BlackRock Build America Bond Trust

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22426

Name of Fund: BlackRock Build America Bond Trust (BBN)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Build America Bond Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2013

Date of reporting period: 04/30/2013


Item 1       Schedule of Investments


Schedule of Investments April 30, 2013 (Unaudited)    BlackRock Build America Bond Trust (BBN)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

   Par
(000)
     Value  

Arizona – 2.9%

     

Phoenix Civic Improvement Corp., RB, Series C (NPFGC),

     

6.00%, 7/01/35

   $ 10,000       $ 10,702,900   

Salt River Project Agricultural Improvement & Power District, RB, Build America Bonds,

     

4.84%, 1/01/41(a)

     25,000         29,758,250   
     

 

 

 
        40,461,150   
     

 

 

 

California – 31.6%

     

Alameda County Joint Powers Authority, RB, Build America Bonds, Recovery Zone, Series A,

     

7.05%, 12/01/44(a)

     13,300         17,288,936   

Bay Area Toll Authority, RB, Build America Bonds:

     

Series S-1, 6.92%, 4/01/40

     13,700         19,140,270   

Series S-3, 6.91%, 10/01/50

     14,000         20,584,200   

California Infrastructure & Economic Development Bank, RB, Build America Bonds,

     

6.49%, 5/15/49

     1,500         1,825,275   

California State Public Works Board, RB, Build America Bonds, Series G-2,

     

8.36%, 10/01/34

     18,145         24,417,908   

California State University, RB, Build America Bonds,

     

6.48%, 11/01/41

     3,800         4,489,244   

City of San Jose California, Refunding ARB, Series B (AGM),

     

6.60%, 3/01/41

     10,000         11,232,700   

County of Sonoma California, Refunding RB, Series A,

     

6.00%, 12/01/29

     14,345         16,666,021   

Los Angeles Community College District California, GO, Build America Bonds,

     

6.60%, 8/01/42(a)

     10,000         14,216,300   

Los Angeles Department of Water & Power, RB, Build America Bonds:

     

6.17%, 7/01/40(a)

     37,500         45,294,000   

7.00%, 7/01/41

     17,225         20,622,114   

Metropolitan Water District of Southern California, RB, Build America Bonds, Series A,

     

6.95%, 7/01/40(a)

     12,000         14,981,640   

Orange County Local Transportation Authority, Refunding RB, Build America Bonds, Series A,

     

6.91%, 2/15/41(a)

     5,000         7,182,300   

Palomar Community College District, GO, Build America Bonds,

     

7.19%, 8/01/45

     7,500         8,885,625   

Rancho Water District Financing Authority, RB, Build America Bonds,

     

6.34%, 8/01/40(a)

     20,000         22,513,800   

Riverside Community College District, GO, Build America Bonds, Series D-1,

     

7.02%, 8/01/40

     11,000         12,891,890   

San Diego County Regional Airport Authority, Refunding RB, Build America Bonds, Sub-Series C,

     

6.63%, 7/01/40

     31,000         36,158,400   

San Diego Tobacco Settlement Revenue Funding Corp., RB, Asset-Backed,

     

7.13%, 6/01/32

     1,700         1,601,944   

San Francisco City & County Public Utilities Commission, RB, Build America Bonds, Sub-Series E,

     

6.00%, 11/01/40(a)

     21,255         27,006,603   

State of California, GO, Build America Bonds, Various Purpose:

     

7.55%, 4/01/39

     9,035         13,558,644   

7.63%, 3/01/40

     8,950         13,450,150   

7.60%, 11/01/40

     15,000         22,710,450   

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

     

5.95%, 5/15/45

     24,000         30,146,880   

6.30%, 5/15/50

     26,310         31,618,832   
     

 

 

 
        438,484,126   
     

 

 

 

Colorado – 3.6%

     

Denver City & County School District No. 1, COP, Refunding, Series B,

     

7.02%, 12/15/37

     6,000         8,273,040   

Regional Transportation District, COP, Build America Bonds, Series B,

     

7.67%, 6/01/40

     28,000         35,943,040   

State of Colorado, COP, Build America Bonds, Series E,

     

7.02%, 3/15/31

     5,000         6,104,650   
     

 

 

 
        50,320,730   
     

 

 

 

District of Columbia – 2.1%

     

