N-Q 1 formnq022.htm FORM N-Q formnq022.htm - Generated by SEC Publisher for SEC Filing

 

 

 

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

811-4764

 

 

 

Dreyfus Municipal Bond Opportunity Fund

 

 

(Exact name of Registrant as specified in charter)

 

 

 

 

 

 

c/o The Dreyfus Corporation

200 Park Avenue

New York, New York 10166

 

 

(Address of principal executive offices) (Zip code)

 

 

 

 

 

Janette E. Farragher, Esq.

200 Park Avenue

New York, New York 10166

 

 

(Name and address of agent for service)

 

 

Registrant's telephone number, including area code:

(212) 922-6000

 

 

Date of fiscal year end:

 

4/30

 

Date of reporting period:

1/31/13

 
             

 

 

 

 

FORM N-Q

Item 1.                        Schedule of Investments.



 

2

 

 

STATEMENT OF INVESTMENTS         
Dreyfus Municipal Bond Opportunity Fund         
January 31, 2013 (Unaudited)           
 
Long-Term Municipal  Coupon  Maturity  Principal    
Investments--99.9%  Rate (%)  Date  Amount ($)   Value ($) 
Alabama--.6%           
Jefferson County,           
Limited Obligation School           
Warrants  5.25  1/1/17  2,000,000   2,001,320 
Jefferson County,           
Limited Obligation School           
Warrants  5.00  1/1/24  1,000,000   981,820 
Arizona--4.1%           
Glendale Western Loop 101 Public           
Facilities Corporation, Third           
Lien Excise Tax Revenue           
(Prerefunded)  7.00  1/1/14  5,000,000 a  5,303,800 
Mohave County Industrial           
Development Authority,           
Correctional Facilities           
Contract Revenue (Mohave           
Prison, LLC Expansion Project)  8.00  5/1/25  5,000,000   6,162,800 
Phoenix Civic Improvement           
Corporation, Junior Lien Water           
System Revenue  5.00  7/1/17  3,405,000   4,017,049 
Pima County Industrial Development           
Authority, Education Revenue           
(American Charter Schools           
Foundation Project)  5.63  7/1/38  4,650,000   4,634,143 
California--14.5%           
Anaheim Public Financing           
Authority, Revenue (City of           
Anaheim Electric System           
Distribution Facilities)  5.25  10/1/34  3,185,000   3,644,373 
California,           

 


GO (Insured; AMBAC)  6.00  2/1/18  2,245,000   2,798,190 
California,           
GO (Various Purpose)  5.25  10/1/20  2,300,000   2,834,520 
California,           
GO (Various Purpose)  5.75  4/1/31  7,725,000   9,163,395 
California,           
GO (Various Purpose)  6.50  4/1/33  5,000,000   6,225,150 
California,           
GO (Various Purpose)  6.00  11/1/35  3,000,000   3,689,130 
California Health Facilities           
Financing Authority, Revenue           
(Providence Health and           
Services)  6.50  10/1/38  2,955,000   3,576,643 
California Health Facilities           
Financing Authority, Revenue           
(Providence Health and           
Services) (Prerefunded)  6.50  10/1/18  45,000 a  58,665 
California State Public Works           
Board, LR (Judicial Council of           
California) (Various Judicial           
Council Projects)  5.00  12/1/31  2,000,000   2,279,140 
California State Public Works           
Board, LR (Various Capital           
Projects)  5.13  10/1/31  1,000,000   1,146,690 
California Statewide Communities           
Development Authority, Revenue           
(Sutter Health)  5.50  8/15/26  2,670,000   3,208,913 
Chula Vista,           
IDR (San Diego Gas and           
Electric Company)  5.88  2/15/34  2,000,000   2,360,280 
Golden State Tobacco           
Securitization Corporation,           
Tobacco Settlement           
Asset-Backed Bonds  4.50  6/1/27  1,585,000   1,501,391 
Lincoln Community Facilities           
District Number 2003-1,           
Special Tax Bonds (Lincoln           

