N-Q 1 lp1-022.htm FORM N-Q lp1-022.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)

 

 

 

 

 

John Pak, Esq.

200 Park Avenue

New York, New York 10 166

 

 

(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:

1/31/14

 

             

 

 

 

 

FORM N-Q

Item 1.                         Schedule of Investments.

 

 

STATEMENT OF INVESTMENTS
Dreyfus Municipal Bond Opportunity Fund

January 31, 2014 (Unaudited)

Long-Term Municipal  Coupon  Maturity  Principal    
Investments--96.8%  Rate (%)  Date  Amount ($)   Value ($) 
Alabama--1.8%           
Jefferson County,           
Senior Lien Sewer Revenue           
Warrants (Insured; Assured           
Guaranty Municipal Corp.)  0/6.60  10/1/42  7,835,000 a  4,362,136 
Jefferson County,           
Limited Obligation School           
Warrants  5.25  1/1/17  2,000,000   2,009,380 
Jefferson County,           
Limited Obligation School           
Warrants  5.00  1/1/24  1,000,000   982,490 
Alaska--.3%           
Northern Tobacco Securitization           
Corporation of Alaska, Tobacco           
Settlement Asset-Backed Bonds  5.00  6/1/46  2,000,000   1,387,600 
Arizona--2.3%           
Mohave County Industrial           
Development Authority,           
Correctional Facilities           
Contract Revenue (Mohave           
Prison, LLC Expansion Project)  8.00  5/1/25  5,000,000   5,771,800 
Pima County Industrial Development           
Authority, Education Revenue           
(American Charter Schools           
Foundation Project)  5.63  7/1/38  4,650,000   3,624,071 
California--14.6%           
Anaheim Public Financing           
Authority, Revenue (City of           
Anaheim Electric System           
Distribution Facilities)  5.25  10/1/34  3,185,000   3,494,486 
California,           
GO (Various Purpose)  5.25  10/1/20  1,000,000   1,184,290 
California,           
GO (Various Purpose)  5.75  4/1/31  7,725,000   8,831,761 
California,           
GO (Various Purpose)  6.50  4/1/33  5,000,000   6,007,850 
California,           
GO (Various Purpose)  6.00  11/1/35  3,000,000   3,481,380 
California Health Facilities           
Financing Authority, Revenue           
(Providence Health and           
Services)  6.50  10/1/38  2,955,000   3,411,518 
California Health Facilities           
Financing Authority, Revenue           
(Providence Health and           
Services) (Prerefunded)  6.50  10/1/18  45,000 b  56,372 
California State Public Works           
Board, LR (Judicial Council of           

 


California) (Various Judicial           
Council Projects)  5.00  12/1/31  2,000,000   2,131,180 
California State Public Works           
Board, LR (Various Capital           
Projects)  5.13  10/1/31  1,000,000   1,072,570 
California Statewide Communities           
Development Authority, Revenue           
(Sutter Health)  5.50  8/15/26  2,670,000   3,017,340 
Chula Vista,           
IDR (San Diego Gas and           
Electric Company)  5.88  2/15/34  2,000,000   2,249,200 
Los Angeles Department of Water           
and Power, Power System Revenue  5.00  7/1/28  5,000,000   5,647,700 
Los Angeles Harbor Department,           
Revenue  5.25  8/1/25  5,000,000   5,755,850 
North Natomas Community Facilities           
District Number 4, Special Tax           
Bonds  5.00  9/1/30  1,500,000   1,576,290 
Sacramento County,           
Airport System Senior Revenue  5.25  7/1/26  5,000,000 c  5,642,900 
Sacramento County,           
Airport System Senior Revenue  5.50  7/1/29  1,500,000 c  1,694,745 
University of California Regents,           
Medical Center Pooled Revenue  5.00  5/15/43  5,000,000   5,193,550 
Colorado--2.6%           
City and County of Denver,           
Airport System Subordinate           
Revenue  5.50  11/15/27  5,565,000 c  6,181,713 
Colorado Health Facilities           
Authority, Health Facilities           
Revenue (The Evangelical           
Lutheran Good Samaritan           
Society Project)  5.63  6/1/43  2,000,000   2,081,580 
E-470 Public Highway Authority,           
Senior Revenue  5.38  9/1/26  1,000,000 c  1,066,340 
University of Colorado Regents,           
University Enterprise Revenue  5.75  6/1/28  1,000,000   1,178,990 
Connecticut--1.5%           
Connecticut,           
Special Tax Obligation Revenue           
(Transportation Infrastructure           
Purposes)  5.00  10/1/29  2,500,000 c  2,808,450 
Connecticut Development Authority,           
Water Facilities Revenue           
(Aquarion Water Company of           
Connecticut Project)  5.50  4/1/21  3,000,000   3,381,930 
District of Columbia--.7%           
Metropolitan Washington Airports           
Authority, Airport System           
Revenue  5.00  10/1/28  2,800,000 c  3,042,984 
Florida--6.4%           
Broward County,           
Airport System Revenue  5.00  10/1/42  3,750,000 c  3,854,625 
Broward County,           

