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

 

 

 

 

 

Michael A. Rosenberg, 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:

7/31/11

 
             

 

1

 

 

 

FORM N-Q

Item 1.                        Schedule of Investments.

2

 

 

STATEMENT OF INVESTMENTS       
Dreyfus Municipal Bond Opportunity Fund       
July 31, 2011 (Unaudited)         
 
Long-Term Municipal  Coupon  Maturity  Principal   
Investments--100.2%  Rate (%)  Date  Amount ($)  Value ($) 
Arizona--3.8%         
Arizona Health Facilities         
Authority, Health Care         
Facilities Revenue (The         
Beatitudes Campus Project)  5.20  10/1/37  2,400,000  1,817,760 
City of Phoenix, County of         
Maricopa and the County of         
Pima Industrial Development         
Authorities, SFMR         
(Collateralized: FHLMC, FNMA         
and GNMA)  5.80  12/1/39  1,435,000  1,440,812 
Glendale Western Loop 101 Public         
Facilities Corporation, Third         
Lien Excise Tax Revenue  7.00  7/1/33  5,000,000  5,263,050 
Mohave County Industrial         
Development Authority,         
Correctional Facilities         
Contract Revenue (Mohave         
Prison, LLC Expansion Project)  8.00  5/1/25  5,000,000  5,487,800 
Pima County Industrial Development         
Authority, Education Revenue         
(American Charter Schools         
Foundation Project)  5.63  7/1/38  5,000,000  4,305,900 
California--15.4%         
Anaheim Public Financing         
Authority, Revenue (City of         
Anaheim Electric System         
Distribution Facilities)  5.25  10/1/34  3,185,000  3,301,730 
California,         
Economic Recovery Bonds  5.00  7/1/20  5,000,000  5,780,450 
California,         
GO (Insured; AMBAC)  6.00  2/1/18  2,245,000  2,740,741 
California,         

 

 

GO (Various Purpose)  5.25  10/1/20  2,300,000   2,649,462 
California,           
GO (Various Purpose)  5.75  4/1/31  7,725,000   8,316,580 
California,           
GO (Various Purpose)  6.50  4/1/33  5,000,000   5,606,200 
California,           
GO (Various Purpose)  6.00  11/1/35  3,000,000   3,252,330 
California Health Facilities           
Financing Authority, Revenue           
(Providence Health and           
Services)  6.50  10/1/38  2,955,000   3,243,408 
California Health Facilities           
Financing Authority, Revenue           
(Providence Health and           
Services) (Prerefunded)  6.50  10/1/18  45,000 a  58,606 
California Pollution Control           
Financing Authority, PCR (San           
Diego Gas and Electric           
Company) (Insured; National           
Public Finance Guarantee Corp.)  5.90  6/1/14  7,710,000   8,660,720 
California Statewide Communities           
Development Authority, Revenue           
(Sutter Health)  5.50  8/15/26  2,670,000   2,817,784 
Chula Vista,           
IDR (San Diego Gas and           
Electric Company)  5.88  2/15/34  2,000,000   2,158,580 
Golden State Tobacco           
Securitization Corporation,           
Tobacco Settlement           
Asset-Backed Bonds  4.50  6/1/27  2,585,000   2,166,230 
Golden State Tobacco           
Securitization Corporation,           
Tobacco Settlement           
Asset-Backed Bonds  5.00  6/1/33  2,500,000   1,799,725 
Golden State Tobacco           
Securitization Corporation,           
Tobacco Settlement           
Asset-Backed Bonds           
(Prerefunded)  7.88  6/1/13  2,170,000 a  2,462,690 
Golden State Tobacco           

 

 