 


Crossing Project) (Prerefunded)  6.00  9/1/13  3,145,000 a  3,306,181 
Los Angeles Harbor Department,           
Revenue  5.25  8/1/25  5,000,000   5,969,050 
Los Angeles Unified School           
District, GO  5.00  7/1/18  7,210,000   8,718,404 
Sacramento County,           
Airport System Senior Revenue  5.25  7/1/26  5,000,000   5,866,100 
Sacramento County,           
Airport System Senior Revenue  5.50  7/1/29  1,500,000   1,762,320 
San Bernardino Community College           
District, GO  6.25  8/1/33  2,000,000   2,426,460 
San Diego County Regional           
Transportation Commission,           
Sales Tax Revenue  5.00  4/1/20  1,250,000   1,567,237 
Colorado--1.7%           
Colorado Housing and Finance           
Authority, Single Family           
Program Senior and Subordinate           
Bonds (Collateralized; FHA)  6.60  8/1/32  1,245,000   1,320,484 
E-470 Public Highway Authority,           
Senior Revenue  5.38  9/1/26  1,000,000   1,118,260 
Metro Wastewater Reclamation           
District, Sewer Improvement           
Revenue  5.00  4/1/17  1,925,000   2,263,434 
University of Colorado Regents,           
University Enterprise Revenue  5.75  6/1/28  1,000,000   1,230,290 
University of Colorado Regents,           
University Enterprise Revenue  5.25  6/1/36  2,065,000   2,447,913 
Connecticut--.7%           
Connecticut Development Authority,           
Water Facilities Revenue           
(Aquarion Water Company of           
Connecticut Project)  5.50  4/1/21  3,000,000   3,514,650 
Delaware--.6%           
Delaware,           
GO  5.00  10/1/16  2,500,000   2,904,750 
Florida--5.7%           

 


Broward County,           
Port Facilities Revenue  5.00  9/1/22  3,285,000   3,847,162 
Broward County Housing Finance           
Authority, MFHR (Pembroke           
Villas Project) (Insured;           
Assured Guaranty Municipal           
Corp.)  5.55  1/1/23  865,000   866,358 
Citizens Property Insurance           
Corporation, Coastal Account           
Senior Secured Revenue  5.00  6/1/20  3,000,000   3,545,190 
Citizens Property Insurance           
Corporation, High-Risk Account           
Senior Secured Revenue  5.50  6/1/17  2,340,000   2,731,763 
Citizens Property Insurance           
Corporation, Personal Lines           
Account/Commercial Lines           
Account Senior Secured Revenue  5.00  6/1/22  3,500,000   4,143,930 
Florida State Board of Education,           
Public Education Capital           
Outlay Bonds  5.00  6/1/21  2,500,000   3,146,625 
Jacksonville Electric Authority,           
Revenue (Saint Johns River           
Power Park System)  5.00  10/1/22  1,625,000   1,946,311 
Orlando Utilities Commission,           
Utility System Revenue  5.00  10/1/19  2,325,000   2,861,750 
Palm Bay,           
Educational Facilities Revenue           
(Patriot Charter School           
Project)  7.00  7/1/36  215,000 b  64,483 
Palm Bay,           
Utility System Improvement           
Revenue (Insured; National           
Public Finance Guarantee Corp.)  0.00  10/1/20  1,845,000 c  1,369,138 
Pinellas County Health Facilities           
Authority, Health System           
Revenue (BayCare Health System           
Issue) (Insured; National           

 


