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: 07/31/2014
Date of reporting period: 10/31/2013
Item 1 – Schedule of Investments
| Schedule of Investments October 31, 2013 (Unaudited) |
BlackRock Build America Bond Trust (BBN) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Arizona — 3.0% |
||||||||
| Phoenix Civic Improvement Corp., RB, Sub-Series C (NPFGC), 6.00%, 7/01/35 |
$ | 10,000 | $ | 10,351,900 | ||||
| Salt River Project Agricultural Improvement & Power District, RB, Build America Bonds, 4.84%, 1/01/41 (a) |
25,000 | 25,762,250 | ||||||
|
|
|
|||||||
| 36,114,150 | ||||||||
| California — 32.7% |
||||||||
| Alameda County Joint Powers Authority, RB, Build America Bonds, Recovery Zone, Series A, 7.05%, 12/01/44 (a) |
13,300 | 15,148,700 | ||||||
| Bay Area Toll Authority, RB, Build America Bonds: |
||||||||
| Series S-1, 6.92%, 4/01/40 |
13,700 | 16,930,049 | ||||||
| Series S-3, 6.91%, 10/01/50 |
14,000 | 17,359,720 | ||||||
| California Infrastructure & Economic Development Bank, RB, Build America Bonds, 6.49%, 5/15/49 |
1,500 | 1,595,340 | ||||||
| California State Public Works Board, RB, Build America Bonds, Series G-2, 8.36%, 10/01/34 |
18,145 | 22,482,744 | ||||||
| City of San Jose California, Refunding ARB, Series B (AGM), 6.60%, 3/01/41 |
10,000 | 10,291,000 | ||||||
| County of Sonoma California, Refunding RB, Series A, 6.00%, 12/01/29 |
14,345 | 14,430,353 | ||||||
| Los Angeles Community College District California, GO, Build America Bonds, 6.60%, 8/01/42 (a) |
10,000 | 12,564,900 | ||||||
| Los Angeles Department of Water & Power, RB, Build America Bonds: |
||||||||
| 6.17%, 7/01/40 (a) |
37,500 | 40,059,375 | ||||||
| 7.00%, 7/01/41 |
17,225 | 19,159,023 | ||||||
| Metropolitan Water District of Southern California, RB, Build America Bonds, Series A, 6.95%, 7/01/40 (a) |
12,000 | 13,578,240 | ||||||
| Orange County Local Transportation Authority, Refunding RB, Build America Bonds, Series A, 6.91%, 2/15/41 |
5,000 | 6,298,450 | ||||||
| Palomar Community College District, GO, Build America Bonds, 7.19%, 8/01/45 |
7,500 | 8,359,425 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| Rancho Water District Financing Authority, RB, Build America Bonds, 6.34%, 8/01/40 (a) |
$ | 20,000 | $ | 21,208,600 | ||||
| Riverside Community College District, GO, Build America Bonds, Series D-1, 7.02%, 8/01/40 |
11,000 | 12,120,240 | ||||||
| San Diego County Regional Airport Authority, Refunding RB, Build America Bonds, Sub-Series C, 6.63%, 7/01/40 |
31,000 | 33,230,140 | ||||||
| San Diego Tobacco Settlement Revenue Funding Corp., RB, Asset-Backed, 7.13%, 6/01/32 |
1,615 | 1,346,425 | ||||||
| San Francisco City & County Public Utilities Commission, RB, Build America Bonds, Sub-Series E, 6.00%, 11/01/40 (a) |
21,255 | 24,068,737 | ||||||
| State of California, GO, Build America Bonds, Various Purpose: |
||||||||
| 7.55%, 4/01/39 |
9,035 | 12,232,035 | ||||||
| 7.63%, 3/01/40 |
8,950 | 12,122,864 | ||||||
| 7.60%, 11/01/40 |
15,000 | 20,548,350 | ||||||
| University of California, RB, Build America Bonds (a): |
||||||||
| 5.95%, 5/15/45 |
24,000 | 26,660,400 | ||||||
| 6.30%, 5/15/50 |
27,010 | 28,648,427 | ||||||
|
|
|
|||||||
| 390,443,537 | ||||||||
| Colorado — 3.7% |
||||||||
| Denver City & County School District No. 1, COP, Refunding, Series B, 7.02%, 12/15/37 |
6,000 | 7,159,020 | ||||||
| Regional Transportation District, COP, Build America Bonds, Series B, 7.67%, 6/01/40 |
28,000 | 31,697,680 | ||||||