Securitization Corporation,           
Tobacco Settlement           
Asset-Backed Bonds           
(Prerefunded)  7.90  6/1/13  1,920,000 a  2,179,795 
Lincoln Community Facilities           
District Number 2003-1,           
Special Tax Bonds (Lincoln           
Crossing Project) (Prerefunded)  6.00  9/1/13  3,145,000 a  3,547,623 
Los Angeles Harbor Department,           
Revenue  5.25  8/1/25  5,000,000   5,506,900 
Sacramento County,           
Airport System Senior Revenue  5.25  7/1/26  5,000,000   5,258,700 
Sacramento County,           
Airport System Senior Revenue  5.50  7/1/29  1,500,000   1,565,205 
San Bernardino Community College           
District, GO  6.25  8/1/33  2,000,000   2,235,680 
Colorado--1.0%           
Colorado Educational and Cultural           
Facilities Authority, LR           
(Community Colleges of           
Colorado System Headquarters           
Project) (Insured; AMBAC)  5.50  12/1/21  1,100,000   1,112,287 
Colorado Housing and Finance           
Authority, Single Family           
Program Senior and Subordinate           
Bonds (Collateralized; FHA)  7.15  10/1/30  25,000   25,501 
Colorado Housing and Finance           
Authority, Single Family           
Program Senior and Subordinate           
Bonds (Collateralized; FHA)  6.60  8/1/32  1,645,000   1,773,491 
E-470 Public Highway Authority,           
Senior Revenue  5.38  9/1/26  1,000,000   950,841 
University of Colorado Regents,           
University Enterprise Revenue  5.75  6/1/28  1,000,000   1,123,500 
Connecticut--.6%           
Connecticut Development Authority,           
Water Facilities Revenue           
(Aquarion Water Company of           
Connecticut Project)  5.50  4/1/21  3,000,000   3,143,730 
District of Columbia--.5%           

 

 

Metropolitan Washington Airports           
Authority, Airport System           
Revenue  5.00  10/1/27  2,425,000   2,483,079 
Florida--4.9%           
Broward County Housing Finance           
Authority, MFHR (Pembroke           
Villas Project) (Insured;           
Assured Guaranty Municipal           
Corp.)  5.55  1/1/23  950,000   950,542 
Citizens Property Insurance           
Corporation, Coastal Account           
Senior Secured Revenue  5.00  6/1/20  3,000,000   3,093,870 
Citizens Property Insurance           
Corporation, High-Risk Account           
Senior Secured Revenue  5.50  6/1/17  2,340,000   2,574,585 
Miami-Dade County,           
Aviation Revenue  5.00  10/1/30  2,000,000   2,012,300 
Miami-Dade County,           
Aviation Revenue (Miami           
International Airport - Hub of           
the Americas) (Insured;           
Assured Guaranty Municipal           
Corp.)  5.00  10/1/33  1,285,000   1,221,315 
Miami-Dade County,           
Water and Sewer System Revenue  5.00  10/1/28  2,600,000   2,757,846 
Miami-Dade County Housing Finance           
Authority, MFMR (Country Club           
Villas II Project) (Insured;           
Assured Guaranty Municipal           
Corp.)  5.70  7/1/21  400,000   400,400 
Orange County Housing Finance           
Authority, MFHR (Seminole           
Pointe Apartments)  5.75  12/1/23  2,580,000   2,419,343 
Orlando Utilities Commission,           
Utility System Revenue  5.00  10/1/19  2,325,000   2,724,947 
Palm Bay,           
Educational Facilities Revenue           
(Patriot Charter School           
Project)  7.00  7/1/36  215,000 b  64,502 
Palm Bay,           

 

 

Utility System Improvement           
Revenue (Insured; National           
Public Finance Guarantee Corp.)  0.00  10/1/20  1,845,000 c  1,198,623 
Port of Palm Beach District,           
Revenue (Insured; XLCA)  0.00  9/1/23  1,000,000 c  432,250 
Saint Johns County Industrial           
Development Authority, Revenue           
(Presbyterian Retirement           
Communities Project)  5.88  8/1/40  1,000,000   977,540 
Seminole Water Control District,           
Improvement Bonds (Unit of           
Development Number 2)  6.75  8/1/22  1,470,000   1,447,627 
Winter Park,           
Water and Sewer Revenue           
(Insured; AMBAC)  5.38  12/1/18  1,730,000   1,817,244 
Georgia--2.7%           
Atlanta,           
Airport General Revenue  5.00  1/1/27  3,000,000   3,023,430 
Atlanta,           
Water and Wastewater Revenue  6.00  11/1/26  3,550,000   3,958,853 
Atlanta,           
Water and Wastewater Revenue           
(Insured; Assured Guaranty           
Municipal Corp.)  5.25  11/1/34  2,000,000   2,062,660 
DeKalb County Hospital Authority,           
RAC (DeKalb Medical Center,           
Inc. Project)  6.00  9/1/30  4,250,000   4,309,117 
Hawaii--1.5%           
Hawaii,           
Airports System Revenue  5.25  7/1/26  3,575,000   3,755,359 
Hawaii Department of Budget and           
Finance, Special Purpose           
Revenue (Hawai'i Pacific           
Health Obligated Group)  5.63  7/1/30  3,695,000   3,654,540 
Illinois--7.5%           
Chicago,           
General Airport Third Lein           
Revenue (Chicago O'Hare           
International Airport)           
(Insured; National Public           

