Eaton Vance Municipal Bond Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21142

Investment Company Act File Number

Eaton Vance Municipal Bond Fund

(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, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Municipal Bond Fund

December 31, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Municipal Securities — 170.1%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Education — 17.1%

      

California Educational Facilities Authority, (University of Southern California), 5.25%, 10/1/38(1)

    $ 9,750       $ 10,349,820   

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

      14,700         15,286,530   

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

      3,985         4,082,234   

Houston, TX, Higher Education Finance Corp., (William Marsh Rice University), 5.00%, 5/15/35(1)

      15,000         16,005,150   

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/27

      5,810         6,825,995   

Massachusetts Health and Educational Facilities Authority, (Boston College), 5.50%, 6/1/30

      8,325         9,636,770   

Massachusetts Health and Educational Facilities Authority, (Harvard University), 5.00%, 10/1/38(1)

      2,000         2,095,220   

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

      8,790         9,739,496   

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

      15,300         16,017,876   

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

      13,500         14,291,370   

Tennessee School Bond Authority, 5.50%, 5/1/38

      5,000         5,340,900   

University of California, 5.25%, 5/15/39

      4,450         4,714,553   

University of Colorado, (University Enterprise Revenue), 5.25%, 6/1/36(1)

      10,000         10,735,300   

University of Massachusetts Building Authority, 5.00%, 11/1/39(1)

      14,175         14,759,435   

University of North Carolina at Charlotte, 5.00%, 4/1/32

      2,090         2,211,408   
     

 

 

  
   $ 142,092,057   
     

 

 

  

Electric Utilities — 4.3%

      

JEA St. Johns River Power Park System Revenue, FL, 4.00%, 10/1/32(1)

    $ 10,000       $ 9,566,300   

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

      10,000         9,834,000   

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

      7,110         7,613,601   

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

      4,500         4,858,785   

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

      3,425         3,521,380   
     

 

 

  
   $ 35,394,066   
     

 

 

  

General Obligations — 14.1%

      

Bloomfield Hills Schools, MI, 4.00%, 5/1/37

    $ 750       $ 706,478   

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

      8,320         8,368,422   

City & County of San Francisco, CA, (Earthquake Safety & Emergency Response), 4.00%, 6/15/27

      9,080         9,277,944   

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

      3,000         3,114,750   

Hawaii, 5.00%, 12/1/29

      7,620         8,354,492   

Hawaii, 5.00%, 12/1/30

      6,500         7,075,120   

Klein, TX, Independent School District, (PSF Guaranteed), 5.00%, 2/1/36(1)

      2,000         2,119,720   

Mississippi, (Capital Improvements Projects), 5.00%, 10/1/30(1)

      10,000         10,805,400   

Mississippi, (Capital Improvements Projects), 5.00%, 10/1/36(1)

      12,075         12,732,121   

New York, NY, 5.00%, 10/1/32

      10,000         10,527,700   

Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35

      180         190,566   

Northside Independent School District, TX, (PSF Guaranteed), 5.00%, 6/15/35(1)

      12,250         12,969,075   

Oregon, 5.00%, 8/1/35(1)

      6,750         7,187,535   

Oregon, 5.00%, 8/1/36

      2,000         2,110,900   

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Port of Houston Authority of Harris County, TX, 5.00%, 10/1/35

    $ 7,500       $ 8,058,675   

Virginia Beach, VA, 4.00%, 4/1/27

      690         712,515   

Virginia Beach, VA, 4.00%, 4/1/28

      2,730         2,789,104   

Washington, 4.00%, 7/1/28(1)

      10,000         10,155,000   
     

 

 

  
   $ 117,255,517   
     

 

 

  

Hospital — 8.6%

  

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/27

    $ 1,000       $ 1,058,740   

California Health Facilities Financing Authority, (Catholic Healthcare West), 5.25%, 3/1/28

      1,770         1,855,420   

California Health Facilities Financing Authority, (Cedars-Sinai Medical Center), 5.00%, 8/15/39

      11,570         11,462,052   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.00%, 2/15/35

      2,520         2,326,590   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.25%, 2/15/27

      860         856,921   

Camden County, NJ, Improvement Authority, (Cooper Health System), 5.75%, 2/15/34

      4,535         4,546,065   

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

      2,790         2,838,518   

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

      7,190         7,335,310   

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

      8,310         1,879,722   

Knox County, TN, Health, Educational and Housing Facilities Board, (Covenant Health), 0.00%, 1/1/41