| State of Colorado, COP, Build America Bonds, Series E, 7.02%, 3/15/31 |
5,000 | 5,566,250 | ||||||
|
|
|
|||||||
| 44,422,950 | ||||||||
| Connecticut — 1.0% |
||||||||
| Town of Stratford Connecticut, GO, 6.00%, 8/15/38 |
12,000 | 12,186,960 | ||||||
| District of Columbia — 2.3% |
||||||||
| Metropolitan Washington Airports Authority, RB, Build America Bonds, Series D, 8.00%, 10/01/47 |
10,750 | 11,812,315 | ||||||
| BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 | 1 |
| Schedule of Investments (continued) |
BlackRock Build America Bond Trust (BBN) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| District of Columbia (concluded) |
| |||||||
| Washington Convention & Sports Authority, Refunding RB, Series C, 7.00%, 10/01/40 |
$ | 15,000 | $ | 15,072,000 | ||||
|
|
|
|||||||
| 26,884,315 | ||||||||
| Florida — 3.3% |
||||||||
| City of Fort Lauderdale Florida, RB, Pension Funding, 5.14%, 1/01/32 |
7,500 | 7,348,500 | ||||||
| City of Sunrise Florida Utility System, RB, Build America Bonds, Series B, 5.91%, 10/01/35 (a) |
25,000 | 27,156,000 | ||||||
| County of Pasco Florida Water & Sewer, RB, Build America Bonds, Series B, 6.76%, 10/01/39 |
1,500 | 1,605,195 | ||||||
| Town of Davie Florida Water & Sewer, RB, Build America Bonds, Series B (AGM), 6.85%, 10/01/40 |
2,500 | 2,711,125 | ||||||
|
|
|
|||||||
| 38,820,820 | ||||||||
| Georgia — 5.5% |
||||||||
| Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds: |
||||||||
| 6.64%, 4/01/57 |
32,084 | 33,714,188 | ||||||
| 6.66%, 4/01/57 |
20,665 | 21,533,757 | ||||||
| 7.06%, 4/01/57 |
10,000 | 9,857,300 | ||||||
|
|
|
|||||||
| 65,105,245 | ||||||||
| Hawaii — 2.7% |
||||||||
| University of Hawaii, RB, Build America Bonds, Series B-1, 6.03%, 10/01/40 |
30,500 | 32,506,900 | ||||||
| Illinois — 21.6% |
||||||||
| Chicago Board of Education, GO, Build America Bonds, 6.52%, 12/01/40 |
25,000 | 23,281,250 | ||||||
| Chicago Transit Authority, RB: |
||||||||
| Build America Bonds, Series B, 6.20%, 12/01/40 |
16,015 | 16,890,860 | ||||||
| Series A, 6.90%, 12/01/40 (a) |
4,075 | 4,675,329 | ||||||
| Series B, 6.90%, 12/01/40 (a) |
4,900 | 5,621,868 | ||||||
| City of Chicago Illinois, GO, Build America Bonds: |
||||||||
| Recovery Zone, Series D, 6.26%, 1/01/40 |
27,180 | 25,765,009 | ||||||
| Series B, 7.52%, 1/01/40 |
12,665 | 13,135,125 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| 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 | $ | 32,039,148 | ||||
| 6.40%, 1/01/40 |
1,500 | 1,714,620 | ||||||
| City of Chicago Illinois Wastewater Transmission, RB, Build America Bonds, Series B, 6.90%, 1/01/40 (a) |
36,000 | 41,092,200 | ||||||
| City of Chicago Illinois Waterworks Transmission, RB, Build America Bonds, Series B, 6.74%, 11/01/40 |
15,250 | 16,886,630 | ||||||
| County of Cook Illinois, GO, Build America Bonds, Series D, 6.23%, 11/15/34 (a) |
12,900 | 12,690,375 | ||||||
| Illinois Finance Authority, RB, Carle Foundation, Series A, 5.75%, 8/15/34 |
5,000 | 5,332,000 | ||||||
| Illinois Municipal Electric Agency, RB, Build America Bonds, 7.29%, 2/01/35 |
15,000 | 16,722,750 | ||||||
| Northern Illinois Municipal Power Agency, RB, Build America Bonds, 7.82%, 1/01/40 |
5,000 | 5,650,350 | ||||||
| State of Illinois, GO, Build America Bonds, 7.35%, 7/01/35 (a) |
34,295 | 36,834,545 | ||||||
|
|
|
|||||||
| 258,332,059 | ||||||||
| Indiana — 2.7% |
||||||||
| Indiana Finance Authority, RB, Build America Bonds, 6.60%, 2/01/39 (a) |
7,900 | 8,986,961 | ||||||
