UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-08217

Name of Fund: BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock MuniHoldings New York Insured Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011

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

Date of fiscal year end: 08/31/2009

Date of reporting period: 02/28/2009


Item 1 Report to Stockholders



 

 

 

 

 

 

 

 

 

 

 

EQUITIES

 

FIXED INCOME

 

REAL ESTATE

 

LIQUIDITY

 

ALTERNATIVES

 

BLACKROCK SOLUTIONS


 

 

 

 

 

 

 

Semi-Annual Report

(BLACKROCK LOGO)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FEBRUARY 28, 2009 | (UNAUDITED)

 

 

 

 

 

 

 


 

BlackRock California Insured Municipal Income Trust (BCK)

 

BlackRock California Municipal Bond Trust (BZA)

 

BlackRock California Municipal Income Trust II (BCL)

 

BlackRock Maryland Municipal Bond Trust (BZM)

 

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

 

BlackRock New Jersey Municipal Bond Trust (BLJ)

 

BlackRock New York Insured Municipal Income Trust (BSE)

 

BlackRock New York Municipal Bond Trust (BQH)

 

BlackRock New York Municipal Income Trust II (BFY)

 

BlackRock Virginia Municipal Bond Trust (BHV)

 

The Massachusetts Health & Education Tax-Exempt Trust (MHE)


 

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE




 

 


 

Table of Contents


 

 

 

 

       

 

 

Page

 

       

A Letter to Shareholders

 

3

 

Semi-Annual Report:

 

 

 

Trust Summaries

 

4

 

The Benefits and Risks of Leveraging

 

15

 

Derivative Instruments

 

15

 

Financial Statements:

 

 

 

Schedules of Investments

 

16

 

Statements of Assets and Liabilities

 

42

 

Statements of Operations

 

44

 

Statements of Changes in Net Assets

 

46

 

Financial Highlights

 

48

 

Notes to Financial Statements

 

59

 

Officers and Directors/Trustees

 

65

 

Additional Information

 

66

 


 

 

 

 

 

 

 

 

2

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

A Letter to Shareholders

Dear Shareholder

The present time may well be remembered as one of the most tumultuous periods in financial market history. Over the past year, the housing market collapse and the ensuing credit crisis swelled into an all-out global financial market meltdown, featuring the collapse of storied financial firms, volatile swings in the world’s financial markets and monumental government actions, including the recent passage of the nearly $800 billion American Recovery and Reinvestment Act of 2009.

The US economy appeared somewhat resilient through the first few months of 2008 before becoming mired in the worst recession in decades. The economic data was dire across the board, but worse was the intensifying pace of deterioration in consumer spending, employment, manufacturing and other key indicators. US gross domestic product (GDP) contracted at an annual rate of 6.3% in the 2008 fourth quarter—substantially below forecast and the worst reading since 1982. The Federal Reserve Board (the “Fed”) took forceful action to revive the global economy and financial system. In addition to slashing the federal funds target rate from 3% to a record low range of 0% to 0.25%, the central bank provided enormous cash injections and significantly expanded its balance sheet via various lending and acquisition programs.

Against this backdrop, US equities contended with relentless market volatility, and the sentiment turned decisively negative toward period end. Declines were significant and broad based, with little divergence among the returns for large and small cap stocks. Non-US stocks were not spared either, as the credit crisis revealed itself to be global in nature and economic activity slowed dramatically.

Risk aversion remained the dominant theme in fixed income markets, leading the Treasury sector to top all other asset classes. The high yield market was particularly hard hit in this environment, as economic turmoil, combined with frozen credit markets and substantial technical pressures, took a heavy toll. Meanwhile, tax-exempt issues posted positive returns for the period, but the sector was not without significant challenges, including a shortage of market participants, lack of liquidity, difficult funding environment and backlog of new-issue supply.

In all, investors continued to gravitate toward relative safety, as evidenced in the six- and 12-month returns of the major benchmark indexes:

 

 

 

 

 

 

 

 

Total Returns as of February 28, 2009

 

6-month

 

12-month

 

               

US equities (S&P 500 Index)

 

(41.82

)%

 

(43.32

)%

 

               

Small cap US equities (Russell 2000 Index)

 

(46.91

)

 

(42.38

)

 

               

International equities (MSCI Europe, Australasia, Far East Index)

 

(44.58

)

 

(50.22

)

 

               

US Treasury securities (Merrill Lynch 10-Year US Treasury Index)

 

8.52

 

 

8.09

 

 

               

Taxable fixed income (Barclays Capital US Aggregate Bond Index*)

 

1.88

 

 

2.06

 

 

               

Tax-exempt fixed income (Barclays Capital Municipal Bond Index*)

 

0.05

 

 

5.18

 

 

               

High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index*)

 

(21.50

)

 

(20.92

)

 

               

* Formerly a Lehman Brothers index.

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only.

You cannot invest directly in an index.

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. We thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC

THIS PAGE NOT PART OF YOUR FUND REPORT

 

 

 

 

 

 

 

 

 

 

 

3



 

 



 

 

Trust Summary as of February 28, 2009

BlackRock California Insured Municipal Income Trust


 

Investment Objective

BlackRock California Insured Municipal Income Trust (BCK) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and California income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest.

 

Performance

For the six months ended February 28, 2009, the Trust returned (14.11)% based on market price and (4.29)% based on net asset value (“NAV”). For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (10.41)% on a market price basis and (6.22)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The range of states included in the insured Lipper category makes return comparisons inherently difficult. The Trust benefited from the outperformance of California credits, which occurred in spite of the negative fundamental backdrop involving the state’s budget finances. The Trust’s underweight in lower-rated credits was also additive, as a return to risk aversion caused credit spreads to widen during the six-month period.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information


 

 

 

 

Symbol on New York Stock Exchange

 

BCK

 

Initial Offering Date

 

October 31, 2002

 

Yield on Closing Market Price as of February 28, 2009 ($10.78)1

 

6.23%

 

Tax Equivalent Yield2

 

9.58%

 

Current Monthly Distribution per Common Share3

 

$0.056

 

Current Annualized Distribution per Common Share3

 

$0.672

 

Leverage as of February 28, 20094

 

38%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

                                 

Market Price

 

$

10.78

 

$

12.95

 

(16.76

)%

 

$

13.32

 

$

7.15

 

Net Asset Value

 

$

13.06

 

$

14.08

 

(7.24

)%

 

$

14.26

 

$

10.43

 

                                 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

Sector Allocations


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

County/City/Special District/School District

 

44

%

 

38

%

 

Utilities

 

35

 

 

39

 

 

Health

 

7

 

 

8

 

 

Education

 

6

 

 

6

 

 

State

 

5

 

 

4

 

 

Transportation

 

3

 

 

5

 

 

               

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

AAA/Aaa

 

35

%

 

31

%

 

AA/Aa

 

58

 

 

58

 

 

A/A

 

7

 

 

11

 

 

               

 

 

5

Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.


 

 

 

 

 

 

 

 

4

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 



 

 

Trust Summary as of February 28, 2009

BlackRock California Municipal Bond Trust


 

Investment Objective

BlackRock California Municipal Bond Trust (BZA) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and California income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

Performance

For the six months ended February 28, 2009, the Trust returned (21.61)% based on market price and (6.71)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (17.21)% on a market price basis and (11.72)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s performance benefited from the tightening of spreads in certain sectors specifically held in the Trust, such as corporate-backed securities, some land-based community facilities districts and alternative minimum tax paper. Tightening of credit spreads in the Trust’s lower-quality holdings muted the interest rate volatility that normally would have resulted from a negative rate environment.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

Trust Information


 

 

 

 

Symbol on New York Stock Exchange

 

BZA

 

Initial Offering Date

 

April 30, 2002

 

Yield on Closing Market Price as of February 28, 2009 ($10.97)1

 

6.78%

 

Tax Equivalent Yield2

 

10.43%

 

Current Monthly Distribution per Common Share3

 

$0.062

 

Current Annualized Distribution per Common Share3

 

$0.744

 

Leverage as of February 28, 20094

 

40%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

                       

Market Price

 

$

10.97

 

$

14.48

 

(24.24

)%

 

$

14.57

 

$

7.66

 

Net Asset Value

 

$

13.39

 

$

14.85

 

(9.83

)%

 

$

15.05

 

$

11.24

 

                                 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

Sector Allocations


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

County/City/Special District/School District

 

39

%

 

31

%

 

Health

 

17

 

 

23

 

 

Education

 

16

 

 

10

 

 

Housing

 

12

 

 

14

 

 

Transportation

 

5

 

 

6

 

 

Utilities

 

5

 

 

3

 

 

Corporate

 

4

 

 

5

 

 

State

 

2

 

 

 

 

Tobacco

 

 

 

8

 

 

               

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

AAA/Aaa

 

28

%

 

29

%

 

AA/Aa

 

27

 

 

18

 

 

A

 

31

 

 

35

 

 

BBB/Baa

 

8

 

 

11

 

 

B

 

1

 

 

1

 

 

Not Rated

 

5

 

 

6

 

 

               

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

5



 

 


 

 

Trust Summary as of February 28, 2009

BlackRock California Municipal Income Trust II

 

 

Investment Objective

 


 

BlackRock California Municipal Income Trust II (BCL) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and California income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.


 

Performance

 


 

 

For the six months ended February 28, 2009, the Trust returned (16.04)% based on market price and (5.87)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of (17.21)% on a market price basis and (11.72)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s performance benefited from the tightening of spreads in certain sectors specifically held in the Trust, such as corporate-backed securities, some land-based community facilities districts and alternative minimum tax paper. Tightening of credit spreads in the Trust’s lower-quality holdings muted the interest rate volatility that normally would have resulted from a negative rate environment.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 

Trust Information

 


 

 

 

Symbol on American Stock Exchange

 

BCL

Initial Offering Date

 

July 30, 2002

Yield on Closing Market Price as of February 28, 2009 ($10.31)1

 

6.63%

Tax Equivalent Yield2

 

10.20%

Current Monthly Distribution per Common Share3

 

$0.057

Current Annualized Distribution per Common Share3

 

$0.684

Leverage as of February 28, 20094

 

41%

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

 

Market Price

 

$

10.31

 

$

12.70

 

 

(18.82

)%

$

13.00

 

$

6.85

 

Net Asset Value

 

$

12.77

 

$

14.03

 

 

(8.98

)%

$

14.20

 

$

10.50

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

Sector Allocations


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

County/City/Special District/School District

 

37

%

 

34

%

 

Utilities

 

16

 

 

12

 

 

Health

 

14

 

 

14

 

 

Transportation

 

8

 

 

10

 

 

Tobacco

 

7

 

 

11

 

 

Education

 

6

 

 

6

 

 

State

 

5

 

 

5

 

 

Corporate

 

4

 

 

4

 

 

Housing

 

3

 

 

4

 

 

 

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

AAA/Aaa

 

21

%

 

27

%

 

AA/Aa

 

45

 

 

35

 

 

A/A

 

27

 

 

25

 

 

BBB/Baa

 

4

 

 

6

 

 

B/B

 

1

 

 

1

 

 

Not Rated6

 

2

 

 

6

 

 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2009 and August 31, 2008, the market value of these securities was $1,019,889 representing 1%, and $1,173,229 representing 1% respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

6

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Trust Summary as of February 28, 2009

BlackRock Maryland Municipal Bond Trust

 

 

Investment Objective

 


 

BlackRock Maryland Municipal Bond Trust (BZM) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Maryland personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.


 

Performance


 

 

For the six months ended February 28, 2009, the Trust returned (13.78)% based on market price and (11.58)% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of (8.43)% on a market price basis and (5.85)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s performance was hampered by its exposure to the long end of the municipal yield curve, which underperformed as the curve steepened. Also detracting from results was a widening in credit spreads, which had a negative impact on weaker credits in the Trust.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 

Trust Information


 

 

 

Symbol on American Stock Exchange

 

BZM

Initial Offering Date

 

April 30, 2002

Yield on Closing Market Price as of February 28, 2009 ($13.17)1

 

5.96%

Tax Equivalent Yield2

 

9.17%

Current Monthly Distribution per Common Share3

 

$0.0654

Current Annualized Distribution per Common Share3

 

$0.7848

Leverage as of February 28, 20094

 

41%

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

 

Market Price

 

$

13.17

 

$

15.75

 

 

(16.38

)%

$

16.65

 

$

8.70

 

Net Asset Value

 

$

12.39

 

$

14.45

 

 

(14.26

)%

$

14.63

 

$

10.51

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

Sector Allocations


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

County/City/Special District/School District

 

27

%

 

28

%

 

Transportation

 

19

 

 

21

 

 

Health

 

20

 

 

19

 

 

Utilities

 

12

 

 

12

 

 

Education

 

11

 

 

11

 

 

Housing

 

7

 

 

5

 

 

Tobacco

 

3

 

 

3

 

 

State

 

1

 

 

1

 

 

 

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

AAA/Aaa

 

31

%

 

31

%

 

AA/Aa

 

19

 

 

21

 

 

A

 

36

 

 

27

 

 

BBB/Baa

 

5

 

 

10

 

 

Not Rated

 

9

 

 

11

 

 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

7



 

 


 

Trust Summary as of February 28, 2009

BlackRock MuniHoldings New York Insured Fund, Inc.

 

 

Investment Objective

 


 

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN) (the “Trust”) seeks to provide shareholders with current income exempt from federal income taxes and New York State and New York City personal income taxes by investing primarily in a portfolio of long-term, investment grade municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal income taxes and New York State and New York City personal income taxes.


 

Performance


 

 

For the six months ended February 28, 2009, the Trust returned (11.14)% based on market price and (6.29)% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (10.41)% on a market price basis and (6.22)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Trust performance was adversely affected by its slightly below-average distribution rate. During the first half of the period, an overweight in longer-maturity insured bonds with weaker underlying ratings hampered results, as the municipal market became increasingly dysfunctional and illiquid and these issues significantly underperformed. This positioning proved beneficial during the second half, however, as the selling pressure in municipals abated and the absolute yield levels attracted strong retail demand, pushing yields to their lows for the period. Portfolio turnover was very low through the end of 2008, but increased in the new year as new issues offered compelling opportunities to add credits and yield.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 

Trust Information


 

 

 

Symbol on New York Stock Exchange

 

MHN

Initial Offering Date

 

September 19, 1997

Yield on Closing Market Price as of February 28, 2009 ($10.42)1

 

6.10%

Tax Equivalent Yield2

 

9.38%

Current Monthly Distribution per Common Share3

 

$0.053

Current Annualized Distribution per Common Share3

 

$0.636

Leverage as of February 28, 20094

 

44%

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

 

Market Price

 

$

10.42

 

$

12.12

 

 

(14.03

)%

$

12.23

 

$

6.50

 

Net Asset Value

 

$

12.62

 

$

13.92

 

 

(9.34

)%

$

14.12

 

$

10.28

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

Sector Allocations


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

County/City/Special District/School District

 

27

%

 

28

%

 

Transportation

 

27

 

 

28

 

 

State

 

12

 

 

10

 

 

Utilities

 

10

 

 

12

 

 

Education

 

7

 

 

6

 

 

Corporate

 

7

 

 

7

 

 

Health

 

4

 

 

3

 

 

Housing

 

3

 

 

3

 

 

Tobacco

 

3

 

 

3

 

 

 

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

AAA/Aaa

 

41

%

 

41

%

 

AA/Aa

 

33

 

 

49

 

 

A/A

 

20

 

 

5

 

 

BBB/Baa

 

6

 

 

5

 

 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

 

 

8

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Trust Summary as of February 28, 2009

BlackRock New Jersey Municipal Bond Trust

 

 

Investment Objective

 


 

BlackRock New Jersey Municipal Bond Trust (BLJ) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and New Jersey gross income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.


 

Performance

 


 

 

For the six months ended February 28, 2009, the Trust returned (15.67)% based on market price and (12.46)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of (13.71)% on a market price basis and (9.34)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. Sector allocation was a primary factor in the Trust’s performance during the period. Spread products, such as healthcare, housing and corporate-backed bonds, significantly underperformed, as the economic downturn continued to put more stress on the fundamental credit quality for these sectors. Additionally, the Trust’s alternative minimum tax bond holdings underperformed, as spreads widened during the six-month period.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


 

Trust Information

 


 

 

 

Symbol on American Stock Exchange

 

BLJ

Initial Offering Date

 

April 30, 2002

Yield on Closing Market Price as of February 28, 2009 ($12.00)1

 

7.05%

Tax Equivalent Yield2

 

10.85%

Current Monthly Distribution per Common Share3

 

$0.0705

Current Annualized Distribution per Common Share3

 

$0.8460

Leverage as of February 28, 20094

 

41%

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

 

Market Price

 

$

12.00

 

$

14.76

 

 

(18.70

)%

$

16.00

 

$

8.20

 

Net Asset Value

 

$

11.95

 

$

14.16

 

 

(15.61

)%

$

14.42

 

$

10.32

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

Sector Allocations


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

Health

 

27

%

 

35

%

 

State

 

20

 

 

15

 

 

Transportation

 

15

 

 

17

 

 

Education

 

10

 

 

10

 

 

Housing

 

9

 

 

5

 

 

County/City/Special District/ School District

 

8

 

 

6

 

 

Corporate

 

6

 

 

6

 

 

Utilities

 

5

 

 

4

 

 

Tobacco

 

 

 

2

 

 

 

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

 

AAA/Aaa

 

41

%

 

29

%

 

AA/Aa

 

15

 

 

10

 

 

A

 

19

 

 

31

 

 

BBB/Baa

 

9

 

 

14

 

 

B

 

4

 

 

4

 

 

Not Rated

 

12

 

 

12

 

 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

9



 

 


 

 

Trust Summary as of February 28, 2009

BlackRock New York Insured Municipal Income Trust


 

 

Investment Objective

 

 

BlackRock New York Insured Municipal Income Trust (BSE) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and New York State and New York City personal income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest. BSE is currently 100% invested in securities which are not subject to the alternative minimum tax.

 

 

Performance

 

 

For the six months ended February 28, 2009, the Trust returned (8.90)% based on market price and (7.40)% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of (10.41)% on a market price basis and (6.22)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. An above-average distribution rate benefited the Trust’s performance. During the first half of the period, an overweight in longer-maturity insured bonds with weaker underlying ratings hampered results, as the municipal market became increasingly dysfunctional and illiquid and these issues significantly underperformed. However, this positioning proved beneficial during the second half, as the selling pressure in municipals abated and the absolute yield levels attracted strong retail demand. Though the demand drove yields to their lows for the period, which helped the long end of the curve, it did not fully erase the damage of the credit spread widening. Portfolio turnover was very low through the end of 2008, but increased in the new year as new issues offered compelling opportunities to add credits and yield.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Trust Information


 

 

 

 

Symbol on New York Stock Exchange

 

BSE

 

Initial Offering Date

 

October 31, 2002

 

Yield on Closing Market Price as of February 28, 2009 ($11.68)1

 

5.96%

 

Tax Equivalent Yield2

 

9.17%

 

Current Monthly Distribution per Common Share3

 

$0.058

 

Current Annualized Distribution per Common Share3

 

$0.696

 

Leverage as of February 28, 20094

 

39%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

                               

Market Price

 

$

11.68

 

$

13.26

 

(11.92

)%

$

13.79

 

$

6.90

 

Net Asset Value

 

$

12.49

 

$

13.95

 

(10.47

)%

$

14.19

 

$

9.44

 

                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

Sector Allocations

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

Transportation

 

28

%

 

27

%

 

Education

 

23

 

 

21

 

 

County/City/Special District/School District

 

18

 

 

19

 

 

Health

 

13

 

 

14

 

 

State

 

11

 

 

9

 

 

Utilities

 

7

 

 

7

 

 

Tobacco

 

 

 

2

 

 

Housing

 

 

 

1

 

 

               

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

AAA/Aaa

 

36

%

 

36

%

 

AA/Aa

 

37

 

 

47

 

 

A

 

18

 

 

7

 

 

BBB/Baa

 

7

 

 

8

 

 

Not Rated

 

2

 

 

2

 

 

               

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

 

 

10

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

 

Trust Summary as of February 28, 2009

BlackRock New York Municipal Bond Trust


 

 

Investment Objective

 

 

BlackRock New York Municipal Bond Trust (BQH) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and New York State and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 

 

For the six months ended February 28, 2009, the Trust returned (12.97)% based on market price and (5.54)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of (13.42)% on a market price basis and (11.21)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Detracting from the Trust’s performance was its underweight in both utilities and tax-backed credits. Over the period, the Trust was positioned with a barbell-type structure, meaning it was overweight in both shorter- and longer-maturity holdings, while maintaining an underweight in the belly of the curve. The shorter-maturity and pre-refunded holdings managed well through the market turmoil. Longer-maturity bonds underperformed during the first half of the period; however, these issues outperformed in the second half, as the selling pressure in municipals abated and the absolute yield levels attracted strong retail demand, pushing yields to their lows for the period. Portfolio turnover was very low through the end of 2008, but increased in the new year as new issues offered compelling opportunities to add credits and yield.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Trust Information


 

 

 

 

Symbol on New York Stock Exchange

 

BQH

 

Initial Offering Date

 

April 30, 2002

 

Yield on Closing Market Price as of February 28, 2009 ($12.28)1

 

6.64%

 

Tax Equivalent Yield2

 

10.22%

 

Current Monthly Distribution per Common Share3

 

$0.068

 

Current Annualized Distribution per Common Share3

 

$0.816

 

Leverage as of February 28, 20094

 

39%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

                               

Market Price

 

$

12.28

 

$

14.62

 

(16.01

)%

$

14.76

 

$

8.01

 

Net Asset Value

 

$

13.41

 

$

14.71

 

(8.84

)%

$

14.92

 

$

11.52

 

                               

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

Sector Allocations

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

State

 

22

%

 

21

%

 

Education

 

14

 

 

12

 

 

Housing

 

14

 

 

17

 

 

County/City/Special District/School District

 

13

 

 

11

 

 

Transportation

 

12

 

 

13

 

 

Utilities

 

10

 

 

9

 

 

Corporate

 

7

 

 

7

 

 

Tobacco

 

7

 

 

9

 

 

Health

 

1

 

 

1

 

 

               

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

AAA/Aaa

 

31

%

 

38

%

 

AA/Aa

 

30

 

 

25

 

 

A

 

15

 

 

12

 

 

BBB/Baa

 

16

 

 

17

 

 

BB/Ba

 

1

 

 

 

 

B

 

6

 

 

7

 

 

Not Rated

 

1

 

 

1

 

 

               

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

11



 

 


 

 

Trust Summary as of February 28, 2009

BlackRock New York Municipal Income Trust II


 

 

Investment Objective

 

 

BlackRock New York Municipal Income Trust II (BFY) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and New York State and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at the time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 

 

 

For the six months ended February 28, 2009, the Trust returned (17.48)% based on market price and (5.66)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of (13.42)% on a market price basis and (11.21)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. Detracting from the Trust’s performance were its below-average distribution rate, as well as its underweight in both utilities and tax-backed credits. Over the period, the Trust was positioned with a barbell-type structure, meaning it was overweight in both shorter-and longer-maturity holdings, while maintaining an underweight in the belly of the curve. The shorter-maturity and pre-refunded holdings managed well through the market turmoil. Longer-maturity bonds underperformed during the first half of the period; however, these issues outperformed in the second half, as the selling pressure in municipals abated and the absolute yield levels attracted strong retail demand, pushing yields to their lows for the period. Portfolio turnover was very low through the end of 2008, but increased in the new year as new issues offered compelling opportunities to add credits and yield.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Trust Information


 

 

 

 

Symbol on American Stock Exchange

 

BFY

 

Initial Offering Date

 

July 30, 2002

 

Yield on Closing Market Price as of February 28, 2009 ($10.83)1

 

6.93%

 

Tax Equivalent Yield2

 

10.66%

 

Current Monthly Distribution per Common Share3

 

$0.0625

 

Current Annualized Distribution per Common Share3

 

$0.7500

 

Leverage as of February 28, 20094

 

41%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

                       

Market Price

 

$

10.83

 

$

13.60

 

(20.37

)%

$

14.00

 

$

7.53

 

Net Asset Value

 

$

13.00

 

$

14.28

 

(8.96

)%

$

14.48

 

$

10.81

 

                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:


 

 

 

 

 

 

 

 

Sector Allocations

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

County/City/Special District/School District

 

22

%

 

20

%

 

Education

 

15

 

 

15

 

 

Corporate

 

15

 

 

15

 

 

Transportation

 

12

 

 

13

 

 

Utilities

 

9

 

 

8

 

 

Health

 

8

 

 

8

 

 

Tobacco

 

8

 

 

11

 

 

Housing

 

7

 

 

6

 

 

State

 

4

 

 

4

 

 

               

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

AAA/Aaa

 

28

%

 

30

%

 

AA/Aa

 

31

 

 

40

 

 

A/A

 

27

 

 

14

 

 

BBB/Baa

 

7

 

 

7

 

 

BB/Ba

 

1

 

 

2

 

 

B/B

 

5

 

 

6

 

 

Not Rated

 

1

 

 

1

 

 

               

 

 

5

Using the higher of S&P’s or Moody’s ratings.