Metropolitan Washington Airports Authority, RB, Build America Bonds, Series D,

     

8.00%, 10/01/47

     10,750         13,386,760   

Washington Convention & Sports Authority, Refunding RB, Series C,

     

7.00%, 10/01/40

     15,000         15,960,450   
     

 

 

 
        29,347,210   
     

 

 

 

Florida – 3.2%

     

City of Fort Lauderdale Florida, RB, Pension Funding,

     

5.14%, 1/01/32

     10,000         10,835,800   

City of Sunrise Florida Utility System, RB, Build America Bonds, Series B,

     

5.91%, 10/01/35(a)

     25,000         28,911,000   

County of Pasco Florida Water & Sewer, RB, Build America Bonds, Series B,

     

6.76%, 10/01/39

     1,500         1,823,145   

Town of Davie Florida Water & Sewer, RB, Build America Bonds, Series B (AGM),

     

6.85%, 10/01/40

     2,500         2,990,475   
     

 

 

 
        44,560,420   
     

 

 

 

 

 

    BLACKROCK BUILD AMERICA BOND TRUST    APRIL 30, 2013   1


Schedule of Investments (continued)    BlackRock Build America Bond Trust (BBN)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

   Par
(000)
     Value  

Georgia – 5.4%

     

Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds:

     

6.64%, 4/01/57

   $ 32,084       $ 38,392,998   

6.66%, 4/01/57

     20,665         24,710,174   

7.06%, 4/01/57

     10,000         11,572,100   
     

 

 

 
        74,675,272   
     

 

 

 

Hawaii – 2.8%

     

University of Hawaii, RB, Build America Bonds:

     

Series A-1, 6.03%, 10/01/40

     2,500         2,877,225   

Series B-1, 6.03%, 10/01/40

     30,500         35,510,845   
     

 

 

 
        38,388,070   
     

 

 

 

Illinois – 21.7%

     

Chicago Board of Education, GO, Build America Bonds,

     

6.52%, 12/01/40

     25,000         29,004,500   

Chicago Transit Authority, RB: Build America Bonds, Series B,

     

6.20%, 12/01/40

     16,015         18,756,448   

Series A, 6.90%, 12/01/40(a)

     4,075         5,234,419   

Series B, 6.90%, 12/01/40(a)

     4,900         6,294,148   

City of Chicago Illinois, GO, Build America Bonds: Recovery Zone,

     

Series D, 6.26%, 1/01/40

     27,180         30,524,227   

Series B, 7.52%, 1/01/40

     12,665         16,075,938   

City of Chicago Illinois, Refunding ARB, O’Hare International Airport, General Third Lien, Build America Bonds, Series B:

     

6.85%, 1/01/38(a)

     30,110         35,271,155   

6.40%, 1/01/40

     1,500         1,998,630   

City of Chicago Illinois Wastewater Transmission, RB, Build America Bonds, Series B,

     

6.90%, 1/01/40(a)

     36,000         47,927,520   

City of Chicago Illinois Waterworks Transmission, RB, Build America Bonds, Series B,

     

6.74%, 11/01/40

     15,250         21,191,705   

County of Cook Illinois, GO, Build America Bonds, Series D,

     

6.23%, 11/15/34(a)

     12,900         15,070,296   

Illinois Finance Authority, RB, Carle Foundation, Series A,

     

5.75%, 8/15/34

     5,000         5,937,900   

Illinois Municipal Electric Agency, RB, Build America Bonds,

     

7.29%, 2/01/35

     15,000         19,071,600   

Northern Illinois Municipal Power Agency, RB, Build America Bonds,

     

7.82%, 1/01/40

     5,000         6,619,150   

State of Illinois, GO, Build America Bonds,

     

7.35%, 7/01/35

     34,295         42,002,458   
     

 

 

 
        300,980,094   
     

 

 

 

Indiana – 2.6%

     

Indiana Finance Authority, RB, Build America Bonds,

     

6.60%, 2/01/39(a)

     7,900         10,255,701   

Indiana Municipal Power Agency, RB, Build America Bonds, Direct Payment, Series A,

     

5.59%, 1/01/42

     22,290         25,971,416   
     

 

 

 
        36,227,117   
     

 

 

 

Kentucky – 1.5%

     

City of Wickliffe Kentucky, RB, MeadWestvaco Corp.,

     

7.67%, 1/15/27(b)