| Indiana Municipal Power Agency, RB, Build America Bonds, Direct Payment, Series A, 5.59%, 1/01/42 |
22,290 | 22,663,580 | ||||||
|
|
|
|||||||
| 31,650,541 | ||||||||
| Iowa — 0.5% |
||||||||
| Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25 |
6,595 | 6,020,114 | ||||||
| Kentucky — 1.7% |
||||||||
| City of Wickliffe Kentucky, RB, MeadWestvaco Corp., 7.67%, 1/15/27 (b) |
9,400 | 9,247,626 | ||||||
| 2 | BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 |
| Schedule of Investments (continued) |
BlackRock Build America Bond Trust (BBN) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Kentucky (concluded) |
||||||||
| Kentucky State Property & Building Commission, RB, Build America Bonds, Series C, 5.92%, 11/01/30 |
$ | 10,000 | $ | 11,101,600 | ||||
|
|
|
|||||||
| 20,349,226 | ||||||||
| Louisiana — 1.1% |
||||||||
| Administrators of the Tulane Educational Fund, Refunding RB, Tulane University of Louisiana, Series D, 5.25%, 2/15/48 |
14,100 | 12,782,496 | ||||||
| Maine — 0.4% |
||||||||
| Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 6.75%, 7/01/36 |
5,000 | 5,286,950 | ||||||
| Maryland — 0.1% |
||||||||
| Maryland Community Development Administration, RB, Residential, Series I, 6.50%, 3/01/43 |
1,000 | 1,001,660 | ||||||
| Massachusetts — 1.5% |
||||||||
| Commonwealth of Massachusetts, RB, Build America Bonds, Recovery Zone, Series A, 5.73%, 6/01/40 (a) |
5,000 | 5,862,150 | ||||||
| Massachusetts HFA, Refunding RB, Series D, 7.02%, 12/01/42 |
12,000 | 12,483,720 | ||||||
|
|
|
|||||||
| 18,345,870 | ||||||||
| Michigan — 2.0% |
||||||||
| County of Wayne Michigan, RB, Build America Bonds, Recovery Zone, Economic Development Bonds, 10.00%, 12/01/40 |
6,500 | 6,374,160 | ||||||
| Detroit City School District, GO, Build America Bonds (Q-SBLF), 6.85%, 5/01/40 |
10,000 | 9,600,800 | ||||||
| Michigan State University, RB, Build America Bonds, Series A, 6.17%, 2/15/50 |
5,500 | 5,900,510 | ||||||
| State of Michigan, RB, Build America Bonds, Series B, 7.63%, 9/15/27 |
2,000 | 2,411,260 | ||||||
|
|
|
|||||||
| 24,286,730 | ||||||||
| Minnesota — 1.2% |
||||||||
| Southern Minnesota Municipal Power Agency, Refunding RB, Build America Bonds, Series A, 5.93%, 1/01/43 |
8,000 | 8,066,000 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Minnesota (concluded) |
||||||||
| Western Minnesota Municipal Power Agency, RB, Build America Bonds, Series C, 6.77%, 1/01/46 |
$ | 5,000 | $ | 5,865,900 | ||||
|
|
|
|||||||
| 13,931,900 | ||||||||
| Mississippi — 0.5% |
||||||||
| Mississippi Development Bank, RB, Build America Bonds, 6.41%, 1/01/40 |
5,000 | 5,715,400 | ||||||
| Missouri — 1.8% |
||||||||
| Missouri Joint Municipal Electric Utility Commission, RB, Build America Bonds, Curators of the University of Missouri, 7.73%, 1/01/39 |
11,000 | 12,820,170 | ||||||
| University of Missouri, RB, Build America Bonds, 5.79%, 11/01/41 (a) |
7,000 | 8,044,750 | ||||||
|
|
|
|||||||
| 20,864,920 | ||||||||
| Nevada — 1.3% |
||||||||
| County of Clark Nevada, ARB, Build America Bonds: |
||||||||
| Series B, 6.88%, 7/01/42 |
10,000 | 10,678,600 | ||||||
| Series C, 6.82%, 7/01/45 (a) |
2,000 | 2,474,760 | ||||||
| Las Vegas Valley Water District Nevada, GO, Limited Tax, Build America Bonds, 7.01%, 6/01/39 |
2,265 | 2,485,611 | ||||||
|
|
|
|||||||
| 15,638,971 | ||||||||
| New Jersey — 15.3% |
||||||||
| Camden County Improvement Authority, RB, Build America Bonds, 7.75%, 7/01/34 |
5,000 | 5,260,650 | ||||||
