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 811-21051

 

Name of Fund: BlackRock Maryland Municipal Bond Trust (BZM)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Maryland Municipal Bond Trust, 55 East 52nd Street, New York, NY 10055

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 08/31/2012

 

Date of reporting period: 11/30/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments November 30, 2011 (Unaudited)

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland — 122.0%

 

 

 

 

 

 

 

Corporate — 1.0%

 

 

 

 

 

 

 

Maryland EDC, Refunding RB, Potomac
Electric Power Co., 6.20%, 9/01/22

 

$

250

 

$

295,525

 

County/City/Special District/School District — 36.0%

 

 

 

 

 

 

 

City of Annapolis Maryland, Tax
Allocation Bonds, Park Place Project,
Series A, 5.35%, 7/01/34

 

 

490

 

 

447,468

 

City of Baltimore Maryland, Special Tax
Bonds, SO, Harborview Lot No. 2,
6.50%, 7/01/31

 

 

993

 

 

995,264

 

County of Anne Arundel Maryland, RB,
Community College Project, 5.25%,
9/01/28

 

 

1,870

 

 

1,910,654

 

County of Baltimore Maryland, GO,
Metropolitan District, 68th Issue,
5.00%, 8/01/12 (a)

 

 

2,000

 

 

2,063,540

 

County of Montgomery Maryland, RB,
Metrorail Garage Projects(a):

 

 

 

 

 

 

 

5.00%, 6/01/23

 

 

500

 

 

511,995

 

5.00%, 6/01/24

 

 

1,435

 

 

1,469,425

 

County of Prince George’s Maryland, SO,
National Harbor Project, 5.20%,
7/01/34

 

 

1,500

 

 

1,371,555

 

State of Maryland, First Series B, 5.00%,
3/15/22

 

 

1,285

 

 

1,519,667

 

State of Maryland, GO, Refunding, State
& Local Facilities Loan Third, Series C,
5.00%, 11/01/20

 

 

500

 

 

621,510

 

 

 

 

 

 

 

10,911,078

 

Education — 16.5%

 

 

 

 

 

 

 

Maryland Health & Higher Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

Board of Child Care, 5.38%,
7/01/32

 

 

2,000

 

 

2,009,460

 

Loyola College Issue, 5.00%,
10/01/39

 

 

2,000

 

 

2,000,280

 

Maryland Industrial Development
Financing Authority, RB, Our Lady Of
Good Counsel School, Series A,
6.00%, 5/01/35

 

 

1,000

 

 

1,003,920

 

 

 

 

 

 

 

5,013,660

 

Health — 30.2%

 

 

 

 

 

 

 

County of Howard Maryland, Refunding
RB, Vantage House Facility, Series A,
5.25%, 4/01/33

 

 

500

 

 

366,165

 

County of Montgomery Maryland,
Refunding RB, 5.00%, 12/01/40

 

 

1,000

 

 

1,017,330

 

Gaithersburg Maryland, Refunding RB,
Asbury Maryland Obligation, Series B,
6.00%, 1/01/23

 

 

250

 

 

261,543

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland (continued)

 

 

 

 

 

 

 

Health (concluded)

 

 

 

 

 

 

 

Maryland Health & Higher Educational
Facilities Authority, RB:

 

 

 

 

 

 

 

Anne Arundel Health System,
5.00%, 7/01/40

 

$

1,000

 

$

1,005,600

 

Carroll County General
Hospital, 6.00%, 7/01/37

 

 

1,990

 

 

1,999,771

 

Union Hospital of Cecil County
Issue, 5.63%, 7/01/32

 

 

2,000

 

 

2,005,420

 

Maryland Health & Higher Educational
Facilities Authority, Refunding RB :

 

 

 

 

 

 

 

Charlestown Community,
6.25%, 1/01/41

 

 

1,000

 

 

1,041,400

 

Doctor’s Community Hospital,
5.75%, 7/01/38

 

 

500

 

 

452,225

 

University of Maryland Medical
System, 5.13%, 7/01/39

 

 