 


Port Facilities Revenue  5.00  9/1/22  3,285,000 c  3,615,537 
Citizens Property Insurance           
Corporation, Coastal Account           
Senior Secured Revenue  5.00  6/1/20  3,000,000   3,451,560 
Citizens Property Insurance           
Corporation, Personal Lines           
Account/Commercial Lines           
Account Senior Secured Revenue  5.00  6/1/22  3,500,000   3,974,215 
Miami-Dade County,           
Seaport Revenue  5.50  10/1/42  2,500,000 c  2,668,800 
Orlando-Orange County Expressway           
Authority, Revenue  5.00  7/1/35  3,500,000 c  3,661,735 
Palm Bay,           
Educational Facilities Revenue           
(Patriot Charter School           
Project)  7.00  7/1/36  215,000 d  64,500 
Palm Bay,           
Utility System Improvement           
Revenue (Insured; National           
Public Finance Guarantee Corp.)  0.00  10/1/20  1,845,000 e  1,451,960 
Pinellas County Health Facilities           
Authority, Health System           
Revenue (BayCare Health System           
Issue) (Insured; National           
Public Finance Guarantee Corp.)  0.19  11/15/23  2,000,000 f  1,905,000 
Port of Palm Beach District,           
Revenue (Insured; XLCA)  0.00  9/1/23  1,000,000 c,e  543,800 
Saint Johns County Industrial           
Development Authority, Revenue           
(Presbyterian Retirement           
Communities Project)  5.88  8/1/40  1,000,000   1,042,420 
Georgia--1.8%           
Atlanta,           
Airport General Revenue  5.00  1/1/27  3,000,000 c  3,195,480 
Atlanta,           
Water and Wastewater Revenue  6.00  11/1/26  3,550,000   4,259,184 
Hawaii--.3%           
Hawaii Department of Budget and           
Finance, Special Purpose           
Revenue (Hawai'i Pacific           
Health Obligated Group)  5.63  7/1/30  1,000,000   1,060,340 
Illinois--7.2%           
Chicago,           
Customer Facility Charge           
Senior Lien Revenue (Chicago           
O'Hare International Airport)  5.75  1/1/43  3,750,000 c  3,856,425 
Chicago,           
GO (Project and Refunding           
Series) (Insured; National           
Public Finance Guarantee Corp.)  5.00  1/1/25  5,000,000   5,160,200 
Illinois,           
GO  5.50  7/1/38  3,000,000   3,130,890 
Illinois Finance Authority,           
Revenue (Advocate Health Care           
Network)  5.00  6/1/27  5,230,000   5,699,706 

 