      10,000         1,847,600   

Michigan Hospital Finance Authority, (Henry Ford Health System), 5.25%, 11/15/46

      5,355         5,053,621   

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

      4,385         4,505,500   

Tarrant County, TX, Cultural Education Facilities Finance Corp., (Scott & White Healthcare), 5.25%, 8/15/40

      6,105         6,184,609   

West Virginia Hospital Finance Authority, (West Virginia United Health System Obligated Group), 5.375%, 6/1/38

      7,605         7,705,538   

Wisconsin Health & Educational Facilities Authority, (Ascension Health Alliance Senior Credit Group), 5.00%, 11/15/41

      35         34,946   

Wisconsin Health & Educational Facilities Authority, (Ascension Health Alliance Senior Credit Group), 5.00%, 11/15/41(1)

      11,500         11,482,175   
     

 

 

  
   $ 70,973,327   
     

 

 

  

Industrial Development Revenue — 0.4%

      

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

    $ 4,245       $ 3,620,433   
     

 

 

  
   $ 3,620,433   
     

 

 

  

Insured-Education — 3.1%

      

Massachusetts Development Finance Agency, (College of the Holy Cross), (AMBAC), 5.25%, 9/1/32

    $ 15,900       $ 17,704,491   

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

      7,865         8,262,812   
     

 

 

  
   $ 25,967,303   
     

 

 

  

Insured-Electric Utilities — 4.2%

      

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

    $ 5,000       $ 5,278,150   

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

      4,905         5,040,476   

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

      13,895         13,239,712   

Paducah, KY, Electric Plant Board, (AGC), 5.25%, 10/1/35

      2,735         2,832,366   

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

      7,840         8,594,992   
     

 

 

  
   $ 34,985,696   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Escrowed/Prerefunded — 0.6%

  

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.125%, 11/15/39

    $ 3,950       $ 4,154,729   

Centre County, PA, Hospital Authority, (Mount Nittany Medical Center), (AGC), Prerefunded to 11/15/14, 6.25%, 11/15/44

      1,050         1,105,566   
     

 

 

  
   $ 5,260,295   
     

 

 

  

Insured-General Obligations — 10.4%

      

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

    $ 3,750       $ 4,284,675   

Clark County, NV, (AMBAC), 2.50%, 11/1/36

      11,845         7,901,563   

Frisco, TX, Independent School District, (AGM), (PSF Guaranteed), 2.75%, 8/15/39

      9,530         7,237,082   

Kane, Cook and DuPage Counties, IL, School District No. 46, (AMBAC), 0.00%, 1/1/22

      29,750         22,100,680   

King County, WA, Public Hospital District No. 1, (AGC), 5.00%, 12/1/37(1)

      7,000         7,093,730   

Palm Springs, CA, Unified School District, (AGC), 5.00%, 8/1/32

      8,955         9,344,184   

Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38

      95         95,242   

Port Arthur, TX, Independent School District, (AGC), 4.75%, 2/15/38(1)

      10,950         10,977,923   

Schaumburg, IL, (BHAC), (FGIC), 5.00%, 12/1/38(1)

      12,750         13,309,337   

Yuma and La Paz Counties, AZ, Community College District, (Arizona Western College), (NPFG), 3.75%, 7/1/31

      4,275         4,028,119   
     

 

 

  
   $ 86,372,535   
     

 

 

  

Insured-Hospital — 16.6%

      

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

    $ 8,250       $ 8,640,637   

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

      11,000         10,968,650   

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

      11,500         11,523,460   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (BHAC), 5.25%, 11/15/36(1)

      15,500         16,297,320   

Highlands County, FL, Health Facilities Authority, (Adventist Health System), (NPFG), 5.00%, 11/15/35

      3,795         3,826,119   

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

      15,000         14,987,244   

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

      2,500         2,514,725   

Iowa Finance Authority, Health Facilities, (Iowa Health System), (AGC), 5.625%, 8/15/37

      2,625         2,768,509   

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

      1,675         1,774,797   

Maryland Health and Higher Educational Facilities Authority, (LifeBridge Health), (AGC), 4.75%, 7/1/47(1)