 

 

 

 

 

 

 

 

12

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

 

Trust Summary as of February 28, 2009

BlackRock Virginia Municipal Bond Trust


 

 

Investment Objective

 

 

 

BlackRock Virginia Municipal Bond Trust (BHV) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Virginia personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 

 

 

For the six months ended February 28, 2009, the Trust returned (11.08)% based on market price and (6.95)% based on NAV, both with dividends reinvested. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of (8.43)% on a market price basis and (5.85)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s performance was hampered by its exposure to the long end of the municipal yield curve, which underperformed as the curve steepened. Also detracting from results was a widening in credit spreads, which had a negative impact on weaker credits in the Trust.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Trust Information


 

 

 

 

Symbol on American Stock Exchange

 

BHV

 

Initial Offering Date

 

April 30, 2002

 

Yield on Closing Market Price as of February 28, 2009 ($16.70)1

 

5.20%

 

Tax Equivalent Yield2

 

8.00%

 

Current Monthly Distribution per Common Share3

 

$0.072428

 

Current Annualized Distribution per Common Share3

 

$0.869136

 

Leverage as of February 28, 20094

 

39%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

                               

Market Price

 

$

16.70

 

$

19.50

 

(14.36

)%

$

22.75

 

$

12.50

 

Net Asset Value

 

$

13.47

 

$

15.03

 

(10.38

)%

$

15.25

 

$

11.62

 

                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:


 

 

 

 

 

 

 

 

Sector Allocations

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

Health

 

16

%

 

20

%

 

Utilities

 

16

 

 

8

 

 

Transportation

 

14

 

 

24

 

 

Housing

 

14

 

 

14

 

 

County/City/Special District/School District

 

13

 

 

15

 

 

Education

 

11

 

 

11

 

 

Corporate

 

7

 

 

5

 

 

State

 

6

 

 

 

 

Tobacco

 

3

 

 

3

 

 

               

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

 

2/28/2009

 

8/31/2008

 

               

AAA/Aaa

 

34

%

 

34

%

 

AA/Aa

 

34

 

 

27

 

 

A/A

 

18

 

 

 

 

A

 

 

 

17

 

 

BBB/Baa

 

5

 

 

7

 

 

Not Rated6

 

9

 

 

15

 

 

               

 

 

5

Using the higher of S&P’s or Moody’s ratings.

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2009 and August 31, 2008, the market value of these securities was $651,700, representing 2%, and $2,170,858, representing 6%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

13



 

 


 

 

Trust Summary as of February 28, 2009

The Massachusetts Health & Education Tax-Exempt Trust


 

 

Investment Objective

 

 

The Massachusetts Health & Education Tax-Exempt Trust (MHE) (the “Trust”) seeks to provide shareholders with as high a level of current income exempt from both regular federal income taxes and Massachusetts personal income taxes as is consistent with the preservation of shareholders’ capital. The Trust seeks to achieve its investment objective by investing primarily in Massachusetts tax-exempt obligations issued on behalf of participating not-for-profit institutions. The Trust will continue to invest primarily in investment-grade obligations. The Trust is intended to be a long-term investment and not a short-term trading vehicle.

 

 

Performance

 

 

For the six months ended February 28, 2009, the Trust returned (5.17)% based on market price and (10.94)% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of (8.43)% on a market price basis and (5.85)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The range of states included in the Lipper category makes return comparisons inherently difficult. Since 80% of the Trust’s assets must be allocated to education and healthcare bonds, naturally, the Trust was overweight in both of these sectors. Healthcare bonds and the weaker bonds in the education sector would be classified as spread product. These spread products significantly underperformed, as the economic downturn continued to put more stress on the fundamental credit quality of these sectors over the six-month period.

 

 

 

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

Trust Information


 

 

 

 

Symbol on American Stock Exchange

 

MHE

 

Initial Offering Date

 

July 23, 1993

 

Yield on Closing Market Price as of February 28, 2009 ($10.30)1

 

5.71%

 

Tax Equivalent Yield2

 

8.78%

 

Current Monthly Distribution per Common Share3

 

$0.049

 

Current Annualized Distribution per Common Share3

 

$0.588

 

Leverage as of February 28, 20094

 

44%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

Represents Preferred Shares and TOBs as a percentage of managed assets, which is the total assets of the Trust, including any assets attributable to Preferred Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 15.

 

 

The table below summarizes the changes in the Trust’s market price and NAV per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

2/28/09

 

8/31/08

 

Change

 

High

 

Low

 

                               

Market Price

 

$

10.30

 

$

11.22

 

(8.20

)%

$

11.40

 

$

7.18

 

Net Asset Value

 

$

10.82

 

$

12.55

 

(13.78

)%

$

12.72

 

$

9.08

 

                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following charts show the sector and credit quality allocations of the Trust’s long-term investments:


 

 

 

 

 

 

 

 

Sector Allocations

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

Education

 

62

%

 

59

%

 

Health

 

26

 

 

28

 

 

State

 

7

 

 

5

 

 

Housing

 

2

 

 

3

 

 

Corporate

 

2

 

 

4

 

 

Transportation

 

1

 

 

1

 

 

               

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

 

2/28/09

 

8/31/08

 

               

AAA/Aaa

 

19

%

 

20

%

 

AA/Aa

 

18

 

 

22

 

 

A/A

 

38

 

 

29

 

 

BBB/Baa

 

14

 

 

12

 

 

BB/Ba

 

2

 

 

3

 

 

B/B

 

 

 

2

 

 

C/C

 

1

 

 

 

 

Not Rated6

 

8

 

 

12

 

 

               

 

 

5

Using the higher of S&P’s or Moody’s ratings.

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2009 and August 31, 2008, the market value of these securities was $952,910, representing 2% and 1,139,707 representing 2%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

14

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 


 

The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Trusts issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of the Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trust’s Common Shareholders will benefit from the incremental yield.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the Trust’s total portfolio of $150 million earns the income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Trust’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental yield.

Conversely, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Trust pays dividends on the higher short-term interest rates whereas the Trust’s total portfolio earns income based on lower long-term interest rates. If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares will be reduced or eliminated completely.

Furthermore, the value of the Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors also influence the value of portfolio investments. In contrast, the redemption value of the Trust’s Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAV positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

The Trusts may also, from time to time, leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect the Trusts’ NAVs per share.

The use of leverage may enhance opportunities for increased returns to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Trusts’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. The Trusts may be required to sell portfolio securities at inopportune times or below fair market values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments which may cause the Trusts to incur losses. The use of leverage may limit the Trusts’ ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate preferred shares issued by a Trust. The Trusts will incur expenses in connection with the use of leverage, all of which are borne by the holders of the Common Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares in an amount of up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of February 28, 2009, the Trusts had economic leverage from Preferred Shares and TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 

 

 

 

Percent of
Leverage

 

 

BlackRock California Insured Municipal Income Trust

 

38

%

 

BlackRock California Municipal Bond Trust

 

40

%

 

BlackRock California Municipal Income Trust II

 

41

%

 

BlackRock Maryland Municipal Bond Trust

 

41

%

 

BlackRock MuniHoldings New York Insured Fund, Inc.

 

44

%

 

BlackRock New Jersey Municipal Bond Trust

 

41

%

 

BlackRock New York Insured Municipal Income Trust

 

39

%

 

BlackRock New York Municipal Bond Trust

 

39

%

 

BlackRock New York Municipal Income Trust II

 

41

%

 

BlackRock Virginia Municipal Bond Trust

 

39

%

 

The Massachusetts Health & Education Tax-Exempt Trust

 

44

%

 

 

 

Derivative Instruments

 

The Trusts may invest in various derivative instruments, including swap agreements and futures, and other instruments specified in the Notes to Financials Statements, which constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the other party to the transaction and illiquidity of the derivative instrument. The Trusts’ ability to successfully use a derivative instrument depends on the Advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require the Trusts to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation the Trusts can realize on an investment or may cause the Trusts to hold a security that it might otherwise sell. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

15



 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

BlackRock California Insured Municipal Income Trust (BCK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California—136.0%

 

 

 

 

 

 

 

               

County/City/Special District/School District—65.8%

 

 

 

 

 

 

 

Alameda County, California, Joint Powers Authority, Lease
Revenue Refunding Bonds, 5%, 12/01/34 (a)

 

$

1,200

 

$

1,161,420

 

Benicia, California, Unified School District, GO, Series B,
5.528%, 8/01/23 (b)(c)

 

 

6,500

 

 

2,980,900

 

Central Unified School District, California, GO (Election
of 2008), Series A, 5.625%, 8/01/33 (d)

 

 

400

 

 

405,492

 

Ceres, California, Unified School District, GO (Election
of 2001), Series B (b)(c)(e):

 

 

 

 

 

 

 

5.905%, 8/01/30

 

 

3,055

 

 

879,626

 

5.914%, 8/01/31

 

 

3,180

 

 

862,066

 

5.918%, 8/01/32

 

 

3,300

 

 

842,820

 

5.923%, 8/01/33

 

 

3,440

 

 

827,182

 

5.892%, 8/01/34

 

 

3,575

 

 

818,604

 

5.895%, 8/01/35

 

 

3,275

 

 

706,876

 

Evergreen, California, Elementary School District, GO
(Election of 2006), Series B, 5.125%, 8/01/33 (d)

 

 

5,000

 

 

4,900,850

 

Fontana Unified School District, California, GO (Election
of 2006), Series B, 5.25%, 8/01/26 (a)

 

 

5,400

 

 

5,598,936

 

Glendale, California, Community College District, GO
(Election of 2002), Series D, 5%, 11/01/31 (b)

 

 

2,500

 

 

2,433,675

 

Hemet, California, Unified School District, GO, Series B,
5.125%, 8/01/37 (d)

 

 

2,140

 

 

2,063,923

 

Los Angeles, California, Unified School District, GO:

 

 

 

 

 

 

 

Series D, 5%, 7/01/26

 

 

600

 

 

594,467

 

Series I, 5%, 7/01/27

 

 

1,000

 

 

976,470

 

Morongo, California, Unified School District, GO (Election
of 2005), Series A, 5.25%, 8/01/38 (d)

 

 

2,775

 

 

2,721,887

 

Murrieta Valley, California, Unified School District,
Public Financing Authority, Special Tax Revenue Bonds,
Series A, 5.125%, 9/01/26 (d)

 

 

1,000

 

 

939,980

 

Riverside, California, Unified School District, GO (Election
of 2001), Series A, 5%, 2/01/27 (b)(e)

 

 

5,000

 

 

4,935,750

 

San Jose, California, Financing Authority, Lease Revenue
Refunding Bonds (Civic Center Project), Series B,
5%, 6/01/37 (f)

 

 

6,000

 

 

5,762,760

 

Stockton, California, Unified School District, GO (Election
of 2005), 5%, 8/01/31 (a)

 

 

3,000

 

 

2,882,610

 

West Contra Costa, California, Unified School District,
GO (Election of 2005), Series B, 5.625%, 8/01/35 (g)

 

 

2,000

 

 

2,050,640

 

 

 

 

 

 

     

 

 

 

 

 

 

45,346,934

 

               

Education—9.4%

 

 

 

 

 

 

 

California Educational Facilities Authority Revenue Bonds
(Scripps College), 5%, 8/01/31 (b)

 

 

2,385

 

 

2,599,984

 

California State University, Systemwide Revenue Refunding
Bonds, Series A, 5%, 11/01/30 (f)

 

 

4,000

 

 

3,901,480

 

 

 

 

 

 

     

 

 

 

 

 

 

6,501,464

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California (concluded)

 

 

 

 

 

 

 

               

Health—11.1%

 

 

 

 

 

 

 

California Statewide Communities Development Authority
Revenue Bonds:

 

 

 

 

 

 

 

(Adventist), Series B, 5%, 3/01/37 (d)

 

$

1,000

 

$

886,090

 

(Sutter Health), Series D, 5.05%, 8/15/38 (a)

 

 

5,000

 

 

4,447,550

 

Kaweah Delta Health Care District, California,
Revenue Refunding Bonds, 6%, 8/01/12 (h)

 

 

2,000

 

 

2,333,160

 

 

 

 

 

 

     

 

 

 

 

 

 

7,666,800

 

               

State—6.7%

 

 

 

 

 

 

 

California State Public Works Board, Lease Revenue Bonds
(Department of General Services—Capitol East End
Complex), Series A, 5%, 12/01/27 (f)

 

 

5,000

 

 

4,615,700

 

               

Transportation—5.1%

 

 

 

 

 

 

 

San Joaquin Hills, California, Transportation Corridor Agency,
Toll Road Revenue Refunding Bonds, Series A, 5.488%,
1/15/31 (b)(c)

 

 

20,000

 

 

3,516,600

 

               

Utilities—37.9%

 

 

 

 

 

 

 

California State Department of Water Resources, Water
System Revenue Refunding Bonds (Central Valley
Project), Series AE, 5%, 12/01/28

 

 

2,500

 

 

2,531,250

 

East Bay, California, Municipal Utility District, Water System
Revenue Refunding Bonds, Series A, 5%, 6/01/37 (b)(e)

 

 

4,000

 

 

3,905,040

 

Imperial Irrigation District, California, Electric Revenue
Refunding Bonds, 5%, 11/01/33

 

 

1,275

 

 

1,232,798

 

Los Angeles, California, Department of Water and Power,
Waterworks Revenue Refunding Bonds, Series A,
5.125%, 7/01/41 (b)(e)

 

 

5,000

 

 

4,857,400

 

Los Angeles, California, Wastewater System Revenue
Refunding Bonds (b):

 

 

 

 

 

 

 

Series A, 5%, 6/01/32 (e)

 

 

6,025

 

 

5,800,087

 

Sub-Series A, 5%, 6/01/27

 

 

5,000

 

 

4,934,800

 

Napa, California, Water Revenue Bonds, 5%, 5/01/35 (f)

 

 

3,000

 

 

2,848,740

 

 

 

 

 

 

     

 

 

 

 

 

 

26,110,115

 

               

Total Municipal Bonds—136.0%

 

 

 

 

 

93,757,613

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred
to Tender Option Bond Trusts (i)

 

 

 

 

 

 

 

               

California—13.6%

 

 

 

 

 

 

 

               

Utilities—13.6%

 

 

 

 

 

 

 

San Diego County, California, Water Authority, Water Revenue
Refunding Bonds, COP, Series A:

 

 

 

 

 

 

 

5%, 5/01/32 (b)

 

 

5,292

 

 

5,248,418

 

5%, 5/01/33 (a)

 

 

4,250

 

 

4,150,635

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—13.6%

 

 

 

 

 

9,399,053

 

               

Total Long-Term Investments
(Cost—$107,723,093)—149.6%

 

 

 

 

 

103,156,666

 

               

 

Portfolio Abbreviations

 

To simplify the listings of the Trusts’ portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the list on the right.

 

 

 

 

AMT

Alternative Minimum Tax (subject to)

 

CABS

Capital Appreciation Bonds

 

COP

Certificates of Participation

 

EDA

Economic Development Authority

 

EDR

Economic Development Revenue Bonds

 

GO

General Obligation Bonds

 

HDA

Housing Development Authority

 

HFA

Housing Finance Agency

 

IDA

Industrial Development Authority

 

IDR

Industrial Development Revenue Bonds

 

M/F

Multi-Family

 

PCR

Pollution Control Revenue Bonds

 

PILOT

Payment in Lieu of Taxes

 

S/F

Single-Family

 

TFABS

Tobacco Flexible Amortization Bonds

 

VRDN

Variable Rate Demand Notes


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

16

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 

 


 

Schedule of Investments (concluded)

 

BlackRock California Insured Municipal Income Trust (BCK)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

           

California—4.4%

 

 

 

 

 

 

 

               

Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue Refunding
Bonds, Proposition C, VRDN, Second Senior Series A,
6%, 3/05/09 (b)(j)

 

$

3,000

 

$

3,000,000

 

               

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

             

Money Market Funds—13.6%

 

 

 

 

 

 

 

               

CMA California Municipal Money Fund, 0.26% (k)(l)

 

 

9,410,597

 

 

9,410,597

 

               

Total Short-Term Securities
(Cost—$12,410,597)—18.0%

 

 

 

 

 

12,410,597

 

               

 

 

 

 

 

 

 

 

Total Investments (Cost—$120,133,690*)—167.6%

 

 

 

 

 

115,567,263

 

Liabilities in Excess of Other Assets—(6.2)%

 

 

 

 

 

(4,267,677

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(6.9)%

 

 

 

 

 

(4,798,695

)

Preferred Shares, at Redemption Value—(54.5)%

 

 

 

 

 

(37,556,582

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

68,944,309

 

 

 

 

 

 

     

 

 

   

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

115,391,542

 

 

 

 

     

 

Gross unrealized appreciation

 

$

848,865

 

 

Gross unrealized depreciation

 

 

(5,444,993

)

 

 

 

     

 

Net unrealized depreciation

 

$

(4,596,128

)

 

 

 

     

 

 

(a)

FSA Insured.

(b)

NPFGC Insured.

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(d)

Assured Guaranty Insured.

(e)

FGIC Insured.

(f)

AMBAC Insured.

(g)

BHAC Insured.

(h)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(i)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(j)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

(k)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

 

 

               

 

Affiliate

 

Net
Activity

 

Income

 

 

           

 

CMA California Municipal Money Fund

 

 

3,137,730

 

$

34,712

 

 

               

 

 

 

(l)

Represents the current yield as of report date.

 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

 

 

       

 

Valuation
Inputs

 

Investments in
Securities

 

 

       

 

 

 

Assets

 

 

 

 

   

 

Level 1

 

$

9,410,597

 

 

Level 2

 

 

106,156,666

 

 

Level 3

 

 

 

 

         

 

Total

 

$

115,567,263

 

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

17



 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

BlackRock California Municipal Bond Trust (BZA)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California—136.4%

 

 

 

 

 

 

 

           

Corporate—5.4%

 

 

 

 

 

 

 

California Pollution Control Financing Authority, Solid Waste
Disposal Revenue Bonds (Waste Management, Inc.
Project), AMT, Series C, 5.125%, 11/01/23

 

$

1,530

 

$

1,269,303

 

California Pollution Control Financing Authority, Solid Waste
Disposal Revenue Refunding Bonds (Republic
Services, Inc. Project), AMT, Series C, 5.25%, 6/01/23

 

 

500

 

 

436,505

 

Los Angeles, California, Regional Airports Improvement
Corporation, Lease Revenue Bonds (American
Airlines Inc.), AMT, Series B, 7.50%, 12/01/24

 

 

1,000

 

 

758,540

 

 

 

 

 

 

     

 

 

 

 

 

 

2,464,348

 

               

County/City/Special District/School District—52.2%

 

 

 

 

 

 

 

Chino Basin, California, Desalter Authority, Revenue
Refunding Bonds, Series A, 5%, 6/01/35 (a)

 

 

2,000

 

 

1,912,560

 

Lathrop, California, Financing Authority Revenue Bonds
(Water Supply Project):

 

 

 

 

 

 

 

5.90%, 6/01/27

 

 

655

 

 

512,498

 

6%, 6/01/35

 

 

1,180

 

 

870,781

 

Live Oak Unified School District, California, GO (Election
of 2004), Series B (b)(c):

 

 

 

 

 

 

 

5.568%, 8/01/18 (d)

 

 

905

 

 

291,292

 

5.578%, 8/01/18 (d)

 

 

945

 

 

287,450

 

5.528%, 8/01/29

 

 

705

 

 

204,549

 

5.538%, 8/01/30

 

 

795

 

 

213,084

 

5.548%, 8/01/31

 

 

830

 

 

206,048

 

5.558%, 8/01/32

 

 

865

 

 

199,383

 

Los Angeles, California, Unified School District, GO:

 

 

 

 

 

 

 

Series D, 5.30%, 1/01/34

 

 

500

 

 

497,230

 

Series I, 5%, 7/01/26

 

 

650

 

 

644,007

 

Modesto, California, Irrigation District, COP, Series B,

 

 

 

 

 

 

 

5.50%, 7/01/35

 

 

750

 

 

751,028

 

Orange County, California, Community Facilities District,

 

 

 

 

 

 

 

Special Tax Bonds (Number 01-1 Ladera Ranch),

 

 

 

 

 

 

 

Series A, 6%, 8/15/10 (d)

 

 

2,400

 

 

2,596,296

 

Pittsburg, California, Redevelopment Agency, Tax Allocation
Refunding Bonds (Los Medanos Community Development
Project), Series A, 6.50%, 9/01/28

 

 

1,000

 

 

994,530

 

San Diego, California, Regional Building Authority, Lease
Revenue Bonds (County Operations Center and Annex
Redevelopment Project) Series A, 5.375%, 2/01/36

 

 

2,000

 

 

1,959,500

 

San Francisco, California, City and County Redevelopment
Agency, Community Facilities District Number 1,
Special Tax Bonds (Mission Bay South Public
Improvements Project), 6.25%, 8/01/33

 

 

2,500

 

 

2,132,425

 

Santa Ana, California, Unified School District,
COP (Financing Program), 5.838%, 4/01/29 (c)(e)

 

 

15,000

 

 

4,992,900

 

Santa Ana, California, Unified School District, GO,
5.375%, 8/01/27 (f)

 

 

500

 

 

499,690

 

Santa Cruz County, California, Redevelopment Agency,
Tax Allocation Bonds (Live Oak/Soquel Community
Improvement Project Area), Series A, 7%, 9/01/36

 

 

500

 

 

517,280

 

Stockton, California, Unified School District, GO (Election
of 2005), 5%, 8/01/31 (e)

 

 

2,000

 

 

1,921,740

 

Val Verde, California, Unified School District, GO (Election
of 2008), Series A, 5.50%, 8/01/33

 

 

1,615

 

 

1,629,115

 

 

 

 

 

 

     

 

 

 

 

 

 

23,833,386

 

               

Education—24.7%

 

 

 

 

 

 

 

California Educational Facilities Authority Revenue Bonds:

 

 

 

 

 

 

 

(Stanford University), Series Q, 5.25%, 12/01/32

 

 

4,000

 

 

4,083,680

 

(University of San Diego), Series A, 5.25%, 10/01/30

 

 

4,000

 

 

3,913,840

 

California Infrastructure and Economic Development
Bank Revenue Bonds (J. David Gladstone Institute Project),
5.25%, 10/01/34

 

 

3,750

 

 

3,261,075

 

 

 

 

 

 

     

 

 

 

 

 

 

11,258,595

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California (concluded)

 

 

 

 

 

 

 

               

Health—25.7%

 

 

 

 

 

 

 

California Statewide Communities Development Authority Revenue Bonds:

 

 

 

 

 

 

 

(Catholic Healthcare West), Series E, 5.50%

 

$

1,250

 

$

1,140,612

 

(Daughters of Charity National Health System),
Series A, 5.25%, 7/01/30

 

 

1,500

 

 

993,090

 

(Kaiser Permanente), Series A, 5.50%

 

 

5,000

 

 

4,476,950

 

(Sutter Health), Series B, 5.625%, 8/15/42

 

 

3,250

 

 

3,061,532

 

Kaweah Delta Health Care District, California, Revenue
Refunding Bonds, 6%, 8/01/12 (d)

 

 

1,745

 

 

2,035,682

 

 

 

 

 

 

     

 

 

 

 

 

 

11,707,866

 

               

Housing—9.4%

 

 

 

 

 

 

 

California M/F Housing Revenue Bonds (San Lucas
Apartments), AIG SunAmerica, Inc., Pass-Through
Certificates of Beneficial Ownership, AMT, Series
5, 5.95%, 11/01/34

 

 

2,120

 

 

2,025,957

 

Santa Maria, California, M/F Housing Revenue Bonds
(Westgate Courtyards Apartments), AIG SunAmerica, Inc.,
Pass-Through Certificates of Beneficial Ownership,
AMT, Series 3, 5.80%, 11/01/34

 

 

2,280

 

 

2,280,342

 

 

 

 

 

 

     

 

 

 

 

 

 

4,306,299

 

               

State—3.4%

 

 

 

 

 

 

 

California State Department of Water Resources, Power Supply
Revenue Refunding Bonds, Sub-Series F-5, 5%, 5/01/22

 

 

1,500

 

 

1,558,530

 

               

Transportation—8.2%

 

 

 

 

 

 

 

Foothill/Eastern Corridor Agency, California, Toll Road
Revenue Refunding Bonds, 5.75%, 1/15/40

 

 

3,845

 

 

2,743,061

 

San Francisco, California, City and County Airport
Commission, International Airport Revenue Refunding
Bonds, AMT, Second Series, 6.75%, 5/01/19

 

 

950

 

 

984,685

 

 

 

 

 

 

     

 

 

 

 

 

 

3,727,746

 

               

Utilities—7.4%

 

 

 

 

 

 

 

Chino Basin, California, Regional Financing Authority,
Revenue Refunding Bonds (Inland Empire Utility Agency),
Series A, 5%, 11/01/33 (g)

 

 

1,000

 

 

945,740

 

Eastern Municipal Water District, California, Water and
Sewer, COP, Series H, 5%, 7/01/33

 

 

2,545

 

 

2,437,728

 

 

 

 

 

 

     

 

 

 

 

 

 

3,383,468

 

               

Multi-State—8.3%

 

 

 

 

 

 

 

               

Housing—8.3%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (h)(i)

 

 

3,500

 

 

3,790,045

 

               

Total Municipal Bonds—144.7%

 

 

 

 

 

66,030,283

 

               

 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred
to Tender Option Bond Trusts (j)

 

 

 

 

 

 

 

               

California—6.4%

 

 

 

 

 

 

 

               

County/City/Special District/School District—6.4%

 

 

 

 

 

 

 

Santa Clara County, California, Financing Authority, Lease
Revenue Refunding Bonds, Series L, 5.25%, 5/15/36

 

 

2,999

 

 

2,930,627

 

               

Total Municipal Bonds Transferred
to Tender Option Bond Trusts—6.4%

 

 

 

 

 

2,930,627

 

               

Total Long-Term Investments (Cost—$72,108,281)—151.1%

 

 

 

 

 

68,960,910

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

18

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 




 

 


 

Schedule of Investments (concluded)

BlackRock California Municipal Bond Trust (BZA)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

               

California—4.4%

 

 

 

 

 

 

 

               

Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Refunding Bonds,
Proposition C, VRDN, Second Senior Series A,
6%, 3/05/09 (f)(k)

 

$

2,000

 

$

2,000,000

 

               

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

             

Money Market Funds—4.9%

 

 

 

 

 

 

 

               

CMA California Municipal Money Fund, 0.26% (l)(m)

 

 

2,248,240

 

 

2,248,240

 

               

Total Short-Term Securities
(Cost—$4,248,240)—9.3%

 

 

 

 

 

4,248,240

 

               

Total Investments (Cost—$76,356,521*)—160.4%

 

 

 

 

 

73,209,150

 

 

 

 

 

 

 

 

 

Other Assets Less Liabilities—5.3%

 

 

 

 

 

2,429,324

 

 

 

 

 

 

 

 

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(4.4)%

 

 

 

 

 

(2,002,786

)

 

 

 

 

 

 

 

 

Preferred Shares, at Redemption Value—(61.3)%

 

 

 

 

 

(27,979,904

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

45,655,784

 

 

 

 

 

 

     

 

 

   

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

74,181,536

 

 

 

   

 

Gross unrealized appreciation

 

$

1,574,936

 

Gross unrealized depreciation

 

 

(4,546,169

)

 

 

     

Net unrealized depreciation

 

$

(2,971,233

)

 

 

     

 

 

(a)

Assured Guaranty Insured.