Illinois Finance Authority,           
Revenue (Rehabilitation           
Institute of Chicago)  6.00  7/1/43  2,500,000   2,658,775 
Illinois Finance Authority,           
Revenue (The Carle Foundation)  5.00  8/15/18  2,500,000   2,819,000 
Railsplitter Tobacco Settlement           
Authority, Tobacco Settlement           
Revenue  5.50  6/1/23  1,750,000   1,961,470 
Railsplitter Tobacco Settlement           
Authority, Tobacco Settlement           
Revenue  6.00  6/1/28  3,975,000   4,415,708 
Indiana--.7%           
Indiana Finance Authority,           
First Lien Wastewater Utility           
Revenue (CWA Authority Project)  5.25  10/1/25  1,500,000   1,706,160 
Indiana Finance Authority,           
Revenue (Marquette Project)  5.00  3/1/39  1,400,000   1,319,808 
Iowa--1.8%           
Iowa Finance Authority,           
Healthcare Revenue (Genesis           
Health System)  5.00  7/1/24  2,635,000   2,911,833 
Iowa Finance Authority,           
Midwestern Disaster Area           
Revenue (Iowa Fertilizer           
Company Project)  5.00  12/1/19  3,500,000   3,466,645 
Iowa Finance Authority,           
Midwestern Disaster Area           
Revenue (Iowa Fertilizer           
Company Project)  5.25  12/1/25  1,000,000   932,200 
Kentucky--4.7%           
Kentucky Public Transportation           
Infrastructure Authority,           
Subordinate Toll Revenue, BAN           
(Downtown Crossing Project)  5.00  7/1/17  3,125,000 c  3,491,781 
Louisville/Jefferson County Metro           
Government, Health System           
Revenue (Norton Healthcare,           
Inc.)  5.75  10/1/42  3,000,000   3,137,790 
Mount Sterling,           
LR (Kentucky League of Cities           
Funding Trust Program)  6.10  3/1/18  5,500,000   6,107,695 
Pendleton County,           
Multi-County LR (Kentucky           
Association of Counties           
Leasing Trust Program)  6.40  3/1/19  6,000,000   6,517,140 
Louisiana--1.8%           
Louisiana Local Government           
Environmental Facilities and           
Community Development           
Authority, Revenue (Westlake           
Chemical Corporation Projects)  6.75  11/1/32  2,000,000   2,136,800 
Tobacco Settlement Financing           
Corporation of Louisiana,           
Tobacco Settlement           
Asset-Backed Bonds  5.00  5/15/27  2,865,000   2,946,509 

 


Tobacco Settlement Financing           
Corporation of Louisiana,           
Tobacco Settlement           
Asset-Backed Bonds  5.25  5/15/35  2,500,000   2,502,525 
Maine--.5%           
Maine Health and Higher           
Educational Facilities           
Authority, Revenue           
(MaineGeneral Medical Center           
Issue)  7.50  7/1/32  2,000,000   2,222,800 
Maryland--2.2%           
Maryland Transportation Authority,           
Airport Parking Revenue           
(Baltimore/Washington           
International Thurgood           
Marshall Airport Projects)  5.00  3/1/18  6,200,000 c  7,046,362 
Montgomery County,           
Consolidated Public           
Improvement GO  5.00  11/1/21  1,500,000   1,814,895 
Massachusetts--3.5%           
Massachusetts,           
Federal Highway Grant           
Anticipation Notes           
(Accelerated Bridge Program)  5.00  6/15/23  3,000,000 c  3,558,480 
Massachusetts Department of           
Transportation, Metropolitan           
Highway System Senior Revenue  5.00  1/1/27  5,000,000 c  5,368,500 
Massachusetts Educational           
Financing Authority, Education           
Loan Revenue (Issue K)  5.25  7/1/29  3,500,000   3,505,740 
Massachusetts School Building           
Authority, Senior Dedicated           
Sales Tax Revenue  5.00  10/15/35  1,750,000   1,886,010 
Michigan--6.4%           
Detroit,           
Sewage Disposal System Senior           
Lien Revenue (Insured; Assured           
Guaranty Municipal Corp.)  7.00  7/1/27  3,000,000   3,195,300 
Detroit,           
Water Supply System Senior           
Lien Revenue  5.25  7/1/41  2,500,000   2,310,625 
Kent Hospital Finance Authority,           
Revenue (Spectrum Health           
System)  5.50  11/15/25  2,500,000   2,859,700 
Lansing Board of Water and Light,           
Utility System Revenue  5.50  7/1/41  1,500,000   1,636,575 
Michigan Strategic Fund,           
LOR (State of Michigan           
Cadillac Place Office Building           
Project)  5.00  10/15/17  2,590,000   2,902,535 
Michigan Strategic Fund,           
SWDR (Genesee Power Station           
Project)  7.50  1/1/21  5,435,000   5,079,388 
Romulus Economic Development           
Corporation, Limited           

 


