N-Q 1 i00553_bbn-nq.htm

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 Build America Bond Trust (BBN)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock Build America 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: 07/31/2011

 

Date of reporting period: 10/31/2010

 

Item 1 – Schedule of Investments


 

 



 

 

Schedule of Investments October 31, 2010 (Unaudited)

BlackRock Build America Bond Trust (BBN)
(Percentages shown are based on Net Assets)

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Arizona — 2.2%

 

 

 

 

 

 

 

Salt River Project Agricultural
Improvement & Power District, RB,
Build America Bonds, 4.84%,
1/01/41

 

$

25,000

 

$

23,817,750

 









California — 24.7%

 

 

 

 

 

 

 

Alameda County Joint Powers Authority,
RB, Build America Bonds, Recovery,
Series Z, 7.05%, 12/01/44 (a)

 

 

11,000

 

 

11,064,350

 

Bay Area Toll Authority, RB, Build
America Bonds:

 

 

 

 

 

 

 

Series S-1, 6.79%, 4/01/30

 

 

1,000

 

 

1,057,620

 

Series S-3, 6.91%, 10/01/50 (a)

 

 

14,000

 

 

14,165,200

 

California State Public Works Board, RB,
Build America Bonds, Series G-2,
8.36%, 10/01/34

 

 

9,015

 

 

9,632,437

 

County of Sonoma California, Refunding
RB, Series A, 6.00%, 12/01/29

 

 

5,975

 

 

5,894,517

 

Los Angeles Community College District
California, GO, Build America Bonds,
6.60%, 8/01/42

 

 

10,000

 

 

10,717,500

 

Los Angeles Department of Water &
Power, RB, Build America Bonds,
6.17%, 7/01/40

 

 

40,000

 

 

39,812,400

 

Los Angeles Unified School District
California, GO, Build America Bonds,
6.76%, 7/01/34

 

 

13,000

 

 

14,235,650

 

Palomar Community College District,
GO, Build America Bonds, 7.19%,
8/01/45 (a)

 

 

7,500

 

 

7,506,075

 

Rancho Water District Financing
Authority, RB, Build America Bonds,
6.34%, 8/01/40 (a)

 

 

20,000

 

 

19,883,600

 

Riverside Community College District,
GO, Build America Bonds, Series EL,
7.02%, 8/01/40 (a)

 

 

11,000

 

 

11,091,740

 

San Diego County Regional Airport
Authority, Refunding RB, Build
America Bonds, Series SU, 6.63%,
7/01/40

 

 

29,500

 

 

29,933,650

 

San Francisco City & County Public
Utilities Commission, RB, Build
America Bonds, Series D, 6.00%,
11/01/40

 

 

21,255

 

 

21,538,967

 

State of California, GO:

 

 

 

 

 

 

 

Build America Bonds, 7.63%,
3/01/40

 

 

8,950

 

 

9,444,756

 

Build America Bonds Virginia,
7.55%, 4/01/39

 

 

9,035

 

 

9,471,029

 

University of California, RB, Build
America Bonds:

 

 

 

 

 

 

 

5.95%, 5/15/45

 

 

24,000

 

 

23,388,480

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California (concluded)

 

 

 

 

 

 

 

University of California, RB, Build
America Bonds (concluded):

 

 

 

 

 

 

 

6.30%, 5/15/50

 

$

25,000

 

$

24,139,500

 

 

 

 

 

 



 

 

 

 

 

 

 

262,977,471

 









Colorado — 1.8%

 

 

 

 

 

 

 

City of Colorado Springs Colorado, RB,
Build America Bonds, Direct Payment,
5.74%, 11/15/50

 

 

20,000

 

 

19,120,600

 









District of Columbia — 2.4%

 

 

 

 

 

 

 

Metropolitan Washington Airports
Authority, RB, Build America Bonds,
Series D, 8.00%, 10/01/47

 

 

10,750

 

 

10,990,800

 