     9,400         10,128,124   

Kentucky State Property & Building Commission, RB, Build America Bonds, Series C,

     

5.92%, 11/01/30

     10,000         11,412,400   
     

 

 

 
        21,540,524   
     

 

 

 

Maine – 0.4%

     

Maine Health & Higher Educational Facilities Authority, RB, General Medical Center,

     

6.75%, 7/01/36

     5,000         6,101,900   
     

 

 

 

Maryland – 0.1%

     

Maryland Community Development Administration, RB, Residential, Series I,

     

6.50%, 3/01/43

     1,000         1,070,030   
     

 

 

 

Massachusetts – 1.5%

     

Commonwealth of Massachusetts, RB, Build America Bonds, Recovery Zone, Series A,

     

5.73%, 6/01/40(a)

     5,000         6,675,600   

Massachusetts HFA, Refunding RB, Series D,

     

7.02%, 12/01/42

     12,000         13,776,120   
     

 

 

 
        20,451,720   
     

 

 

 

Michigan – 2.7%

     

County of Wayne Michigan, RB, Build America Bonds, Recovery Zone, Economic Development Bonds,

     

10.00%, 12/01/40

     15,000         18,103,500   

Detroit City School District, GO, Build America Bonds (Q-SBLF),

     

6.85%, 5/01/40

     10,000         10,815,200   

Michigan State University, RB, Build America Bonds, Series A,

     

6.17%, 2/15/50

     5,500         6,678,100   

State of Michigan, RB, Build America Bonds, Series B,

     

7.63%, 9/15/27

     2,000         2,572,900   
     

 

 

 
        38,169,700   
     

 

 

 

Minnesota – 1.2%

     

Southern Minnesota Municipal Power Agency, Refunding RB, Build America Bonds, Series A,

     

5.93%, 1/01/43

     8,000         9,281,760   

Western Minnesota Municipal Power Agency, RB, Build America Bonds, Series C,

     

6.77%, 1/01/46

     5,000         6,764,700   
     

 

 

 
        16,046,460   
     

 

 

 

 

 

2   BLACKROCK BUILD AMERICA BOND TRUST    APRIL 30, 2013    


Schedule of Investments (continued)    BlackRock Build America Bond Trust (BBN)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

   Par
(000)
     Value  

Mississippi – 0.5%

     

Mississippi Development Bank, RB, Build America Bonds,

     

6.41%, 1/01/40

   $ 5,000       $ 6,312,200   
     

 

 

 

Missouri – 1.7%

     

Missouri Joint Municipal Electric Utility Commission, RB, Build America Bonds, Curators of the University of Missouri,

     

7.73%, 1/01/39

     11,000         14,370,070   

University of Missouri, RB, Build America Bonds,

     

5.79%, 11/01/41(a)

     7,000         9,444,470   
     

 

 

 
        23,814,540   
     

 

 

 

Nevada – 1.1%

     

County of Clark Nevada, ARB, Build America Bonds:

     

Series B, 6.88%, 7/01/42

     10,000         11,866,900   

Series C, 6.82%, 7/01/45(a)

     2,000         2,901,240   
     

 

 

 
        14,768,140   
     

 

 

 

New Jersey – 14.5%

     

Camden County Improvement Authority, RB, Build America Bonds,

     

7.75%, 7/01/34

     5,000         5,667,200   

New Jersey EDA, RB:

     

Build America Bonds,

     

Series CC-1, 6.43%, 12/15/35(a)

     15,000         17,016,150   

Series A (NPFGC), 7.43%, 2/15/29

     20,974         27,800,618   

New Jersey State Housing & Mortgage Finance Agency, RB, Series C (AGM),

     

6.65%, 11/01/44

     19,800         20,611,800   

New Jersey State Turnpike Authority, RB, Build America Bonds:

     

Series A, 7.10%, 1/01/41

     34,000         49,905,200   

Series F, 7.41%, 1/01/40

     6,790         10,314,553   

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

     

Series B, 6.88%, 12/15/39

     8,500         10,022,605   

Series C, 5.75%, 12/15/28

     5,000         6,082,400   

Series C, 6.10%, 12/15/28(a)

     42,500         50,379,500   

South Jersey Port Corp., RB, Build America Bonds, Marine Terminal,

     

Series P-3, 7.37%, 1/01/40

     3,215         3,938,857   
     

 

