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
|
|
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|
|
|
Schedule of Investments October 31, 2010 (Unaudited) |
BlackRock Build America Bond Trust (BBN) |
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|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
|
|
|
|
|
|
|
Arizona — 2.2% |
|
|
|
|
|
|
|
Salt River Project Agricultural |
|
$ |
25,000 |
|
$ |
23,817,750 |
|
|
|
|
|
|
|
|
|
California — 24.7% |
|
|
|
|
|
|
|
Alameda County Joint Powers Authority, |
|
|
11,000 |
|
|
11,064,350 |
|
Bay Area Toll Authority, RB, Build |
|
|
|
|
|
|
|
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, |
|
|
9,015 |
|
|
9,632,437 |
|
County of Sonoma California, Refunding |
|
|
5,975 |
|
|
5,894,517 |
|
Los Angeles Community College District |
|
|
10,000 |
|
|
10,717,500 |
|
Los Angeles Department of Water & |
|
|
40,000 |
|
|
39,812,400 |
|
Los Angeles Unified School District |
|
|
13,000 |
|
|
14,235,650 |
|
Palomar Community College District, |
|
|
7,500 |
|
|
7,506,075 |
|
Rancho Water District Financing |
|
|
20,000 |
|
|
19,883,600 |
|
Riverside Community College District, |
|
|
11,000 |
|
|
11,091,740 |
|
San Diego County Regional Airport |
|
|
29,500 |
|
|
29,933,650 |
|
San Francisco City & County Public |
|
|
21,255 |
|
|
21,538,967 |
|
State of California, GO: |
|
|
|
|
|
|
|
Build America Bonds, 7.63%, |
|
|
8,950 |
|
|
9,444,756 |
|
Build America Bonds Virginia, |
|
|
9,035 |
|
|
9,471,029 |
|
University of California, RB, Build |
|
|
|
|
|
|
|
5.95%, 5/15/45 |
|
|
24,000 |
|
|
23,388,480 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
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|
|
|
|
|
||
California (concluded) |
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|
|
|
|
|
|
University of California, RB, Build |
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|
|
|
|
|
|
6.30%, 5/15/50 |
|
$ |
25,000 |
|
$ |
24,139,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
262,977,471 |
|
|
|
|
|
|
|
|
|
Colorado — 1.8% |
|
|
|
|
|
|
|
City of Colorado Springs Colorado, RB, |
|
|
20,000 |
|
|
19,120,600 |
|
|
|
|
|
|
|
|
|
District of Columbia — 2.4% |
|
|
|
|
|
|
|
Metropolitan Washington Airports |
|
|
10,750 |
|
|
10,990,800 |
|
Washington Convention & Sports |
|
|
15,000 |
|
|
14,850,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,841,250 |
|
|
|
|
|
|
|
|
|
Florida — 4.5% |
|
|
|
|
|
|
|
City of Sunrise Florida, RB, Build |
|
|
25,000 |
|
|
24,319,500 |
|
County of Pasco Florida, RB, Build |
|
|
1,500 |
|
|
1,584,150 |
|
Florida Governmental Utility Authority, |
|
|
20,000 |
|
|
19,863,600 |
|
Town of Davie Florida, RB, Build |
|
|
2,500 |
|
|
2,628,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48,395,450 |
|
|
|
|
|
|
|
|
|
Georgia — 4.1% |
|
|
|
|
|
|
|
Municipal Electric Authority of Georgia, |
|
|
|
|
|
|
|
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 |
|
|
32,000 |
|
|
32,007,680 |
|
|
|
|
|
|
|
|
|
Illinois — 13.4% |
|
|
|
|
|
|
|
Chicago Board of Education, GO, Build |
|
|
|
|
|
|
|
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 |
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|
BLACKROCK BUILD AMERICA BOND TRUST |
OCTOBER 31, 2010 |
1 |
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|
|
|
|
Schedule of Investments (continued) |
BlackRock Build America Bond Trust (BBN) |
|
|
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|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
|
|
|
|
|
||
Illinois (concluded) |
|
|
|
|
|
|
|
Chicago Transit Authority, RB: |
|
|
|
|
|
|
|
Build America Bonds, Series B, |
|
$ |
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 |
|
|
19,000 |
|
|
18,623,610 |
|
City of Chicago Illinois, RB, Build |
|
|
1,500 |
|
|
1,546,635 |
|
City of Chicago Illinois, Refunding RB, |
|
|
36,000 |
|
|
36,587,520 |
|
Illinois Finance Authority, RB, Navistar |
|
|
3,425 |
|
|
3,553,472 |
|
Illinois Municipal Electric Agency, RB, |
|
|
5,000 |
|
|
5,446,250 |
|
State of Illinois, GO, Build America |
|
|
26,995 |
|
|
27,676,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
142,984,171 |
|
|
|
|
|
|
|
|
|
Indiana — 2.0% |
|
|
|
|
|
|
|
Indiana Municipal Power Agency, RB, |
|
|
22,290 |
|
|
21,566,244 |
|
|
|
|
|
|
|
|
|
Iowa — 1.1% |
|
|
|
|
|
|
|
Iowa Tobacco Settlement Authority, |
|
|
11,985 |
|
|
11,166,784 |
|
|
|
|
|
|
|
|
|
Kentucky — 0.9% |
|
|
|
|
|
|
|
Kentucky State Property & Building |