Washington Convention & Sports
Authority, Refunding RB, Series C,
7.00%, 10/01/40

 

 

15,000

 

 

14,850,450

 

 

 

 

 

 



 

 

 

 

 

 

 

25,841,250

 









Florida — 4.5%

 

 

 

 

 

 

 

City of Sunrise Florida, RB, Build
America Bonds, Series B, 5.91%,
10/01/35

 

 

25,000

 

 

24,319,500

 

County of Pasco Florida, RB, Build
America Bonds, Series B, 6.76%,
10/01/39

 

 

1,500

 

 

1,584,150

 

Florida Governmental Utility Authority,
Refunding RB, Build America Bonds,
Series B, 6.55%, 10/01/40

 

 

20,000

 

 

19,863,600

 

Town of Davie Florida, RB, Build
America Bonds, Series B (AGM),
6.85%, 10/01/40

 

 

2,500

 

 

2,628,200

 

 

 

 

 

 



 

 

 

 

 

 

 

48,395,450

 









Georgia — 4.1%

 

 

 

 

 

 

 

Municipal Electric Authority of Georgia,
Refunding RB, Build America Bonds:

 

 

 

 

 

 

 

6.66%, 4/01/57

 

 

25,665

 

 

26,165,467

 

Series PL, 6.64%, 4/01/57

 

 

7,314

 

 

7,540,515

 

Series PL, 7.06%, 4/01/57

 

 

10,000

 

 

9,490,800

 

 

 

 

 

 



 

 

 

 

 

 

 

43,196,782

 









Hawaii — 3.0%

 

 

 

 

 

 

 

University of Hawaii, RB, Build America
Bonds, 6.03%, 10/01/40

 

 

32,000

 

 

32,007,680

 









Illinois — 13.4%

 

 

 

 

 

 

 

Chicago Board of Education, GO, Build
America Bonds:

 

 

 

 

 

 

 

6.52%, 12/01/40 (a)

 

 

25,000

 

 

24,384,000

 

Series SE, 6.14%, 12/01/39

 

 

3,000

 

 

2,951,070

 


 


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.

EDA

Economic Development Authority

GO

General Obligation Bonds

ISD

Independent School District

Q-SBLF

Qualified School Bond Loan Fund

RB

Revenue Bonds


 

 

 

 





 

BLACKROCK BUILD AMERICA BOND TRUST

OCTOBER 31, 2010

1



 

 



 

 

Schedule of Investments (continued)

BlackRock Build America Bond Trust (BBN)
(Percentages shown are based on Net Assets)

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Illinois (concluded)

 

 

 

 

 

 

 

Chicago Transit Authority, RB:

 

 

 

 

 

 

 

Build America Bonds, Series B,
6.20%, 12/01/40

 

$

13,375

 

$

12,871,030

 

Series A, 6.90%, 12/01/40

 

 

4,075

 

 

4,242,767

 

Series B, 6.90%, 12/01/40

 

 

4,900

 

 

5,101,733

 

City of Chicago Illinois, GO, Build
America Bonds, Recovery, Series Z,
6.26%, 1/01/40

 

 

19,000

 

 

18,623,610

 

City of Chicago Illinois, RB, Build
America Bonds, 6.85%, 1/01/38

 

 

1,500

 

 

1,546,635

 

City of Chicago Illinois, Refunding RB,
Build America Bonds, 6.90%,
1/01/40 (a)

 

 

36,000

 

 

36,587,520

 

Illinois Finance Authority, RB, Navistar
International, Recovery Zone, 6.50%,
10/15/40

 

 

3,425

 

 

3,553,472

 

Illinois Municipal Electric Agency, RB,
Build America Bonds, 6.83%,
2/01/35

 

 

5,000

 

 

5,446,250

 

State of Illinois, GO, Build America
Bonds, 7.35%, 7/01/35

 

 

26,995

 

 

27,676,084

 

 

 

 

 

 



 