| New Jersey EDA, RB: |
||||||||
| Build America Bonds, Series CC-1, 6.43%, 12/15/35 (a) |
15,000 | 16,226,550 | ||||||
| Series A (NPFGC), 7.43%, 2/15/29 |
20,974 | 25,582,827 | ||||||
| New Jersey State Housing & Mortgage Finance Agency, RB, Series C (AGM), 6.65%, 11/01/44 |
19,800 | 19,131,354 | ||||||
| New Jersey State Turnpike Authority, RB, Build America Bonds: |
||||||||
| Series A, 7.10%, 1/01/41 |
34,000 | 43,738,620 | ||||||
| Series F, 7.41%, 1/01/40 |
6,790 | 9,031,243 | ||||||
| BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 | 3 |
| Schedule of Investments (continued) |
BlackRock Build America Bond Trust (BBN) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| New Jersey (concluded) |
||||||||
| New Jersey Transportation Trust Fund Authority, RB, Build America Bonds: |
||||||||
| Series B, 6.88%, 12/15/39 |
$ | 8,500 | $ | 9,134,355 | ||||
| Series C, 5.75%, 12/15/28 |
5,000 | 5,543,200 | ||||||
| Series C, 6.10%, 12/15/28 (a) |
42,500 | 45,995,625 | ||||||
| South Jersey Port Corp., RB, Build America Bonds, Marine Terminal, Series P-3, 7.37%, 1/01/40 |
3,215 | 3,476,765 | ||||||
|
|
|
|||||||
| 183,121,189 | ||||||||
| New York — 13.9% |
||||||||
| City of New York, New York, GO, Build America Bonds, 5.82%, 10/01/31 |
15,000 | 15,800,400 | ||||||
| City of New York, New York Municipal Water Finance Authority, RB, Build America Bonds, Second General Resolution, Series DD, 6.45%, 6/15/41 |
6,300 | 6,902,721 | ||||||
| City of New York, New York Municipal Water Finance Authority, Refunding RB, Build America Bonds Second General Resolution: |
||||||||
| Series AA, 5.79%, 6/15/41 (a) |
25,000 | 26,461,000 | ||||||
| Series CC, 6.28%, 6/15/42 (a) |
20,000 | 21,806,600 | ||||||
| Series EE, 6.49%, 6/15/42 |
2,000 | 2,193,340 | ||||||
| Series GG, 6.12%, 6/15/42 |
2,445 | 2,630,942 | ||||||
| City of New York, New York Municipal Water Finance Authority Transitional Finance Authority, RB, Build America Bonds (a): |
||||||||
| Sub-Series B-1, 5.57%, 11/01/38 |
19,000 | 20,991,770 | ||||||
| Sub-Series C-2, 6.27%, 8/01/39 |
14,795 | 16,317,850 | ||||||
| Metropolitan Transportation Authority, RB, Build America Bonds: |
||||||||
| Series A, 6.67%, 11/15/39 |
2,220 | 2,693,659 | ||||||
| Series C, 7.34%, 11/15/39 (a) |
13,245 | 17,510,155 | ||||||
| Series C-1, 6.69%, 11/15/40 |
13,000 | 15,798,900 | ||||||
| New York State Dormitory Authority, RB, Build America Bonds, Series H, 5.39%, 3/15/40 (a) |
15,000 | 16,712,700 | ||||||
|
|
|
|||||||
| 165,820,037 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Ohio — 6.1% |
||||||||
| American Municipal Power, Inc., RB, Build America Bonds, Combined Hydroelectric Projects, Series B, 7.83%, 2/15/41 |
$ | 10,000 | $ | 12,783,000 | ||||
| County of Hamilton Ohio, RB, Sewer System, Build America Bonds, Series B, 6.50%, 12/01/34 |
7,000 | 7,848,120 | ||||||
| Franklin County Convention Facilities Authority, RB, Build America Bonds, 6.64%, 12/01/42 |
30,365 | 34,112,648 | ||||||
| Mariemont City School District, GO, Refunding, Build America Bonds, Series B, 6.55%, 12/01/47 (a) |
10,055 | 10,691,381 | ||||||
| Princeton City School District, GO, Refunding, Build America Bonds, Series C, 6.09%, 12/01/40 (a) |
7,340 | 7,436,301 | ||||||
|
|
|
|||||||
| 72,871,450 | ||||||||
| Oklahoma — 0.3% |
||||||||
| Oklahoma Municipal Power Authority, RB, Build America Bonds, Series B, 6.44%, 1/01/45 |
3,500 | 3,788,785 | ||||||
| Pennsylvania — 1.4% |
||||||||