Public Finance Guarantee Corp.)  0.26  11/15/23  2,000,000 d  1,867,720 
Port of Palm Beach District,           
Revenue (Insured; XLCA)  0.00  9/1/23  1,000,000 c  559,100 
Saint Johns County Industrial           
Development Authority, Revenue           
(Presbyterian Retirement           
Communities Project)  5.88  8/1/40  1,000,000   1,122,180 
Georgia--3.8%           
Atlanta,           
Airport General Revenue  5.00  1/1/27  3,000,000   3,421,080 
Atlanta,           
Water and Wastewater Revenue  6.00  11/1/26  3,550,000   4,385,990 
Gwinnett County School District,           
GO Sales Tax Bonds  4.00  10/1/16  2,875,000   3,230,638 
Municipal Electric Authority of           
Georgia, Revenue (Project One           
Subordinated Bonds)  5.00  1/1/20  6,290,000   7,577,500 
Hawaii--.2%           
Hawaii Department of Budget and           
Finance, Special Purpose           
Revenue (Hawai'i Pacific           
Health Obligated Group)  5.63  7/1/30  1,000,000   1,126,250 
Illinois--5.3%           
Chicago,           
General Airport Third Lien           
Revenue (Chicago O'Hare           
International Airport)           
(Insured; National Public           
Finance Guarantee Corp.)  5.25  1/1/17  3,500,000   4,053,105 
Chicago Board of Education,           
Unlimited Tax GO (Dedicated           
Revenues)  5.25  12/1/25  10,000,000   11,216,500 
Illinois,           
GO  5.00  8/1/24  1,000,000   1,138,280 
Illinois Finance Authority,           
Revenue (The Carle Foundation)  5.00  8/15/18  2,500,000   2,870,725 
Railsplitter Tobacco Settlement           

 


Authority, Tobacco Settlement         
Revenue  5.50  6/1/23  1,750,000  2,085,475 
Railsplitter Tobacco Settlement         
Authority, Tobacco Settlement         
Revenue  6.00  6/1/28  3,975,000  4,781,686 
Indiana--.8%         
Indiana Finance Authority,         
First Lien Wastewater Utility         
Revenue (CWA Authority Project)  5.25  10/1/25  1,500,000  1,817,625 
Indiana Finance Authority,         
Midwestern Disaster Relief         
Revenue (Ohio Valley Electric         
Corporation Project)  5.00  6/1/39  2,000,000  2,131,920 
Kansas--1.1%         
Kansas Department of         
Transportation, Highway Revenue  5.00  9/1/20  3,000,000  3,788,700 
Kansas Development Finance         
Authority, Revenue (Lifespace         
Communities, Inc.)  5.00  5/15/30  1,500,000  1,606,185 
Kentucky--2.7%         
Mount Sterling,         
LR (Kentucky League of Cities         
Funding Trust Program)  6.10  3/1/18  5,500,000  6,222,810 
Pendleton County,         
Multi-County LR (Kentucky         
Association of Counties         
Leasing Trust Program)  6.40  3/1/19  6,000,000  6,967,500 
Louisiana--.5%         
Louisiana Local Government         
Environmental Facilities and         
Community Development         
Authority, Revenue (Westlake         
Chemical Corporation Projects)  6.75  11/1/32  2,000,000  2,277,340 
Maine--.5%         
Maine Health and Higher         
Educational Facilities         
Authority, Revenue         

 