 

 

Finance Guarantee Corp.)  5.25  1/1/17  3,500,000  3,970,925 
Chicago Board of Education,         
Unlimited Tax GO (Dedicated         
Revenues)  5.25  12/1/25  10,000,000  10,328,000 
Illinois,         
GO  5.00  1/1/17  2,500,000  2,774,850 
Illinois,         
GO  5.00  1/1/22  2,500,000  2,604,525 
Illinois,         
GO  5.00  1/1/24  2,500,000  2,542,875 
Illinois Development Finance         
Authority, Revenue (Community         
Rehabilitation Providers         
Facilities Acquisition Program)  8.25  8/1/12  216,484  169,687 
Illinois Finance Authority,         
Revenue (The Carle Foundation)  5.00  8/15/18  2,500,000  2,758,700 
Metropolitan Pier and Exposition         
Authority, Dedicated State Tax         
Revenue (McCormick Place         
Expansion Project) (Insured;         
National Public Finance         
Guarantee Corp.)  5.50  6/15/23  5,000,000  5,201,950 
Railsplitter Tobacco Settlement         
Authority, Tobacco Settlement         
Revenue  5.50  6/1/23  1,750,000  1,818,600 
Railsplitter Tobacco Settlement         
Authority, Tobacco Settlement         
Revenue  6.00  6/1/28  3,975,000  4,105,817 
Kansas--1.6%         
Kansas Development Finance         
Authority, Revenue (Lifespace         
Communities, Inc.)  5.00  5/15/30  1,500,000  1,378,095 
Sedgwick and Shawnee Counties,         
SFMR (Mortgage-Backed         
Securities Program)         
(Collateralized: FNMA and GNMA)  5.55  6/1/38  1,215,000  1,248,279 
Wichita,         
HR (Via Christi Health System,         
Inc.)  6.25  11/15/19  2,000,000  2,044,860 

 

 

Wichita,         
HR (Via Christi Health System,         
Inc.)  6.25  11/15/20  3,000,000  3,067,290 
Kentucky--3.3%         
Mount Sterling,         
LR (Kentucky League of Cities         
Funding Trust Program)  6.10  3/1/18  5,500,000  6,022,610 
Ohio County,         
PCR (Big Rivers Electric         
Corporation Project)  6.00  7/15/31  2,500,000  2,527,700 
Pendleton County,         
Multi-County LR (Kentucky         
Association of Counties         
Leasing Trust Program)  6.40  3/1/19  6,000,000  7,287,960 
Louisiana--1.1%         
Louisiana Local Government         
Environmental Facilities and         
Community Development         
Authority, Revenue (Westlake         
Chemical Corporation Projects)  6.75  11/1/32  2,000,000  2,094,000 
Saint James Parish,         
SWDR (Freeport-McMoRan         
Partnership Project)  7.70  10/1/22  3,020,000  3,031,959 
Maine--.4%         
Maine Health and Higher         
Educational Facilities         
Authority, Revenue         
(MaineGeneral Medical Center         
Issue)  7.50  7/1/32  2,000,000  2,158,080 
Massachusetts--2.9%         
Massachusetts Department of         
Transportation, Metropolitan         
Highway System Senior Revenue  5.00  1/1/27  5,000,000  5,261,200 
Massachusetts Development Finance         
Agency, Revenue (Tufts Medical         
Center Issue)  6.25  1/1/27  2,250,000  2,340,788 
Massachusetts Health and         
Educational Facilities         
Authority, Revenue (Harvard         
University Issue)  5.50  11/15/36  3,500,000  3,820,985 

 

 