| Pennsylvania Economic Development Financing Authority, RB, Build America Bonds, Series B, 6.53%, 6/15/39 |
12,250 | 12,765,112 | ||||||
| Pennsylvania Turnpike Commission, RB, Build America Bonds, Sub-Series E, 6.38%, 12/01/37 |
3,575 | 3,701,877 | ||||||
|
|
|
|||||||
| 16,466,989 | ||||||||
| South Carolina — 0.9% |
||||||||
| South Carolina State Public Service Authority, RB, Build America Bonds, Series C, 6.45%, 1/01/50 |
10,000 | 11,232,300 | ||||||
| Tennessee — 3.7% |
||||||||
| Metropolitan Government of Nashville & Davidson County Convention Center Authority, RB, Build America Bonds: |
||||||||
| Series A2, 7.43%, 7/01/43 |
35,105 | 41,248,375 | ||||||
| Series B, 6.73%, 7/01/43 |
2,500 | 2,792,275 | ||||||
|
|
|
|||||||
| 44,040,650 | ||||||||
| 4 | BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 |
| Schedule of Investments (continued) |
BlackRock Build America Bond Trust (BBN) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Texas — 10.4% |
||||||||
| Bexar County Hospital District, GO, Build America Bonds, 5.41%, 2/15/40 (a) |
$ | 20,000 | $ | 20,526,200 | ||||
| City of Austin Texas, RB, Travis, Williams and Hays Counties, Rental Car Specialty Facilities, 5.75%, 11/15/42 |
10,000 | 9,847,100 | ||||||
| City of San Antonio Texas, RB, Build America Bonds, 6.17%, 2/01/41 |
19,000 | 20,729,950 | ||||||
| City of San Antonio Texas, Refunding RB, Build America Bonds, 6.31%, 2/01/37 (a) |
35,000 | 38,491,250 | ||||||
| Cypress-Fairbanks ISD, GO, Build America Bonds, Direct Payment, 6.63%, 2/15/38 |
14,000 | 15,787,520 | ||||||
| Dallas Area Rapid Transit, RB, Build America Bonds, 5.02%, 12/01/48 |
2,500 | 2,595,975 | ||||||
| Katy ISD Texas, GO, Build America Bonds (PSF-GTD), 6.35%, 2/15/41 (a) |
5,000 | 5,466,750 | ||||||
| North Texas Municipal Water District, RB, Build America Bonds, 6.01%, 9/01/40 |
10,000 | 11,027,400 | ||||||
|
|
|
|||||||
| 124,472,145 | ||||||||
| Utah — 3.3% |
||||||||
| County of Utah, RB, Build America Bonds, Recovery Zone, Series C, 7.13%, 12/01/39 |
11,800 | 12,896,928 | ||||||
| Utah Transit Authority, RB, Build America Bond, Subordinated, 5.71%, 6/15/40 |
26,405 | 27,043,209 | ||||||
|
|
|
|||||||
| 39,940,137 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Virginia — 0.5% |
||||||||
| Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37 |
$ | 5,865 | $ | 6,072,680 | ||||
| Washington — 1.6% |
||||||||
| Port of Seattle Washington, RB, Series B1, 7.00%, 5/01/36 |
5,000 | 5,628,950 | ||||||
| Washington State Convention Center Public Facilities District, RB, Build America Bonds, 6.79%, 7/01/40 |
12,350 | 13,533,500 | ||||||
|
|
|
|||||||
| 19,162,450 | ||||||||
| Total Long-Term Investments (Cost — $1,652,268,882) — 148.0% |
|
1,767,680,526 | ||||||
| Short-Term Securities | Shares | |||||||
| BlackRock Liquidity Funds, TempFund, Institutional Class, 0.03% (c)(d) |
5,278,308 | 5,278,308 | ||||||
| Total Short-Term Securities (Cost — $5,278,308) — 0.4% |
5,278,308 | |||||||
| Total Investments (Cost — $1,657,547,190*) — 148.4% |
1,772,958,834 | |||||||
| Liabilities in Excess of Other Assets — (48.4)% |
|
(578,534,963 | ) | |||||
|
|
|
|||||||
| Net Assets — 100.0% | $ | 1,194,423,871 | ||||||
|
|
|
|||||||
| * | As of October 31, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows: |
| Tax cost |
$ | 1,657,547,190 | ||||
|
|
|
|||||
| Gross unrealized appreciation |
$ | 130,726,870 | ||||
| Gross unrealized depreciation |
(15,315,226 | ) | ||||
|
|
|
|||||
| Net unrealized appreciation |
$ | 115,411,644 | ||||