(MaineGeneral Medical Center         
Issue)  7.50  7/1/32  2,000,000  2,574,560 
Maryland--2.4%         
Maryland,         
GO (State and Local Facilities         
Loan)  5.00  8/1/20  2,500,000  3,089,150 
Maryland Transportation Authority,         
Airport Parking Revenue         
(Baltimore/Washington         
International Thurgood         
Marshall Airport Projects)  5.00  3/1/18  6,200,000  7,200,122 
Montgomery County,         
Consolidated Public         
Improvement GO  5.00  7/1/21  1,500,000  1,835,535 
Massachusetts--4.0%         
Massachusetts Department of         
Transportation, Metropolitan         
Highway System Senior Revenue  5.00  1/1/27  5,000,000  5,767,050 
Massachusetts Development Finance         
Agency, Revenue (Tufts Medical         
Center Issue)  6.25  1/1/27  2,250,000  2,716,898 
Massachusetts School Building         
Authority, Senior Dedicated         
Sales Tax Revenue  5.00  8/15/22  5,000,000  6,361,400 
Massachusetts School Building         
Authority, Senior Dedicated         
Sales Tax Revenue  5.00  10/15/35  1,750,000  2,052,190 
Massachusetts Water Resources         
Authority, General Revenue  5.00  8/1/42  2,500,000  2,902,800 
Michigan--9.3%         
Detroit,         
Sewage Disposal System Senior         
Lien Revenue (Insured; Assured         
Guaranty Municipal Corp.)  7.00  7/1/27  3,000,000  3,702,510 
Detroit Water and Sewerage         
Department, Senior Lien Sewage         
Disposal System Revenue  5.25  7/1/39  2,500,000  2,727,725 

 


Kent Hospital Finance Authority,         
Revenue (Spectrum Health         
System)  5.50  11/15/25  2,500,000  2,991,325 
Lansing Board of Water and Light,         
Utility System Revenue  5.50  7/1/41  2,500,000  2,966,875 
Michigan Finance Authority,         
Unemployment Obligation         
Assessment Revenue  5.00  7/1/22  7,500,000  8,491,875 
Michigan Municipal Bond Authority,         
State Clean Water Revolving         
Fund Revenue  5.00  10/1/23  6,340,000  7,411,587 
Michigan Strategic Fund,         
LOR (State of Michigan         
Cadillac Place Office Building         
Project)  5.00  10/15/17  2,590,000  2,954,724 
Michigan Strategic Fund,         
SWDR (Genesee Power Station         
Project)  7.50  1/1/21  6,025,000  6,025,362 
Romulus Economic Development         
Corporation, Limited         
Obligation EDR (Romulus HIR         
Limited Partnership Project)         
(Insured; ITT Lyndon Property         
Insurance Company)  7.00  11/1/15  5,000,000  5,853,550 
Wayne County Airport Authority,         
Airport Revenue (Detroit         
Metropolitan Wayne County         
Airport)  5.00  12/1/18  2,500,000  2,927,600 
Missouri--.6%         
Curators of the University of         
Missouri, System Facilities         
Revenue  5.00  11/1/19  2,500,000  3,097,875 
Nevada--.2%         
Clark County,         
Passenger Facility Charge         
Revenue (Las Vegas-McCarran         
International Airport)  5.00  7/1/30  1,000,000  1,129,730 

 


New Jersey--1.5%           
New Jersey Turnpike Authority,           
Turnpike Revenue (Insured;           
National Public Finance           
Guarantee Corp.)  0.18  1/1/30  2,500,000 d  2,187,500 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  4.50  6/1/23  1,945,000   1,945,642 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  4.63  6/1/26  1,000,000   974,200 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds           
(Prerefunded)  7.00  6/1/13  2,135,000 a  2,183,507 
New York--12.3%           
Austin Trust           
(Port Authority of New York           
and New Jersey, Consolidated           
Bonds, 151st Series)  6.00  9/15/28  9,690,000 e,f  11,443,115 
Long Island Power Authority,           
Electric System General Revenue  6.00  5/1/33  5,000,000   6,090,250 
Metropolitan Transportation           
Authority, Dedicated Tax Fund           
Revenue  5.00  11/15/32  1,850,000   2,176,895 
Metropolitan Transportation           
Authority, Transportation           
Revenue  5.25  11/15/28  2,500,000   2,924,900 
New York City,           
GO  5.00  10/1/36  5,000,000   5,797,300 
New York City Health and Hospital           
Corporation, GO  5.00  2/15/18  5,265,000   6,178,162 
New York City Industrial           
Development Agency, Senior           

 