 

 
        201,738,883   
     

 

 

 

New York – 13.4%

     

City of New York, New York, GO, Build America Bonds,

     

5.82%, 10/01/31

     15,000         17,747,850   

Metropolitan Transportation Authority, RB, Build America Bonds:

     

Series A, 6.67%, 11/15/39

     2,220         2,980,394   

Series C, 7.34%, 11/15/39(a)

     13,245         20,138,493   

Series C-1, 6.69%, 11/15/40

     13,000         17,474,470   

New York City Municipal Water Finance Authority, RB, Build America Bonds, Second General Resolution,

     

Series DD, 6.45%, 6/15/41(a)

     6,300         7,685,496   

New York City Municipal Water Finance Authority, Refunding RB, Build America Bonds, Second General Resolution:

     

Series AA, 5.79%, 6/15/41(a)

     25,000         29,443,500   

Series CC, 6.28%, 6/15/42(a)

     20,000         24,412,800   

Series EE, 6.49%, 6/15/42

     2,000         2,441,940   

Series GG, 6.12%, 6/15/42

     2,445         2,928,157   

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

     

Sub-Series B-1, 5.57%, 11/01/38

     19,000         23,934,680   

Sub-Series C-2, 6.27%, 8/01/39

     14,795         17,274,050   

New York State Dormitory Authority, RB, Build America Bonds, Series H,

     

5.39%, 3/15/40(a)

     15,000         18,841,950   
     

 

 

 
        185,303,780   
     

 

 

 

Ohio – 5.8%

     

American Municipal Power, Inc., RB, Build America Bonds, Combined Hydroelectric Projects, Series B,

     

7.83%, 2/15/41

     10,000         14,486,200   

County of Hamilton Ohio, RB, Build America Bonds, Series B,

     

6.50%, 12/01/34

     7,000         8,329,720   

Franklin County Convention Facilities Authority, RB, Build America Bonds,

     

6.64%, 12/01/42

     30,365         37,304,010   

Mariemont City School District, GO, Refunding, Build America Bonds, Series B,

     

6.55%, 12/01/47(a)

     10,055         11,186,690   

Princeton City School District, GO, Refunding, Build America Bonds, Series C,

     

6.09%, 12/01/40(a)

     8,540         9,182,635   
     

 

 

 
        80,489,255   
     

 

 

 

Oklahoma – 0.3%

     

Oklahoma Municipal Power Authority, RB, Build America Bonds, Series B,

     

6.44%, 1/01/45

     3,500         4,277,350   
     

 

 

 

Pennsylvania – 1.3%

     

Pennsylvania Economic Development Financing Authority, RB, Build America Bonds, Series B,

     

6.53%, 6/15/39

     12,250         15,022,542   

Pennsylvania Turnpike Commission, RB, Build America Bonds, Sub-Series E,

     

6.38%, 12/01/37

     2,680         3,190,594   
     

 

 

 
        18,213,136   
     

 

 

 

 

 

    BLACKROCK BUILD AMERICA BOND TRUST    APRIL 30, 2013   3


Schedule of Investments (continued)    BlackRock Build America Bond Trust (BBN)
   (Percentages shown are based on Net Assets)

 

Municipal Bonds

   Par
(000)
     Value  

Puerto Rico – 0.4%

     

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A,

     

6.50%, 8/01/44

   $ 5,000       $ 5,670,300   
     

 

 

 

South Carolina – 1.0%

     

South Carolina State Public Service Authority, RB, Build America Bonds, Series C,

     

6.45%, 1/01/50

     10,000         13,721,100   
     

 

 

 

Tennessee – 3.4%

     

Metropolitan Government of Nashville & Davidson County Convention Center Authority, RB, Build America Bonds:

     

Series A2, 7.43%, 7/01/43

     35,105         44,598,796   

Series B, 6.73%, 7/01/43

     2,500         3,222,275   
     

 

 

 
        47,821,071   
     

 

 

 

Texas – 9.7%

     

Bexar County Hospital District, GO, Build America Bonds,

     

5.41%, 2/15/40(a)

     20,000         22,128,200   

City of Austin Texas, RB, Travis, Williams and Hays Counties, Rental Car Specialty Facilities,

     

5.75%, 11/15/42

     10,000         10,295,600   

City of San Antonio Texas, RB, Build America Bonds,

     