|
|
|
|||||
| 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. |
| BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 | 5 |
| Schedule of Investments (continued) | BlackRock Build America Bond Trust (BBN) | |||
| (c) | Investments in issuers considered to be an affiliate of the Trust during the period ended October 31, 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, 2013 |
Net Activity |
Shares Held at October 31, |
Income | ||||||||||||
| BlackRock Liquidity Funds, TempFund, Institutional Class |
2,496,512 | 2,781,796 | 5,278,308 | $ | 546 | |||||||||||
| (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 |
| Ÿ | Reverse repurchase agreements outstanding as of October 31, 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 | $ | 39,234,375 | $ | 39,392,402 | ||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 21,850,000 | 21,938,007 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 23,566,481 | 23,661,402 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 37,362,500 | 37,512,988 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 26,640,000 | 26,747,300 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 15,608,725 | 15,671,593 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 13,835,250 | 13,890,975 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 17,175,000 | 17,244,177 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 6,100,000 | 6,124,569 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 15,431,250 | 15,493,404 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 10,137,500 | 10,178,332 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 2,437,500 | 2,447,318 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 13,320,000 | 13,373,650 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 1/15/13 | Open | 21,675,000 | 21,762,302 | ||||||||||
| Deutsche Bank Securities, Inc. | 0.50 | % | 1/15/13 | Open | 23,532,975 | 23,627,434 | ||||||||||
| Deutsche Bank Securities, Inc. | 0.50 | % | 1/15/13 | Open | 25,484,175 | 25,586,466 | ||||||||||
| Deutsche Bank Securities, Inc. | 0.55 | % | 1/15/13 | Open | 5,097,458 | 5,119,965 | ||||||||||
| Deutsche Bank Securities, Inc. | 0.55 | % | 1/15/13 | Open | 29,611,619 | 29,742,363 | ||||||||||
| Deutsche Bank Securities, Inc. | 0.55 | % | 1/15/13 | Open | 38,231,334 | 38,400,136 | ||||||||||
| Deutsche Bank Securities, Inc. | 0.55 | % | 1/15/13 | Open | 6,129,459 | 6,156,522 | ||||||||||
| Barclays Capital, Inc. | 0.50 | % | 2/7/13 | Open | 15,186,938 | 15,243,045 | ||||||||||
| 6 | BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 |
| Schedule of Investments (continued) | BlackRock Build America Bond Trust (BBN) |
| Ÿ | Reverse repurchase agreements outstanding as of October 31, 2013 were as follows (concluded): |
| Counterparty | Interest Rate |
Trade Date |
Maturity Date1 |
Face Value | Face Value Including Accrued Interest |
|||||||||||||
| Barclays Capital, Inc. | 0.55 | % | 2/7/13 | Open | $ | 24,131,250 | $ | 24,229,317 | ||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 2/28/13 | Open | 10,331,513 | 10,366,812 | ||||||||||||
| Deutsche Bank Securities, Inc. | 0.55 | % | 3/28/13 | Open | 8,571,500 | 8,600,048 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 20,671,875 | 20,732,742 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 25,537,500 | 25,612,694 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 5,152,500 | 5,167,671 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 10,417,500 | 10,448,174 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 8,662,500 | 8,688,006 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 28,059,615 | 28,142,235 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 20,565,000 | 20,625,552 | ||||||||||||