(b)

XL Capital Insured.

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(d)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e)

FSA Insured.

(f)

NPFGC Insured.

(g)

AMBAC Insured.

(h)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(i)

Securities represent a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(j)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(k)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

(l)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

               

Affiliate

 

Net
Activity

 

Income

 

           

CMA California Municipal Money Fund

 

 

114,135

 

$

13,721

 

               

 

 

 

(m)

Represents the current yield as of report date.

 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

       

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

$

2,248,240

 

Level 2

 

 

70,960,910

 

Level 3

 

 

 

         

Total

 

$

73,209,150

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

19



 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

BlackRock California Municipal Income Trust II (BCL)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California—134.9%

 

 

 

 

 

 

 

               

Corporate—5.9%

 

 

 

 

 

 

 

California Pollution Control Financing Authority, Solid
Waste Disposal Revenue Bonds (Waste Management,
Inc. Project), AMT, Series C:

 

 

 

 

 

 

 

5.125%, 11/01/23

 

$

4,180

 

$

3,467,770

 

6.75%, 12/01/27

 

 

1,225

 

 

1,221,827

 

Los Angeles, California, Regional Airports Improvement
Corporation, Lease Revenue Bonds (American Airlines
Inc.), AMT, Series C, 7.50%, 12/01/24

 

 

1,785

 

 

1,353,994

 

 

 

 

 

 

     

 

 

 

 

 

 

6,043,591

 

               

County/City/Special District/School District—50.8%

 

 

 

 

 

 

 

Alameda County, California, Joint Powers Authority, Lease
Revenue Refunding Bonds, 5%, 12/01/34 (a)

 

 

3,500

 

 

3,387,475

 

Corona-Norco Unified School District, California,
Community Facilities District Number 98-1, Special
Tax Bonds, 5.10%, 9/01/32 (b)

 

 

6,000

 

 

5,824,020

 

La Quinta, California, Redevelopment Agency, Tax
Allocation Bonds (Redevelopment Project Area
Number 1), 5.125%, 9/01/32 (b)

 

 

4,000

 

 

3,480,360

 

Los Angeles, California, Community College District,
GO, Series F-1, 5%, 8/01/33

 

 

1,500

 

 

1,462,755

 

Los Alamitos, California, Unified School District, GO
(School Facilities Improvement Project Number 1),
5.50%, 8/01/33

 

 

3,500

 

 

3,594,150

 

Los Angeles, California, Unified School District, GO:
Series D, 5.30%, 1/01/34

 

 

2,100

 

 

2,088,366

 

Series I, 5%, 7/01/26

 

 

3,100

 

 

3,071,418

 

Modesto, California, Irrigation District, COP, Series B,
5.50%, 7/01/35

 

 

1,650

 

 

1,652,260

 

Pittsburg, California, Redevelopment Agency, Tax Allocation
Refunding Bonds (Los Medanos Community Development
Project), Series A, 6.50%, 9/01/28

 

 

2,000

 

 

1,989,060

 

San Diego, California, Regional Building Authority, Lease
Revenue Bonds (County Operations Center and Annex
Redevelopment Project) Series A, 5.375%, 2/01/36

 

 

1,600

 

 

1,567,600

 

San Francisco, California, City and County Redevelopment
Agency, Community Facilities District Number 1, Special
Tax Bonds (Mission Bay South Public Improvements
Project), 6.25%, 8/01/33

 

 

3,000

 

 

2,558,910

 

San Jose, California, Unified School District, Santa Clara
County, GO (Election of 2002), Series D, 5%, 8/01/32

 

 

2,750

 

 

2,708,860

 

Santa Ana, California, Unified School District, GO
(Election of 2008), Series A:

 

 

 

 

 

 

 

5.50%, 8/01/30

 

 

5,830

 

 

5,945,726

 

5.125%, 8/01/33

 

 

2,000

 

 

1,949,600

 

Santa Cruz County, California, Redevelopment Agency,
Tax Allocation Bonds (Live Oak/Soquel Community
Improvement Project Area), Series A, 6.625%, 9/01/29

 

 

1,000

 

 

1,020,390

 

Stockton, California, Unified School District, GO (Election
of 2005), 5%, 8/01/31 (a)

 

 

2,000

 

 

1,921,740

 

Torrance, California, Unified School District, GO,
(Election of 2008 - Measure Z), 6%, 8/01/33

 

 

1,500

 

 

1,577,085

 

Val Verde, California, Unified School District, GO
(Election of 2008), Series A, 5.50%, 8/01/33

 

 

5,000

 

 

5,043,700

 

Val Verde, California, Unified School District Financing
Authority, Special Tax Refunding Bonds, Junior Lien,
6.25%, 10/01/28

 

 

1,170

 

 

1,019,889

 

 

 

 

 

 

     

 

 

 

 

 

 

51,863,364

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California (concluded)

 

 

 

 

 

 

 

           

Education—7.7%

 

 

 

 

 

 

 

California Educational Facilities Authority Revenue
Bonds (University of Southern California), Series A,
5.25%, 10/01/39

 

$

3,500

 

$

3,563,210

 

University of California Revenue Bonds, Series D, 5%,
5/15/32 (c)(d)

 

 

2,500

 

 

2,374,700

 

University of California, General Revenue Bonds, Series A,
5%, 5/15/33 (b)

 

 

2,000

 

 

1,950,480

 

 

 

 

 

 

     

 

 

 

 

 

 

7,888,390

 

               

Health—21.5%

 

 

 

 

 

 

 

California Health Facilities Financing Authority, Revenue
Refunding Bonds (Providence Health and Services),
Series C, 6.50%, 10/01/38

 

 

1,000

 

 

1,047,140

 

California Infrastructure and Economic Development
Bank Revenue Bonds (Kaiser Hospital Assistance I-LLC),
Series A, 5.55%, 8/01/31

 

 

1,735

 

 

1,554,890

 

California Statewide Communities Development Authority
Revenue Bonds:

 

 

 

 

 

 

 

(Catholic Healthcare West), Series E, 5.50%, 7/01/31

 

 

1,250

 

 

1,140,612

 

(Kaiser Permanente), Series A, 5.50%, 11/01/32

 

 

5,000

 

 

4,476,950

 

(Sutter Health), Series B, 5.50%, 8/15/34

 

 

8,000

 

 

7,570,720

 

California Statewide Communities Development Authority,
Health Facility Revenue Bonds (Memorial Health Services),
Series A, 5.50%, 10/01/33

 

 

7,000

 

 

6,145,930

 

 

 

 

 

 

     

 

 

 

 

 

 

21,936,242

 

               

State—7.8%

 

 

 

 

 

 

 

California State Department of Water Resources, Power Supply
Revenue Refunding Bonds, Sub-Series F-5, 5%, 5/01/22

 

 

7,650

 

 

7,948,503

 

               

Tobacco—10.4%

 

 

 

 

 

 

 

Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds,
Series A-1, 6.75%, 6/01/13 (e)

 

 

9,000

 

 

10,593,540

 

               

Transportation—12.9%

 

 

 

 

 

 

 

Foothill/Eastern Corridor Agency, California, Toll Road Revenue
Bonds, Senior Lien, Series A, 4.118%, 1/01/26 (f)(g)

 

 

10,000

 

 

4,602,700

 

Foothill/Eastern Corridor Agency, California, Toll Road
Revenue Refunding Bonds, 5.023%, 1/15/30 (f)

 

 

6,550

 

 

1,084,418

 

Port of Oakland, California, Revenue Bonds, AMT,
Series K, 5.75%, 11/01/29 (c)(d)

 

 

2,000

 

 

1,709,340

 

San Francisco, California, City and County Airport
Commission, International Airport Revenue Refunding
Bonds, AMT, Second Series, 6.75%, 5/01/19

 

 

1,575

 

 

1,632,503

 

San Joaquin Hills, California, Transportation Corridor Agency,
Toll Road Revenue Refunding Bonds, Series A,
4.344%, 1/15/34 (c)(f)

 

 

30,000

 

 

4,136,700

 

 

 

 

 

 

     

 

 

 

 

 

 

13,165,661

 

               

Utilities—17.9%

 

 

 

 

 

 

 

Eastern Municipal Water District, California, Water and
Sewer, COP, Series H, 5%, 7/01/33

 

 

7,100

 

 

6,800,735

 

Los Angeles, California, Department of Water and Power,
Waterworks Revenue Bonds, Series A, 5.375%, 7/01/34

 

 

1,600

 

 

1,615,104

 

Los Angeles, California, Department of Water and Power,
Waterworks Revenue Refunding Bonds, Series A,
5.125%, 7/01/41 (c)(d)

 

 

5,500

 

 

5,343,140

 

San Diego, California, Public Facilities Financing Authority,
Water Revenue Refunding Bonds, Series A:

 

 

 

 

 

 

 

5%, 8/01/26

 

 

1,000

 

 

1,013,470

 

5.25%, 8/01/38

 

 

2,500

 

 

2,496,175

 

Santa Rosa, California, Wastewater Revenue Refunding
Bonds, Series B, 3.921%, 9/01/25 (b)(f)

 

 

2,685

 

 

1,058,132

 

 

 

 

 

 

     

 

 

 

 

 

 

18,326,756

 

               

Total Municipal Bonds in California

 

 

 

 

 

137,766,047

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

20

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

 

Schedule of Investments (concluded)

BlackRock California Municipal Income Trust II (BCL)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Multi-State—4.0%

               

Housing—4.0%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust (h)(i):

 

 

 

 

 

 

 

5.75%, 4/30/15

 

$

500

 

$

507,075

 

6%, 4/30/15

 

 

1,500

 

 

1,538,775

 

6%, 4/30/19

 

 

1,000

 

 

1,012,490

 

6.30%, 4/30/19

 

 

1,000

 

 

1,017,640

 

               

Total Municipal Bonds in Multi-State

 

 

 

 

 

4,075,980

 

               

Total Municipal Bonds—138.9%

 

 

 

 

 

141,842,027

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred
to Tender Option Bond Trusts (j)

 

 

 

 

 

 

 

               

California—16.8%

               

County/City/Special District/School District—7.7%

 

 

 

 

 

 

 

Santa Clara County, California, Financing Authority, Lease
Revenue Refunding Bonds, Series L, 5.25%, 5/15/36

 

 

8,005

 

 

7,823,144

 

               

Education—2.2%

 

 

 

 

 

 

 

California State University, Systemwide Revenue Bonds,
Series A, 5%, 11/01/39 (a)

 

 

2,400

 

 

2,298,264

 

               

Utilities—6.9%

 

 

 

 

 

 

 

California State Department of Water Resources Revenue
Bonds (Central Valley Project), Series AE, 5%, 12/01/29

 

 

7,000

 

 

7,061,460

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—16.8%

 

 

 

 

 

17,182,868

 

               

Total Long-Term Investments
(Cost—$165,621,334)—155.7%

 

 

 

 

 

159,024,895

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

               

California—3.9%

               

Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Refunding Bonds,
Proposition C, VRDN, Second Senior Series A,
6%, 3/05/09 (c)(m)

 

 

4,000

 

 

4,000,000

 

               

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

             

Money Market Fund—6.0%

               

CMA California Municipal Money Fund, 0.26% (k)(l)

 

 

6,141,300

 

 

6,141,300

 

               

Total Short-Term Securities
(Cost—$10,141,300)—9.9%

 

 

 

 

 

10,141,300

 

               

Total Investments (Cost—$175,762,634*)—165.6%

 

 

 

 

 

169,166,195

 

Other Assets Less Liabilities—2.7%

 

 

 

 

 

2,784,682

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(9.8)%

 

 

 

 

 

(10,056,672

)

Preferred Shares, at Redemption Value—(58.5)%

 

 

 

 

 

(59,756,135

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

102,138,070

 

 

 

 

 

 

     

 

 

   

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

165,646,865

 

 

 

     

Gross unrealized appreciation

 

$

2,973,904

 

Gross unrealized depreciation

 

 

(9,489,865

)

 

 

     

Net unrealized depreciation

 

$

(6,515,961

)

 

 

     

 

 

(a)

FSA Insured.

(b)

AMBAC Insured.

(c)

NPFGC Insured.

(d)

FGIC Insured.

(e)

US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(f)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(g)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(h)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(i)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(j)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(k)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

           

Affiliate

 

Net
Activity

 

Income

 

           

CMA California Municipal Money Fund

 

6,141,056

 

$

38,270

 

             

 

 

(l)

Represents the current yield as of report date.

(m)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.


 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its semi-annual report.

 

 

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

       

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

$

6,141,300

 

Level 2

 

 

163,024,895

 

Level 3

 

 

 

         

Total

 

$

169,166,195

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

21




 

 


 

 

Schedule of Investments February 28, 2009 (Unaudited)

BlackRock Maryland Municipal Bond Trust (BZM)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Maryland—114.5%

               

County/City/Special District/School District—34.1%

 

 

 

 

 

 

 

Annapolis, Maryland, Special Obligation Revenue Bonds
(Park Place Project), Series A, 5.35%, 7/01/34

 

$

500

 

$

291,775

 

Baltimore County, Maryland, Metropolitan District, GO:

 

 

 

 

 

 

 

67th Issue, 5%, 6/01/22

 

 

2,000

 

 

2,071,500

 

68th Issue, 5%, 8/01/28

 

 

2,000

 

 

2,014,940

 

Baltimore, Maryland, Special Obligation Tax Bonds
(Harborview Lot Number 2), 6.50%, 7/01/31

 

 

1,000

 

 

703,490

 

Frederick County, Maryland, Special Obligation Tax Bonds
(Urbana Community Development Authority),
6.625%, 7/01/25

 

 

1,000

 

 

753,010

 

Montgomery County, Maryland, Lease Revenue Bonds
(Metrorail Garage Projects):

 

 

 

 

 

 

 

5%, 6/01/23

 

 

500

 

 

512,805

 

5%, 6/01/24

 

 

1,435

 

 

1,459,051

 

Prince Georges County, Maryland, Special Obligation Bonds
(National Harbor Project), 5.20%, 7/01/34

 

 

1,500

 

 

820,260

 

 

 

 

 

 

     

 

 

 

 

 

 

8,626,831

 

               

Education—24.0%

 

 

 

 

 

 

 

Anne Arundel County, Maryland, EDR (Community College
Project), 5.25%, 9/01/28

 

 

1,870

 

 

1,730,217

 

Maryland State Health and Higher Educational Facilities
Authority Revenue Bonds:

 

 

 

 

 

 

 

(Baltimore Board of Child Care), 5.375%, 7/01/32

 

 

2,000

 

 

1,806,780

 

(Loyola College), 5%, 10/01/39

 

 

2,000

 

 

1,653,720

 

Maryland State Industrial Development Financing Authority,
EDR (Our Lady of Good Counsel School), Series A,
6%, 5/01/35

 

 

1,000

 

 

653,690

 

University System of Maryland, Auxiliary Facility and Tuition
Revenue Bonds, Series A, 4.50%, 4/01/28

 

 

250

 

 

246,212

 

 

 

 

 

 

     

 

 

 

 

 

 

6,090,619

 

               

Health—29.8%

 

 

 

 

 

 

 

Baltimore County, Maryland, Revenue Refunding Bonds
(Oak Crest Village, Inc.), Series A, 5%, 1/01/37

 

 

1,000

 

 

703,290

 

Howard County, Maryland, Retirement Community Revenue
Refunding Bonds (Columbia Vantage House Corporation),
Series A, 5.25%, 4/01/33

 

 

500

 

 

278,960

 

Maryland State Health and Higher Educational Facilities
Authority Revenue Bonds:

 

 

 

 

 

 

 

(Carroll County General Hospital), 6%, 7/01/37

 

 

1,990

 

 

1,774,921

 

(Union Hospital of Cecil County), 5.625%, 7/01/32

 

 

2,000

 

 

1,797,680

 

(University of Maryland Medical System),
5.25%, 7/01/11 (a)

 

 

2,000

 

 

2,167,760

 

Maryland State Health and Higher Educational Facilities
Authority, Revenue Refunding Bonds (Peninsula Regional
Medical Center), 5%, 7/01/36

 

 

1,000

 

 

820,230

 

 

 

 

 

 

     

 

 

 

 

 

 

7,542,841

 

               

Housing—1.9%

 

 

 

 

 

 

 

Maryland State Community Development Administration,
Department of Housing and Community Development,
Residential Revenue Refunding Bonds, AMT, Series A,
5.75%, 9/01/39

 

 

500

 

 

490,005

 

               

Transportation—7.0%

 

 

 

 

 

 

 

Maryland State Transportation Authority, Parking Revenue Bonds
(Baltimore/Washington International Airport), AMT, Series B,
5.125%, 3/01/24 (b)

 

 

2,000

 

 

1,786,480

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Maryland (concluded)

               

Utilities—17.7%

 

 

 

 

 

 

 

Baltimore, Maryland, Wastewater Project Revenue Refunding
Bonds, Series A (c)(d):

 

 

 

 

 

 

 

5.20%, 7/01/32

 

$

2,500

 

$

2,521,325

 

5.125%, 7/01/42

 

 

2,000

 

 

1,954,540

 

 

 

 

 

 

     

 

 

 

 

 

 

4,475,865

 

               

Total Municipal Bonds in Maryland

 

 

 

 

 

29,012,641

 

               

Multi-State—8.5%

               

Housing—8.5%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (e)(f)

 

 

2,000

 

 

2,165,740

 

               

Puerto Rico—15.1%

               

State—1.2%

 

 

 

 

 

 

 

Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds, Series D, 5.375%, 7/01/33

 

 

350

 

 

294,665

 

               

Tobacco—4.0%

 

 

 

 

 

 

 

Children’s Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds, 5.50%, 5/15/39

 

 

1,500

 

 

1,005,015

 

               

Transportation—9.9%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series CC, 5.25%, 7/01/36 (g)

 

 

895

 

 

856,166

 

Series D, 5.25%, 7/01/12 (a)

 

 

1,500

 

 

1,661,010

 

 

 

 

 

 

     

 

 

 

 

 

 

2,517,176

 

               

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

3,816,856

 

               

Total Municipal Bonds—138.1%

 

 

 

 

 

34,995,237

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

 

 

 

 

 

 

               

Maryland—11.9%

               

Transportation—11.9%

 

 

 

 

 

 

 

Maryland State Transportation Authority, Transportation
Facilities Projects Revenue Bonds, 5%, 7/01/41 (g)

 

 

3,000

 

 

3,008,700

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts

 

 

 

 

 

3,008,700

 

               

Total Long-Term Investments
(Cost—$41,417,253)—150.0%

 

 

 

 

 

38,003,937

 

               

 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

           

Money Market Funds—17.8%

 

 

 

 

 

 

 

Merrill Lynch Institutional Tax-Exempt Fund, 0.66% (i)(j)

 

 

4,502,411

 

 

4,502,411

 

               

Total Short-Term Securities (Cost—$4,502,411)—17.8%

 

 

 

 

 

4,502,411

 

               

Total Investments (Cost—$45,919,664*)—167.8%

 

 

 

 

 

42,506,348

 

Other Assets Less Liabilities—1.3%

 

 

 

 

 

335,705

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(5.9)%

 

 

 

 

 

(1,502,578

)

Preferred Shares, at Redemption Value—(63.2)%

 

 

 

 

 

(16,001,184

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

25,338,291

 

 

 

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

22

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 




 

 


 

 

Schedule of Investments (concluded)

BlackRock Maryland Municipal Bond Trust (BZM)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009 as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

44,337,945

 

 

 

     

Gross unrealized appreciation

 

$

887,230

 

Gross unrealized depreciation

 

 

(4,218,827

)

 

 

     

Net unrealized depreciation

 

$

(3,331,597

)

 

 

     

 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b)

AMBAC Insured.

(c)

FGIC Insured.

(d)

NPFGC Insured.

(e)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(f)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(g)

FSA Insured.

(h)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(i)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

           

Affiliate

 

Net
Activity

 

Income

 

           

Merrill Lynch Institutional Tax-Exempt Fund

 

2,398,985

 

$

21,217

 

               

 

 

(j)

Represents the current yield as of report date.