6.17%, 2/01/41

     19,000         22,526,020   

City of San Antonio Texas, Refunding RB, Build America Bonds,

     

6.31%, 2/01/37(a)

     35,000         41,909,700   

Cypress-Fairbanks ISD, GO, Build America Bonds, Direct Payment,

     

6.63%, 2/15/38

     14,000         16,698,220   

Dallas Area Rapid Transit, RB, Build America Bonds,

     

5.02%, 12/01/48

     2,500         3,125,000   

Katy ISD Texas, GO, Build America Bonds (PSF-GTD),

     

6.35%, 2/15/41(a)

     5,000         5,798,450   

North Texas Municipal Water District, RB, Build America Bonds,

     

6.01%, 9/01/40(a)

     10,000         11,745,300   
     

 

 

 
        134,226,490   
     

 

 

 

Utah – 3.3%

     

County of Utah, RB, Build America Bonds, Recovery Zone, Series C,

     

7.13%, 12/01/39

     11,800         13,653,190   

Utah Transit Authority, RB, Build America Bond, Subordinated,

     

5.71%, 6/15/40

     26,405         31,593,318   
     

 

 

 
        45,246,508   
     

 

 

 

Virginia – 0.5%

     

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossing OPCO LLC Project, AMT,

     

5.50%, 1/01/42

     6,250         6,803,125   
     

 

 

 

Washington – 1.5%

     

Port of Seattle Washington, RB, Series B1,

     

7.00%, 5/01/36

     5,000         5,916,350   

Washington State Convention Center Public Facilities District, RB, Build America Bonds,

     

6.79%, 7/01/40

     12,350         15,378,343   
     

 

 

 
        21,294,693   
     

 

 

 

West Virginia – 0.3%

     

Tobacco Settlement Finance Authority, RB, Series A,

     

7.47%, 6/01/47

     4,985         4,340,689   
     

 

 

 

Total Long-Term Investments
(Cost – $1,646,684,430) – 142.0%

        1,970,865,783   
     

 

 

 

Short-Term Securities

   Shares         

BlackRock Liquidity Funds, TempFund, Institutional Class,

     

0.08%(c)(d)

     17,881,679         17,881,679   
     

 

 

 

Total Short-Term Securities (Cost – $17,881,679) – 1.3%

        17,881,679   
     

 

 

 

Total Investments (Cost – $1,664,566,109*) – 143.3%

        1,988,747,462   

Liabilities in Excess of Other Assets – (43.3)%

        (600,994,434
     

 

 

 

Net Assets – 100.0% $

      $ 1,387,753,028   
     

 

 

 

 

* As of April 30, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 1,664,566,109   
  

 

 

 

Gross unrealized appreciation

   $ 324,279,201   

Gross unrealized depreciation

     (97,848
  

 

 

 

Net unrealized appreciation

   $ 324,181,353   
  

 

 

 

 

4   BLACKROCK BUILD AMERICA BOND TRUST    APRIL 30, 2013    


Schedule of Investments (continued)    BlackRock Build America Bond Trust (BBN)
  

 

Notes to Schedule of Investments

 

(a) All or a portion of security has been pledged as collateral in connection with open reverse repurchase agreements.

 

(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(c) Investments in issuers considered to be an affiliate of the Trust during the period ended April 30, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate

   Shares
held at
July 31,
2012
     Net Activity      Shares
held at
April 30,
2013
     Income      Realized
Gain
 

BlackRock Liquidity Funds, TempFund, Institutional Class

     1,243,334         16,638,345         17,881,679       $ 12,100       $ 231   

 

(d) Represents the current yield as of report date.

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:   AGM   Assured Guaranty Municipal Corp.
  AMT   Alternative Minimum Tax (subject to)
  ARB   Airport Revenue Bonds
  COP   Certificates of Participation
  EDA   Economic Development Authority
  GO   General Obligation Bonds
  HFA   Housing Finance Agency
  ISD   Independent School District
  NPFGC   National Public Finance Guarantee Corp.
  PSF-GTD   Permanent School Fund Guaranteed
  Q-SBLF   Qualified School Bond Loan Fund
  RB   Revenue Bonds

 

Reverse repurchase agreements outstanding as of April 30, 2013 were as follows:

 

Counterparty

   Interest
Rate
    Trade
Date
     Maturity
Date1
     Face Value      Face Value
Including
Accrued
Interest
 

Credit Suisse Securities (USA) LLC

     0.50     1/15/13         Open       $ 275,148,581       $ 275,553,662   

Deutsche Securities, Inc.