Obligation EDR (Romulus HIR           
Limited Partnership Project)           
(Insured; ITT Lyndon Property           
Insurance Company) (Escrowed           
to Maturity)  7.00  11/1/15  5,000,000   5,568,750 
Wayne County Airport Authority,           
Airport Revenue (Detroit           
Metropolitan Wayne County           
Airport)  5.00  12/1/18  2,500,000 c  2,788,575 
Nevada--.3%           
Clark County,           
Passenger Facility Charge           
Revenue (Las Vegas-McCarran           
International Airport)  5.00  7/1/30  1,000,000 c  1,056,780 
New Jersey--1.9%           
New Jersey Transportation Trust           
Fund Authority (Transportation           
Program)  5.00  6/15/44  5,250,000 c  5,426,348 
New Jersey Turnpike Authority,           
Turnpike Revenue (Insured;           
National Public Finance           
Guarantee Corp.)  0.08  1/1/30  2,500,000 c,f  2,225,000 
New York--9.3%           
Austin Trust (Series 1107)           
(Port Authority of New York           
and New Jersey, Consolidated           
Bonds, 151st Series)  6.00  9/15/28  9,690,000 c,g,h   10,808,129 
Long Island Power Authority,           
Electric System General Revenue  6.00  5/1/33  5,000,000   5,684,850 
Metropolitan Transportation           
Authority, Dedicated Tax Fund           
Revenue  5.00  11/15/32  1,850,000   2,001,608 
Metropolitan Transportation           
Authority, Transportation           
Revenue  5.25  11/15/28  2,500,000 c  2,717,325 
New York City,           
GO  5.00  10/1/36  5,000,000   5,291,500 
New York City Industrial           
Development Agency, Senior           
Airport Facilities Revenue           
(Transportation Infrastructure           
Properties, LLC Obligated           
Group)  5.00  7/1/20  3,000,000 c  3,161,250 
New York City Municipal Water           
Finance Authority, Water and           
Sewer System Second General           
Resolution Revenue  5.00  6/15/34  5,000,000   5,367,450 
New York Liberty Development           
Corporation, Liberty Revenue           
(4 World Trade Center Project)  5.00  11/15/31  1,000,000   1,066,640 
New York State Energy Research and           
Development Authority, PCR           
(Rochester Gas and Electric           
Corporation Project) (Insured;           
National Public Finance           
Guarantee Corp.)  0.12  8/1/32  2,450,000 f  2,107,000 

 


North Carolina--.9%           
Wake County,           
GO (School Bonds)  5.00  2/1/22  3,100,000   3,741,049 
Ohio--1.1%           
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   1,503,090 
Ohio,           
Capital Facilities Lease           
Appropriation Revenue (Mental           
Health Facilities Improvement           
Fund Projects)  5.00  2/1/21  1,000,000   1,179,640 
Ohio Air Quality Development           
Authority, Air Quality           
Development Revenue (The           
Cincinnati Gas and Electric           
Company Project) (Insured;           
AMBAC)  0.32  9/1/37  2,225,000 f  2,021,969 
Oklahoma--1.1%           
Oklahoma Municipal Power           
Authority, Power Supply System           
Revenue  6.00  1/1/38  4,000,000   4,406,760 
Pennsylvania--4.2%           
Allegheny County Port Authority,           
Special Transportation Revenue  5.25  3/1/23  2,715,000 c  3,065,914 
Pennsylvania Higher Educational           
Facilities Authority, Revenue           
(University of Pennsylvania           
Health System)  6.00  8/15/26  5,000,000   5,756,600 
Pennsylvania Turnpike Commission,           
Motor License Fund-Enhanced           
Turnpike Subordinate Special           
Revenue  5.00  12/1/42  3,995,000 c  4,119,924 
Philadelphia School District,           
GO  5.25  9/1/23  4,000,000   4,445,120 
South Carolina--2.6%           
South Carolina Public Service           
Authority, Revenue Obligations           
(Santee Cooper)  5.50  1/1/38  5,000,000   5,513,200 
South Carolina Public Service           
Authority, Revenue Obligations           
(Santee Cooper)  5.13  12/1/43  5,000,000   5,200,650 
Tennessee--.6%           
Johnson City Health and           
Educational Facilities Board,           
HR (Mountain States Health           
Alliance)  6.00  7/1/38  2,435,000   2,635,084 
Texas--5.5%           
Houston,           
Airport System Special           
Facilities Revenue           
(Continental Airlines, Inc.           
Terminal Improvement Projects)  6.13  7/15/17  1,600,000 c  1,600,624 

 