      19,150         18,300,697   

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

      535         541,548   

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

      3,200         3,239,168   

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

      13,115         13,487,204   

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

      5,795         6,174,515   

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

      8,700         9,140,654   

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

      12,605         13,310,501   
     

 

 

  
   $ 137,495,748   
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Industrial Development Revenue — 1.1%

  

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

    $ 9,000       $ 9,102,330   
     

 

 

  
   $ 9,102,330   
     

 

 

  

Insured-Lease Revenue/Certificates of Participation — 5.0%

      

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

    $ 2,910       $ 3,161,191   

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

      24,000         24,887,760   

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

      13,000         13,347,750   
     

 

 

  
   $ 41,396,701   
     

 

 

  

Insured-Other Revenue — 4.5%

      

Golden State Tobacco Securitization Corp., CA, (AGC), 5.00%, 6/1/45(1)

    $ 25,875       $ 24,883,470   

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

      16,795         4,541,536   

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

      6,750         7,680,150   
     

 

 

  
   $ 37,105,156   
     

 

 

  

Insured-Solid Waste — 0.6%

      

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

    $ 2,760       $ 3,121,008   

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

      1,575         1,753,274   
     

 

 

  
   $ 4,874,282   
     

 

 

  

Insured-Special Tax Revenue — 6.3%

      

Alabama Public School and College Authority, (AGM), 2.50%, 12/1/27

    $ 17,940       $ 15,355,025   

Houston, TX, Hotel Occupancy Tax, (AMBAC), 0.00%, 9/1/24

      18,035         10,809,638   

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

      15,000         11,702,100   

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

      28,945         3,195,818   

Utah Transportation Authority, Sales Tax Revenue, (AGM), 4.75%, 6/15/32(1)

      10,800         11,108,231   
     

 

 

  
   $ 52,170,812   
     

 

 

  

Insured-Student Loan — 0.9%

      

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

    $ 7,035       $ 7,488,476   
     

 

 

  
   $ 7,488,476   
     

 

 

  

Insured-Transportation — 22.4%

      

Chicago, IL, (O’Hare International Airport), (AGM), 4.75%, 1/1/34(1)

    $ 21,640       $ 20,960,938   

Chicago, IL, (O’Hare International Airport), (AGM), 5.00%, 1/1/28

      2,500         2,528,900   

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

      1,000         1,005,040   

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

      1,800         1,810,962   

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

      1,570         1,573,925   

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

      1,015         1,022,237   

Chicago, IL, (O’Hare International Airport), (AGM), 5.25%, 1/1/33

      1,150         1,153,266   

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

      8,080         8,292,989   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/23(2)

      10,070         1,345,352   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 0.00%, 1/1/28(2)

      3,100         307,520   

Director of the State of Nevada Department of Business and Industry, (Las Vegas Monorail), (AMBAC), 5.375%, 1/1/40(3)

      15,000         3,598,500   

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/21

      10,200         7,474,254   

 

4

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

E-470 Public Highway Authority, CO, (NPFG), 0.00%, 9/1/39

    $ 25,000       $ 5,185,250   

Harris County, TX, Toll Road, Senior Lien, (BHAC), (NPFG), 5.00%, 8/15/33(1)

      7,800         8,187,426   

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

      6,710         6,953,640   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/35(1)

      20,995         21,809,815   

Maryland Transportation Authority, (AGM), 5.00%, 7/1/36(1)

      14,000         14,517,720   

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

      1,785         1,893,849   

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

      11,700         12,509,874   

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

      1,015         1,095,784   

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

      1,160         1,239,251   

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

      20,000         21,869,200   

Port Authority of New York and New Jersey, (AGM), 5.00%, 8/15/26(1)

      10,000         11,058,500   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/24

      1,605         792,212   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/25

      1,950         895,791   

Port Palm Beach District, FL, (XLCA), 0.00%, 9/1/26

      1,000         427,700   

San Joaquin Hills Transportation Corridor Agency, CA, (Toll Road Bonds), (NPFG), 0.00%, 1/15/25

      26,215         13,569,670   

Texas Turnpike Authority, (AMBAC), 0.00%, 8/15/20

      15,845         12,631,634   
     

 

 

  
   $ 185,711,199   
     

 

 

  

Insured-Water and Sewer — 16.7%

      

Austin, TX, Water and Wastewater, (AGM), (BHAC), 5.00%, 11/15/33(1)