Airport Facilities Revenue           
(Transportation Infrastructure           
Properties, LLC Obligated           
Group)  5.00  7/1/20  3,000,000   3,256,920 
New York City Municipal Water           
Finance Authority, Water and           
Sewer System Second General           
Resolution Revenue  5.00  6/15/34  5,000,000   5,805,600 
New York City Transitional Finance           
Authority, Future Tax Secured           
Subordinate Revenue  5.00  2/1/24  2,000,000   2,426,540 
New York Liberty Development           
Corporation, Liberty Revenue           
(4 World Trade Center Project)  5.00  11/15/31  1,000,000   1,148,880 
New York State Dormitory           
Authority, Revenue (Orange           
Regional Medical Center           
Obligated Group)  6.25  12/1/37  5,000,000   5,542,800 
New York State Dormitory           
Authority, Revenue (State           
University Educational           
Facilities)  7.50  5/15/13  2,500,000   2,552,375 
New York State Dormitory           
Authority, State Personal           
Income Tax Revenue (General           
Purpose)  5.00  8/15/18  5,000,000   6,060,600 
North Carolina--.9%           
Wake County Industrial Facilities           
and Pollution Control           
Financing Authority, PCR           
(Carolina Power and Light           
Company Project) (Insured;           
AMBAC)  0.18  10/1/22  4,725,000 d  4,441,500 
Ohio--.6%           
Cleveland-Cuyahoga County Port           
Authority, Senior Special           
Assessment/Tax Increment           

 


Revenue (University Heights -         
Public Parking Garage Project)  7.35  12/1/31  3,000,000  3,033,360 
Oklahoma--.9%         
Oklahoma Municipal Power         
Authority, Power Supply System         
Revenue  6.00  1/1/38  4,000,000  4,673,080 
Pennsylvania--3.5%         
Allegheny County Port Authority,         
Special Transportation Revenue  5.25  3/1/23  2,715,000  3,230,769 
Pennsylvania Economic Development         
Financing Authority,         
Unemployment Compensation         
Revenue  5.00  7/1/22  3,000,000  3,409,770 
Pennsylvania Higher Educational         
Facilities Authority, Revenue         
(University of Pennsylvania         
Health System)  6.00  8/15/26  5,000,000  6,028,800 
Philadelphia School District,         
GO  5.25  9/1/23  4,000,000  4,671,840 
South Carolina--1.2%         
South Carolina Public Service         
Authority, Revenue Obligations  5.50  1/1/38  5,000,000  5,794,800 
Tennessee--1.2%         
Johnson City Health and         
Educational Facilities Board,         
HR (Mountain States Health         
Alliance)  6.00  7/1/38  2,435,000  2,861,685 
Metropolitan Government of         
Nashville and Davidson County,         
Subordinate Lien Water and         
Sewer Revenue  5.00  7/1/17  2,500,000  2,922,725 
Texas--8.4%         
Dallas and Fort Worth,         
Joint Improvement Revenue         
(Dallas/Fort Worth         
International Airport)  5.00  11/1/42  5,000,000  5,406,050 
Dallas Independent School         

 


District, Unlimited Tax Bonds         
(Permament School Fund         
Guarantee Program)  5.00  2/15/23  5,000,000  6,135,800 
Houston,         
Airport System Subordinate         
Lien Revenue  5.00  7/1/17  2,500,000  2,903,350 
Love Field Airport Modernization         
Corporation, Special         
Facilities Revenue (Southwest         
Airlines Company - Love Field         
Modernization Program Project)  5.00  11/1/22  2,000,000  2,226,680 
Midlothian Independent School         
District, Unlimited Tax School         
Building Bonds (Permanent         
School Fund Guarantee Program)  5.00  2/15/40  1,500,000  1,730,340 
North Texas Tollway Authority,         
First Tier System Revenue         
(Insured; Assured Guaranty         
Municipal Corp.)  5.75  1/1/40  5,665,000  6,555,708 
North Texas Tollway Authority,         
Second Tier System Revenue  5.75  1/1/38  5,510,000  6,121,830 
San Antonio,         
Water System Revenue  5.00  5/15/36  3,945,000  4,534,501 
University of Texas System Board         
of Regents, Financing System         
Revenue  5.00  8/15/17  5,000,000  5,939,850 
Virginia--1.5%         
Henrico County,         
Public Improvement GO  5.00  7/15/17  2,845,000  3,386,375 
Virginia Housing Development         
Authority, Commonwealth         
Mortgage Revenue  6.25  7/1/31  3,305,000  3,796,354 
Washington--3.5%         
Chelan County Public Utility         
District Number 1,         
Consolidated System Revenue  5.00  7/1/17  2,180,000  2,504,362 
Energy Northwest,         