1,000

 

 

1,022,970

 

 

 

 

 

 

 

9,172,424

 

Housing — 10.6%

 

 

 

 

 

 

 

Maryland Community Development
Administration, RB:

 

 

 

 

 

 

 

AMT, 5.10%, 9/01/37

 

 

1,000

 

 

1,006,790

 

Residential, Series A, 5.05%,
9/01/39

 

 

500

 

 

509,295

 

Residential, Series B, 4.75%,
9/01/39

 

 

150

 

 

150,075

 

Maryland Community Development
Administration, Refunding RB,
Residential, Series B, 5.25%,
9/01/35

 

 

1,485

 

 

1,550,548

 

 

 

 

 

 

 

3,216,708

 

Transportation — 13.6%

 

 

 

 

 

 

 

Maryland EDC, RB:

 

 

 

 

 

 

 

Term Project, Series B, 5.75%,
6/01/35

 

 

500

 

 

500,630

 

Transportation Facilities
Project, Series A, 5.75%,
6/01/35

 

 

500

 

 

500,665

 

Maryland State Department of
Transportation, RB, Series B, 4.00%,
5/15/22

 

 

1,000

 

 

1,095,560

 

Maryland State Transportation Authority,
RB, Baltimore/Washington
International Airport, Series B, AMT
(AMBAC), 5.13%, 3/01/24

 

 

2,000

 

 

2,025,240

 

 

 

 

 

 

 

4,122,095

 

 

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

EDC

Economic Development Corp.

GO

General Obligation Bonds

NPFGC

National Public Finance Guarantee Corp.

RB

Revenue Bonds

SO

Special Obligation

 

 

 

 

 

 

 

 

 

BLACKROCK MARYLAND MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

1


 

 

 

 

Schedule of Investments (continued)

BlackRock Maryland Municipal Bond Trust (BZM)

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Maryland (concluded)

 

 

 

 

 

 

 

Utilities — 14.1%

 

 

 

 

 

 

 

City of Baltimore Maryland, Refunding
RB, Wastewater Projects, Series A
(NPFGC):

 

 

 

 

 

 

 

5.20%, 7/01/32

 

$

2,250

 

$

2,266,380

 

5.13%, 7/01/42

 

 

1,500

 

 

1,508,280

 

Maryland EDC, Refunding RB, CNX
Marine Terminals, Inc., 5.75%,
9/01/25

 

 

500

 

 

509,135

 

 

 

 

 

 

 

4,283,795

 

Total Municipal Bonds in Maryland

 

 

 

 

 

37,015,285

 

District of Columbia — 3.5%

 

 

 

 

 

 

 

Transportation — 3.5%

 

 

 

 

 

 

 

Washington Metropolitan Area Transit
Authority, RB, Transit, Series A,
5.13%, 7/01/32

 

 

1,000

 

 

1,067,560

 

Total Municipal Bonds in District of Columbia

 

 

 

 

 

1,067,560

 

Guam — 2.2%

 

 

 

 

 

 

 

State — 2.2%

 

 

 

 

 

 

 

Territory of Guam, RB, Section 30,
Series A, 5.63%, 12/01/29

 

 

410

 

 

416,995

 

Territory of Guam, Series A, 5.13%,
1/01/42 (b)

 

 

250

 

 

253,827

 

 

 

 

 

 

 

670,822

 

Total Municipal Bonds in Guam

 

 

 

 

 

670,822

 

Multi-State — 7.2%

 

 

 

 

 

 

 

Housing — 7.2%

 

 

 

 

 

 

 

Centerline Equity Issuer Trust, 7.20%,
11/15/52 (c)(d)

 

 

2,000

 

 

2,182,820

 

Total Municipal Bonds in Multi-State

 

 

 

 

 

2,182,820

 

Puerto Rico — 9.4%

 

 

 

 

 

 

 

State — 5.3%

 

 

 

 

 

 

 

Commonwealth of Puerto Rico, GO,
Refunding, Public Improvement,
Series A-4 (AGM), 5.25%, 7/01/30