 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

       

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

$

4,502,411

 

Level 2

 

 

38,003,937

 

Level 3

 

 

 

         

Total

 

$

42,506,348

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

23



 

 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

 

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York—134.8%

               

Corporate—12.2%

 

 

 

 

 

 

 

New York City, New York, City IDA, IDR (Japan Airlines
Company), AMT, 6%, 11/01/15 (a)

 

$

9,640

 

$

9,652,436

 

New York City, New York, City IDA, Special Facility Revenue
Refunding Bonds (Terminal One Group Association
Project), AMT, 5.50%, 1/01/24

 

 

1,500

 

 

1,291,680

 

New York State Energy Research and Development
Authority, Gas Facilities Revenue Refunding Bonds
(Brooklyn Union Gas Company/Keyspan), AMT, Series A,
4.70%, 2/01/24 (b)

 

 

15,090

 

 

13,086,501

 

New York State Energy Research and Development Authority,
PCR, Refunding (Central Hudson Gas and Electric),
Series A, 5.45%, 8/01/27 (c)

 

 

6,000

 

 

6,026,700

 

Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson),
AMT, 5.25%, 6/01/27

 

 

4,355

 

 

3,533,299

 

Suffolk County, New York, IDA, Solid Waste Disposal Facility,
Revenue Refunding Bonds (Ogden Martin System
Huntington Project), AMT (c):

 

 

 

 

 

 

 

6%, 10/01/10

 

 

4,660

 

 

4,816,576

 

6.15%, 10/01/11

 

 

5,000

 

 

5,227,700

 

6.25%, 10/01/12

 

 

3,530

 

 

3,726,727

 

 

 

 

 

 

     

 

 

 

 

 

 

47,361,619

 

               

County/City/Special District/School District—41.6%

 

 

 

 

 

 

 

Buffalo, New York, GO, Series D (a)(d):

 

 

 

 

 

 

 

6%, 12/01/09

 

 

2,000

 

 

2,104,640

 

Erie County, New York, Public Improvement, GO, Series A,
5.75%, 10/01/13 (b)(e)

 

 

1,025

 

 

1,048,636

 

Hudson Yards Infrastructure Corporation, New York,
Revenue Bonds, Series A,:

 

 

 

 

 

 

 

4.50%, 2/15/47 (e)

 

 

13,750

 

 

10,155,337

 

5%, 2/15/47 (b)

 

 

10,250

 

 

8,304,447

 

Nassau Health Care Corporation, New York, Health
System Revenue Bonds, 5.75%, 8/01/09 (a)(d)

 

 

4,210

 

 

4,382,526

 

New York City, New York, City Health and Hospital Corporation,
Health System Revenue Refunding Bonds, Series A,
5.25%, 2/15/17 (e)

 

 

2,000

 

 

2,019,200

 

New York City, New York, City IDA, PILOT Revenue Bonds:

 

 

 

 

 

 

 

(Queens Baseball Stadium Project) 5%, 1/01/31 (c)

 

 

4,000

 

 

3,374,640

 

(Queens Baseball Stadium Project) 5%, 1/01/36 (c)

 

 

12,740

 

 

10,354,435

 

(Queens Baseball Stadium Project) 5%, 1/01/39 (c)

 

 

4,000

 

 

3,213,400

 

(Queens Baseball Stadium Project) 6.375%, 1/01/39 (f)

 

 

800

 

 

846,360

 

(Queens Baseball Stadium Project) 5%, 1/01/46 (c)

 

 

7,800

 

 

6,107,634

 

(Yankee Stadium Project) 5%, 3/01/36 (e)

 

 

3,950

 

 

3,208,941

 

(Yankee Stadium Project) 5%, 3/01/46 (b)

 

 

10,500

 

 

7,809,480

 

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Bonds, Series S-1, 5.50%, 7/15/38 (f):

 

 

 

 

 

 

 

Series S-1, 5.50%, 7/15/38 (f)

 

 

4,000

 

 

4,020,120

 

Series S-2, 4.25%, 1/15/34 (b)(e)

 

 

4,830

 

 

3,935,436

 

Series S-2, 5%, 1/15/37 (a)(b)

 

 

3,750

 

 

3,640,013

 

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Refunding Bonds, Series S-1,
4.50%, 1/15/38

 

 

1,760

 

 

1,491,195

 

New York City, New York, City Transitional Finance Authority,
Future Tax Secured Revenue Bonds, Series B:

 

 

 

 

 

 

 

5.50%, 2/01/12 (e)

 

 

1,145

 

 

1,232,341

 

5.50%, 2/01/13 (e)

 

 

805

 

 

861,374

 

6.25%, 11/15/18 (b)

 

 

6,405

 

 

6,886,272

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

New York (continued)

               

County/City/Special District/School District (concluded)

 

 

 

 

 

 

 

New York City, New York, City Transitional Finance Authority,
Future Tax Secured Revenue Bonds:

 

 

 

 

 

 

 

Series C, 5%, 2/01/33 (b)

 

$

16,200

 

$

15,758,712

 

Series E, 5.25%, 2/01/22 (e)

 

 

2,500

 

 

2,590,950

 

New York City, New York, City Transitional Finance Authority,
Future Tax Secured, Revenue Refunding Bonds, Series A,
5%, 11/15/26 (b)

 

 

1,000

 

 

1,006,660

 

New York City, New York, GO, Refunding, Series A,
6.25%, 5/15/26 (a)

 

 

3,700

 

 

3,944,163

 

New York City, New York, GO, Series B, 5.75%, 8/01/13 (e)

 

 

2,280

 

 

2,422,204

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds:

 

 

 

 

 

 

 

DRIVERS, Series 1438Z, 11.763%, 10/15/12 (c)(g)

 

 

1,250

 

 

1,315,888

 

Series A, 5%, 10/15/32 (c)

 

 

14,175

 

 

14,277,911

 

New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured) (c):

 

 

 

 

 

 

 

5%, 11/15/30

 

 

2,100

 

 

1,988,049

 

5%, 11/15/35

 

 

21,000

 

 

19,620,720

 

5%, 11/15/44

 

 

2,055

 

 

1,877,633

 

Oneida-Herkimer, New York, Solid Waste Management
Authority, Solid Waste Revenue Refunding Bonds,
5.50%, 4/01/13 (a)

 

 

1,800

 

 

2,004,786

 

Syracuse, New York, IDA, PILOT Revenue Bonds (Carousel
Center Project), AMT, Series A, 5%, 1/01/36 (h)

 

 

10,000

 

 

7,781,600

 

Yonkers, New York, GO, Series A, 5.75%, 10/01/10 (b)

 

 

1,795

 

 

1,945,080

 

 

 

 

 

 

     

 

 

 

 

 

 

161,530,783

 

               

Education—10.8%

 

 

 

 

 

 

 

Albany, New York, IDA, Civic Facility Revenue Bonds
(The University Heights Association-Albany Law School),
Series A, 6.75%, 12/01/09 (d)(i)

 

 

3,375

 

 

3,569,974

 

Madison County, New York, IDA, Civic Facility Revenue Bonds
(Colgate University Project), Series A (c):

 

 

 

 

 

 

 

5%, 7/01/30

 

 

4,000

 

 

3,897,320

 

5%, 7/01/35

 

 

750

 

 

712,080

 

New York City, New York, City IDA, Civic Facility Revenue
Refunding Bonds:

 

 

 

 

 

 

 

(Nightingale-Bamford School), 5.25%, 1/15/17 (c)

 

 

1,200

 

 

1,275,948

 

(Polytechnic University), 5.25%, 11/01/37 (j)

 

 

2,160

 

 

1,596,197

 

New York City, New York, Trust for Cultural Resources Revenue
Refunding Bonds (American Museum of Natural History),
Series A, (e):

 

 

 

 

 

 

 

5%, 7/01/36

 

 

3,800

 

 

3,678,704

 

5%, 7/01/44

 

 

1,500

 

 

1,423,770

 

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Refunding Bonds (Mount Sinai School
of Medicine of New York University), 5%, 7/01/35 (e)

 

 

2,100

 

 

1,982,505

 

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(853 Schools Program), Issue 2, Series E,
5.75%, 7/01/19 (c)

 

 

1,340

 

 

1,368,555

 

(Cooper Union of Advance Science), 6.25%, 7/01/09 (d)(e)

 

 

1,200

 

 

1,235,472

 

(Pace University), 6%, 7/01/10 (d)(e)

 

 

5,345

 

 

5,756,672

 

Schenectady, New York, IDA, Civic Facility Revenue Bonds
(Union College Project), Series A, 5.45%, 12/01/09 (c)(d)

 

 

5,000

 

 

5,290,550

 

Schenectady, New York, IDA, Civic Facility Revenue
Refunding Bonds (Union College Project), Series A,
5.625%, 7/01/11 (c)(d)

 

 

3,000

 

 

3,363,510

 


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

24

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 

 


 

Schedule of Investments (continued)

 

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York (continued)

               

Education (concluded)

 

 

 

 

 

 

 

Westchester County, New York, IDA, Civic Facility Revenue
Bonds (Purchase College Foundation Housing Project),
Series A, 5.75%, 12/01/31 (c)

 

$

7,000

 

$

6,964,090

 

 

 

 

 

 

     

 

 

 

 

 

 

42,115,347

 

               

Health—7.4%

 

 

 

 

 

 

 

New York City, New York, City IDA, Parking Facility Revenue
Bonds (Royal Charter Properties Inc.-The New York
and Pennsylvania Hospital Leasehold Project),
5.75%, 12/15/29 (a)

 

 

7,965

 

 

8,124,619

 

New York State Dormitory Authority, Hospital Revenue
Refunding Bonds (New York and Presbyterian Hospital),
5.50%, 8/01/11 (c)(k)

 

 

1,000

 

 

1,076,500

 

New York State Dormitory Authority, Mortgage Revenue Bonds
(Montefiore Medical Center), 5%, 8/01/33 (b)(e)(k)

 

 

1,000

 

 

929,650

 

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds (Presbyterian Hospital of New York),
5%, 8/15/36 (a)(k)

 

 

4,000

 

 

3,860,960

 

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(Gustavus Adolphus Child & Family Services, Inc.),
Series B, 5.50%, 7/01/18 (c)

 

 

2,058

 

 

2,099,016

 

(Hudson Valley Hospital Center, 5%, 8/15/36 (a)(k)

 

 

5,000

 

 

4,911,950

 

(New York State Rehabilitation Association), Series A,
5.25%, 7/01/19 (l)

 

 

1,180

 

 

1,213,087

 

(New York State Rehabilitation Association), Series A,
5.125%, 7/01/23 (l)

 

 

1,000

 

 

1,020,990

 

(Saint Barnabas Hospital), 5.45%, 8/01/35 (c)(k)

 

 

2,150

 

 

2,046,005

 

New York State Dormitory Authority, Revenue Refunding Bonds
(Saint Charles Hospital and Rehabilitation Center),
Series A, 5.625%, 7/01/12 (e)

 

 

3,400

 

 

3,443,010

 

 

 

 

 

 

     

 

 

 

 

 

 

28,725,787

 

               

Housing—5.2%

 

 

 

 

 

 

 

New York City, New York, City Housing Development Corporation,
M/F Housing Revenue Bonds, AMT:

 

 

 

 

 

 

 

Series C, 5%, 11/01/26

 

 

1,250

 

 

1,161,125

 

Series C, 5.05%, 11/01/36

 

 

2,000

 

 

1,623,520

 

Series H-1, 4.70%, 11/01/40

 

 

1,000

 

 

797,010

 

Series H-2, 5.125%, 11/01/34

 

 

2,340

 

 

2,071,391

 

New York State, HFA, M/F Housing Revenue Bonds (Saint
Philips Housing), AMT, Series A, 4.65%, 11/15/38 (m)

 

 

3,250

 

 

2,739,295

 

New York State Mortgage Agency, Homeowner Mortgage
Revenue Bonds, AMT:

 

 

 

 

 

 

 

Series 143, 4.90%, 10/01/37

 

 

1,000

 

 

842,060

 

Series 145, 5.125%, 10/01/37

 

 

1,000

 

 

884,730

 

New York State Mortgage Agency, Homeowner Mortgage
Revenue Refunding Bonds:

 

 

 

 

 

 

 

AMT Series 67, 5.70%, 10/01/17 (e)

 

 

2,140

 

 

2,151,770

 

AMT Series 133, 4.95%, 10/01/21

 

 

1,500

 

 

1,484,010

 

AMT Series 143, 4.85%, 10/01/27 (e)

 

 

2,000

 

 

1,794,060

 

Series 83, 5.55%, 10/01/27 (e)

 

 

2,100

 

 

2,100,966

 

New York State Mortgage Agency Revenue Refunding Bonds,
AMT, Series 82, 5.65%, 4/01/30 (e)

 

 

1,035

 

 

983,964

 

Yonkers, New York, IDA, Revenue Bonds (Monastery Manor
associates LP Project), AMT, 5.25%, 4/01/37

 

 

2,000

 

 

1,658,980

 

 

 

 

 

 

     

 

 

 

 

 

 

20,292,881

 

               

State—14.7%

 

 

 

 

 

 

 

New York State Dormitory Authority, Hospital Revenue
Refunding Bonds (North General Hospital),
5.75%, 2/15/17 (h)

 

 

2,000

 

 

2,100,600

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York (continued)

               

State (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, Lease Revenue Bonds:

 

 

 

 

 

 

 

(Municipal Health Facilities Improvement Program),
Series 1, 5.50%, 1/15/14 (a)

 

$

1,535

 

$

1,642,450

 

(Office Facilities Audit and Control), 5.50%, 4/01/23 (e)

 

 

645

 

 

646,071

 

(State University Dormitory Facilities), 5%, 7/01/37 (c)

 

 

1,000

 

 

956,180

 

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds (School District Financing Program) (a):

 

 

 

 

 

 

 

Series A, 5%, 10/01/35

 

 

450

 

 

435,200

 

Series C, 5%, 10/01/37

 

 

2,500

 

 

2,407,875

 

New York State Dormitory Authority, Non-State Supported Debt,
Revenue Refunding Bonds (a):

 

 

 

 

 

 

 

(NYS Association for Retarded Children, Inc.),
Series A, 5%, 7/01/26

 

 

1,500

 

 

1,498,170

 

(School District Financing Program), Series A,
5%, 10/01/35

 

 

5,000

 

 

4,835,550

 

New York State Dormitory Authority Revenue Bonds
(School Districts Financing Program), (e):

 

 

 

 

 

 

 

Series D, 5%, 10/01/30

 

 

1,240

 

 

1,186,283

 

Series E, 5.75%, 10/01/30

 

 

6,900

 

 

7,000,050

 

New York State Dormitory Authority, Revenue Refunding Bonds
(School District Financing Program), Series I,
5.75%, 10/01/18 (e)

 

 

1,370

 

 

1,500,219

 

New York State Dormitory Authority, State Personal Income
Tax Revenue Bonds (Education), Series B, 5.75%, 3/15/36

 

 

5,000

 

 

5,354,450

 

New York State Dormitory Authority, State Supported Debt
Revenue Bonds (Mental Health Services Facilities),:

 

 

 

 

 

 

 

AMT, Series C, 5.40%, 2/15/33 (a)

 

 

5,650

 

 

5,122,177

 

Series B, 5.25%, 2/15/14 (d)

 

 

1,550

 

 

1,792,823

 

Series B, 5%, 2/15/33 (a)

 

 

4,650

 

 

4,395,552

 

Series D, 5.875%, 8/15/10 (a)(d)

 

 

1,060

 

 

1,136,288

 

New York State Thruway Authority, Highway and Bridge Trust
Fund, Second Generation Revenue Bonds, Series B,
5%, 4/01/27

 

 

1,000

 

 

997,590

 

New York State Thruway Authority, Second General Highway
and Bridge Trust Fund Revenue Bonds, Series A,
5%, 4/01/26 (c)

 

 

8,700

 

 

8,761,596

 

New York State Urban Development Corporation, Personal
Income Tax Revenue Bonds (e):

 

 

 

 

 

 

 

Series C-1, 5%, 3/15/13 (d)

 

 

3,000

 

 

3,384,090

 

(State Facilities), Series A-1, 5%, 3/15/29 (b)

 

 

2,000

 

 

2,001,720

 

 

 

 

 

 

     

 

 

 

 

 

 

57,154,934

 

               

Tobacco—5.2%

 

 

 

 

 

 

 

Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series A-1 (c):

 

 

 

 

 

 

 

5.25%, 6/01/20

 

 

5,000

 

 

5,034,250

 

5.25%, 6/01/21

 

 

13,275

 

 

13,286,417

 

5.25%, 6/01/22

 

 

2,000

 

 

1,983,820

 

 

 

 

 

 

     

 

 

 

 

 

 

20,304,487

 

               

Transportation—22.2%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Revenue Bonds, Series A, 5%, 11/15/35 (e)

 

 

2,000

 

 

1,911,860

 

Metropolitan Transportation Authority, New York, Revenue
Bonds, Series C, 6.50%, 11/15/28

 

 

6,015

 

 

6,621,853

 

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A:

 

 

 

 

 

 

 

5.125%, 11/15/31 (f)

 

 

2,425

 

 

2,378,536

 

5.25%, 11/15/31 (b)(e)

 

 

2,500

 

 

2,483,400

 


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

25



 

 

 


 

Schedule of Investments (continued)

 

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York (concluded)

               

Transportation (concluded)

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Transit
Facilities Revenue Bonds, Series C, 4.75%, 7/01/12 (a)(d)

 

$

2,535

 

$

2,804,470

 

Metropolitan Transportation Authority, New York,
Transportation Revenue Refunding Bonds, Series F,
5.25%, 11/15/12 (d)(e)

 

 

6,300

 

 

7,143,443

 

New York State Thruway Authority, General Revenue Bonds,
Series F, 5%, 1/01/30 (c)

 

 

5,000

 

 

4,793,500

 

New York State Thruway Authority, General Revenue
Refunding Bonds (a):

 

 

 

 

 

 

 

Series G, 4.75%, 1/01/29

 

 

1,250

 

 

1,206,300

 

Series G, 4.75%, 1/01/30

 

 

1,000

 

 

952,860

 

Series H, 5%, 1/01/37 (b)

 

 

8,500

 

 

8,130,420

 

Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, AMT, 141st Series, 4.50%, 9/01/35 (l)

 

 

1,000

 

 

759,000

 

Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (JFK International Air Terminal LLC),
AMT, Series 6 (e):

 

 

 

 

 

 

 

6.25%, 12/01/11

 

 

3,000

 

 

3,005,130

 

6.25%, 12/01/15

 

 

7,830

 

 

7,384,707

 

5.90%, 12/01/17

 

 

7,000

 

 

6,402,550

 

5.75%, 12/01/22

 

 

26,725

 

 

21,548,635

 

Triborough Bridge and Tunnel Authority, New York,
Subordinate Revenue Bonds:

 

 

 

 

 

 

 

5%, 11/15/28 (c)

 

 

2,465

 

 

2,475,082

 

Series A, 5.25%, 11/15/30 (e)

 

 

6,000

 

 

6,054,360

 

 

 

 

 

 

     

 

 

 

 

 

 

86,056,106

 

               

Utilities—15.5%

 

 

 

 

 

 

 

Long Island Power Authority, New York, Electric System
Revenue Bonds:

 

 

 

 

 

 

 

Series A, 5%, 9/01/29 (c)

 

 

3,000

 

 

2,855,820

 

Series A, 6%, 5/01/33 (f)

 

 

1,500

 

 

1,582,860

 

Series A, 5%, 9/01/34 (c)

 

 

4,700

 

 

4,466,175

 

Series A, 5.75%, 4/01/39 (f)

 

 

1,000

 

 

1,050,740

 

Series B, 5%, 12/01/35 (a)

 

 

3,500

 

 

3,384,464

 

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A, 4.25%, 6/15/39 (a)

 

 

2,900

 

 

2,404,360

 

New York City, New York, City Municipal Water Finance Authority,
Water and Sewer System, Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series A, 5.125%, 6/15/34 (e)

 

 

1,250

 

 

1,242,013

 

Series A, 5%, 6/15/35 (c)

 

 

3,500

 

 

3,409,805

 

Series C, 5%, 6/15/35 (e)

 

 

1,000

 

 

974,230

 

Series F, 5%, 6/15/29 (a)

 

 

500

 

 

500,500

 

New York State Environmental Facilities Corporation,
Water Facilities Revenue Bonds (Long Island Water Corp.
Project), AMT, Series A, 4.90%, 10/01/34 (e)

 

 

6,000

 

 

4,614,000

 

New York State Environmental Facilities Corporation, Water
Facilities Revenue Refunding Bonds (Spring Valley Water
Company), Series B, 6.15%, 8/01/24 (c)

 

 

4,400

 

 

4,405,940

 

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and Sewer
System Revenue Bonds, Series FF-2, 5.50%, 6/15/40

 

 

2,400

 

 

2,478,888

 

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A:

 

 

 

 

 

 

 

5.75%, 6/15/11 (d)(e)

 

 

23,000

 

 

25,338,410

 

5.75%, 6/15/40

 

 

1,400

 

 

1,491,685

 

 

 

 

 

 

     

 

 

 

 

 

 

60,199,890

 

               

Total Municipal Bonds in New York

 

 

 

 

 

523,741,834

 

               

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Guam—1.2%

               

Transportation—1.2%

 

 

 

 

 

 

 

A.B. Won Guam International Airport Authority, General
Revenue Refunding Bonds, AMT, Series C (e):

 

 

 

 

 

 

 

5.25%, 10/01/21

 

$

3,700

 

$

3,468,750

 

5.25%, 10/01/22

 

 

1,050

 

 

967,354

 

               

Total Municipal Bonds in Guam

 

 

 

 

 

4,436,104

 

               

Puerto Rico—15.3%

               

Housing—0.8%

 

 

 

 

 

 

 

Puerto Rico Housing Financing Authority, Capital Funding
Program, Subordinate Revenue Refunding Bonds,
5.125%, 12/01/27

 

 

3,000

 

 

2,962,380

 

               

State—5.9%

 

 

 

 

 

 

 

Puerto Rico Commonwealth, GO, Refunding, Sub-Series C-7 (e):

 

 

 

 

 

 

 

6%, 7/01/27

 

 

2,000

 

 

1,960,620

 

6%, 7/01/28

 

 

4,000

 

 

3,888,240

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds, Series CC,
5.50%, 7/01/31 (a)

 

 

4,000

 

 

4,035,680

 

Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (n):

 

 

 

 

 

 

 

4.62%, 7/01/31 (b)

 

 

10,280

 

 

1,842,690

 

4.66%, 7/01/33 (b)

 

 

5,500

 

 

835,450

 

4.66%, 7/01/34 (c)

 

 

9,300

 

 

1,304,232

 

4.67%, 7/01/37 (c)

 

 

2,200

 

 

246,400

 

Puerto Rico Commonwealth, Public Improvement, GO,
Refunding, Series A, 5.50%, 7/01/20 (e)

 

 

1,970

 

 

1,851,032

 

Puerto Rico Convention Center District Authority, Hotel
Occupancy Tax Revenue Bonds, Series A, 5%, 7/01/31 (c)

 

 

3,270

 

 

2,659,491

 

Puerto Rico Municipal Finance Agency, GO, Series A,
5%, 8/01/30 (a)

 

 

2,000

 

 

1,877,340

 

Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds, Series M-3, 6%, 7/01/28 (e)(o)

 

 

2,500

 

 

2,430,150

 

 

 

 

 

 

     

 

 

 

 

 

 

22,931,325

 

               

Transportation—6.2%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds, Series CC (a):

 

 

 

 

 

 

 

5.25%, 7/01/33

 

 

1,000

 

 

964,000

 

5.25%, 7/01/34

 

 

3,895

 

 

3,746,990

 

5.25%, 7/01/36

 

 

3,750

 

 

3,587,288

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Bonds,
5.25%, 7/01/17 (b)

 

 

4,800

 

 

4,565,952

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series D, 5.75%, 7/01/12 (d)

 

 

10,000

 

 

11,234,600

 

 

 

 

 

 

     

 

 

 

 

 

 

24,098,830

 

               

Utilities—2.4%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Aqueduct and Sewer Authority,
Senior Lien Revenue Bonds, Series A, 5.125%, 7/01/47 (f)

 

 

9,950

 

 

8,433,023

 

Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series NN, 5.125%, 7/01/13 (d)

 

 

940

 

 

1,068,338

 

 

 

 

 

 

     

 

 

 

 

 

 

9,501,361

 

               

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

59,493,896

 

               

Total Municipal Bonds—151.3%

 

 

 

 

 

587,671,834

 

               

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

26

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Schedule of Investments (concluded)

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (p)

 

Par
(000)

 

Value

 

           

New York—22.5

               

County/City/Special District/ School District—4.7%

 

 

 

 

 

 

 

Erie County, New York, IDA, School Facility Revenue Bonds
(City of Buffalo Project), 5.75%, 5/01/24 (i)

 

$

4,158

 

$

4,192,413

 

New York City, New York, GO, Series J, 5%, 5/15/23

 

 

6,800

 

 

6,723,840

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%, 10/15/32 (c)

 

 

7,000

 

 

7,184,485

 

 

 

 

 

 

     

 

 

 

 

 

 

18,100,738

 

               

Education—1.4%

 

 

 

 

 

 

 

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds (New York University), Series A,
5%, 07/01/38

 

 

5,498

 

 

5,293,394

 

               

Transportation—16.4%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Revenue Bonds, Series A, 5%, 11/15/31 (d)

 

 

7,002

 

 

6,770,743

 

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A (i):

 

 

 

 

 

 

 

5%, 11/15/30

 

 

5,010

 

 

4,886,453

 

5.75%, 11/15/32

 

 

29,000

 

 

29,432,390

 

Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, AMT, 137th Series, 5.125%, 7/15/30 (i)

 

 

2,500

 

 

2,241,000

 

Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds:

 

 

 

 

 

 

 

5.25%, 11/15/23 (d)

 

 

12,000

 

 

12,448,560

 

5%, 11/15/32 (d)

 

 

8,309

 

 

8,160,968

 

 

 

 

 

 

     

 

 

 

 

 

 

63,940,114

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—22.5%

 

 

 

 

 

87,334,246

 

               

Total Long-Term Investments
(Cost—$716,021,291)—173.8%

 

 

 

 

 

675,006,080

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

               

New York—0.1%

 

 

 

 

 

 

 

               

New York City, New York, GO, VRDN, Sub-Series A-6,
0.65%, 3/02/09 (a)(q)

 

 

375

 

 

375,000

 

               

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

               

Money Market Fund—4.1%

               

CMA New York Municipal Money Fund, 0.29% (r)(s)

 

 

16,044,997

 

 

16,044,997

 

               

Total Short-Term Securities
(Cost—$16,417,493)—4.2%

 

 

 

 

 

16,419,997

 

               

Total Investments (Cost—$732,438,784*)—178.0%

 

 

 

 

 

691,426,077

 

Other Assets Less Liabilities—1.7%

 

 

 

 

 

6,754,688

 

Liability for Trust Certificates, Including Interest
Expense Payable—(14.6)%

 

 

 

 

 

(56,744,031

)

Preferred Shares, at Redemption Value—(65.1)%

 

 

 

 

 

(252,909,375

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

388,527,359

 

 

 

 

 

 

     

 

 

   

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

Aggregate cost

 

$

676,720,537

 

 

 

     

Gross unrealized appreciation

 

$

10,450,614

 

Gross unrealized depreciation

 

 

(52,057,314

)

 

 

     

Net unrealized depreciation

 

$

(41,606,700

)

 

 

     

 

 

 

(a)

FSA Insured.

(b)

FGIC Insured.

(c)

AMBAC Insured.

(d)

US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e)

NPFGC Insured.

(f)

Assured Guaranty Insured.

(g)

Variable rate security. Rate shown is as of report date.

(h)

XL Capital Insured.

(i)

Radian Insured.

(j)

ACA Insured.

(k)

FHA Insured.

(l)

CIFG Insured.

(m)

FNMA Collateralized.

(n)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(o)

Commonwealth Guaranteed.

(p)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(q)

Security may have a maturity date of more than one year at time of issuance, but has various rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based on prevailing market rates.

(r)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

 

 

 

 

 

 

 

           

Affiliate

 

Net
Activity

 

Income

 

           

CMA New York Municipal Money Fund

 

12,575,524

 

$

78,960

 

             

 

 

 

 

 

(s)

Represents the current yield as of report date.