 


Electric Revenue (Project 3)  5.00  7/1/18  5,000,000  6,053,400 
Seattle,         
Water System Revenue  5.00  9/1/22  2,735,000  3,467,734 
Washington,         
GO (Various Purpose)  5.00  7/1/16  2,500,000  2,870,075 
Washington,         
Motor Vehicle Fuel Tax GO         
(State Road 520 Corridor         
Program - Toll Revenue)  5.00  6/1/33  2,255,000  2,642,386 
West Virginia--1.2%         
West Virginia University Board of         
Governors, University         
Improvement Revenue (West         
Virginia University Projects)  5.00  10/1/36  5,000,000  5,847,400 
Wisconsin--1.9%         
Wisconsin,         
GO  4.00  5/1/15  2,500,000  2,698,375 
Wisconsin Health and Educational         
Facilities Authority, Revenue         
(Aurora Health Care, Inc.)  5.50  4/15/29  2,200,000  2,526,414 
Wisconsin Health and Educational         
Facilities Authority, Revenue         
(Aurora Health Care, Inc.)  6.40  4/15/33  4,000,000  4,024,920 
U.S. Related--2.0%         
Puerto Rico Commonwealth,         
Public Improvement GO  6.00  7/1/28  1,000,000  1,068,320 
Puerto Rico Electric Power         
Authority, Power Revenue  5.25  7/1/24  1,500,000  1,573,590 
Puerto Rico Sales Tax Financing         
Corporation, Sales Tax Revenue         
(First Subordinate Series)  6.00  8/1/39  1,500,000  1,672,680 
Puerto Rico Sales Tax Financing         
Corporation, Sales Tax Revenue         
(First Subordinate Series)  6.00  8/1/42  5,000,000  5,508,800 
Total Long-Term Municipal Investments         
(cost $450,916,725)        494,513,216 
Short-Term Municipal  Coupon  Maturity  Principal   

 


Investments--.1%  Rate (%)  Date  Amount ($)   Value ($)  
California--.0%             
California,             
GO Notes             
(Kindergarten-University)             
(LOC; Citibank NA)  0.10  2/1/13  200,000 g  200,000  
New York--.1%             
New York City,             
GO Notes (LOC; JPMorgan Chase             
Bank)  0.11  2/1/13  500,000 g  500,000  
Total Short-Term Municipal Investments             
(cost $700,000)          700,000  
Total Investments (cost $451,616,725)      100.0 %  495,213,216  
Liabilities, Less Cash and Receivables      (.0 %)  (43,036 ) 
Net Assets      100.0 %  495,170,180  

 

a     

These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the municipal issue and to retire the bonds in full at the earliest refunding date.

b     

Non-income producing--security in default.

c     

Security issued with a zero coupon. Income is recognized through the accretion of discount.

d     

Variable rate security--interest rate subject to periodic change.

e     

Collateral for floating rate borrowings.

f     

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2013, this security was valued at $11,443,115 or 2.3% of net assets.

g     

Variable rate demand note - rate shown is the interest rate in effect at January 31, 2013. Maturity date represents the next demand date, or the ultimate maturity date if earlier.