 

 

 

 

 

 

142,984,171

 









Indiana — 2.0%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Build America Bonds, Direct Payment,
5.59%, 1/01/42

 

 

22,290

 

 

21,566,244

 









Iowa — 1.1%

 

 

 

 

 

 

 

Iowa Tobacco Settlement Authority,
Refunding RB, Asset-Backed,
Series A, 6.50%, 6/01/23

 

 

11,985

 

 

11,166,784

 









Kentucky — 0.9%

 

 

 

 

 

 

 

Kentucky State Property & Building
Commission, RB, Build America
Bonds, Series C, 5.92%,
11/01/30 (a)

 

 

10,000

 

 

9,994,100

 









Louisiana — 0.9%

 

 

 

 

 

 

 

East Baton Rouge Sewerage
Commission, RB, Build America
Bonds, 6.09%, 2/01/45

 

 

3,270

 

 

3,315,093

 

Louisiana Local Government
Environmental Facilities & Community
Development Authority, RB, Build
America Bonds (AGM), 6.27%,
11/01/40

 

 

6,000

 

 

5,888,640

 

 

 

 

 

 



 

 

 

 

 

 

 

9,203,733

 









Michigan — 0.9%

 

 

 

 

 

 

 

Detroit City School District, GO, Build
America Bonds (Q-SBLF), 6.85%,
5/01/40

 

 

10,000

 

 

10,051,900

 









Minnesota — 0.7%

 

 

 

 

 

 

 

Southern Minnesota Municipal Power
Agency, Refunding RB, Build America
Bonds, 5.93%, 1/01/43

 

 

8,000

 

 

7,841,600

 









Nebraska — 0.8%

 

 

 

 

 

 

 

Nebraska Public Power District, RB,
Build America Bonds, 5.42%,
1/01/43

 

 

8,190

 

 

7,945,774

 









 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







New Jersey — 9.5%

 

 

 

 

 

 

 

New Jersey EDA, RB, Build America
Bonds, Series CC-1, 6.43%,
12/15/35

 

$

21,500

 

$

22,511,145

 

New Jersey State Housing & Mortgage
Finance Agency, RB, Series C (AGM),
6.65%, 11/01/44

 

 

20,250

 

 

20,125,665

 

New Jersey Transportation Trust Fund
Authority, RB, Build America Bonds:

 

 

 

 

 

 

 

Series B, 6.88%, 12/15/39

 

 

8,500

 

 

8,628,690

 

Series C, 6.10%, 12/15/28

 

 

50,000

 

 

49,854,500

 

 

 

 

 

 



 

 

 

 

 

 

 

101,120,000

 









New York — 10.8%

 

 

 

 

 

 

 

City of New York New York, GO, Build
America Bonds, 5.82%, 10/01/31

 

 

20,000

 

 

19,860,200

 

Metropolitan Transportation Authority,
RB, Build America Bonds:

 

 

 

 

 

 

 

6.67%, 11/15/39

 

 

2,220

 

 

2,371,560

 

7.34%, 11/15/39

 

 

3,000

 

 

3,620,160

 

Series TR, 6.69%, 11/15/40

 

 

13,000

 

 

13,441,480

 

New York City Municipal Water Finance
Authority, RB, Build America Bonds:

 

 

 

 

 

 

 

5.79%, 6/15/41

 

 

25,000

 

 

24,796,000

 

6.12%, 6/15/42

 

 

2,445

 

 

2,496,296

 

New York City Transitional Finance
Authority, RB, Build America Bonds:

 

 

 

 

 

 

 

5.57%, 11/01/38 (a)

 

 

19,000

 

 

19,112,860

 

Series FU, 6.27%, 8/01/39

 

 

14,795

 

 

15,099,629

 

New York State Dormitory Authority, RB,
Build America Bonds, 5.39%,
3/15/40

 

 

15,000

 

 

14,629,800

 

 

 

 

 

 



 

 

 