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

       

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

$

16,044,997

 

Level 2

 

 

675,381,079

 

Level 3

 

 

 

         

Total

 

$

691,426,076

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

27



 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

BlackRock New Jersey Municipal Bond Trust (BLJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New Jersey—132.9%

               

Corporate—9.6%

 

 

 

 

 

 

 

New Jersey EDA, Solid Waste Disposal Facilities Revenue
Bonds (Waste Management Inc.), AMT, Series A,
5.30%, 6/01/15

 

$

1,000

 

$

919,940

 

New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 7%, 11/15/30

 

 

2,335

 

 

1,603,748

 

Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Continental Airlines, Inc. - LaGuardia
Project), AMT, 9.125%, 12/01/15

 

 

120

 

 

120,162

 

 

 

 

 

 

     

 

 

 

 

 

 

2,643,850

 

               

County/City/Special District/School District—12.5%

 

 

 

 

 

 

 

Essex County, New Jersey, Improvement Authority, Project
Consolidation Revenue Refunding Bonds,
5.50%, 10/01/29 (a)

 

 

790

 

 

808,620

 

Middlesex County, New Jersey, Improvement Authority,
Subordinate Revenue Bonds (Heldrich Center Hotel/
Conference Project), Series B, 6.25%, 1/01/37

 

 

560

 

 

317,313

 

Salem County, New Jersey, Improvement Authority Revenue
Bonds (Finlaw State Office Building Project),
5.25%, 8/15/38 (b)

 

 

100

 

 

101,087

 

Vineland, New Jersey, Electric Utility, GO, Refunding, AMT (a):

 

 

 

 

 

 

 

5.30%, 5/15/29

 

 

1,000

 

 

896,980

 

5.375%, 5/15/32

 

 

1,500

 

 

1,310,355

 

 

 

 

 

 

     

 

 

 

 

 

 

3,434,355

 

               

Education—15.6%

 

 

 

 

 

 

 

New Jersey State Educational Facilities Authority
Revenue Bonds:

 

 

 

 

 

 

 

(Fairleigh Dickinson University), Series D, 6%, 7/01/25

 

 

1,000

 

 

880,440

 

(Georgian Court College Project), Series C,
6.50%, 7/01/13 (c)

 

 

630

 

 

752,604

 

(Montclair State University), Series J, 5.25%, 7/01/38

 

 

180

 

 

179,186

 

New Jersey State Educational Facilities Authority, Revenue
Refunding Bonds:

 

 

 

 

 

 

 

(College of New Jersey), Series D, 5%, 7/01/35 (b)

 

 

1,010

 

 

1,008,465

 

(Fairleigh Dickinson University), Series C, 6%, 7/01/20

 

 

1,000

 

 

933,600

 

(Fairleigh Dickinson University), Series C, 5.50%, 7/01/23

 

 

500

 

 

425,885

 

(Georgian Court University), Series D, 5%, 7/01/33

 

 

150

 

 

114,020

 

 

 

 

 

 

     

 

 

 

 

 

 

4,294,200

 

               

Health—42.4%

 

 

 

 

 

 

 

New Jersey EDA, First Mortgage Revenue Bonds
(Lions Gate Project), Series A:

 

 

 

 

 

 

 

5.75%, 1/01/25

 

 

150

 

 

103,392

 

5.875%, 1/01/37

 

 

265

 

 

164,446

 

New Jersey EDA, First Mortgage Revenue Refunding Bonds
(The Winchester Gardens at Ward Homestead Project),
Series A, 5.80%, 11/01/31

 

 

2,500

 

 

1,894,525

 

New Jersey EDA, Retirement Community Revenue Refunding
Bonds (Seabrook Village, Inc.), 5.25%, 11/15/26

 

 

470

 

 

323,811

 

New Jersey Health Care Facilities Financing Authority, Health
System Revenue Bonds (Catholic Health East), Series A,
5.375%, 11/15/12 (c)

 

 

2,000

 

 

2,267,440

 

New Jersey Health Care Facilities Financing Authority
Revenue Bonds:

 

 

 

 

 

 

 

(Kennedy Health System), 5.625%, 7/01/31

 

 

2,000

 

 

1,790,720

 

(Meridian Health), Series I, 5%, 7/01/38 (d)

 

 

250

 

 

240,317

 

(South Jersey Hospital System), 6%, 7/01/12 (c)

 

 

2,500

 

 

2,840,125

 

New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Atlantic City Medical Center), 5.75%, 7/01/25

 

 

1,110

 

 

1,096,025

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

New Jersey (concluded)

               

Health (concluded)

 

 

 

 

 

 

 

(Saint Barnabas Health Care System), Series B,
5.902%, 7/01/30 (e)

 

$

500

 

$

66,345

 

(Saint Barnabas Health Care System), Series B,
5.697%, 7/01/36 (e)

 

 

3,600

 

 

257,652

 

(Saint Barnabas Health Care System), Series B,
5.763%, 7/01/37 (e)

 

 

3,600

 

 

233,352

 

(South Jersey Hospital System), 5%, 7/01/46

 

 

500

 

 

388,015

 

 

 

 

 

 

     

 

 

 

 

 

 

11,666,165

 

               

Housing—6.3%

 

 

 

 

 

 

 

New Jersey State Housing and Mortgage Finance Agency
Revenue Bonds, Series AA:

 

 

 

 

 

 

 

6.375%, 10/01/28

 

 

1,000

 

 

1,059,520

 

6.50%, 10/01/38

 

 

450

 

 

469,201

 

New Jersey State Housing and Mortgage Finance Agency,
S/F Housing Revenue Refunding Bonds, AMT, Series T,
4.70%, 10/01/37

 

 

250

 

 

204,932

 

 

 

 

 

 

     

 

 

 

 

 

 

1,733,653

 

               

State—26.7%

 

 

 

 

 

 

 

Garden State Preservation Trust of New Jersey, Capital
Appreciation Revenue Bonds, Series B,
5.238%, 11/01/27 (b)(e)

 

 

4,000

 

 

1,467,320

 

New Jersey EDA, Cigarette Tax Revenue Bonds,
5.75%, 6/15/34 (f)

 

 

2,000

 

 

1,452,320

 

New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill
Reclamation Improvement District Project),
6.50%, 4/01/28

 

 

2,250

 

 

1,689,637

 

New Jersey EDA, Revenue Bonds (Newark Downtown
District Management Corporation), 5.125%, 6/15/37

 

 

250

 

 

167,452

 

New Jersey EDA, School Facilities Construction Revenue Bonds:

 

 

 

 

 

 

 

Series U, 5%, 9/01/37 (g)

 

 

500

 

 

484,495

 

Series Z, 6%, 12/15/34 (d)

 

 

1,000

 

 

1,071,120

 

New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:

 

 

 

 

 

 

 

Series A, 5.625%, 12/15/28 (d)

 

 

200

 

 

208,630

 

Series A, 6%, 12/15/38

 

 

500

 

 

527,220

 

Series C, 4.836%, 12/15/32 (b)(e)

 

 

1,250

 

 

290,200

 

 

 

 

 

 

     

 

 

 

 

 

 

7,358,394

 

               

Transportation—19.3%

 

 

 

 

 

 

 

Hudson County, New Jersey, Improvement Authority, Parking
Revenue Bonds (Harrison Parking Facility Project),
Series C, 5.375%, 1/01/44 (d)

 

 

800

 

 

805,352

 

Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, AMT, 126th Series,
5.25%, 5/15/37 (a)(h)

 

 

2,250

 

 

1,939,928

 

Port Authority of New York and New Jersey, Consolidated
Revenue Refunding Bonds:

 

 

 

 

 

 

 

125th Series, 5%, 4/15/32 (b)

 

 

1,500

 

 

1,499,505

 

AMT, 152nd Series, 5.75%, 11/01/30

 

 

525

 

 

509,765

 

AMT, 152nd Series, 5.25%, 11/01/35

 

 

630

 

 

556,070

 

 

 

 

 

 

     

 

 

 

 

 

 

5,310,620

 

               

Utilities—0.5%

 

 

 

 

 

 

 

Rahway Valley Sewerage Authority, New Jersey, Sewer Revenue
Bonds, CABS, Series A, 4.384%, 9/01/33 (a)(e)

 

 

650

 

 

145,217

 

               

Total Municipal Bonds in New Jersey

 

 

 

 

 

36,586,454

 

               

Multi-State—7.8%

               

Housing—7.8%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (i)(j)

 

 

2,000

 

 

2,165,740

 

               

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

28

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Schedule of Investments (concluded)

BlackRock New Jersey Municipal Bond Trust (BLJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Puerto Rico—16.2%

               

Housing—0.9%

 

 

 

 

 

 

 

Puerto Rico Housing Financing Authority, Capital Funding
Program, Subordinate Revenue Refunding Bonds,
5.125%, 12/01/27

 

$

265

 

$

261,677

 

               

State—4.4%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Infrastructure Financing Authority,
Special Tax and Capital Appreciation Revenue Bonds,
Series A (e)(g):

 

 

 

 

 

 

 

4.353%, 7/01/37

 

 

1,750

 

 

196,000

 

4.523%, 7/01/43

 

 

1,000

 

 

70,950

 

Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series D, 5.25%, 7/01/27

 

 

615

 

 

532,073

 

Series M-3, 6%, 7/01/27 (a)(k)

 

 

425

 

 

416,632

 

 

 

 

 

 

     

 

 

 

 

 

 

1,215,655

 

               

Transportation—3.7%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds, Series CC,
5.50%, 7/01/31 (d)

 

 

1,000

 

 

1,008,920

 

               

Utilities—7.2%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority, Power Revenue Bonds,
Series II, 5.25%, 7/01/12 (c)

 

 

1,750

 

 

1,978,060

 

               

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

4,464,312

 

               

Total Long-Term Investments
(Cost—$48,426,748)—156.9%

 

 

 

 

 

43,216,506

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

             

Money Market Funds—11.1%

 

 

 

 

 

 

 

CMA New Jersey Municipal Money Fund, 0.55% (l)(m)

 

 

3,049,223

 

 

3,049,223

 

               

Total Short-Term Securities (Cost—$3,049,223)—11.1%

 

 

 

 

 

3,049,223

 

               

Total Investments (Cost—$51,475,971*)—168.0%

 

 

 

 

 

46,265,729

 

Other Assets Less Liabilities—1.7%

 

 

 

 

 

471,892

 

Preferred Shares, at Redemption Value—(69.7)%

 

 

 

 

 

(19,202,885

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

27,534,736

 

 

 

 

 

 

     

 

 

 

   

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

Aggregate cost

 

$

51,363,148

 

 

 

     

Gross unrealized appreciation

 

$

1,586,805

 

Gross unrealized depreciation

 

 

(6,684,224

)

 

 

     

Net unrealized depreciation

 

$

(5,097,419

)

 

 

     

 

 

 

(a)

NPFGC Insured.

(b)

FSA Insured.

(c)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(d)

Assured Guaranty Insured.

(e)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

(f)

Radian Insured.

(g)

AMBAC Insured.

(h)

FGIC Insured.

(i)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(j)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(k)

Commonwealth Guaranteed.

(l)

Represents the current yield as of report date.

(m)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

 

 

 

 

 

 

 

           

Affiliate

 

Net
Activity

 

Income

 

           

CMA New Jersey Municipal Money Fund

 

2,221,016

 

$

37,573

 

           

 

 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 

 

 

 

         

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

$

3,049,223

 

Level 2

 

 

43,216,506

 

Level 3

 

 

 

         

Total

 

$

46,265,729

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

29



 

 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

 

BlackRock New York Insured Municipal
Income Trust (BSE)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York—125.4%

 

 

 

 

 

 

 

               

County/City/Special District/School District—28.0%

 

 

 

 

 

 

 

Erie County, New York, IDA, School Facility Revenue Bonds
(City of Buffalo Project), Series A, 5.75%, 5/01/25 (a)

 

$

1,000

 

$

1,035,500

 

Hudson Yards Infrastructure Corporation, New York,
Revenue Bonds, Series A, 5%, 2/15/47 (b)

 

 

3,000

 

 

2,430,570

 

New York City, New York, City IDA, PILOT Revenue Bonds:

 

 

 

 

 

 

 

(Queens Baseball Stadium Project), 6.375%, 1/01/39 (c)

 

 

150

 

 

158,692

 

(Queens Baseball Stadium Project), 5%, 1/01/46 (d)

 

 

3,225

 

 

2,525,272

 

(Yankee Stadium Project), 4.75%, 3/01/46 (e)

 

 

1,000

 

 

742,770

 

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Bonds, Series S-2,
5%, 1/15/37 (a)(b)

 

 

850

 

 

825,069

 

New York City, New York, City Transitional Finance Authority,
Future Tax Secured, Revenue Refunding Bonds, Series B,
5%, 5/01/30 (d)

 

 

3,265

 

 

3,214,458

 

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds, Series A, 5%, 10/15/32 (d)

 

 

6,000

 

 

6,043,560

 

New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5%, 11/15/44 (d)

 

 

6,175

 

 

5,642,036

 

 

 

 

 

 

     

 

 

 

 

 

 

22,617,927

 

               

Education—32.0%

 

 

 

 

 

 

 

Herkimer County, New York, IDA, Civic Facility Revenue Bonds
(Herkimer College Foundation Inc.), 6.25%, 8/01/34

 

 

1,000

 

 

743,380

 

Madison County, New York, IDA, Civic Facility Revenue Bonds
(Colgate University Project), Series A, 5%, 7/01/30 (d)

 

 

1,000

 

 

974,330

 

New York City, New York, IDA, Civic Facility Revenue Bonds
(Lycee Francais de New York Project), Series A,
5.375%, 6/01/23 (f)

 

 

2,500

 

 

2,037,325

 

New York City, New York, Trust for Cultural Resources Revenue
Refunding Bonds (American Museum of Natural History),
Series A, 5%, 7/01/44 (e)

 

 

4,100

 

 

3,891,638

 

New York State Dormitory Authority, Non-State Supported Debt,
Revenue Refunding Bonds (Mount Sinai School of Medicine
of New York University), 5%, 7/01/35 (e)

 

 

2,500

 

 

2,360,125

 

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(Brooklyn Law School), Series B, 5.125%, 7/01/30 (g)

 

 

4,000

 

 

3,599,280

 

(Fashion Institute of Technology Student Housing
Corporation), 5.125%, 7/01/14 (b)(h)

 

 

2,500

 

 

2,887,200

 

(New York University), Series 2, 5%, 7/01/41 (d)

 

 

7,000

 

 

6,665,890

 

(SS Joachim and Anne Residence), 5.25%, 7/01/27

 

 

3,000

 

 

2,708,280

 

 

 

 

 

 

     

 

 

 

 

 

 

25,867,448

 

               

Health—20.6%

 

 

 

 

 

 

 

New York State Dormitory Authority, Hospital Revenue Bonds
(Lutheran Medical Center), 5%, 8/01/31 (e)(i)

 

 

4,500

 

 

4,250,610

 

New York State Dormitory Authority, Hospital Revenue
Refunding Bonds (New York and Presbyterian Hospital),
5%, 8/01/32 (d)(i)

 

 

4,000

 

 

3,758,240

 

New York State Dormitory Authority, Mortgage Hospital
Revenue Bonds (Saint Barnabas Hospital), Series A,
5%, 2/01/31 (d)(i)

 

 

5,000

 

 

4,726,150

 

New York State Dormitory Authority Revenue Bonds (Hudson
Valley Hospital Center), 5%, 8/15/36 (a)(i)(j)

 

 

2,000

 

 

1,964,780

 

New York State Dormitory Authority, Revenue Refunding
Bonds (Winthrop S. Nassau University), Series A,
5.25%, 7/01/31 (d)

 

 

2,000

 

 

1,962,460

 

 

 

 

 

 

     

 

 

 

 

 

 

16,662,240

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Shares

 

Value

 

           

New York (concluded)

 

 

 

 

 

 

 

               

State—12.7%

 

 

 

 

 

 

 

New York State Dormitory Authority, Lease Revenue Bonds
(State University Dormitory Facilities), 5%, 7/01/37 (d)

 

$

500

 

$

478,090

 

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Refunding Bonds, Series A (a):

 

 

 

 

 

 

 

(NYS Association for Retarded Children, Inc.),
5%, 7/01/26

 

 

2,000

 

 

1,997,560

 

(School District Financing Program), 5%, 10/01/35

 

 

1,000

 

 

967,110

 

New York State Dormitory Authority Revenue Bonds (School
Districts Financing Program), Series D, 5%, 10/01/30 (e)

 

 

3,500

 

 

3,348,380

 

New York State Dormitory Authority, Revenue Refunding
Bonds (School District Financing Program), Series A,
5%, 4/01/31 (e)

 

 

2,000

 

 

1,904,820

 

New York State Dormitory Authority, State Personal Income
Tax Revenue Bonds (Education), Series B, 5.75%, 3/15/36

 

 

600

 

 

642,534

 

New York State Dormitory Authority, State Supported Debt
Revenue Bonds (Mental Health Services Facilities),
Series A, 5%, 2/15/33 (a)

 

 

1,000

 

 

945,280

 

 

 

 

 

 

     

 

 

 

 

 

 

10,283,774

 

               

Transportation—23.8%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Revenue Bonds,
Series C, 6.50%, 11/15/28

 

 

750

 

 

825,667

 

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds (b)(e):

 

 

 

 

 

 

 

Series A, 5.25%, 11/15/31

 

 

4,250

 

 

4,221,780

 

Series E, 5.25%, 11/15/31

 

 

2,660

 

 

2,628,479

 

Metropolitan Transportation Authority, New York, Service
Contract Revenue Refunding Bonds, Series A,
5%, 7/01/30 (d)

 

 

8,000

 

 

7,764,480

 

New York State Thruway Authority, General Revenue
Refunding Bonds, Series H, 5%, 1/01/37 (a)(b)

 

 

4,000

 

 

3,826,080

 

 

 

 

 

 

     

 

 

 

 

 

 

19,266,486

 

               

Utilities—8.3%

 

 

 

 

 

 

 

Long Island Power Authority, New York, Electric System
Revenue Bonds, Series C, 5.25%, 9/01/29 (k)

 

 

1,000

 

 

980,310

 

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds:

 

 

 

 

 

 

 

Series A, 6%, 5/01/33 (c)

 

 

2,000

 

 

2,110,480

 

Series A, 5.75%, 4/01/39 (c)

 

 

1,690

 

 

1,775,751

 

Series F, 4.25%, 5/01/33 (e)

 

 

1,415

 

 

1,158,673

 

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and Sewer
System Revenue Bonds, Series FF-2, 5.50%, 6/15/40

 

 

400

 

 

413,148

 

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A, 5.75%, 6/15/40

 

 

300

 

 

319,647

 

 

 

 

 

 

     

 

 

 

 

 

 

6,758,009

 

               

Total Municipal Bonds in New York

 

 

 

 

 

101,455,884

 

               

Puerto Rico—12.6%

 

 

 

 

 

 

 

               

Education—4.1%

 

 

 

 

 

 

 

Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Revenue Bonds
(University Plaza Project), Series A, 5%, 7/01/33 (e)

 

 

1,000

 

 

805,330

 

Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities, Revenue Refunding Bonds
(Polytechnic University), Series A, 5%, 8/01/32 (f)

 

 

4,000

 

 

2,491,160

 

 

 

 

 

 

     

 

 

 

 

 

 

3,296,490

 

               

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

30

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 

 


 

Schedule of Investments (concluded)

 

BlackRock New York Insured Municipal Income Trust (BSE)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Puerto Rico (concluded)

 

 

 

 

 

 

 

               

State—4.2%

 

 

 

 

 

 

 

Puerto Rico Commonwealth, GO, Refunding,
Sub-Series C-7, 6%, 7/01/27 (e)

 

$

1,000

 

$

980,310

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds,
Series CC 5.50%, 7/01/31 (a)

 

 

1,000

 

 

1,008,920

 

Puerto Rico Municipal Finance Agency, GO, Series A,
5%, 8/01/30 (a)

 

 

1,000

 

 

938,670

 

Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds, Series M-3, 6%, 7/01/28 (e)(l)

 

 

500

 

 

486,030

 

 

 

 

 

 

     

 

 

 

 

 

 

3,413,930

 

               

Transportation—1.2%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds,
Series CC 5.25%, 7/01/34 (a)

 

 

1,000

 

 

962,000

 

               

Utilities—3.1%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Aqueduct and Sewer Authority,
Senior Lien Revenue Bonds, Series A, 5.125%, 7/01/47 (c)

 

 

1,925

 

 

1,631,515

 

Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series SS, 5%, 7/01/25 (e)

 

 

1,000

 

 

901,500

 

 

 

 

 

 

     

 

 

 

 

 

 

2,533,015

 

               

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

10,205,435

 

               

Total Municipal Bonds—138.0%

 

 

 

 

 

111,661,319

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (m)

 

 

 

 

 

 

 

               

New York—18.8%

 

 

 

 

 

 

 

               

Transportation—18.8%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A, 5%, 11/15/30 (a)

 

 

6,080

 

 

5,930,067

 

Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds, 5%, 11/15/32 (e)

 

 

9,404

 

 

9,236,331

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—18.8%

 

 

 

 

 

15,166,398

 

               

Total Long-Term Investments
(Cost—$135,418,807)—156.8%

 

 

 

 

 

126,827,717

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

               

New York—0.1%

 

 

 

 

 

 

 

New York City, New York, GO, Refunding, VRDN, Series H,
Sub-Series H-3, 0.60%, 3/02/09 (a)(n)

 

 

50

 

 

50,000

 

               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

             

Money Market Funds—7.4%

 

 

 

 

 

 

 

               

CMA New York Municipal Money Fund, 0.29% (o)(p)

 

 

6,009,862

 

 

6,009,862

 

               

Total Short-Term Securities (Cost—$6,059,862)—7.5%

 

 

 

 

 

6,059,862

 

               

Total Investments (Cost—$141,428,669*)—164.3%

 

 

 

 

 

132,887,579

 

Liabilities in Excess of Other Assets—(1.2)%

 

 

 

 

 

(952,923

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(11.6)%

 

 

 

 

 

(9,366,554

)

Preferred Shares, at Redemption Value—(51.5)%

 

 

 

 

 

(41,678,083

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

80,890,019

 

 

 

 

 

 

     

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

132,378,796

 

 

 

     

Gross unrealized appreciation

 

$

754,569

 

Gross unrealized depreciation

 

 

(9,554,526

)

 

 

     

Net unrealized depreciation

 

$

(8,799,957

)

 

 

     

 

 

(a)

FSA Insured.

(b)

FGIC Insured.

(c)

Assured Guaranty Insured.

(d)

AMBAC Insured.

(e)

MBIA Insured.

(f)

ACA Insured.

(g)

XL Capital Insured.

(h)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(i)

FHA Insured.

(j)

BHAC Insured.

(k)

CIFG Insured.

(l)

Commonwealth Guaranteed.

(m)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as a collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(n)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

(o)

Represents the current yield as of report date.