 

 

130

 

 

134,455

 

Puerto Rico Public Buildings Authority,
Refunding RB, Government Facilities,
Series D, 5.38%, 7/01/33

 

 

350

 

 

350,273

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

 

1,000

 

 

1,107,420

 

 

 

 

 

 

 

1,592,148

 

Tobacco — 4.1%

 

 

 

 

 

 

 

Children’s Trust Fund, Refunding RB,
Asset-Backed, 5.50%, 5/15/39

 

 

1,500

 

 

1,241,265

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

2,833,413

 

Total Municipal Bonds – 144.3%

 

 

 

 

 

43,769,900

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond (TOB) Trusts (e)

 

Par
(000)

 

Value

 

Maryland — 10.4%

 

 

 

 

 

 

 

Transportation — 10.4%

 

 

 

 

 

 

 

Maryland State Transportation Authority,
RB, Transportation Facility Project
(AGM), 5.00%, 7/01/41

 

$

3,000

 

$

3,157,890

 

Total Municipal Bonds in Maryland

 

 

 

 

 

3,157,890

 

Total Municipal Bonds Transferred to
Tender Option Bond (TOB) Trusts – 10.4%

 

 

 

 

 

3,157,890

 

Total Long-Term Investments
(Cost – $46,115,027) – 154.7%

 

 

 

 

 

46,927,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.01% (f)(g)

 

 

596,580

 

 

596,580

 

Total Short-Term Securities
(Cost – $596,580) – 2.0%

 

 

 

 

 

596,580

 

Total Investments
(Cost - $46,711,607*) – 156.7%

 

 

 

 

 

47,524,370

 

Other Assets Less Liabilities – 1.0%

 

 

 

 

 

314,888

 

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable – (5.0)%

 

 

 

 

 

(1,501,466

)

AMPS, at Redemption Value – (52.7)%

 

 

 

 

 

(16,000,600

)

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

30,337,192

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of November 30, 2011, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

45,127,813

 

Gross unrealized appreciation

 

 

 

 

$

1,417,207

 

Gross unrealized depreciation

 

 

 

 

 

(520,650

)

Net unrealized appreciation

 

 

 

 

$

896,557

 

 

 

(a)

US 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.

 

 

(b)

When-issued security. Unsettled when-issued transactions were as follows:

 

 

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

 

Barclays Capital Inc.

 

$

253,827

 

$

1,980

 

 

 

(c)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.

 

 

(d)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.


 

 

 

 

 

 

 

 

 

BLACKROCK MARYLAND MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

2


 

 

 

 

Schedule of Investments (concluded)

BlackRock Maryland Municipal Bond Trust (BZM)

 

 

(e)

Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(f)

Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
August 31,
2011

 

Net
Activity

 

Shares
Held at
November 30,
2011

 

Income

 

 

FFI Institutional
Tax-Exempt
Fund

 

 

3,348,424

 

 

(2,751,844

)

 

596,580

 

$

47

 

 

 

 

(g)

Represents the current yield as of report date.

 

 

 

•

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

 

•

Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

 

 

 

•

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

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 the Trust’s own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of November 30, 2011 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation
Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Investments1

 

 

—

 

$

46,927,790

 

 

—

 

$

46,927,790

 

Short-Term Securities

 

$

596,580

 

 

—

 

 

—

 

 

596,580

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

596,580

 

$

46,927,790

 

 

—

 

$

47,524,370

 

1 See above Schedule of Investments for values in sector.

 

 

 

 

 

 

 

 

 

BLACKROCK MARYLAND MUNICIPAL BOND TRUST

NOVEMBER 30, 2011

3

Item 2 –

Controls and Procedures

 

 

2(a) –

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s 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 registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) 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

 

 

 

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 Maryland Municipal Bond Trust
   
  By: /s/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Maryland Municipal Bond Trust
   
  Date: January 23, 2012
   
  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  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Maryland Municipal Bond Trust
   
  Date: January 23, 2012
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Maryland Municipal Bond Trust
     
  Date: January 23, 2012