    $ 2,000       $ 2,110,420   

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

      3,185         3,443,877   

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

      1,985         2,162,439   

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

      3,170         3,402,266   

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

      3,060         3,280,442   

Chicago, IL, Wastewater Transmission Revenue, (NPFG), 0.00%, 1/1/23

      13,670         9,453,762   

DeKalb County, GA, Water and Sewer, (AGM), 5.25%, 10/1/32(1)

      10,000         10,914,000   

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

      8,680         7,805,577   

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

      8,500         8,811,780   

Houston, TX, Utility System, (AGM), (BHAC), 5.00%, 11/15/33(1)

      27,570         28,951,257   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/32

      5,540         6,212,390   

Massachusetts Water Resources Authority, (AGM), 5.25%, 8/1/38

      1,070         1,172,559   

Massachusetts Water Resources Authority, (AMBAC), (BHAC), 4.00%, 8/1/40

      9,095         8,637,339   

New York, NY, Municipal Water Finance Authority, (BHAC), 5.75%, 6/15/40(1)

      9,500         10,468,240   

San Luis Obispo County, CA, (Nacimiento Water Project), (NPFG), 4.50%, 9/1/40

      3,535         3,350,756   

Seattle, WA, Drain and Wastewater Revenue, (AGM), 5.00%, 6/1/38(1)

      27,670         28,213,161   
     

 

 

  
   $ 138,390,265   
     

 

 

  

Lease Revenue/Certificates of Participation — 1.7%

      

Hudson Yards Infrastructure Corp., NY, 5.75%, 2/15/47

    $ 2,565       $ 2,728,570   

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

      335         362,061   

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

      10,000         10,807,800   
     

 

 

  
   $ 13,898,431   
     

 

 

  

Other Revenue — 3.1%

      

New York, NY, Transitional Finance Authority, Building Aid Revenue, 5.00%, 7/15/36(1)

    $ 10,750       $ 11,145,815   

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

      9,200         10,179,156   

Texas Municipal Gas Acquisition and Supply Corp. III, Gas Supply Revenue, 5.00%, 12/15/29

      3,135         3,044,806   

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

      1,700         1,636,148   
     

 

 

  
   $ 26,005,925   
     

 

 

  

 

 

5

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Senior Living/Life Care — 0.2%

      

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

    $ 1,175       $ 1,239,155   
     

 

 

  
   $ 1,239,155   
     

 

 

  

Special Tax Revenue — 9.0%

      

Connecticut, Special Tax Obligation, (Transportation Infrastructure), 5.00%, 1/1/31(1)

    $ 20,000       $ 21,343,400   

Michigan Trunk Line Fund, 5.00%, 11/15/30

      1,390         1,475,304   

Michigan Trunk Line Fund, 5.00%, 11/15/31

      1,500         1,584,810   

Michigan Trunk Line Fund, 5.00%, 11/15/33

      1,285         1,339,240   

Michigan Trunk Line Fund, 5.00%, 11/15/36

      1,020         1,058,230   

New York City Transitional Finance Authority, Future Tax Revenue, 5.00%, 2/1/37(1)

      20,000         20,905,000   

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 6/15/31

      10,000         10,707,400   

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

      3,285         3,470,865   

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

      12,040         12,664,996   
     

 

 

  
   $ 74,549,245   
     

 

 

  

Transportation — 10.9%

      

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

    $ 3,205       $ 3,401,947   

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

      4,950         5,217,894   

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

      8,275         8,560,819   

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

      3,285         3,534,857   

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

      4,640         4,778,365   

Metropolitan Transportation Authority, NY, 5.25%, 11/15/40

      6,735         6,902,298   

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

      10,825         10,727,900   

New Jersey Transportation Trust Fund Authority, (Transportation System), 5.00%, 12/15/24

      10,000         11,185,800   

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

      2,915         2,958,608   

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

      2,590         2,608,570   

Pennsylvania Turnpike Commission, 6.00%, (0.00% until 12/1/15), 12/1/34

      5,000         4,702,550   

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

      14,360         15,271,429   

Port Authority of New York and New Jersey, 5.00%, 7/15/39

      5,000         5,145,850   

Triborough Bridge and Tunnel Authority, NY, 5.00%, 11/15/33

      5,000         5,298,300   
     

 

 

  
   $ 90,295,187   
     

 

 

  

Water and Sewer — 8.3%

      