Massachusetts Industrial Finance         
Agency, Water Treatment         
Revenue         
(Massachusetts-American         
Hingham Project)  6.95  12/1/35  2,450,000  2,449,828 
Michigan--9.3%         
Detroit,         
Sewage Disposal System Senior         
Lien Revenue (Insured; Assured         
Guaranty Municipal Corp.)  7.00  7/1/27  3,000,000  3,528,930 
Detroit School District,         
School Building and Site         
Improvement Bonds (GO -         
Unlimited Tax) (Insured; FGIC)  5.00  5/1/28  5,000,000  4,935,400 
Kent Hospital Finance Authority,         
Revenue (Spectrum Health         
System)  5.50  11/15/25  2,500,000  2,697,575 
Lansing Board of Water and Light,         
Utility System Revenue  5.50  7/1/41  2,500,000  2,654,000 
Michigan Building Authority,         
Revenue (Facilities Program)         
(Insured; Assured Guaranty         
Municipal Corp.)  5.50  10/15/18  1,500,000  1,512,750 
Michigan Building Authority,         
Revenue (Facilities Program)         
(Insured; Assured Guaranty         
Municipal Corp.)  5.50  10/15/19  8,500,000  8,569,105 
Michigan Strategic Fund,         
LOR (State of Michigan         
Cadillac Place Office Building         
Project)  5.00  10/15/17  2,590,000  2,904,038 
Michigan Strategic Fund,         
SWDR (Genesee Power Station         
Project)  7.50  1/1/21  6,725,000  6,297,559 
Pontiac Tax Increment Finance         
Authority, Tax Increment         
Revenue (Development Area         
Number 3)  6.25  6/1/22  610,000  397,885 
Pontiac Tax Increment Finance         
Authority, Tax Increment         

 

 

Revenue (Development Area           
Number 3) (Prerefunded)  6.25  6/1/12  2,640,000 a  2,797,397 
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   6,194,350 
Wayne County Airport Authority,           
Airport Revenue (Detroit           
Metropolitan Wayne County           
Airport)  5.00  12/1/18  2,500,000   2,650,500 
Missouri--1.7%           
Missouri Development Finance           
Board, Infrastructure           
Facilities Revenue (Branson           
Landing Project)  5.38  12/1/27  2,470,000   2,488,994 
Missouri Highways and           
Transportation Commission,           
Second Lien State Road Revenue  5.25  5/1/22  5,000,000   5,684,350 
Missouri Housing Development           
Commission, SFMR           
(Homeownership Loan Program)           
(Collateralized: FNMA and GNMA)  6.30  9/1/25  45,000   45,936 
Nevada--1.0%           
Clark County,           
Airport System Subordinate           
Lien Revenue (Insured; Assured           
Guaranty Municipal Corp.)  5.00  7/1/26  2,860,000   2,980,435 
Clark County,           
Passenger Facility Charge           
Revenue (Las Vegas-McCarran           
International Airport)  5.00  7/1/30  2,000,000   2,025,300 
New Jersey--4.9%           
New Jersey Economic Development           
Authority, School Facilities           
Construction Revenue  5.75  9/1/23  3,250,000   3,636,490 
New Jersey Economic Development           
Authority, School Facilities           
Construction Revenue (Insured;           

 

 

AMBAC)  5.50  9/1/24  6,300,000   6,967,170 
New Jersey Transportation Trust           
Fund Authority (Transportation           
System)  5.25  12/15/19  3,000,000   3,399,450 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  4.50  6/1/23  2,000,000   1,819,400 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  4.63  6/1/26  2,640,000   2,116,884 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds           
(Prerefunded)  7.00  6/1/13  5,135,000 a  5,758,800 
New Mexico--1.1%           
Jicarilla Apache Nation,           
Revenue  5.50  9/1/23  5,000,000   5,209,250 
New York--7.5%           
Austin Trust           
(Port Authority of New York           
and New Jersey, Consolidated           
Bonds, 151st Series)  6.00  9/15/28  9,690,000 d,e  10,452,215 
Long Island Power Authority,           
Electric System General Revenue  6.00  5/1/33  5,000,000   5,529,100 
Metropolitan Transportation           
Authority, Transportation           
Revenue  5.25  11/15/28  2,500,000   2,653,650 
New York City Health and Hospital           
Corporation, GO  5.00  2/15/18  5,265,000   5,989,622 
New York State Dormitory           
Authority, Revenue (New York           
University) (Insured; National           
Public Finance Guarantee Corp.)  6.00  7/1/17  3,500,000   4,267,235 
New York State Dormitory           
Authority, Revenue (Orange           
Regional Medical Center           
Obligated Group)  6.25  12/1/37  5,000,000   4,864,300 