 

 

 

 

115,427,985

 









Ohio — 6.5%

 

 

 

 

 

 

 

American Municipal Power-Ohio Inc.,
RB, Build America Bonds, 5.94%,
2/15/47

 

 

10,000

 

 

9,784,800

 

County of Hamilton Ohio, RB, Build
America Bonds, Series GT, 6.50%,
12/01/34

 

 

10,000

 

 

10,663,000

 

Franklin County Convention Facilities
Authority, RB, Build America Bonds,
6.64%, 12/01/42

 

 

20,625

 

 

21,245,193

 

Mariemont City School District, GO,
Build America Bonds, 6.55%,
12/01/47

 

 

10,055

 

 

10,188,229

 

Princeton City School District, GO,
Refunding, Build America Bonds,
Series SC:

 

 

 

 

 

 

 

6.09%, 12/01/40

 

 

9,290

 

 

9,317,127

 

6.39%, 12/01/47

 

 

8,225

 

 

8,237,091

 

 

 

 

 

 



 

 

 

 

 

 

 

69,435,440

 









Oklahoma — 0.3%

 

 

 

 

 

 

 

Oklahoma Municipal Power Authority,
RB, Build America Bonds, Series M,
6.44%, 1/01/45

 

 

3,500

 

 

3,623,375

 









Pennsylvania — 0.4%

 

 

 

 

 

 

 

Pennsylvania Turnpike Commission, RB,
Build America Bonds, Series B,
5.56%, 12/01/49

 

 

4,000

 

 

3,776,800

 










 

 

 




2

BLACKROCK BUILD AMERICA BOND TRUST

OCTOBER 31, 2010



 

 



 

 

Schedule of Investments (continued)

BlackRock Build America Bond Trust (BBN)
(Percentages shown are based on Net Assets)

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Tennessee — 3.2%

 

 

 

 

 

 

 

Metropolitan Government of Nashville &
Davidson County Convention Center
Authority, RB, Build America Bonds,
Series A2, 7.43%, 7/01/43

 

$

30,910

 

$

34,068,693

 









Texas — 8.4%

 

 

 

 

 

 

 

Bexar County Hospital District, GO, Build
America Bonds, 5.41%, 2/15/40

 

 

21,775

 

 

21,038,134

 

City of San Antonio, RB, Build America
Bonds, 6.31%, 2/01 /37

 

 

35,000

 

 

35,210,000

 

Cypress-Fairbanks ISD, GO, Build
America Bonds, Direct Payment,
6.63%, 2/15/38

 

 

10,000

 

 

10,763,500

 

Dallas Area Rapid Transit, RB, Build
America Bonds, 5.02%, 12/01/48

 

 

10,000

 

 

9,633,500

 

North Texas Municipal Water District,
RB, Build America Bonds, 6.01%,
9/01/40 (a)

 

 

13,000

 

 

12,962,950

 

 

 

 

 

 



 

 

 

 

 

 

 

89,608,084

 









Utah — 3.5%

 

 

 

 

 

 

 

County of Utah, RB, Build America
Bonds, Recovery, Series Z, 7.13%,
12/01/39

 

 

11,800

 

 

12,569,714

 

Utah Transit Authority, RB, Build
America Bonds, Series SU, 5.71%,
6/15/40

 

 

26,000

 

 

25,115,740

 

 

 

 

 

 



 

 

 

 

 

 

 

37,685,454

 









Washington — 0.6%

 

 

 

 

 

 

 

Port of Seattle Washington, RB,
Series B1, 7.00%, 5/01/36

 

 

5,890

 

 

6,277,915

 









West Virginia — 0.7%

 

 

 

 

 

 

 

Tobacco Settlement Finance Authority,
RB, Series A, 7.47%, 6/01/47

 

 

9,415

 

 

7,344,171

 









Total Municipal Bonds – 107.3%

 

 

 

 

 

1,144,479,206

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (b)

 

 

 

