5,156,250 | 5,254,720 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 9,950,000 | 10,140,017 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 27,937,500 | 28,482,165 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 23,488,750 | 23,937,320 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 12/15/16 | Open | 16,231,250 | 16,541,222 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/16/16 | Open | 24,797,500 | 25,322,415 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/16/16 | Open | 27,485,000 | 28,066,804 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/16/16 | Open | 21,135,600 | 21,583,000 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/16/16 | Open | 30,139,700 | 30,720,559 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/16/16 | Open | 21,196,400 | 21,645,087 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/16/16 | Open | 10,503,000 | 10,705,416 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/16/16 | Open | 20,694,000 | 21,132,052 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 12/20/16 | Open | 45,131,600 | 46,022,009 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.10 | 02/09/17 | Open | 16,639,500 | 16,964,779 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.15 | 06/09/17 | Open | 10,482,000 | 10,648,445 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 08/28/17 | Open | 20,504,431 | 20,734,337 | Municipal Bonds | Open/Demand | |||||||||||||||||
Barclays Capital, Inc. |
2.15 | 08/28/17 | Open | 170,569 | 172,481 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.15 | 08/29/17 | Open | 18,004,500 | 18,226,180 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.15 | 08/29/17 | Open | 6,088,000 | 6,162,958 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi UFJ Securities (USA), Inc. |
2.16 | 09/28/17 | Open | 14,057,400 | 14,211,992 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi Ufj Securities (usa) Inc. |
2.15 | 11/01/17 | Open | 14,954,786 | 15,095,049 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi Ufj Securities (usa) Inc. |
2.15 | 11/14/17 | Open | 10,287,000 | 10,377,354 | Municipal Bonds | Open/Demand |
6 |
Schedule of Investments (unaudited) (continued) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) |
Reverse Repurchase Agreements (continued)
Counterparty | Interest Rate |
Trade Date |
Maturity Date (a) |
Face Value | Face Value Including Accrued Interest |
Type of Non-Cash Underlying Collateral |
Remaining Contractual Maturity of the Agreements (a) | |||||||||||||||||
Deutsche Bank Securities, Inc. |
2.05 | % | 11/27/17 | Open | $ | 39,690,000 | $ | 40,004,709 | Municipal Bonds | Open/Demand | ||||||||||||||
Deutsche Bank Securities, Inc. |
2.05 | 12/04/17 | Open | 18,949,851 | 19,093,475 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 12,798,500 | 12,887,432 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 12,030,000 | 12,113,592 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 28,380,000 | 28,577,202 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 11,970,000 | 12,053,175 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 30,160,000 | 30,369,570 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 34,737,500 | 34,978,877 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 36,937,500 | 37,194,164 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 01/02/18 | Open | 24,815,212 | 24,987,644 | Municipal Bonds | Open/Demand | |||||||||||||||||
Mitsubishi Ufj Securities (usa) Inc. |
2.15 | 04/04/18 | Open | 11,257,204 | 11,275,357 | Municipal Bonds | Open/Demand | |||||||||||||||||
RBC Capital Markets LLC |
2.30 | 04/05/18 | Open | 21,075,000 | 21,110,008 | Municipal Bonds | Open/Demand | |||||||||||||||||
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$ | 739,085,960 | $ | 749,219,522 | |||||||||||||||||||||
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(a) | Certain agreements have no stated maturity and can be terminated by either party at any time. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value / Unrealized Appreciation (Depreciation) |
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Short Contracts: |
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10-Year U.S. Treasury Note |
503 | 06/20/18 | $ | 60,171 | $ | 281,207 | ||||||||||
Long U.S. Treasury Bond |
1,246 | 06/20/18 | 179,229 | 711,497 | ||||||||||||
5-Year U.S. Treasury Note |
270 | 06/29/18 | 30,647 | 151,797 | ||||||||||||
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$ | 1,144,501 | |||||||||||||||
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Portfolio Abbreviations
AGM Assured Guaranty Municipal Corp.
ARB Airport Revenue Bonds
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HFA Housing Finance Agency
ISD Independent School District
LRB Lease Revenue Bonds
M/F Multi-Family
NPFGC National Public Finance Guarantee Corp.
RB Revenue Bonds
SAN State Aid Notes
7 |
Schedule of Investments (unaudited) (continued) April 30, 2018 |
BlackRock Taxable Municipal Bond Trust (BBN) |
Fair Value Hierarchy as of Period End
| Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows: |
| Level 1 Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access |
| Level 2 Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Level 3 Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the Global Valuation Committee) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.
Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trusts policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments, refer to the Trusts most recent financial statements as contained in its semi annual report.
As of April 30, 2018, the following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure hierarchy:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
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Investments: |
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Long-Term Investments(a) |
$ | | $ | 2,030,015,822 | $ | | $ | 2,030,015,822 | ||||||||
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Short-Term Securities |
2,175,151 | | | 2,175,151 | ||||||||||||
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$ | 2,175,151 | $ | 2,030,015,822 | $ | | $ | 2,032,190,973 | |||||||||
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Assets: |
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Derivative Financial Instruments(b) |
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Interest rate contracts |
$ | 1,144,501 | $ | | $ | | $ | 1,144,501 | ||||||||
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(a) | See above Schedule of Investments for values in each state or political sub-division. |
(b) | Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial reporting purposes. As of period end, reverse repurchase agreements payable of $749,219,522 is categorized as Level 2 within the disclosure hierarchy.
During the period ended April 30, 2018, there were no transfers between levels.
8 |
Item 2 Controls and Procedures
2(a) |
The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended. | |
2(b) |
There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting. |
Item 3 Exhibits
Certifications Attached hereto
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.
BlackRock Taxable Municipal Bond Trust | ||||
By: | /s/ John M. Perlowski |
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John M. Perlowski | ||||
Chief Executive Officer (principal executive officer) of | ||||
BlackRock Taxable Municipal Bond Trust | ||||
Date: June 18, 2018 |
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/ John M. Perlowski |
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John M. Perlowski | ||||
Chief Executive Officer (principal executive officer) of | ||||
BlackRock Taxable Municipal Bond Trust | ||||
Date: June 18, 2018 | ||||
By: | /s/ Neal J. Andrews |
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Neal J. Andrews | ||||
Chief Financial Officer (principal financial officer) of | ||||
BlackRock Taxable Municipal Bond Trust | ||||
Date: June 18, 2018 |