     0.50     1/15/13         Open         49,017,150         49,088,633   

Deutsche Securities, Inc.

     0.55     1/15/13         Open         91,233,756         91,380,110   

Barclays Capital, Inc.

     0.50     2/07/13         Open         15,186,938         15,204,234   

Barclays Capital, Inc.

     0.55     2/07/13         Open         24,131,250         24,161,481   

Credit Suisse Securities (USA) LLC

     0.50     2/28/13         Open         10,331,513         10,340,409   

Deutsche Bank AG

     0.55     3/28/13         Open         8,571,500         8,575,952   

Barclays Capital, Inc.

     0.50     4/02/13         Open         129,101,490         129,151,697   

Credit Suisse Securities (USA) LLC

     0.50     4/29/13         Open         8,796,200         8,796,444   

Credit Suisse Securities (USA) LLC

     0.50     4/30/13         Open         18,410,550         18,410,806   
          

 

 

    

 

 

 

Total

           $ 629,928,928       $ 630,663,428   
          

 

 

    

 

 

 

 

1 

Certain agreements have no stated maturity and can be terminated by either party at any time.

 

    BLACKROCK BUILD AMERICA BOND TRUST    APRIL 30, 2013   5


Schedule of Investments (continued)    BlackRock Build America Bond Trust (BBN)
  

 

 

Financial futures contracts as of April 30, 2013 were as follows:

 

Contracts
Sold
   Issue   

Exchange

  

Expiration

   Notional Value      Unrealized
Depreciation
 
(320)    10-Year US Treasury Note    Chicago Board of Trade    June 2013    $ 42,675,000       $ (15,419
(1,445)    30-Year US Treasury Bond    Chicago Board of Trade    June 2013    $ 214,401,875         (6,305,027
              

 

 

 
Total                $ (6,320,446
              

 

 

 

 

 

Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 – unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access

 

   

Level 2 – other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

   

Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The 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). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of April 30, 2013:

 

      Level 1      Level 2      Level 3      Total  

Assets:

           

Investments:

           

Long-Term Investments1

           $ 1,970,865,783               $ 1,970,865,783   

Short-Term Securities

   $ 17,881,679                         17,881,679   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 17,881,679       $ 1,970,865,783               $ 1,988,747,462   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

1 

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

 

      Level 1     Level 2      Level 3      Total  

Derivative Financial Instruments2

          

Liabilities:

          

Interest rate contracts

   $ (6,320,446                   $ (6,320,446

 

 

2 

Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

 

6   BLACKROCK BUILD AMERICA BOND TRUST    April 30,, 2013    


Schedule of Investments (concluded)    BlackRock Build America Bond Trust (BBN)
  

 

Certain of the Trust’s assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes. As of April 30, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1      Level 2     Level 3      Total  

Assets:

          

Cash pledged for financial futures contracts

   $ 4,035,000                      $ 4,035,000   

Liabilities:

          

Bank overdraft

           $ (9,785             (9,785

Cash held as collateral for reverse repurchase agreements

             (5,988,000             (5,988,000

Reverse repurchase agreements

             (629,928,928             (629,928,928
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 4,035,000       $ (635,926,713           $ (631,891,713
  

 

 

    

 

 

   

 

 

    

 

 

 

There were no transfers between levels during the period ended April 30, 2013.

 

    BLACKROCK BUILD AMERICA BOND TRUST    APRIL 30, 2013   7


Item 2       Controls and Procedures
2(a)       The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(b)       There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3       Exhibits

Certifications – Attached hereto


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock Build America Bond Trust

   
By:  

/s/ John M. Perlowski

   
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of  
  BlackRock Build America Bond Trust

Date: June 24, 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/ John M. Perlowski

   
  John M. Perlowski    
  Chief Executive Officer (principal executive officer) of  
  BlackRock Build America Bond Trust  
Date: June 24, 2013
By:  

/s/ Neal J. Andrews

   
  Neal J. Andrews    
  Chief Financial Officer (principal financial officer) of  
  BlackRock Build America Bond Trust  

Date: June 24, 2013