|
|
10,000 |
|
|
9,994,100 |
|
|
|
|
|
|
|
|
|
Louisiana — 0.9% |
|
|
|
|
|
|
|
East Baton Rouge Sewerage |
|
|
3,270 |
|
|
3,315,093 |
|
Louisiana Local Government |
|
|
6,000 |
|
|
5,888,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,203,733 |
|
|
|
|
|
|
|
|
|
Michigan — 0.9% |
|
|
|
|
|
|
|
Detroit City School District, GO, Build |
|
|
10,000 |
|
|
10,051,900 |
|
|
|
|
|
|
|
|
|
Minnesota — 0.7% |
|
|
|
|
|
|
|
Southern Minnesota Municipal Power |
|
|
8,000 |
|
|
7,841,600 |
|
|
|
|
|
|
|
|
|
Nebraska — 0.8% |
|
|
|
|
|
|
|
Nebraska Public Power District, RB, |
|
|
8,190 |
|
|
7,945,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Municipal Bonds |
|
Par |
|
Value |
|
||
|
|
|
|
|
|
||
New Jersey — 9.5% |
|
|
|
|
|
|
|
New Jersey EDA, RB, Build America |
|
$ |
21,500 |
|
$ |
22,511,145 |
|
New Jersey State Housing & Mortgage |
|
|
20,250 |
|
|
20,125,665 |
|
New Jersey Transportation Trust Fund |
|
|
|
|
|
|
|
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 |
|
|
20,000 |
|
|
19,860,200 |
|
Metropolitan Transportation Authority, |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
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, |
|
|
15,000 |
|
|
14,629,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115,427,985 |
|
|
|
|
|
|
|
|
|
Ohio — 6.5% |
|
|
|
|
|
|
|
American Municipal Power-Ohio Inc., |
|
|
10,000 |
|
|
9,784,800 |
|
County of Hamilton Ohio, RB, Build |
|
|
10,000 |
|
|
10,663,000 |
|
Franklin County Convention Facilities |
|
|
20,625 |
|
|
21,245,193 |
|
Mariemont City School District, GO, |
|
|
10,055 |
|
|
10,188,229 |
|
Princeton City School District, GO, |
|
|
|
|
|
|
|
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, |
|
|
3,500 |
|
|
3,623,375 |
|
|
|
|
|
|
|
|
|
Pennsylvania — 0.4% |
|
|
|
|
|
|
|
Pennsylvania Turnpike Commission, RB, |
|
|
4,000 |
|
|
3,776,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
BLACKROCK BUILD AMERICA BOND TRUST |
OCTOBER 31, 2010 |
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Build America Bond Trust (BBN) |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
|
|
|
|
|
|
||
Tennessee — 3.2% |
|
|
|
|
|
|
|
Metropolitan Government of Nashville & |
|
$ |
30,910 |
|
$ |
34,068,693 |
|
|
|
|
|
|
|
|
|
Texas — 8.4% |
|
|
|
|
|
|
|
Bexar County Hospital District, GO, Build |
|
|
21,775 |
|
|
21,038,134 |
|
City of San Antonio, RB, Build America |
|
|
35,000 |
|
|
35,210,000 |
|
Cypress-Fairbanks ISD, GO, Build |
|
|
10,000 |
|
|
10,763,500 |
|
Dallas Area Rapid Transit, RB, Build |
|
|
10,000 |
|
|
9,633,500 |
|
North Texas Municipal Water District, |
|
|
13,000 |
|
|
12,962,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89,608,084 |
|
|
|
|
|
|
|
|
|
Utah — 3.5% |
|
|
|
|
|
|
|
County of Utah, RB, Build America |
|
|
11,800 |
|
|
12,569,714 |
|
Utah Transit Authority, RB, Build |
|
|
26,000 |
|
|
25,115,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37,685,454 |
|
|
|
|
|
|
|
|
|
Washington — 0.6% |
|
|
|
|
|
|
|
Port of Seattle Washington, RB, |
|
|
5,890 |
|
|
6,277,915 |
|
|
|
|
|
|
|
|
|
West Virginia — 0.7% |
|
|
|
|
|
|
|
Tobacco Settlement Finance Authority, |
|
|
9,415 |
|
|
7,344,171 |
|
|
|
|
|
|
|
|
|
Total Municipal Bonds – 107.3% |
|
|
|
|
|
1,144,479,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to
Tender |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Illinois — 2.6% |
|
|
|
|
|
|
|
County of Cook Illinois, GO, Build |
|
|
27,000 |
|
|
27,503,820 |
|
|
|
|
|
|
|
|
|
Total Municipal Bonds Transferred to |
|
|
|
|
|
27,503,820 |
|
|
|
|
|
|
|
|
|
Total
Long-Term Investments |
|
|
|
|
|
1,171,983,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
BlackRock Liquidity Funds, |
|
|
101,092,774 |
|
|
101,092,774 |
|
|
|
|
|
|
|
|
|
Total
Short-Term Securities |
|
|
|
|
|
101,092,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investments |
|
|
|
|
$ |
1,273,075,800 |
|
Liabilities in Excess of Other Assets – (18.2)% |
|
|
|
|
|
(193,701,118 |
) |
Liability
for Trust Certificates, Including Interest |
|
|
|
|
|
(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 |
|
||
|
|
|
|
|
|
|
||
|
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 |
|
Shares |
|
Income |
|
|||
|
|
|
|
|
|
|
|
|||
BlackRock |
|
|
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 |
|
|
— |
|
$ |
1,171,983,026 |
|
|
— |
|
$ |
1,171,983,026 |
|
Short-Term |
|
$ |
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 | |||