 

 

New York State Dormitory           
Authority, Revenue (State           
University Educational           
Facilities)  7.50  5/15/13  2,500,000   2,782,375 
North Carolina--2.5%           
North Carolina Eastern Municipal           
Power Agency, Power System           
Revenue  7.00  1/1/13  3,080,000   3,178,036 
North Carolina Eastern Municipal           
Power Agency, Power System           
Revenue (Insured; AMBAC)  6.00  1/1/18  7,500,000   8,882,175 
Ohio--2.1%           
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   3,000,150 
Hamilton County,           
Sales Tax Refunding and           
Improvement Bonds (Insured;           
AMBAC)  0.00  12/1/25  14,865,000 c  7,033,077 
Oklahoma--.9%           
Oklahoma Municipal Power           
Authority, Power Supply System           
Revenue  6.00  1/1/38  4,000,000   4,252,200 
Oregon--1.1%           
Oregon Department of           
Administrative Services,           
Lottery Revenue (Insured;           
Assured Guaranty Municipal           
Corp.)  5.00  4/1/26  4,885,000   5,262,708 
Pennsylvania--2.8%           
Allegheny County Port Authority,           
Special Transportation Revenue  5.25  3/1/23  2,715,000   2,985,713 
Harrisburg Authority,           
University Revenue (The           
Harrisburg University of           
Science and Technology Project)  6.00  9/1/36  1,150,000   993,117 
Pennsylvania Higher Educational           
Facilities Authority, Revenue           

 

 

(University of Pennsylvania         
Health System)  6.00  8/15/26  5,000,000  5,550,250 
Philadelphia School District,         
GO  5.25  9/1/23  4,000,000  4,274,560 
South Carolina--1.1%         
South Carolina Public Service         
Authority, Revenue Obligations  5.50  1/1/38  5,000,000  5,333,450 
Tennessee--.5%         
Johnson City Health and         
Educational Facilities Board,         
HR (Mountain States Health         
Alliance)  6.00  7/1/38  2,435,000  2,481,995 
Texas--7.2%         
Brazos River Authority,         
PCR (TXU Energy Company LLC         
Project)  5.00  3/1/41  1,500,000  400,560 
Brazos River Authority,         
Revenue (Reliant Energy, Inc.         
Project)  5.38  4/1/19  3,250,000  3,252,210 
Houston,         
Airport System Subordinate         
Lien Revenue  5.00  7/1/17  2,500,000  2,761,550 
North Texas Tollway Authority,         
First Tier System Revenue         
(Insured; Assured Guaranty         
Municipal Corp.)  5.75  1/1/40  11,850,000  12,270,083 
North Texas Tollway Authority,         
Second Tier System Revenue  5.75  1/1/38  5,510,000  5,533,142 
Southwest Independent School         
District, Unlimited Tax Bonds         
(Permanent School Fund         
Guarantee Program)  5.25  2/1/25  6,110,000  7,292,285 
Texas Turnpike Authority,         
Central Texas Turnpike System         
Revenue (Insured; AMBAC)  5.75  8/15/38  3,375,000  3,383,505 
Virginia--.7%         
Virginia Housing Development         
Authority, Commonwealth         
Mortgage Revenue  6.25  7/1/31  3,470,000  3,646,484 

 

 