At January 31, 2013, net unrealized appreciation on investments was $43,596,491 of which $43,829,428 related to
appreciated investment securities and $232,937 related to depreciated investment securities. At January 31, 2013, the
cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes.

Summary of Abbreviations     
ABAG  Association of Bay Area Governments  ACA  American Capital Access 
AGC  ACE Guaranty Corporation  AGIC  Asset Guaranty Insurance Company 

 


AMBAC  American Municipal Bond Assurance Corporation  ARRN  Adjustable Rate Receipt Notes 
BAN  Bond Anticipation Notes  BPA  Bond Purchase Agreement 
CIFG  CDC Ixis Financial Guaranty  COP  Certificate of Participation 
CP  Commercial Paper  DRIVERS  Derivative Inverse Tax-Exempt Receipts 
EDR  Economic Development Revenue  EIR  Environmental Improvement Revenue 
FGIC  Financial Guaranty Insurance Company  FHA  Federal Housing Administration 
FHLB  Federal Home Loan Bank  FHLMC  Federal Home Loan Mortgage Corporation 
FNMA  Federal National Mortgage Association  GAN  Grant Anticipation Notes 
GIC  Guaranteed Investment Contract  GNMA  Government National Mortgage Association 
GO  General Obligation  HR  Hospital Revenue 
IDB  Industrial Development Board  IDC  Industrial Development Corporation 
IDR  Industrial Development Revenue  LIFERS  Long Inverse Floating Exempt Receipts 
LOC  Letter of Credit  LOR  Limited Obligation Revenue 
LR  Lease Revenue  MERLOTS  Municipal Exempt Receipt Liquidity Option 
      Tender 
MFHR  Multi-Family Housing Revenue  MFMR  Multi-Family Mortgage Revenue 
PCR  Pollution Control Revenue  P-FLOATS  Puttable Floating Option Tax-Exempts Receipts 
PILOT  Payment in Lieu of Taxes  PUTTERS  Puttable Tax-Exempt Receipts 
RAC  Revenue Anticipation Certificates  RAN  Revenue Anticipation Notes 
RAW  Revenue Anticipation Warrants  ROCS  Reset Option Certificates 
RRR  Resources Recovery Revenue  SAAN  State Aid Anticipation Notes 

 


SBPA  Standby Bond Purchase Agreement  SFHR  Single Family Housing Revenue 
SFMR  Single Family Mortgage Revenue  SONYMA  State of New York Mortgage Agency 
SPEARS  Short Puttable Exempt Adjustable Receipts  SWDR  Solid Waste Disposal Revenue 
TAN  Tax Anticipation Notes  TAW  Tax Anticipation Warrants 
TRAN  Tax and Revenue Anticipation Notes  XLCA  XL Capital Assurance 

 


The following is a summary of the inputs used as of January 31, 2013 in valuing the fund's investments:

      Level 3 -   
  Level 1 -  Level 2 - Other  Significant   
  Unadjusted Quoted  Significant  Unobservable   
Assets ($)  Prices  Observable Inputs  Inputs  Total 
Investments in Securities:         
Municipal Bonds  -  495,148,733  64,483  495,213,216 

 


The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund's financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This 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).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted 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 the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:


Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Board of Directors. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All preceding securities are categorized as Level 2 in the hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized as Level 2 or 3 depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR.

 

Item 2.                        Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. 

Item 3.                        Exhibits.

(a)        Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

3

 

 

FORM N-Q

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.

Dreyfus Municipal Bond Opportunity Fund

By: /s/ Bradley J. Skapyak

Bradley J. Skapyak

President

 

Date:

March 25, 2013

 

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/ Bradley J. Skapyak

Bradley J. Skapyak

President

 

Date:

March 25, 2013

 

By: /s/ James Windels

James Windels

Treasurer

 

Date:

March 25, 2013

 

EXHIBIT INDEX

(a)        Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)