 

 

 

 









Illinois — 2.6%

 

 

 

 

 

 

 

County of Cook Illinois, GO, Build
America Bonds, 6.23%, 11/15/34

 

 

27,000

 

 

27,503,820

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 2.6%

 

 

 

 

 

27,503,820

 









Total Long-Term Investments
(Cost – $1,191,841,637) – 109.9%

 

 

 

 

 

1,171,983,026

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








BlackRock Liquidity Funds,
TempFund, Institutional Class,
0.01% (c)(d)

 

 

101,092,774

 

 

101,092,774

 









Total Short-Term Securities
(Cost – $101,092,774) – 9.5%

 

 

 

 

 

101,092,774

 









 

 

 

 

 

 

 

 

 

Value

 

 

 

 








Total Investments
(Cost – $1,292,934,411*) – 119.4%

 

 

 

 

$

1,273,075,800

 

Liabilities in Excess of Other Assets – (18.2)%

 

 

 

 

 

(193,701,118

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (1.2)%

 

 

 

 

 

(13,500,444

)

 

 

 

 

 



 

Net Assets – 100.0%

 

 

 

 

$

1,065,874,238

 

 

 

 

 

 



 


 

 



*

The cost and unrealized appreciation (depreciation) of investments as of October 31, 2010, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

1,279,434,411

 

 

 



 

Gross unrealized appreciation

 

$

2,562,086

 

Gross unrealized depreciation

 

 

(22,420,697

)

 

 



 

Net unrealized depreciation

 

$

(19,858,611

)

 

 



 


 

 

(a)

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


 

 

 

 

 

 

 

 

 








 

Counterparty

 

Value

 

Unrealized
Appreciation
(Depreciation)

 








 

Barclays Capital Inc.

 

$

11,064,350

 

$

64,350

 

 

Citigroup Global Markets

 

$

14,165,200

 

$

165,200

 

 

George K Baum Co.

 

$

36,587,520

 

$

587,520

 

 

Morgan Stanley Co., Inc.

 

$

29,106,960

 

$

106,960

 

 

Merrill Lynch

 

$

19,883,600

 

$

(116,400

)

 

Morgan Keegan & Co., Inc.

 

$

12,962,950

 

$

(37,050

)

 

Piper Jaffray

 

$

11,091,740

 

$

91,740

 

 

RBC Capital Markets

 

$

7,506,075

 

$

6,075

 

 

Siebert, Branford, Shank & Co.

 

$

24,384,000

 

$

(616,000

)











 

 

(b)

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

 

 

(c)

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

 

Net
Activity

 

Shares
Held at
October 31,
2010

 

Income

 









BlackRock
Liquidity
Funds,
TempFund,
Institutional
Class

 

 

101,092,774

 

 

101,092,774

 

$

186,573

 













 

 

(d)

Represents the current yield as of report date.


 

 

 

 





 

BLACKROCK BUILD AMERICA BOND TRUST

OCTOBER 31, 2010

3



 

 



 

 

Schedule of Investments (concluded)

BlackRock Build America Bond Trust (BBN)


 

 

 

Fair Value Measurements - Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — 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)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with 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 prospectus.

The following table summarizes the inputs used as of October 31, 2010 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 











Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 











Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

 

$

1,171,983,026

 

 

 

$

1,171,983,026

 

Short-Term
Securities

 

$

101,092,774

 

 

 

 

 

 

101,092,774

 















Total

 

$

101,092,774

 

$

1,171,983,026

 

 

 

$

1,273,075,800

 
















 

 

1

See above Schedule of Investments for values in each state or political subdivision.


 

 

 




4

BLACKROCK BUILD AMERICA BOND TRUST

OCTOBER 31, 2010


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 Build America Bond Trust

       
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock Build America Bond Trust
   
  Date: December 22, 2010
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock Build America Bond Trust
   
  Date: December 22, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Build America Bond Trust
     
  Date: December 22, 2010