(p)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

               

 

 

 

Net

 

 

 

 

Affiliate

 

 

Activity

 

Income

 

             

CMA New York Municipal Money Fund

 

 

6,009,562

 

$

10,895

 

               

 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

         

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

$

6,009,862

 

Level 2

 

 

126,877,717

 

Level 3

 

 

 

         

Total

 

$

132,887,579

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

31



 

 


 

 

Schedule of Investments February 28, 2009 (Unaudited)

BlackRock New York Municipal Bond Trust (BQH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

New York—125.2%

 

 

 

 

 

 

 

 

Corporate—11.1%

 

 

 

 

 

 

 

Essex County, New York, IDA, Environmental Improvement
Revenue Bonds (International Paper Company Project),
AMT, Series A, 6.625%, 9/01/32

 

$

100

 

$

68,277

 

New York City, New York, City IDA, Special Facility
Revenue Bonds, AMT:

 

 

 

 

 

 

 

(American Airlines, Inc. - JFK International Airport),
7.625%, 8/01/25

 

 

750

 

 

563,978

 

(Continental Airlines Inc. Project), 7.75%, 8/01/31

 

 

1,000

 

 

737,620

 

Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Continental Airlines, Inc. - LaGuardia
Project), AMT, 9.125%, 12/01/15

 

 

2,340

 

 

2,343,159

 

Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson),
AMT, 5.25%, 6/01/27

 

 

500

 

 

405,660

 

 

 

 

 

 

     

 

 

 

 

 

 

4,118,694

 

 

County/City/Special District/School District—20.5%

 

 

 

 

 

 

 

Hudson Yards Infrastructure Corporation, New York,
Revenue Bonds, Series A:

 

 

 

 

 

 

 

4.50%, 2/15/47 (a)

 

 

1,000

 

 

738,570

 

5%, 2/15/47 (b)

 

 

500

 

 

405,095

 

New York City, New York, City Health and Hospital Corporation,
Health System Revenue Bonds, Series A, 5.375%, 2/15/26

 

 

1,100

 

 

1,089,715

 

New York City, New York, City IDA, PILOT Revenue Bonds:

 

 

 

 

 

 

 

(Queens Baseball Stadium Project), 5%, 1/01/39 (c)

 

 

250

 

 

200,838

 

(Queens Baseball Stadium Project), 6.375%, 1/01/39 (d)

 

 

100

 

 

105,795

 

(Queens Baseball Stadium Project), 5%, 1/01/46 (c)

 

 

150

 

 

117,454

 

(Yankee Stadium Project), 5%, 3/01/46 (b)

 

 

500

 

 

371,880

 

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Bonds, Series S-3, 5.25%, 1/15/39

 

 

500

 

 

482,445

 

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Refunding Bonds, Series S-1,
4.50%, 1/15/38

 

 

250

 

 

211,817

 

New York City, New York, GO:

 

 

 

 

 

 

 

Series A-1, 4.75%, 8/15/25

 

 

1,000

 

 

943,000

 

Series D, 5.375%, 6/01/32

 

 

2,040

 

 

2,019,784

 

New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5%, 11/15/44 (c)

 

 

1,000

 

 

913,690

 

 

 

 

 

 

     

 

 

 

 

 

 

7,600,083

 

 

Education—21.9%

 

 

 

 

 

 

 

Albany, New York, IDA, Civic Facility Revenue Bonds
(New Covenant Charter School Project), Series A:

 

 

 

 

 

 

 

7%, 5/01/25

 

 

200

 

 

133,654

 

7%, 5/01/35

 

 

130

 

 

81,055

 

Dutchess County, New York, IDA, Civic Facility Revenue Bonds
(Vassar College Project), 5.35%, 8/01/11 (e)

 

 

1,000

 

 

1,108,460

 

Dutchess County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Bard College), Series A-2, 4.50%, 8/01/36

 

 

500

 

 

375,835

 

New York City, New York, IDA, Civic Facility Revenue Bonds
(Lycee Francais de New York Project), Series A,
5.50%, 6/01/15 (f)

 

 

250

 

 

237,502

 

New York City, New York, City IDA, Civic Facility Revenue Refunding
Bonds (Polytechnic University), 5.25%, 11/01/37 (f)

 

 

250

 

 

184,745

 

New York Liberty Development Corporation Revenue Bonds
(National Sports Museum Project), Series A,
6.125%, 2/15/19 (g)

 

 

385

 

 

385

 

New York State Dormitory Authority, Consolidated Fourth
General Resolution Revenue Bonds (City University System),
Series A, 5.25%, 7/01/11 (e)

 

 

2,215

 

 

2,421,194

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

 

New York (continued)

 

 

 

 

 

 

 

 

Education (concluded)

 

 

 

 

 

 

 

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds:

 

 

 

 

 

 

 

(Manhattan College), Series B, 5.30%, 7/01/37 (h)

 

$

200

 

$

157,706

 

(Rochester Institute of Technology), Series A,
6%, 7/01/33

 

 

325

 

 

339,134

 

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Mount Sinai School of Medicine of New York University),
5%, 7/01/35 (a)

 

 

150

 

 

141,608

 

(Teachers College), 5.50%, 3/01/39

 

 

350

 

 

352,272

 

New York State Dormitory Authority Revenue Bonds
(Iona College), 5.125%, 7/01/32 (i)

 

 

2,500

 

 

2,201,300

 

Rensselaer County, New York, IDA, Civic Facility Revenue Bonds
(Rensselaer Polytechnic Institute), 5%, 3/01/36

 

 

400

 

 

371,500

 

 

 

 

 

 

     

 

 

 

 

 

 

8,106,350

 

 

Health—2.3%

 

 

 

 

 

 

 

Genesee County, New York, IDA, Civic Facility Revenue
Refunding Bonds (United Memorial Medical Center Project),
5%, 12/01/27

 

 

150

 

 

89,326

 

New York State Dormitory Authority, Non-State Supported Debt
Revenue Bonds (New York University Hospitals Center),
Series B, 5.625%, 7/01/37

 

 

260

 

 

170,508

 

New York State Dormitory Authority Revenue Bonds
(Hudson Valley Hospital Center), 5%, 8/15/36 (j)(k)(l)

 

 

250

 

 

245,598

 

Saratoga County, New York, IDA, Civic Facility Revenue Bonds
(The Saratoga Hospital Project), Series B, 5.25%, 12/01/32

 

 

200

 

 

153,482

 

Suffolk County, New York, IDA, Continuing Care and Retirement,
Revenue Refunding Bonds (Jeffersons Ferry Project),
5%, 11/01/28

 

 

260

 

 

183,698

 

 

 

 

 

 

     

 

 

 

 

 

 

842,612

 

 

Housing—7.2%

 

 

 

 

 

 

 

New York City, New York, City Housing Development Corporation,
M/F Housing Revenue Bonds, AMT, Series A,
5.50%, 11/01/34

 

 

2,500

 

 

2,276,350

 

New York State, HFA, M/F Housing Revenue Bonds (Highland
Avenue Senior Apartments), AMT, Series A, 5%, 2/15/39

 

 

500

 

 

408,305

 

 

 

 

 

 

     

 

 

 

 

 

 

2,684,655

 

 

State—22.3%

 

 

 

 

 

 

 

New York State Dormitory Authority, Non-State Supported
Debt, Lease Revenue Bonds (Municipal Health Facilities
Improvement Program), Sub-Series 2-4, 4.75%, 1/15/30

 

 

500

 

 

463,110

 

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Refunding Bonds (School District Financing
Program), Series B, 5%, 4/01/36 (j)

 

 

500

 

 

482,715

 

New York State Dormitory Authority, State Personal Income
Tax Revenue Bonds (Education):

 

 

 

 

 

 

 

Series A, 5%, 3/15/38

 

 

125

 

 

121,271

 

Series B, 5.75%, 3/15/36

 

 

300

 

 

321,267

 

New York State Dormitory Authority, State Supported Debt
Revenue Bonds (Mental Health Services Facilities),
Series B, 5%, 2/15/33 (j)

 

 

350

 

 

330,848

 

New York State Urban Development Corporation, Personal
Income Tax Revenue Bonds:

 

 

 

 

 

 

 

Series A, 5.25%, 3/15/12 (e)

 

 

5,000

 

 

5,547,750

 

Series B, 5%, 3/15/37

 

 

1,000

 

 

973,500

 

 

 

 

 

 

     

 

 

 

 

 

 

8,240,461

 

 

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

32

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009



 

 


 

 

Schedule of Investments (continued)

BlackRock New York Municipal Bond Trust (BQH)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

New York (concluded)

 

 

 

 

 

 

 

 

Tobacco—9.0%

 

 

 

 

 

 

 

New York Counties Tobacco Trust III, Tobacco Settlement
Pass-Through Bonds, 6%, 6/01/43

 

$

1,445

 

$

1,051,006

 

TSASC, Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (e)

 

 

2,000

 

 

2,272,960

 

 

 

 

 

 

     

 

 

 

 

 

 

3,323,966

 

 

Transportation—15.8%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York,
Revenue Bonds, Series C, 6.50%, 11/15/28

 

 

500

 

 

550,445

 

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A, 5.125%, 11/15/31

 

 

3,000

 

 

2,930,880

 

Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, AMT, 126th Series, 5.25%, 5/15/37 (a)(b)

 

 

2,750

 

 

2,371,023

 

 

 

 

 

 

     

 

 

 

 

 

 

5,852,348

 

 

Utilities—15.1%

 

 

 

 

 

 

 

Long Island Power Authority, New York, Electric System
Revenue Bonds, Series C, 5.25%, 9/01/29 (m)

 

 

500

 

 

490,155

 

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series A, 6.25%, 4/01/33

 

 

100

 

 

106,863

 

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and Sewer
System Revenue Bonds, Series AA, 4.50%, 6/15/37 (a)

 

 

250

 

 

216,695

 

New York City, New York, City Municipal Water Finance Authority,
Second General Resolution, Water and Sewer System,
Revenue Refunding Bonds, Series DD, 4.75%, 6/15/35

 

 

1,000

 

 

925,040

 

New York City, New York, City Municipal Water Finance Authority,
Water and Sewer System Revenue Bonds, Series A:

 

 

 

 

 

 

 

5.25%, 6/15/11 (b)(e)

 

 

2,500

 

 

2,725,925

 

5.75%, 6/15/40

 

 

100

 

 

106,549

 

New York State Environmental Facilities Corporation,
State Clean Water and Drinking Revenue Refunding Bonds
(New York City Water Project), Series D, 5.125%, 6/15/31

 

 

1,000

 

 

1,004,590

 

 

 

 

 

 

     

 

 

 

 

 

 

5,575,817

 

 

Total Municipal Bonds in New York

 

 

 

 

 

46,344,986

 

 

Multi-State—7.3%

 

 

 

 

 

 

 

 

Housing—7.3%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (n)(o)

 

 

2,500

 

 

2,707,175

 

 

Guam—0.4%

 

 

 

 

 

 

 

 

Tobacco—0.4%

 

 

 

 

 

 

 

Guam Economic Development and Commerce Authority,
Tobacco Settlement Asset-Backed Revenue Refunding
Bonds, 5.625%, 6/01/47

 

 

200

 

 

133,544

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

Puerto Rico—15.7%

 

 

 

 

 

 

 

 

State—12.6%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Infrastructure Financing Authority,
Special Tax and Capital Appreciation Revenue Bonds,
Series A (c)(p):

 

 

 

 

 

 

 

4.353%, 7/01/37

 

$

2,000

 

$

224,000

 

4.998%, 7/01/44

 

 

2,000

 

 

131,380

 

Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5.125%, 7/01/31

 

 

1,825

 

 

1,507,030

 

Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds, Series D:

 

 

 

 

 

 

 

5.25%, 7/01/12 (e)

 

 

1,980

 

 

2,167,605

 

5.25%, 7/01/27

 

 

720

 

 

622,915

 

 

 

 

 

 

     

 

 

 

 

 

 

4,652,930

 

 

Tobacco—0.9%

 

 

 

 

 

 

 

Children’s Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds, 5.625%, 5/15/43

 

 

500

 

 

334,715

 

 

Transportation—2.2%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series D, 5.25%, 7/01/12 (e)

 

 

750

 

 

830,505

 

 

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

5,818,150

 

 

Total Municipal Bonds—148.6%

 

 

 

 

 

55,003,855

 

 

 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (q)

 

 

 

 

 

 

 

 

New York—6.6%

 

 

 

 

 

 

 

 

Housing—6.6%

 

 

 

 

 

 

 

New York State Mortgage Agency Revenue Bonds, AMT,
Series 101, 5.40%, 4/01/32

 

 

2,641

 

 

2,435,231

 

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—6.6%

 

 

 

 

 

2,435,231

 

 

Total Long-Term Investments
(Cost—$59,945,589)—155.2%

 

 

 

 

 

57,439,086

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

 

Money Market Funds—7.4%

 

 

 

 

 

 

 

 

CMA New York Municipal Money Fund, 0.29% (r)(s)

 

 

2,736,776

 

 

2,736,776

 

 

Total Short-Term Securities
(Cost—$2,736,776)—7.4%

 

 

 

 

 

2,736,776

 

 

Total Investments (Cost—$62,682,365*)—162.6%

 

 

 

 

 

60,175,862

 

Other Assets Less Liabilities—1.5%

 

 

 

 

 

573,127

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(3.6)%

 

 

 

 

 

(1,329,607

)

Preferred Shares, at Redemption Value—(60.5)%

 

 

 

 

 

(22,402,946

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

37,016,436

 

 

 

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

33



 

 

 


 

Schedule of Investments (concluded)

 

BlackRock New York Municipal Bond Trust (BQH)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

61,231,225

 

 

 

     

Gross unrealized appreciation

 

$

2,318,398

 

Gross unrealized depreciation

 

 

(4,695,018

)

 

 

     

Net unrealized depreciation

 

$

(2,376,620

)

 

 

     

 

 

(a)

MBIA Insured.

(b)

FGIC Insured.

(c)

AMBAC Insured.

(d)

Assured Guaranty Insured.

(e)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(f)

ACA Insured.

(g)

Issuer filed for bankruptcy and/or is in default of interest payments.

(h)

Radian Insured.

(i)

XL Capital Insured.

(j)

FSA Insured.

(k)

FHA Insured.

(l)

BHAC Insured.

(m)

CIFG Insured.

(n)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(o)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(p)

Represents a zero-coupon bond. Rate shown is the current yield as of report date.

(q)

Securities represent underlying bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as a collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(r)

Represents the current yield as of report date.

(s)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

 

Affiliate

 

Net
Activity

 

Income

 

 

CMA New York Municipal Money Fund

 

 

1,608,182

 

$

1,784

 

 

 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

Valuation
Inputs

 

Investments in
Securities

 

 

 

 

Assets

 

 

 

   

Level 1

 

$

2,736,776

 

Level 2

 

 

57,439,086

 

Level 3

 

 

 

 

Total

 

$

60,175,862

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

34

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009



 

 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

 

BlackRock New York Municipal Income Trust II (BFY)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

  New York—151.3%

 

 

 

 

 

 

 

               

Corporate—24.3%

 

 

 

 

 

 

 

Essex County, New York, IDA, Environmental Improvement
Revenue Bonds (International Paper Company Project),
AMT, Series A, 6.625%, 9/01/32

 

$

200

 

$

136,554

 

Essex County, New York, IDA, Solid Waste Disposal, Revenue
Refunding Bonds (International Paper Company),
AMT, Series A, 5.50%, 10/01/26

 

 

625

 

 

390,200

 

New York City, New York, City IDA, Revenue Bonds
(IAC/InterActiveCorp Project), 5%, 9/01/35

 

 

1,000

 

 

603,990

 

New York City, New York, City IDA, Special Facility Revenue
Bonds, AMT:

 

 

 

 

 

 

 

(American Airlines, Inc. - JFK International Airport),
7.625%, 8/01/25

 

 

1,600

 

 

1,203,152

 

(Continental Airlines Inc. Project), AMT, 7.75%, 8/01/31

 

 

1,500

 

 

1,106,430

 

New York State Energy Research and Development Authority,
Facilities Revenue Bonds (Consolidated Edison Company
of New York, Inc. Project), VRDN, AMT, 4.70%, 6/01/36

 

 

5,500

 

 

5,501,210

 

New York State Energy Research and Development Authority,
Gas Facilities Revenue Refunding Bonds (Brooklyn Union
Gas Company/Keyspan), AMT, Series A, 4.70%, 2/01/24 (a)

 

 

1,500

 

 

1,300,845

 

Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Continental Airlines, Inc. - LaGuardia
Project), AMT, 9.125%, 12/01/15

 

 

3,310

 

 

3,314,469

 

Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson),
AMT, 5.25%, 6/01/27

 

 

2,500

 

 

2,028,300

 

 

 

 

 

 

     

 

 

 

 

 

 

15,585,150

 

               

County/City/Special District/School District—36.6%

 

 

 

 

 

 

 

New York City, New York, City IDA, PILOT Revenue Bonds
(Queens Baseball Stadium Project):

 

 

 

 

 

 

 

5%, 1/01/39 (b)

 

 

500

 

 

401,675

 

6.375%, 1/01/39 (c)

 

 

100

 

 

105,795

 

5%, 1/01/46 (b)

 

 

2,050

 

 

1,605,211

 

New York City, New York, City Transit Authority, Metropolitan
Transportation Authority, Triborough COP, Series A,
5.25%, 1/01/10 (b)(d)

 

 

5,000

 

 

5,244,350

 

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Bonds:

 

 

 

 

 

 

 

Series S-2, 4.50%, 1/15/31 (a)(e)

 

 

2,500

 

 

2,178,225

 

Series S-2, 4.25%, 1/15/34 (a)(e)

 

 

250

 

 

203,697

 

Series S-3, 5.25%, 1/15/39

 

 

1,300

 

 

1,254,357

 

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Refunding Bonds, Series S-1,
4.50%, 1/15/38

 

 

500

 

 

423,635

 

New York City, New York, City Transitional Finance Authority,
Future Tax Secured, Revenue Refunding Bonds, Series B,
5%, 11/01/27

 

 

5,000

 

 

5,024,650

 

New York City, New York, GO:

 

 

 

 

 

 

 

Series A-1, 4.75%, 8/15/25

 

 

1,000

 

 

943,000

 

Series B, 5.75%, 12/01/11 (d)

 

 

3,000

 

 

3,356,160

 

New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5%, 11/15/35 (b)

 

 

3,000

 

 

2,802,960

 

 

 

 

 

 

     

 

 

 

 

 

 

23,543,715

 

               

Education—25.4%

 

 

 

 

 

 

 

Albany, New York, IDA, Civic Facility Revenue Bonds
(New Covenant Charter School Project), Series A:

 

 

 

 

 

 

 

7%, 5/01/25

 

 

345

 

 

230,553

 

7%, 5/01/35

 

 

220

 

 

137,170

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

  New York (continued)

 

 

 

 

 

 

 

               

Education (concluded)

 

 

 

 

 

 

 

Dutchess County, New York, IDA, Civic Facility Revenue Bonds
(Vassar College Project), 5.35%, 8/01/11 (d)

 

$

4,000

 

$

4,433,840

 

Dutchess County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Bard College), Series A-2,
4.50%, 8/01/36

 

 

755

 

 

567,511

 

Geneva, New York, IDA, Civic Facility Revenue Refunding
Bonds (Hobart and William Smith Project), Series A,
5.375%, 2/01/33

 

 

3,250

 

 

3,056,333

 

Herkimer County, New York, IDA, Civic Facility Revenue Bonds
(Herkimer College Foundation Inc.), 6.25%, 8/01/34

 

 

385

 

 

286,201

 

New York City, New York, City IDA, Civic Facility Revenue
Refunding Bonds (Polytechnic University),
5.25%, 11/01/37 (f)

 

 

460

 

 

339,931

 

New York City, New York, IDA, Civic Facility Revenue Bonds
(Lycee Francais de New York Project), Series A,
5.375%, 6/01/23 (f)

 

 

1,500

 

 

1,222,395

 

New York Liberty Development Corporation Revenue Bonds
(National Sports Museum Project), Series A,
6.125%, 2/15/19

 

 

675

 

 

675

 

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds:

 

 

 

 

 

 

 

(Manhattan College), Series B, 5.30%, 7/01/37 (g)

 

 

250

 

 

197,133

 

(Rochester Institute of Technology), Series A,
6%, 7/01/33

 

 

625

 

 

652,181

 

New York State Dormitory Authority, Non-State Supported Debt,
Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Mount Sinai School of Medicine of New York University),
5%, 7/01/35 (e)

 

 

500

 

 

472,025

 

(Teachers College), 5.50%, 3/01/39

 

 

650

 

 

654,219

 

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(Brooklyn Law School), Series B, 5.125%, 7/01/30 (h)

 

 

2,000

 

 

1,799,640

 

(New School University), 5%, 7/01/31 (e)

 

 

1,425

 

 

1,356,757

 

Rensselaer County, New York, IDA, Civic Facility Revenue Bonds
(Rensselaer Polytechnic Institute), 5%, 3/01/36

 

 

950

 

 

882,313

 

 

 

 

 

 

     

 

 

 

 

 

 

16,288,877

 

               

Health—13.7%

 

 

 

 

 

 

 

Clarence, New York, IDA, Civic Facility Revenue Bonds
(Bristol Village Project), 6%, 1/20/44 (i)

 

 

1,695

 

 

1,718,696

 

Genesee County, New York, IDA, Civic Facility Revenue
Refunding Bonds (United Memorial Medical Center Project),
5%, 12/01/27

 

 

250

 

 

148,877

 

New York City, New York, City IDA, Mortgage Revenue Bonds
(Eger Harbor House Inc. Project), Series A (i):

 

 

 

 

 

 

 

4.95%, 11/20/32

 

 

980

 

 

882,823

 

5.875%, 5/20/44

 

 

975

 

 

981,776

 

New York State Dormitory Authority, Mortgage Hospital
Revenue Bonds (Saint Barnabas Hospital), Series A,
5%, 2/01/31 (b)(i)

 

 

1,500

 

 

1,417,845

 

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds:

 

 

 

 

 

 

 

(New York Hospital Medical Center of Queens),
4.75%, 2/15/37 (j)

 

 

315

 

 

271,826

 

(New York University Hospitals Center), Series B,
5.625%, 7/01/37

 

 

530

 

 

347,574

 

New York State Dormitory Authority Revenue Bonds
(Hudson Valley Hospital Center), 5%, 8/15/36 (j)(k)(l)

 

 

500

 

 

491,195

 

New York State Dormitory Authority, Revenue Refunding Bonds
(Kateri Residence), 5%, 7/01/22

 

 

2,000

 

 

1,959,840

 

Saratoga County, New York, IDA, Civic Facility Revenue Bonds
(The Saratoga Hospital Project), Series B, 5.25%, 12/01/32

 

 

350

 

 

268,594

 


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

35



 

 

 


 

Schedule of Investments (continued)

 

BlackRock New York Municipal Income Trust II (BFY)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

  New York (continued)

 

 

 

 

 

 

 

               

Health (concluded)

 

 

 

 

 

 

 

Suffolk County, New York, IDA, Continuing Care and
Retirement, Revenue Refunding Bonds (Jeffersons
Ferry Project), 5%, 11/01/28

 

$

450

 

$

317,939

 

 

 

 

 

 

     

 

 

 

 

 

 

8,806,985

 

               

Housing—3.2%

 

 

 

 

 

 

 

New York City, New York, City Housing Development Corporation,
M/F Housing Revenue Bonds, AMT, Series J-2,
4.75%, 11/01/27

 

 

1,420

 

 

1,248,677

 

New York State, HFA, M/F Housing Revenue Bonds
(Highland Avenue Senior Apartments), AMT, Series A,
5%, 2/15/39

 

 

1,000

 

 

816,610

 

 

 

 

 

 

     

 

 

 

 

 

 

2,065,287

 

               

State—7.0%

 

 

 

 

 

 

 

New York State Dormitory Authority, Non-State Supported
Debt, Lease Revenue Bonds (Municipal Health Facilities
Improvement Program), Sub-Series 2-4, 4.75%, 1/15/30

 

 

1,000

 

 

926,220

 

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Refunding Bonds (School District Financing
Program), Series B, 5%, 4/01/36 (l)

 

 

750

 

 

724,073

 

New York State Dormitory Authority, State Personal Income Tax
Revenue Bonds (Education), Series B, 5.75%, 3/15/36

 

 

300

 

 

321,267

 

New York State Dormitory Authority, State Supported Debt
Revenue Bonds (Mental Health Services Facilities),
Series A, 5%, 2/15/33 (l)

 

 

600

 

 

567,168

 

New York State Urban Development Corporation, Personal
Income Tax Revenue Bonds, Series B, 5%, 3/15/35

 

 

2,000

 

 

1,962,800

 

 

 

 

 

 

     

 

 

 

 

 

 

4,501,528

 

               

Tobacco—11.7%

 

 

 

 

 

 

 

New York Counties Tobacco Trust III, Tobacco Settlement
Pass-Through Bonds, 6%, 6/01/43

 

 

2,535

 

 

1,843,807

 

TSASC, Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (d)

 

 

5,000

 

 

5,682,400

 

 

 

 

 

 

     

 

 

 

 

 

 

7,526,207

 

               

Transportation—15.6%

 

 

 

 

 

 

 

Metropolitan Transportation Authority, New York, Dedicated Tax
Fund Revenue Refunding Bonds, Series A, 5%, 11/15/30

 

 

5,000

 

 

4,857,700

 

Metropolitan Transportation Authority, New York, Revenue Bonds,
Series C, 6.50%, 11/15/28

 

 

750

 

 

825,667

 

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A, 5.25%, 11/15/31 (a)(e)

 

 

1,250

 

 

1,241,700

 

Metropolitan Transportation Authority, New York, Service
Contract Revenue Refunding Bonds, Series A,
5.125%, 1/01/29

 

 

3,000

 

 

2,975,820

 

Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds, Series A, 5%, 1/01/32

 

 

150

 

 

147,384

 

 

 

 

 

 

     

 

 

 

 

 

 

10,048,271

 

               

Utilities—13.8%

 

 

 

 

 

 

 

Long Island Power Authority, New York, Electric System
Revenue Bonds:

 

 

 

 

 

 

 

5.189%, 6/01/28 (l)(m)

 

 

3,515

 

 

1,226,911

 

Series C, 5.25%, 9/01/29 (n)

 

 

1,000

 

 

980,310

 

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series A, 6.25%, 4/01/33

 

 

150

 

 

160,294

 

New York City, New York, City Municipal Water Finance Authority,
Second General Resolution, Water and Sewer System
Revenue Bonds, Series AA, 4.50%, 6/15/37 (e)

 

 

850

 

 

736,763

 

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A, 5.75%, 6/15/40

 

 

250

 

 

266,372

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

  New York (concluded)

 

 

 

 

 

 

 

               

Utilities (concluded)

 

 

 

 

 

 

 

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue Refunding
Bonds, Series A, 5.125%, 6/15/34

 

$

4,000

 

$

3,974,440

 

New York State Environmental Facilities Corporation,
State Clean Water and Drinking Water, Revenue Refunding
Bonds (New York City Municipal Water Finance Authority),
Series A, 5%, 6/15/37

 

 

1,500

 

 

1,497,630

 

 

 

 

 

 

     

 

 

 

 

 

 

8,842,720

 

               

Total Municipal Bonds in New York

 

 

 

 

 

97,208,740

 

               

  Multi-State—6.4%

 

 

 

 

 

 

 

               

Housing—6.4%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust (o)(p):

 

 

 

 

 

 

 

5.75%, 4/30/15

 

 

500

 

 

507,075

 

6%, 4/30/15

 

 

1,500

 

 

1,538,775

 

6%, 4/30/19

 

 

1,000

 

 

1,012,490

 

6.30%, 4/30/19

 

 

1,000

 

 

1,017,640

 

               

Total Municipal Bonds in Multi-State

 

 

 

 

 

4,075,980

 

               

  Guam—0.4%

 

 

 

 

 

 

 

               

Tobacco—0.4%

 

 

 

 

 

 

 

Guam Economic Development and Commerce Authority,
Tobacco Settlement Asset-Backed Revenue Refunding
Bonds, 5.625%, 6/01/47

 

 

375

 

 

250,395

 

               

  Puerto Rico—6.5%

 

 

 

 

 

 

 

               

Housing—1.5%

 

 

 

 

 

 

 

Puerto Rico Housing Financing Authority, Capital Funding
Program, Subordinate Revenue Refunding Bonds,
5.125%, 12/01/27

 

 

1,000

 

 

987,460

 

               

State—0.3%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corporation, Sales Tax
Revenue Refunding Bonds, Series A, 5.139%,
8/01/54 (b)(m)

 

 

5,000

 

 

195,050

 

               

Tobacco—0.5%

 

 

 

 

 

 

 

Children’s Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds, 5.625%, 5/15/43

 

 

500

 

 

334,715

 

               

Transportation—3.5%

 

 

 

 

 

 

 

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series D, 5.375%, 7/01/12 (d)

 

 

2,000

 

 

2,222,740

 

               

Utilities—0.7%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series VV, 5.25%, 7/01/29 (e)

 

 

500

 

 

454,050

 

               

Total Municipal Bonds in Puerto Rico

 

 

 

 

 

4,194,015

 

               

Total Long-Term Investments
(Cost—$111,452,133)—164.6%

 

 

 

 

 

105,729,130

 

               

 

 

 

 

 

 

 

 


 

Short-Term Securities

 

Shares

 

 

 

 

             

  Money Market Funds—3.2%

 

 

 

 

 

 

 

               

CMA New York Municipal Money Fund, 0.29% (q)(r)

 

 

2,055,271

 

 

2,055,271

 

               

Total Short-Term Securities
(Cost—$2,055,271)—3.2%

 

 

 

 

 

2,055,271

 

               

Total Investments (Cost—$113,507,404*)—167.8%

 

 

 

 

 

107,784,401

 

Other Assets Less Liabilities—1.7%

 

 

 

 

 

1,114,524

 

Preferred Shares, at Redemption Value—(69.5)%

 

 

 

 

 

(44,654,619

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

64,244,306

 

 

 

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

36

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 

 


 

Schedule of Investments (concluded)

 

BlackRock New York Municipal Income Trust II (BFY)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

113,340,827

 

 

 

     

Gross unrealized appreciation

 

$

2,480,317

 

Gross unrealized depreciation

 

 

(8,036,743

)

 

 

     

Net unrealized depreciation

 

$

(5,556,426

)

 

 

     

 

 

(a)

FGIC Insured.