Love Field Airport Modernization           
Corporation, Special           
Facilities Revenue (Southwest           
Airlines Company - Love Field           
Modernization Program Project)  5.00  11/1/22  2,000,000 c  2,128,080 
North Texas Tollway Authority,           
First Tier System Revenue           
(Insured; Assured Guaranty           
Corp.)  5.75  1/1/40  5,665,000 c  6,169,752 
North Texas Tollway Authority,           
Second Tier System Revenue  5.75  1/1/38  5,510,000 c  5,834,649 
San Antonio,           
Electric and Gas Systems           
Junior Lien Revenue  5.00  2/1/43  3,500,000   3,677,240 
San Antonio,           
Water System Revenue  5.00  5/15/36  2,945,000   3,143,434 
Washington--1.5%           
Washington,           
Motor Vehicle Fuel Tax GO           
(State Road 520 Corridor           
Program - Toll Revenue)  5.00  6/1/33  2,255,000   2,452,989 
Washington Health Care Facilities           
Authority, Revenue (Providence           
Health and Services)  5.00  10/1/42  3,500,000   3,587,605 
West Virginia--1.3%           
West Virginia University Board of           
Governors, University           
Improvement Revenue (West           
Virginia University Projects)  5.00  10/1/36  5,000,000   5,339,000 
Wisconsin--.6%           
Wisconsin Health and Educational           
Facilities Authority, Revenue           
(Aurora Health Care, Inc.)  5.50  4/15/29  2,200,000   2,312,948 
U.S. Related--4.8%           
Puerto Rico Aqueduct and Sewer           
Authority, Senior Lien Revenue  5.00  7/1/21  3,610,000   2,547,902 
Puerto Rico Aqueduct and Sewer           
Authority, Senior Lien Revenue  5.25  7/1/29  3,820,000   2,618,266 
Puerto Rico Aqueduct and Sewer           
Authority, Senior Lien Revenue  5.75  7/1/37  6,000,000   4,183,320 
Puerto Rico Commonwealth,           
Public Improvement GO  6.00  7/1/28  1,000,000   723,180 
Puerto Rico Electric Power           
Authority, Power Revenue  5.25  7/1/24  1,500,000   971,385 
Puerto Rico Electric Power           
Authority, Power Revenue  6.75  7/1/36  5,000,000   3,496,650 
Puerto Rico Electric Power           
Authority, Power Revenue           
(Insured; National Public           
Finance Guarantee Corp.)  5.00  7/1/19  2,515,000   2,347,073 
Puerto Rico Sales Tax Financing           
Corporation, Sales Tax Revenue           
(First Subordinate Series)  6.00  8/1/42  4,000,000   3,018,040 
Total Long-Term Municipal Investments           

 


(cost $381,985,364)          398,355,914 
Short-Term Municipal  Coupon  Maturity  Principal    
Investment--.5%  Rate (%)  Date  Amount ($)   Value ($) 
California;           
California,           
GO Notes           
(Kindergarten-University)           
(LOC; Citibank NA)           
(cost $2,000,000)  0.03  2/3/14  2,000,000 i  2,000,000 
Total Investments (cost $383,985,364)      97.3 %  400,355,914 
Cash and Receivables (Net)      2.7 %  11,240,636 
Net Assets      100.0 %  411,596,550 

 

a Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. 
b 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. 
c At January 31, 2014, the fund had $112,401,007 or 27.3% of net assets invested in securities whose payment of principal 
and interest is dependent upon revenues generated from transportation services. 
d Non-income producing--security in default. 
e Security issued with a zero coupon. Income is recognized through the accretion of discount. 
f Variable rate security--interest rate subject to periodic change. 
g Collateral for floating rate borrowings. 
h 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, 2014, this security was 
valued at $10,808,129 or 2.6% of net assets. 
i Variable rate demand note - rate shown is the interest rate in effect at January 31, 2014. Maturity date represents the 
next demand date, or the ultimate maturity date if earlier.

 

At January 31, 2014, net unrealized appreciation on investments was $16,370,550 of which $25,127,012 related to appreciated investment securities and $8,756,462 related to depreciated investment securities. At January 31, 2014, 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 Receipts Liquidity Option 
      Tender 
MFHR  Multi-Family Housing Revenue  MFMR  Multi-Family Mortgage Revenue 
PCR  Pollution Control Revenue  P-FLOATS  Puttable Floating Option Tax-Exempt Receipts 
PILOT  Payment in Lieu of Taxes  PUTTERS  Puttable Tax-Exempt Receipts 
RAC  Revenue Anticipation Certificates  RAN  Revenue Anticipation Notes 
RAW  Revenue Anticipation Warrants  RIB  Residual Interest Bonds 
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, 2014 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+  -  400,291,414  64,500  400,355,914 

 

+ See Statement of Investments for additional detailed categorizations. 

 


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.

 

 

 

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, 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/ Bradley J. Skapyak

Bradley J. Skapyak

President

 

Date:

March 25, 2014

 

By: /s/ James Windels

James Windels

Treasurer

 

Date:

March 25, 2014

 

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)