| Barclays Capital, Inc. | 0.50 | % | 4/2/13 | Open | 10,035,000 | 10,064,547 | ||||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 4/30/13 | Open | 18,410,550 | 18,457,855 | ||||||||||||
| Credit Suisse Securities (USA) LLC | 0.50 | % | 5/23/13 | Open | 4,055,000 | 4,064,124 | ||||||||||||
| Barclays Capital, Inc. |
0.60 | % | 9/30/13 | Open | 9,637,500 | 9,642,640 | ||||||||||||
| Total | $ | 611,886,342 | $ | 614,156,767 | ||||||||||||||
|
|
|
|||||||||||||||||
|
1 Certain agreements have no stated maturity and can be terminated by either party at any time. |
| |||||||||||||||||
| Ÿ | Financial futures contracts as of October 31, 2013 were as follows: |
| Contracts Sold |
Issue | Exchange | Expiration | Notional Value | Unrealized Depreciation |
|||||||||||
| (1,445 | ) | US Treasury Long Bond | Chicago Board of Trade | December 2013 | $ | 194,804,063 | $ | (4,873,825 | ) | |||||||
| BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 | 7 |
| Schedule of Investments (concluded) | BlackRock Build America Bond Trust (BBN) | |||
| Ÿ | 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: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access |
| Ÿ | 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) |
| Ÿ | 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 fair value hierarchy classification 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, please refer to the Trust’s most recent financial statements as contained in its annual report.
The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of October 31, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets: | ||||||||||||||
| Investments: | ||||||||||||||
| Long-Term Investments1 |
— | $ | 1,767,680,526 | — | $ | 1,767,680,526 | ||||||||
| Short-Term Securities |
$ | 5,278,308 | — | — | 5,278,308 | |||||||||
|
|
|
|||||||||||||
| Total | $ | 5,278,308 | $ | 1,767,680,526 | — | $ | 1,772,958,834 | |||||||
|
|
|
|||||||||||||
|
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 |
$ | (4,873,825 | ) | — | — | $ | (4,873,825 | ) | ||||||
| 2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
| |||||||||||||
|
Certain of the Trust’s assets and/or liabilities are held at carrying amount or face value including accrued interest, which approximates fair value for financial reporting purposes. As of October 31, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||
| Assets: | ||||||||||||||
| Cash pledged for financial futures contracts |
$ | 3,635,000 | — | — | $ | 3,635,000 | ||||||||
| Liabilities: | ||||||||||||||
| Reverse repurchase agreements |
— | $ | (614,156,767 | ) | — | (614,156,767 | ) | |||||||
|
|
|
|||||||||||||
| Total | $ | 3,635,000 | $ | (614,156,767 | ) | — | $ | (610,521,767 | ) | |||||
|
|
|
|||||||||||||
There were no transfers between levels during the period ended October 31, 2013.
| 8 | BLACKROCK BUILD AMERICA BOND TRUST | OCTOBER 31, 2013 |
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: December 23, 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: December 23, 2013 | ||||
| By: | /S/ Neal J. Andrews |
|||
| Neal J. Andrews | ||||
| Chief Financial Officer (principal financial officer) of | ||||
| BlackRock Build America Bond Trust | ||||
| Date: December 23, 2013 | ||||