(b)

AMBAC Insured.

(c)

Assured Guaranty Insured.

(d)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e)

MBIA Insured.

(f)

ACA Insured.

(g)

Radian Insured.

(h)

XL Capital Insured.

(i)

GNMA Collateralized.

(j)

FHA Insured.

(k)

BHAC Insured.

(l)

FSA Insured.

(m)

Represents a zero-coupon bond. Rate shown is the current yield as of report date.

(n)

CIFG Insured.

(o)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(p)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(q)

Represents the current yield as of report date.

(r)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

           

Affiliate

 

Net
Activity

 

Income

 

           

CMA New York Municipal Money Fund

 

 

1,208,837

 

$

12,867

 

               

 

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

       

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

     

Level 1

 

$

2,055,271

 

Level 2

 

 

105,729,130

 

Level 3

 

 

 

         

Total

 

$

107,784,401

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

37



 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

BlackRock Virginia Municipal Bond Trust (BHV)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

District of Columbia—7.3%

 

 

 

 

 

 

 

               

Transportation—7.3%

 

 

 

 

 

 

 

Metropolitan Washington Airports Authority, D.C., Airport
System Revenue Bonds, AMT:

 

 

 

 

 

 

 

Series A, 5.25%, 10/01/32 (a)(b)

 

$

1,500

 

$

1,314,420

 

Series B, 5%, 10/01/34 (c)

 

 

250

 

 

212,872

 

               

Total Municipal Bonds in the District of Columbia

 

 

 

 

 

1,527,292

 

               

Multi-State—7.7%

 

 

 

 

 

 

 

               

Housing—7.7%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (d)(e)

 

 

1,500

 

 

1,624,305

 

               

Virginia—124.8%

 

 

 

 

 

 

 

               

Corporate—10.4%

 

 

 

 

 

 

 

Chesterfield County, Virginia, EDA, Solid Waste and Sewer
Disposal Revenue Bonds (Virginia Electric Power Company),
AMT, Series A, 5.60%, 11/01/31

 

 

500

 

 

339,585

 

Isle Wight County, Virginia, IDA, Environmental Improvement
Revenue Bonds, AMT, Series A, 5.70%, 11/01/27

 

 

1,300

 

 

817,232

 

Louisa, Virginia, IDA, PCR, Refunding (Virginia Electric and
Power Company Project), Series A, 5.375%, 11/01/35

 

 

1,000

 

 

1,031,580

 

 

 

 

 

 

     

 

 

 

 

 

 

2,188,397

 

               

County/City/Special District/School District—20.5%

 

 

 

 

 

 

 

Celebrate North Community Development Authority, Virginia,
Special Assessment Revenue Bonds, Series B,
6.75%, 3/01/34

 

 

1,500

 

 

1,024,425

 

Dulles Town Center, Virginia, Community Development Authority,
Special Assessment Tax (Dulles Town Center Project),
6.25%, 3/01/26

 

 

955

 

 

676,379

 

Hampton, Virginia, Public Improvement, GO, 5%, 4/01/20

 

 

1,000

 

 

1,064,850

 

Prince William County, Virginia, Lease Participation Certificates,
5%, 12/01/21

 

 

1,275

 

 

1,321,831

 

The Shops at White Oak Village Community Development
Authority, Virginia, Special Assessment Revenue Bonds,
5.30%, 3/01/17

 

 

250

 

 

205,587

 

 

 

 

 

 

     

 

 

 

 

 

 

4,293,072

 

               

Education—7.6%

 

 

 

 

 

 

 

Virginia College Building Authority, Educational Facilities Revenue
Refunding Bonds (Washington and Lee University Project) (b):

 

 

 

 

 

 

 

5.25%, 1/01/26

 

 

500

 

 

546,405

 

5.25%, 1/01/31

 

 

1,000

 

 

1,054,020

 

 

 

 

 

 

     

 

 

 

 

 

 

1,600,425

 

               

Health—24.9%

 

 

 

 

 

 

 

Arlington County, Virginia, IDA, Hospital Facilities Revenue
Bonds (Virginia Hospital Center - Arlington Health System),
5.25%, 7/01/11 (f)

 

 

1,150

 

 

1,253,627

 

Danville, Virginia, IDA, Hospital Revenue Refunding Bonds
(Danville Regional Medical Center), 5.25%, 10/01/28 (g)(h)

 

 

1,500

 

 

1,631,655

 

Fairfax County, Virginia, EDA, Residential Care Facilities,
Mortgage Revenue Refunding Bonds (Goodwin House, Inc.),
5.125%, 10/01/37

 

 

1,000

 

 

651,700

 

Henrico County, Virginia, EDA, Revenue Refunding Bonds
(Bon Secours Health System, Inc.), Series A:

 

 

 

 

 

 

 

5.60%, 11/15/12 (f)

 

 

60

 

 

68,392

 

5.60%, 11/15/30

 

 

1,440

 

 

1,313,525

 

Peninsula Ports Authority, Virginia, Residential Care Facilities,
Revenue Refunding Bonds (Baptist Homes), Series C,
5.40%, 12/01/33

 

 

500

 

 

297,965

 

 

 

 

 

 

     

 

 

 

 

 

 

5,216,864

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Virginia (concluded)

 

 

 

 

 

 

 

               

Housing—14.0%

 

 

 

 

 

 

 

Virginia State, HDA, Commonwealth Mortgage Revenue Bonds,
Series H, Sub-Series H-1, 5.375%, 7/01/36 (b)

 

$

3,000

 

$

2,926,350

 

               

State—9.1%

 

 

 

 

 

 

 

Virginia College Building Authority, Educational Facilities
Revenue Bonds (Public Higher Education Financing
Program), Series A, 5%, 9/01/33

 

 

1,000

 

 

1,006,010

 

Virginia State Public School Authority Revenue Bonds,
Series B, 5.25%, 8/01/33

 

 

500

 

 

513,065

 

Virginia State Public School Authority, Special Obligation
School Financing Bonds (Fluvanna County),
6.50%, 12/01/35

 

 

360

 

 

400,097

 

 

 

 

 

 

     

 

 

 

 

 

 

1,919,172

 

               

Transportation—14.7%

 

 

 

 

 

 

 

Norfolk, Virginia, Airport Authority Revenue Bonds, Series A,
5.125%, 7/01/31 (a)(b)

 

 

1,500

 

 

1,389,885

 

Richmond, Virginia, Metropolitan Authority, Expressway
Revenue Refunding Bonds, 5.25%, 7/15/22 (a)(b)

 

 

1,250

 

 

1,304,837

 

Virginia Port Authority, Port Facilities Revenue Bonds,
AMT, 4.75%, 7/01/31 (a)(b)

 

 

500

 

 

390,220

 

 

 

 

 

 

     

 

 

 

 

 

 

3,084,942

 

               

Utilities—23.6%

 

 

 

 

 

 

 

Fairfax County, Virginia, Water Authority, Water Revenue
Refunding Bonds, 5%, 4/01/27

 

 

1,205

 

 

1,216,279

 

Henrico County, Virginia, Water and Sewer Revenue Refunding
Bonds, 5%, 5/01/25

 

 

1,000

 

 

1,062,240

 

Virginia State Resources Authority, Infrastructure Revenue
Bonds (Pooled Financing Program):

 

 

 

 

 

 

 

Series A, 5.125%, 5/01/27

 

 

635

 

 

644,150

 

Senior Series B, 5%, 11/01/33

 

 

2,000

 

 

2,024,360

 

 

 

 

 

 

     

 

 

 

 

 

 

4,947,029

 

               

Total Municipal Bonds in Virginia

 

 

 

 

 

26,176,251

 

               

Puerto Rico—4.4%

 

 

 

 

 

 

 

               

Tobacco—4.4%

 

 

 

 

 

 

 

Children’s Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds, 5.375%, 5/15/33

 

 

1,285

 

 

916,770

 

               

Total Municipal Bonds—144.2%

 

 

 

 

 

30,244,618

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (i)

 

 

 

 

 

 

 

               

Virginia—9.6%

 

 

 

 

 

 

 

               

Education—9.6%

 

 

 

 

 

 

 

Education University of Virginia, Revenue Refunding Bonds,
5%, 6/01/40

 

 

2,000

 

 

2,025,000

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—9.6%

 

 

 

 

 

2,025,000

 

               

Total Long-Term Investments
(Cost—$34,205,204)—153.8%

 

 

 

 

 

32,269,618

 

               

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

38

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Schedule of Investments (concluded)

BlackRock Virginia Municipal Bond Trust (BHV)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Par
(000)

 

Value

 

           

Virginia—11.9%

 

 

 

 

 

 

 

               

Alexandria, Virginia, IDA, Revenue Bonds (American
Correctional Association Project), VRDN,
0.65%, 3/05/09 (j)

 

$

1,800

 

$

1,800,000

 

Virginia Small Business Financing Authority, Hospital
Revenue Bonds (Carilion Clinic Center Project),
VRDN, Series B, 0.60%, 3/02/09 (j)

 

 

700

 

 

700,000

 

               

Total Short-Term Securities (Cost—$2,500,000)—11.9%

 

 

 

 

 

2,500,000

 

               

Total Investments (Cost—$36,705,204*)—165.7%

 

 

 

 

 

34,769,618

 

Liabilities in Excess of Other Assets—(2.9)%

 

 

 

 

 

(613,786

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(4.8)%

 

 

 

 

 

(1,001,956

)

Preferred Shares, at Redemption Value—(58.0)%

 

 

 

 

 

(12,175,900

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

20,977,976

 

 

 

 

 

 

     

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

35,685,882

 

 

 

     

Gross unrealized appreciation

 

$

879,771

 

Gross unrealized depreciation

 

 

(2,796,035

)

 

 

     

Net unrealized depreciation

 

$

(1,916,264

)

 

 

     

 

 

(a)

FGIC Insured.

(b)

MBIA Insured.

(c)

FSA Insured.

(d)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(e)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(f)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(g)

AMBAC Insured.

(h)

Security is collateralized by Municipal or US Treasury Obligations.

(i)

Securities represent underlying bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(j)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:


 

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 

       

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

 

 

Level 2

 

$

34,769,618

 

Level 3

 

 

 

         

Total

 

$

34,769,618

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

39



 

 


 

Schedule of Investments February 28, 2009 (Unaudited)

The Massachusetts Health & Tax-Exempt (MHE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Massachusetts—151.1%

 

 

 

 

 

 

 

               

Corporate—3.0%

 

 

 

 

 

 

 

Massachusetts State Development Finance Agency,
Resource Recovery Revenue Bonds (Ogden Haverhill
Associates), AMT, Series A, 6.70%, 12/01/14

 

$

555

 

$

513,691

 

Massachusetts State Industrial Finance Agency, PCR
(General Motors Corporation), 5.55%, 4/01/09

 

 

1,000

 

 

250,000

 

 

 

 

 

 

     

 

 

 

 

 

 

763,691

 

               

Education—94.8%

 

 

 

 

 

 

 

Massachusetts State College Building Authority, Project
Revenue Refunding Bonds, Series B, 5.50%, 5/01/39 (b)

 

 

825

 

 

839,627

 

Massachusetts State Development Finance Agency,
Education Revenue Bonds:

 

 

 

 

 

 

 

(Belmont Hill School), 5%, 9/01/11 (c)

 

 

1,100

 

 

1,208,856

 

(Xaverian Brothers High School), 5.65%, 7/01/29

 

 

250

 

 

197,508

 

Massachusetts State Development Finance Agency,
Educational Facility Revenue Bonds (Academy of the
Pacific Rim), Series A, 5.125%, 6/01/31 (d)

 

 

1,000

 

 

590,290

 

Massachusetts State Development Finance Agency
Revenue Bonds:

 

 

 

 

 

 

 

(Boston University), Series T-1, 5%, 10/01/39 (a)

 

 

1,000

 

 

935,850

 

(College of Pharmacy and Allied Health Services),
Series D, 5%, 7/01/27 (e)

 

 

500

 

 

502,125

 

(Franklin W. Olin College), Series B, 5.25%, 7/01/33 (b)

 

 

400

 

 

390,836

 

(Massachusetts College of Pharmacy and Health Sciences),
5.75%, 7/01/13 (c)

 

 

1,000

 

 

1,173,580

 

(Smith College), 5%, 7/01/35

 

 

2,000

 

 

1,991,160

 

(WGBH Educational Foundation), Series A, 5.75%, 1/01/42 (a)

 

 

1,100

 

 

1,096,678

 

(The Wheeler School), 6.50%, 12/01/29

 

 

540

 

 

497,335

 

(Williston Northampton School Project), 5%, 10/01/25 (b)

 

 

500

 

 

431,805

 

(Worcester Polytechnic Institute), 5%, 9/01/27 (f)

 

 

1,985

 

 

1,959,056

 

Massachusetts State Development Finance Agency,
Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Boston University, Series P, 5.45%, 5/15/59

 

 

1,500

 

 

1,487,115

 

(Clark University), 5.125%, 10/01/35 (b)

 

 

500

 

 

479,325

 

(Western New England College), Series A,
5%, 9/01/33 (e)

 

 

1,500

 

 

1,418,970

 

(Wheelock College), Series C, 5.25%, 10/01/37

 

 

1,000

 

 

745,760

 

Massachusetts State Health and Educational Facilities
Authority Revenue Bonds:

 

 

 

 

 

 

 

(Harvard University), Series FF, 5.125%, 7/15/37

 

 

850

 

 

858,755

 

(Northeastern University), Series R, 5%, 10/01/33

 

 

225

 

 

204,017

 

(Simmons College), Series F, 5%, 10/01/13 (c)(g)

 

 

1,000

 

 

1,130,580

 

(Tufts University), 5.375%, 8/15/38

 

 

1,000

 

 

1,023,440

 

(University of Massachusetts), Series C,
5.125%, 10/01/34 (f)(g)

 

 

230

 

 

221,269

 

(Wheaton College), Series D, 6%, 1/01/18

 

 

1,040

 

 

952,910

 

Massachusetts State Health and Educational Facilities
Authority, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Berklee College of Music), Series A, 5%, 10/01/37

 

 

1,000

 

 

848,400

 

(Boston College), Series N, 5.125%, 6/01/37

 

 

1,000

 

 

1,000,870

 

(Learning Center For Deaf Children), Series C,
6.125%, 7/01/29

 

 

495

 

 

349,079

 

(Wellesley College), 5%, 7/01/33

 

 

1,500

 

 

1,511,550

 

 

 

 

 

 

     

 

 

 

 

 

 

24,046,746

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Massachusetts (concluded)

 

 

 

 

 

 

 

               

Health—40.4%

 

 

 

 

 

 

 

Massachusetts State Development Finance Agency,
First Mortgage Revenue Bonds:

 

 

 

 

 

 

 

(Edgecombe Project), Series A, 6.75%, 7/01/21

 

$

855

 

$

767,080

 

(Overlook Communities Inc.), Series A,
6.125%, 7/01/24

 

 

850

 

 

614,099

 

Massachusetts State Development Finance Agency,
First Mortgage Revenue Refunding Bonds (Symmes
Life Care, Inc.—Brookhaven at Lexington), Series A,
5%, 3/01/35 (h)

 

 

1,250

 

 

839,163

 

Massachusetts State Development Finance Agency,
Human Service Provider Revenue Bonds (Seven Hills
Foundation & Affiliates), 5%, 9/01/35 (h)

 

 

500

 

 

365,085

 

Massachusetts State Development Finance Agency
Revenue Bonds (Massachusetts Council of Human
Service Providers, Inc.), Series C, 6.60%, 8/15/29

 

 

425

 

 

295,379

 

Massachusetts State Health and Educational Facilities
Authority Revenue Bonds:

 

 

 

 

 

 

 

(Baystate Medical Center), Series F, 5.75%, 7/01/33

 

 

1,000

 

 

896,510

 

(Berkshire Health System), Series E, 6.25%, 10/01/31

 

 

350

 

 

286,104

 

(Berkshire Health System), Series F, 5%, 10/01/19 (e)

 

 

1,000

 

 

997,760

 

(Lahey Clinic Medical Center), Series D, 5.25%, 8/15/37

 

 

1,000

 

 

838,800

 

(Milford-Whitinsville Hospital), Series D,
6.35%, 7/15/12 (c)

 

 

750

 

 

861,608

 

Massachusetts State Health and Educational Facilities
Authority, Healthcare System Revenue Refunding Bonds
(Covenant Health System):

 

 

 

 

 

 

 

6%, 1/01/12 (c)

 

 

255

 

 

287,288

 

6%, 7/01/22

 

 

630

 

 

642,380

 

6%, 7/01/31

 

 

315

 

 

296,188

 

Massachusetts State Health and Educational Facilities
Authority, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Bay Cove Human Services Issue), Series A,
5.90%, 4/01/28

 

 

775

 

 

538,594

 

(Caregroup, Inc.), Series E-1, 5%, 7/01/28

 

 

500

 

 

390,420

 

(Christopher House), Series A, 6.875%, 1/01/29

 

 

480

 

 

373,229

 

(Valley Regional Health System), Series C,
5.75%, 7/01/18 (i)

 

 

395

 

 

347,414

 

Massachusetts State Industrial Finance Agency, Health Care
Facility Revenue Bonds (Age Institute of Massachusetts
Project), 8.05%, 11/01/25

 

 

695

 

 

620,878

 

 

 

 

 

 

     

 

 

 

 

 

 

10,257,979

 

               

Housing—3.7%

 

 

 

 

 

 

 

Massachusetts State, HFA, Housing Revenue Refunding Bonds,
AMT, Series F, 5.70%, 6/01/40 (j)

 

 

1,000

 

 

936,420

 

               

State—7.2%

 

 

 

 

 

 

 

Massachusetts State College Building Authority, Project
Revenue Bonds, Series A:

 

 

 

 

 

 

 

5%, 5/01/31 (a)

 

 

1,000

 

 

952,300

 

5.50%, 5/01/39

 

 

500

 

 

497,040

 

Massachusetts State Development Finance Agency, Education
Revenue Bonds (Middlesex School Project), 5%, 9/01/33

 

 

400

 

 

366,220

 

 

 

 

 

 

     

 

 

 

 

 

 

1,815,560

 

               

Transportation—2.0%

 

 

 

 

 

 

 

Rail Connections, Inc., Massachusetts, Capital Appreciation
Revenue Bonds (Route 128 Parking Garage), Series B,
6.527%, 7/01/09 (c)(d)(k)

 

 

1,000

 

 

501,220

 

               

Total Municipal Bonds—151.1%

 

 

 

 

 

38,321,616

 

               

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

40

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Schedule of Investments (concluded)

The Massachusetts Health & Tax-Exempt (MHE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (l)

 

Par
(000)

 

Value

 

           

State—8.0%

 

 

 

 

 

 

 

Massachusetts State School Building Authority, Dedicated
Sales Tax Revenue Bonds, Series A, 5%, 8/15/30 (m)

 

$

2,010

 

$

2,030,559

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—8.0%

 

 

 

 

 

2,030,559

 

               

Total Long-Term Investments
(Cost—$44,123,072)—159.1%

 

 

 

 

 

40,352,175

 

               

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 

               

Massachusetts—4.7%

 

 

 

 

 

 

 

               

Massachusetts State Health and Educational Facilities Authority, Revenue Refunding Bonds (Partners Healthcare System), VRDN, Series D-1, 0.30%, 3/02/09 (n)

 

 

1,200

 

 

1,200,000

 

               

Total Short-Term Securities
(Cost—$1,200,000)—4.7%

 

 

 

 

 

1,200,000

 

               

Total Investments (Cost—$45,323,072*)—163.8%

 

 

 

 

 

41,552,175

 

Other Assets Less Liabilities—14.4%

 

 

 

 

 

3,652,358

 

Liability for Trust Certificates, Including Interest Expense Payable—(5.3)%

 

 

 

 

 

(1,340,755

)

Preferred Shares, at Redemption Value—(72.9)%

 

 

 

 

 

(18,502,174

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

25,361,604

 

 

 

 

 

 

     

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of February 28, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

43,854,399

 

 

 

     

Gross unrealized appreciation

 

$

894,810

 

Gross unrealized depreciation

 

 

(4,536,629

)

 

 

     

Net unrealized depreciation

 

$

(3,641,819

)

 

 

     

 

 

(a)

AMBAC Insured.

(b)

XL Capital Insured.

(c)

US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(d)

ACA Insured.

(e)

Assured Guaranty Insured.

(f)

NPFGC Insured.

(g)

FGIC Insured.

(h)

Radian Insured.

(i)

Connie Lee Insured.

(j)

When-issued security.

(k)

Represents a zero coupon bond. Rate shown reflects the current yield as of report date.

(l)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(m)

FSA Insured.

(n)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date. This rate changes periodically based upon prevailing market rates.

 

 

For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report which may combine industry sub-classifications for reporting ease.