Washington--3.2%         
Chelan County Public Utility         
District Number 1,         
Consolidated System Revenue  5.00  7/1/17  2,180,000  2,489,189 
Washington Public Power Supply         
System, Revenue (Nuclear         
Project Number 3) (Insured;         
National Public Finance         
Guarantee Corp.)  7.13  7/1/16  10,425,000  13,191,065 
Wisconsin--1.3%         
Wisconsin Health and Educational         
Facilities Authority, Revenue         
(Aurora Health Care, Inc.)  5.50  4/15/29  2,200,000  2,237,862 
Wisconsin Health and Educational         
Facilities Authority, Revenue         
(Aurora Health Care, Inc.)  6.40  4/15/33  4,000,000  4,065,440 
U.S. Related--4.1%         
Puerto Rico Commonwealth,         
Public Improvement GO  6.00  7/1/28  1,000,000  1,070,160 
Puerto Rico Government Development         
Bank, Senior Notes  5.00  12/1/15  5,315,000  5,813,069 
Puerto Rico Infrastructure         
Financing Authority, Special         
Tax Revenue (Insured; AMBAC)  5.50  7/1/26  3,000,000  3,114,630 
Puerto Rico Public Finance         
Corporation, Revenue (Insured;         
Assured Guaranty Municipal         
Corp.)  6.00  8/1/26  2,500,000  3,199,350 
Puerto Rico Sales Tax Financing         
Corporation, Sales Tax Revenue         
(First Subordinate Series)  6.00  8/1/39  1,500,000  1,578,810 
Puerto Rico Sales Tax Financing         
Corporation, Sales Tax Revenue         
(First Subordinate Series)  6.00  8/1/42  5,000,000  5,239,200 
Total Long-Term Municipal Investments         
(cost $461,903,873)        487,679,816 
Short-Term Municipal  Coupon  Maturity  Principal   
Investments--.9%  Rate (%)  Date  Amount ($)  Value ($) 
California--.4%         

 

 

California,           
GO Notes           
(Kindergarten-University)           
(LOC: California State           
Teachers Retirement System and           
Citibank NA)  0.21  8/1/11  1,800,000 f  1,800,000 
New York--.5%           
New York City,           
GO Notes (LOC; JPMorgan Chase           
Bank)  0.22  8/1/11  1,500,000 f  1,500,000 
New York City,           
GO Notes (LOC; JPMorgan Chase           
Bank)  0.22  8/1/11  900,000 f  900,000 
Total Short-Term Municipal Investments           
(cost $4,200,000)          4,200,000 
Total Investments (cost $466,103,873)      101.1 %  491,879,816 
Liabilities, Less Cash and Receivables      (1.1 %)  (5,128,119) 
Net Assets      100.0 %  486,751,697 

 

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     

Collateral for floating rate borrowings.

e     

Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2011, this security was valued at $10,452,215 or 2.1% of net assets.

f     

Variable rate demand note - rate shown is the interest rate in effect at July 31, 2011. Maturity date represents the next demand date, or the ultimate maturity date if earlier.

At July 31, 2011, the aggregate cost of investment securities for income tax purposes was $466,103,873. Net unrealized appreciation on investments was $25,775,943 of which $29,121,061 related to appreciated investment securities and $3,345,118 related to depreciated investment securities.

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  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 
LOC  Letter of Credit  LOR  Limited Obligation Revenue 
LR  Lease Revenue  MFHR  Multi-Family Housing Revenue 
MFMR  Multi-Family Mortgage Revenue  PCR  Pollution Control Revenue 
PILOT  Payment in Lieu of Taxes  PUTTERS  Puttable Tax-Exempt Receipts 
RAC  Revenue Anticipation Certificates  RAN  Revenue Anticipation Notes 
RAW  Revenue Anticipation Warrants  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  SWDR  Solid Waste Disposal Revenue 
TAN  Tax Anticipation Notes  TAW  Tax Anticipation Warrants 
TRAN  Tax and Revenue Anticipation Notes  XLCA  XL Capital Assurance 

 

 

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.         
The following is a summary of the inputs used as of July 31, 2011 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  -  491,815,314  64,502  491,879,816 
 
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value: 

 

  Municipal Bonds ($) 
Balance as of 4/30/2011  - 
Realized gain (loss)  - 
Change in unrealized appreciation   
(depreciation)  - 
Net purchases (sales)  - 
Transfers in and/or out of Level 3  64,500 
Balance as of 7/31/2011  64,502 
The amount of total gains (losses) for the period   
included in earnings attributable to the change in   
unrealized gains (losses) relating to investments   
still held at 7/31/2011  - 

 

 

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: Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Board of Trustees. 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: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions.

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.

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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:

September 23, 2011

 

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:

September 23, 2011

 

By: /s/ James Windels

James Windels

Treasurer

 

Date:

September 23, 2011

 

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)

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