California Department of Water Resources, (Central Valley Project), 5.25%, 12/1/35(1)

    $ 10,000       $ 10,794,200   

Charleston, SC, Waterworks and Sewer Revenue, 5.00%, 1/1/35

      2,735         2,883,483   

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

      5,000         4,836,600   

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

      1,070         963,557   

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

      1,965         1,784,220   

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

      2,910         2,635,907   

Honolulu, HI, City and County Wastewater System, 5.25%, 7/1/36(1)

      9,750         10,402,860   

King County, WA, Sewer Revenue, 5.00%, 1/1/34(1)

      10,000         10,549,100   

Marco Island, FL, Utility System, 5.00%, 10/1/34

      1,445         1,484,015   

Marco Island, FL, Utility System, 5.00%, 10/1/40

      6,325         6,425,884   

New York, NY, Municipal Water Finance Authority, 5.00%, 6/15/31

      10,000         10,644,800   

Portland, OR, Water System, 5.00%, 5/1/36

      5,385         5,675,036   
     

 

 

  
   $ 69,079,662   
     

 

 

  

Total Tax-Exempt Municipal Securities — 170.1%
(identified cost $1,400,477,462)

       $ 1,410,723,803   
     

 

 

  

 

 

6

 

 

                                                 

Corporate Bonds & Notes — 0.0%(4)

  

Security    Principal
Amount
(000’s omitted)		      Value  

Municipal — 0.0%(4)

      

Las Vegas Monorail Co., Jr. Subordinated Notes, 3.00% to 12/31/15, 5.50%, 7/15/55(5)(6)

    $ 125       $ 12,614   

Las Vegas Monorail Co., Sr. Secured Notes, 5.50%, 7/15/19(5)(6)

      439         66,227   
     

 

 

  

Total Corporate Bonds & Notes — 0.0%(4)
(identified cost $22,309)

       $ 78,841   
     

 

 

  

Total Investments — 170.1%
(identified cost $1,400,499,771)

       $ 1,410,802,644   
     

 

 

  

Other Assets, Less Liabilities — (70.1)%

       $ (581,269,260 ) 
     

 

 

  

Net Assets — 100.0%

       $ 829,533,384   
     

 

 

  

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

 

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.

PSF

   -   Permanent School Fund

XLCA

   -   XL Capital Assurance, Inc.

At December 31, 2013, the concentration of the Fund’s investments in the various states, determined as a percentage of total investments, is as follows:

 

                        

New York

      12.1 % 

Texas

      12.1 % 

Others, representing less than 10% individually

      75.8 % 

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, 2013, 54.3% 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 1.1% to 21.2% of total investments.

 

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

 

(2) Defaulted security. Issuer has defaulted on the payment of interest or has filed for bankruptcy.

 

(3) Security is in default and making only partial interest payments.

 

(4) Amount is less than 0.05%.

 

(5) For fair value measurement disclosure purposes, security is categorized as Level 3.

 

(6) Represents a payment-in-kind security which may pay all or a portion of interest in additional principal.

A summary of open financial instruments at December 31, 2013 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
3/14    344 U.S. Long Treasury Bond    Short    $     (44,875,245 )    $     (44,139,500 )    $     735,745   

 

7

 

 

At December 31, 2013, the Fund had sufficient cash and/or securities to cover commitments under these 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 purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

At December 31, 2013, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is interest rate risk was $735,745.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2013, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     784,527,288   
  

 

 

  

Gross unrealized appreciation

    $ 48,845,314   

Gross unrealized depreciation

      (36,189,958 ) 
  

 

 

  

Net unrealized appreciation

    $ 12,655,356   
  

 

 

  

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)

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, 2013, 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 Municipal Securities

    $ —       $ 1,410,723,803       $ —       $ 1,410,723,803   

Corporate Bonds & Notes

      —         —         78,841         78,841   

Total Investments

    $ —       $ 1,410,723,803       $ 78,841       $ 1,410,802,644   

Futures Contracts

    $ 735,745       $ —       $ —       $ 735,745   

Total

    $     735,745       $     1,410,723,803       $     78,841       $     1,411,538,389   

 

* None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund.

Level 3 investments at the beginning and/or end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the fiscal year to date ended December 31, 2013 is not presented.

At December 31, 2013, 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.

 

8

 

 

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

 

By:   /s/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 24, 2014

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 24, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 24, 2014