 

 

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:


 

 

 

 

Level 1 - price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 - other observable inputs (including, but not limited to: quoted prices for 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 circumstance, to the extent observable inputs are not available (including the Trust’s own assumption used 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. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of February 28, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

       

Valuation
Inputs

 

Investments in
Securities

 

       

 

 

Assets

 

 

 

   

Level 1

 

 

 

Level 2

 

$

41,552,175

 

Level 3

 

 

 

         

Total

 

$

41,552,175

 

 

 

     

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

41



 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

February 28, 2009 (Unaudited)

 

BlackRock
California
Insured
Municipal
Income Trust
(BCK)

 

BlackRock
California
Municipal
Bond Trust
(BZA)

 

BlackRock
California
Municipal
Income Trust II
(BCL)

 

BlackRock
Maryland
Municipal
Bond Trust
(BZM)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at value - unaffiliated1

 

$

106,156,666

 

$

70,960,910

 

$

163,024,895

 

$

38,003,937

 

Investments at value - affiliated2

 

 

9,410,597

 

 

2,248,240

 

 

6,141,300

 

 

4,502,411

 

Cash

 

 

60,568

 

 

39,826

 

 

7,658

 

 

19,463

 

Investments sold receivable

 

 

 

 

1,886,817

 

 

1,610,417

 

 

 

Interest receivable

 

 

946,192

 

 

792,686

 

 

1,723,028

 

 

502,810

 

Income receivable - affiliated

 

 

35

 

 

34

 

 

68

 

 

37

 

Prepaid expenses

 

 

7,326

 

 

4,888

 

 

11,241

 

 

2,879

 

Other assets

 

 

3,880

 

 

3,789

 

 

7,524

 

 

4,117

 

 

 

                       

Total assets

 

 

116,585,264

 

 

75,937,190

 

 

172,526,131

 

 

43,035,654

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments purchased payable

 

 

4,894,100

 

 

 

 

 

 

 

Income dividends payable - Common Shares

 

 

295,573

 

 

211,399

 

 

455,988

 

 

133,763

 

Investment advisory fees payable

 

 

37,816

 

 

26,221

 

 

58,553

 

 

14,559

 

Interest expense and fees payable

 

 

26,846

 

 

3,939

 

 

21,381

 

 

2,578

 

Other affiliates payable

 

 

790

 

 

560

 

 

1,220

 

 

305

 

Officer’s and Directors’/Trustees’ fees payable

 

 

4,964

 

 

4,249

 

 

8,135

 

 

5,190

 

Other liabilities

 

 

 

 

 

 

 

 

 

Other accrued expenses payable

 

 

52,435

 

 

56,287

 

 

51,358

 

 

39,784

 

 

 

                       

Total accrued liabilities

 

 

5,312,524

 

 

302,655

 

 

596,635

 

 

196,179

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust certificates3

 

 

4,771,849

 

 

1,998,847

 

 

10,035,291

 

 

1,500,000

 

 

 

                       

Total Liabilities

 

 

10,084,373

 

 

2,301,502

 

 

10,631,926

 

 

1,696,179

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at liquidation preference, plus unpaid dividends4,5

 

 

37,556,582

 

 

27,979,904

 

 

59,756,135

 

 

16,001,184

 

 

 

                       

Net Assets Applicable to Common Shareholders

 

$

68,944,309

 

$

45,655,784

 

$

102,138,070

 

$

25,338,291

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares, par value per share6,7,8

 

$

5,278

 

$

3,410

 

$

8,000

 

$

2,045

 

Paid-in capital in excess of par

 

 

74,835,958

 

 

48,406,377

 

 

113,484,176

 

 

28,972,364

 

Undistributed net investment income

 

 

390,680

 

 

322,400

 

 

950,672

 

 

204,582

 

Accumulated net realized gain (loss)

 

 

(1,721,180

)

 

70,968

 

 

(5,708,339

)

 

(427,384

)

Net unrealized appreciation/depreciation

 

 

(4,566,427

)

 

(3,147,371

)

 

(6,596,439

)

 

(3,413,316

)

 

 

                       

Net Assets Applicable to Common Shareholders

 

$

68,944,309

 

$

45,655,784

 

$

102,138,070

 

$

25,338,291

 

 

 

                       

Net asset value per Common Share

 

$

13.06

 

$

13.39

 

$

12.77

 

$

12.39

 

 

 

                       

1 Investments at cost - unaffiliated

 

$

110,723,093

 

$

74,108,281

 

$

169,621,334

 

$

41,417,253

 

 

 

                       

2 Investments at cost - affiliated

 

$

9,410,597

 

$

2,248,240

 

$

6,141,300

 

$

4,502,411

 

 

 

                       

3 Represents short-term floating rate certificates issued by tender option bond trusts

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

   Par value $0.001 per share

 

 

1,502

 

 

1,119

 

 

2,390

 

 

640

 

   Par value $0.01 per share

 

 

 

 

 

 

 

 

 

   Par value $0.10 per share

 

 

 

 

 

 

 

 

 

 

 

                       

5 Preferred Shares at liquidation preference

 

$

25,000

 

$

25,000

 

$

25,000

 

$

25,000

 

 

 

                       

6 Common Shares outstanding

 

 

5,278,087

 

 

3,409,668

 

 

7,999,789

 

 

2,045,313

 

 

 

                       

7 Common Shares authorized

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

 

                       

8 Par value per Common Share

 

$

0.001

 

$

0.001

 

$

0.001

 

$

0.001

 

 

 

                       

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

42

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

February 28, 2009 (Unaudited)

 

BlackRock
MuniHoldings
New York
Insured
Fund, Inc.
(MHN)

 

BlackRock
New Jersey
Municipal
Bond Trust
(BLJ)

 

BlackRock
New York
Insured
Municipal
Income Trust
(BSE)

 

BlackRock
New York
Municipal
Bond Trust
(BQH)

 

BlackRock
New York
Municipal
Income Trust II
(BFY)

 

BlackRock
Virginia
Municipal
Bond Trust
(BHV)

 

The Massachusetts
Health & Tax-
Exempt Trust
(MHE)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments at value - unaffiliated1

 

$

675,381,080

 

$

43,216,506

 

$

126,877,717

 

$

57,439,086

 

$

105,729,130

 

$

34,769,618

 

$

41,552,175

 

Investments at value - affiliated2

 

 

16,044,997

 

 

3,049,223

 

 

6,009,862

 

 

2,736,776

 

 

2,055,271

 

 

 

 

 

Cash

 

 

65,442

 

 

91,422

 

 

62,414

 

 

36,048

 

 

33,486

 

 

101,649

 

 

4,067,827

 

Investments sold receivable

 

 

1,121,088

 

 

 

 

 

 

 

 

94,093

 

 

15,000

 

 

 

Interest receivable

 

 

9,082,990

 

 

612,541

 

 

1,470,016

 

 

808,627

 

 

1,372,039

 

 

503,343

 

 

627,510

 

Income receivable - affiliated

 

 

270

 

 

36

 

 

35

 

 

37

 

 

47

 

 

29

 

 

 

Prepaid expenses

 

 

20,582

 

 

3,293

 

 

8,884

 

 

3,944

 

 

6,883

 

 

2,266

 

 

1,390

 

Other assets

 

 

20,159

 

 

3,947

 

 

3,906

 

 

4,088

 

 

5,213

 

 

3,282

 

 

 

 

 

                                         

Total assets

 

 

701,736,608

 

 

46,976,968

 

 

134,432,834

 

 

61,028,606

 

 

109,296,162

 

 

35,395,187

 

 

46,248,902

 

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments purchased payable

 

 

1,510,125

 

 

 

 

2,013,500

 

 

 

 

 

 

1,074,100

 

 

858,750

 

Income dividends payable - Common Shares

 

 

1,632,142

 

 

162,490

 

 

375,547

 

 

187,695

 

 

308,794

 

 

112,762

 

 

114,859

 

Investment advisory fees payable

 

 

243,838

 

 

15,518

 

 

44,990

 

 

21,315

 

 

38,400

 

 

12,230

 

 

17,977

 

Interest expense and fees payable

 

 

431,791

 

 

 

 

57,814

 

 

8,350

 

 

 

 

1,956

 

 

1,160

 

Other affiliates payable

 

 

4,816

 

 

370

 

 

930

 

 

392

 

 

715

 

 

255

 

 

291

 

Officer’s and Directors’/Trustees’ fees payable

 

 

20,548

 

 

4,391

 

 

4,414

 

 

4,552

 

 

5,743

 

 

4,175

 

 

27

 

Other liabilities

 

 

1,294

 

 

 

 

 

 

 

 

 

 

16

 

 

 

Other accrued expenses payable

 

 

143,080

 

 

56,578

 

 

58,797

 

 

65,663

 

 

43,585

 

 

35,817

 

 

52,465

 

 

 

                                         

Total accrued liabilities

 

 

3,987,634

 

 

239,347

 

 

2,555,992

 

 

287,967

 

 

397,237

 

 

1,241,311

 

 

1,045,529

 

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust certificates3

 

 

56,312,240

 

 

 

 

9,308,740

 

 

1,321,257

 

 

 

 

1,000,000

 

 

1,339,595

 

 

 

                                         

Total Liabilities

 

 

60,299,874

 

 

239,347

 

 

11,864,732

 

 

1,609,224

 

 

397,237

 

 

2,241,311

 

 

2,385,124

 

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at liquidation preference, plus unpaid dividends4,5

 

 

252,909,375

 

 

19,202,885

 

 

41,678,083

 

 

22,402,946

 

 

44,654,619

 

 

12,175,900

 

 

18,502,174

 

 

 

                                         

Net Assets Applicable to Common Shareholders

 

$

388,527,359

 

$

27,534,736

 

$

80,890,019

 

$

37,016,436

 

$

64,244,306

 

$

20,977,976

 

$

25,361,604

 

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares, par value per share6,7,8

 

$

3,079,514

 

$

2,305

 

$

6,475

 

$

2,760

 

$

4,941

 

$

1,557

 

$

23,441

 

Paid-in capital in excess of par

 

 

470,986,538

 

 

32,675,348

 

 

91,845,967

 

 

39,181,450

 

 

70,053,876

 

 

22,105,134

 

 

29,660,491

 

Undistributed net investment income

 

 

2,144,209

 

 

257,575

 

 

700,661

 

 

332,291

 

 

776,907

 

 

301,007

 

 

357,173

 

Accumulated net realized gain (loss)

 

 

(46,670,195

)

 

(190,250

)

 

(3,121,994

)

 

6,438

 

 

(868,415

)

 

505,864

 

 

(908,604

)

Net unrealized appreciation/depreciation

 

 

(41,012,707

)

 

(5,210,242

)

 

(8,541,090

)

 

(2,506,503

)

 

(5,723,003

)

 

(1,935,586

)

 

(3,770,897

)

 

 

                                         

Net Assets Applicable to Common Shareholders

 

$

388,527,359

 

$

27,534,736

 

$

80,890,019

 

$

37,016,436

 

$

64,244,306

 

$

20,977,976

 

$

25,361,604

 

 

 

                                         

Net asset value per Common Share

 

$

12.62

 

$

11.95

 

$

12.49

 

$

13.41

 

$

13.00

 

$

13.47

 

$

10.82

 

 

 

                                         

1 Investments at cost - unaffiliated

 

$

716,393,787

 

$

48,426,748

 

$

135,418,807

 

$

59,945,589

 

$

111,452,133

 

$

36,705,204

 

$

45,323,072

 

 

 

                                         

2 Investments at cost - affiliated

 

$

16,044,997

 

$

3,049,223

 

$

6,009,862

 

$

2,736,776

 

$

2,055,271

 

$

 

 

 

 

 

 

                                         

3 Represents short-term floating rate certificates issued by tender option bond trusts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Par value $0.001 per share

 

 

 

 

768

 

 

1,667

 

 

896

 

 

1,786

 

 

487

 

 

 

   Par value $0.01 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

370

 

   Par value $0.10 per share

 

 

10,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                         

5 Preferred Shares at liquidation preference

 

$

25,000

 

$

25,000

 

$

25,000

 

$

25,000

 

$

25,000

 

$

25,000

 

$

50,000

 

 

 

                                         

6 Common Shares outstanding

 

 

30,795,138

 

 

2,304,823

 

 

6,474,946

 

 

2,760,221

 

 

4,940,705

 

 

1,556,890

 

 

2,344,067

 

 

 

                                         

7 Common Shares authorized

 

 

200,000,000

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

 

                                         

8 Par value per Common Share

 

$

0.10

 

$

0.001

 

$

0.001

 

$

0.001

 

$

0.001

 

$

0.001

 

$

0.01

 

 

 

                                         

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

43



 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended February 28, 2009 (Unaudited)

 

BlackRock
California
Insured
Municipal
Income Trust
(BCK)

 

BlackRock
California
Municipal
Bond Trust
(BZA)

 

BlackRock
California
Municipal
Income Trust II

(BCL)

 

BlackRock
Maryland
Municipal
Bond Trust
(BZM)

 

Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

2,755,905

 

$

2,114,427

 

$

4,677,852

 

$

1,148,308

 

Income - affiliated

 

 

35,082

 

 

14,083

 

 

38,983

 

 

21,608

 

 

 

                       

Total income

 

 

2,790,987

 

 

2,128,510

 

 

4,716,835

 

 

1,169,916

 

 

 

                       

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory

 

 

300,183

 

 

238,905

 

 

459,969

 

 

137,892

 

Commissions for Preferred Shares

 

 

37,064

 

 

27,649

 

 

57,005

 

 

14,684

 

Professional

 

 

31,227

 

 

30,991

 

 

34,779

 

 

27,783

 

Accounting services

 

 

11,050

 

 

10,031

 

 

17,799

 

 

6,840

 

Transfer agent

 

 

9,787

 

 

9,822

 

 

15,099

 

 

9,329

 

Printing

 

 

7,614

 

 

4,717

 

 

10,230

 

 

2,592

 

Officer and Directors/Trustees

 

 

3,688

 

 

1,451

 

 

3,423

 

 

561

 

Registration

 

 

4,693

 

 

4,697

 

 

1,681

 

 

411

 

Custodian

 

 

4,240

 

 

3,388

 

 

5,785

 

 

1,935

 

Miscellaneous

 

 

20,371

 

 

19,634

 

 

25,256

 

 

16,774

 

 

 

                       

Total expenses excluding interest expense and fees

 

 

429,917

 

 

351,285

 

 

631,026

 

 

218,801

 

Interest expense and fees1

 

 

88,285

 

 

18,091

 

 

94,203

 

 

22,006

 

 

 

                       

Total expenses

 

 

518,202

 

 

369,376

 

 

725,229

 

 

240,807

 

Less fees waived by advisor

 

 

(78,420

)

 

(78,961

)

 

(101,690

)

 

(45,485

)

Less fees paid indirectly

 

 

 

 

 

 

 

 

 

 

 

                       

Total expenses after fees waived and paid indirectly

 

 

439,782

 

 

290,415

 

 

623,539

 

 

195,322

 

 

 

                       

Net investment income

 

 

2,351,205

 

 

1,838,095

 

 

4,093,296

 

 

974,594

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(306,909

)

 

574,007

 

 

(1,360,484

)

 

(403,438

)

Futures and forward interest rate swaps

 

 

 

 

 

 

(521,411

)

 

 

 

 

                       

 

 

 

(306,909

)

 

574,007

 

 

(1,881,895

)

 

(403,438

)

 

 

                       

Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(5,111,298

)

 

(5,739,707

)

 

(9,155,237

)

 

(3,747,159

)

Futures and forward interest rate swaps

 

 

 

 

 

 

375,543

 

 

 

 

 

                       

 

 

 

(5,111,298

)

 

(5,739,707

)

 

(8,779,694

)

 

(3,747,159

)

 

 

                       

Total realized and unrealized loss

 

 

(5,418,207

)

 

(5,165,700

)

 

(10,661,589

)

 

(4,150,597

)

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(518,053

)

 

(383,043

)

 

(820,457

)

 

(219,872

)

Net realized gain

 

 

 

 

(4,924

)

 

 

 

(2,361

)

 

 

                       

 

 

 

(518,053

)

 

(387,967

)

 

(820,457

)

 

(222,233

)

 

 

                       

Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

(3,585,055

)

$

(3,715,572

)

$

(7,388,750

)

$

(3,398,236

)

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Related to tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

44

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended February 28, 2009 (Unaudited)

 

BlackRock
MuniHoldings
New York
Insured
(MHN)

 

BlackRock
New Jersey
Municipal
Bond Trust
(BLJ)

 

BlackRock
New York
Insured
Municipal
Income Trust
(BSE)

 

BlackRock
New York
Municipal
Bond Trust
(BQH)

 

BlackRock
New York
Municipal
Income Trust II
(BFY)

 

BlackRock
Virginia
Municipal
Bond Trust
(BHV)

 

The Massachusetts
Health & Tax-
Exempt Trust
(MHE)

 

Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

17,094,631

 

$

1,331,721

 

$

3,345,753

 

$

1,734,942

 

$

2,939,143

 

$

840,458

 

$

1,184,629

 

Income - affiliated

 

 

80,263

 

 

37,950

 

 

11,270

 

 

2,174

 

 

13,361

 

 

314

 

 

 

 

 

                                         

Total income

 

 

17,174,894

 

 

1,369,671

 

 

3,357,023

 

 

1,737,116

 

 

2,952,504

 

 

840,772

 

 

1,184,629

 

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment advisory

 

 

1,886,027

 

 

151,321

 

 

351,892

 

 

192,663

 

 

291,032

 

 

109,526

 

 

111,538

 

Commissions for Preferred Shares

 

 

260,814

 

 

18,719

 

 

38,796

 

 

22,196

 

 

43,035

 

 

11,730

 

 

20,970

 

Professional

 

 

65,831

 

 

27,626

 

 

35,023

 

 

27,116

 

 

32,116

 

 

23,259

 

 

33,897

 

Accounting services

 

 

103,781

 

 

9,490

 

 

12,797

 

 

9,413

 

 

9,973

 

 

1,969

 

 

4,903

 

Transfer agent

 

 

33,530

 

 

9,915

 

 

9,589

 

 

7,406

 

 

10,811

 

 

9,728

 

 

12,472

 

Printing

 

 

24,100

 

 

2,519

 

 

10,113

 

 

3,131

 

 

5,807

 

 

1,393

 

 

 

Officer and Directors/Trustees

 

 

24,004

 

 

785

 

 

3,526

 

 

308

 

 

1,656

 

 

496

 

 

2,022

 

Registration

 

 

5,680

 

 

493

 

 

4,622

 

 

4,838

 

 

1,065

 

 

328

 

 

580

 

Custodian

 

 

19,029

 

 

2,275

 

 

4,400

 

 

2,431

 

 

4,662

 

 

1,801

 

 

3,176

 

Miscellaneous

 

 

60,497

 

 

18,929

 

 

23,336

 

 

19,759

 

 

23,977

 

 

18,735

 

 

10,671

 

 

 

                                         

Total expenses excluding interest expense and fees

 

 

2,483,293

 

 

242,072

 

 

494,094

 

 

289,261

 

 

424,134

 

 

178,965

 

 

200,229

 

Interest expense and fees1

 

 

877,602

 

 

5,880

 

 

174,069

 

 

14,274

 

 

 

 

11,844

 

 

15,869

 

 

 

                                         

Total expenses

 

 

3,360,895

 

 

247,952

 

 

668,163

 

 

303,535

 

 

424,134

 

 

190,809

 

 

216,098

 

Less fees waived by advisor

 

 

(443,709

)

 

(54,996

)

 

(83,546

)

 

(62,768

)

 

(57,566

)

 

(33,700

)

 

 

Less fees paid indirectly

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(498

)

 

 

                                         

Total expenses after fees waived and paid indirectly

 

 

2,917,186

 

 

192,956

 

 

584,617

 

 

240,767

 

 

366,568

 

 

157,109

 

 

215,600

 

 

 

                                         

Net investment income

 

 

14,257,708

 

 

1,176,715

 

 

2,772,406

 

 

1,496,349

 

 

2,585,936

 

 

683,663

 

 

969,029

 

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(2,179,727

)

 

84,165

 

 

(2,302,979

)

 

68,948

 

 

178,648

 

 

551,774

 

 

(506,420

)

Futures and forward interest rate swaps

 

 

67,701

 

 

 

 

12,943

 

 

5,974

 

 

10,951

 

 

 

 

(99,000

)

 

 

                                         

 

 

 

(2,112,026

)

 

84,165

 

 

(2,290,036

)

 

74,922

 

 

189,599

 

 

551,774

 

 

(605,420

)

 

 

                                         

Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(38,807,258

)

 

(5,111,644

)

 

(7,093,856

)

 

(3,713,673

)

 

(6,601,326

)

 

(2,558,804

)

 

(3,532,225

)

Futures and forward interest rate swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83,017

 

 

 

                                         

 

 

 

(38,807,258

)

 

(5,111,644

)

 

(7,093,856

)

 

(3,713,673

)

 

(6,601,326

)

 

(2,558,804

)

 

(3,449,208

)

 

 

                                         

Total realized and unrealized loss

 

 

(40,919,284

)

 

(5,027,479

)

 

(9,383,892

)

 

(3,638,751

)

 

(6,411,727

)

 

(2,007,030

)

 

(4,054,628

)

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(3,501,557

)

 

(264,225

)

 

(576,364

)

 

(303,259

)

 

(621,123

)

 

(140,542

)

 

(258,962

)

Net realized gain

 

 

 

 

 

 

 

 

(3,799

)

 

 

 

(45,559

)

 

 

 

 

                                         

 

 

 

(3,501,557

)

 

(264,225

)

 

(576,364

)

 

(307,058

)

 

(621,123

)

 

(186,101

)

 

(258,962

)

 

 

                                         

Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

(30,163,133

)

$

(4,114,989

)

$

(7,187,850

)

$

(2,449,460

)

$

(4,446,914

)

$

(1,509,468

)

$

(3,344,561

)

 

 

                                         

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

45



 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
California Insured Municipal
Income Trust
(BCK)

 

BlackRock
California Municipal
Bond Trust
(BZA)

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

2,351,205

 

$

5,029,423

 

$

1,838,095

 

$

3,804,585

 

Net realized gain (loss)

 

 

(306,909

)

 

(696,593

)

 

574,007

 

 

16,331

 

Net change in unrealized appreciation/depreciation

 

 

(5,111,298

)

 

(2,327,135

)

 

(5,739,707

)

 

(1,372,393

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(518,053

)

 

(1,418,583

)

 

(383,043

)

 

(1,029,626

)

Net realized gain

 

 

 

 

 

 

(4,924

)

 

 

 

 

                       

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(3,585,055

)

 

587,112

 

 

(3,715,572

)

 

1,418,897

 

 

 

                       

 

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,773,437

)

 

(3,641,581

)

 

(1,268,397

)

 

(3,103,983

)

Net realized gain

 

 

 

 

 

 

(9,946

)

 

 

 

 

                       

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(1,773,437

)

 

(3,641,581

)

 

(1,278,343

)

 

(3,103,983

)

 

 

                       

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

Reinvestment of common dividends

 

 

 

 

19,225

 

 

 

 

351,551

 

 

 

                       

 

Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

Total decrease in net assets applicable to Common Shareholders

 

 

(5,358,492

)

 

(3,035,244

)

 

(4,993,915

)

 

(1,333,535

)

Beginning of period

 

 

74,302,801

 

 

77,338,045

 

 

50,649,699

 

 

51,983,234

 

 

 

                       

End of period

 

$

68,944,309

 

$

74,302,801

 

$

45,655,784

 

$

50,649,699

 

 

 

                       

End of period undistributed net investment income

 

$

390,680

 

$

330,965

 

$

322,400

 

$

135,745

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
New York Insured Municipal
Income Trust
(BSE)

 

BlackRock
New York Municipal
Bond Trust
(BQH)

 

 

 

 

 

 

 

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

2,772,406

 

$

6,193,181

 

$

1,496,349

 

$

3,123,151

 

Net realized gain (loss)

 

 

(2,290,036

)

 

(653,991

)

 

74,922

 

 

51,106

 

Net change in unrealized appreciation/depreciation

 

 

(7,093,856

)

 

(3,146,975

)

 

(3,713,673

)

 

(1,618,246

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(576,364

)

 

(1,637,764

)

 

(303,259

)

 

(796,921

)

Net realized gain

 

 

 

 

(82,413

)

 

(3,799

)

 

(19,635

)

 

 

                       

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(7,187,850

)

 

672,038

 

 

(2,449,460

)

 

739,455

 

 

 

                       

 

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(2,253,281

)

 

(4,505,354

)

 

(1,126,170

)

 

(2,552,826

)

Net realized gain

 

 

 

 

(221,583

)

 

(10,873

)

 

(62,036

)

 

 

                       

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(2,253,281

)

 

(4,726,937

)

 

(1,137,043

)

 

(2,614,862

)

 

 

                       

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

Reinvestment of common dividends

 

 

 

 

72,019

 

 

 

 

318,829

 

 

 

                       

 

Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

Total decrease in net assets applicable to Common Shareholders

 

 

(9,441,131

)

 

(3,982,880

)

 

(3,586,503

)

 

(1,556,578

)

Beginning of period

 

 

90,331,150

 

 

94,314,030

 

 

40,602,939

 

 

42,159,517

 

 

 

                       

End of period

 

$

80,890,019

 

$

90,331,150

 

$

37,016,436

 

$

40,602,939

 

 

 

                       

End of period undistributed net investment income

 

$

700,661

 

$

757,900

 

$

332,291

 

$

265,371

 

 

 

                       

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

46

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
California Municipal
Income Trust II
(BCL)

 

BlackRock
Maryland Municipal
Bond Trust
(BZM)

 

BlackRock
MuniHoldings New York
Insured Fund, Inc.
(MHN)

 

BlackRock
New Jersey
Municipal Bond Trust
(BLJ)

 

 

 

               

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

4,093,296

 

$

8,516,520

 

$

974,594

 

$

2,187,858

 

$

14,257,708

 

$

30,229,458

 

$

1,176,715

 

$

2,624,072

 

Net realized gain (loss)

 

 

(1,881,895

)

 

(240,663

)

 

(403,438

)

 

52,367

 

 

(2,112,026

)

 

(4,358,744

)

 

84,165

 

 

(274,414

)

Net change in unrealized appreciation/depreciation

 

 

(8,779,694

)

 

(7,181,675

)

 

(3,747,159

)

 

(801,629

)

 

(38,807,258

)

 

(10,569,389

)

 

(5,111,644

)

 

(2,291,456

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(820,457

)

 

(2,305,653

)

 

(219,872

)

 

(575,579

)

 

(3,501,557

)

 

(9,817,592

)

 

(264,225

)

 

(675,482

)

Net realized gain

 

 

 

 

 

 

(2,361

)

 

(10,561

)

 

 

 

 

 

 

 

(6,860

)

 

 

                                               

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(7,388,750

)

 

(1,211,471

)

 

(3,398,236

)

 

852,456

 

 

(30,163,133

)

 

5,483,733

 

 

(4,114,989

)

 

(624,140

)

 

 

                                               

 

                                                   

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                   

Net investment income

 

 

(2,735,928

)

 

(6,207,529

)

 

(801,903

)

 

(1,770,800

)

 

(9,856,970

)

 

(20,232,405

)

 

(974,350

)

 

(2,176,081

)

Net realized gain

 

 

 

 

 

 

(6,564

)

 

(29,818

)

 

 

 

 

 

 

 

(21,875

)

 

 

                                               

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(2,735,928

)

 

(6,207,529

)

 

(808,467

)

 

(1,800,618

)

 

(9,856,970

)

 

(20,232,405

)

 

(974,350

)

 

(2,197,956

)

 

 

                                               

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reinvestment of common dividends

 

 

 

 

78,795

 

 

56,905

 

 

134,190

 

 

 

 

 

 

40,264

 

 

159,974

 

 

 

                                               

 

Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total decrease in net assets applicable to Common Shareholders

 

 

(10,124,678

)

 

(7,340,205

)

 

(4,149,798

)

 

(813,972

)

 

(40,020,103

)

 

(14,748,672

)

 

(5,049,075

)

 

(2,662,122

)

Beginning of period

 

 

112,262,748

 

 

119,602,953

 

 

29,488,089

 

 

30,302,061

 

 

428,547,462

 

 

443,296,134

 

 

32,583,811

 

 

35,245,933

 

 

 

                                               

End of period

 

$

102,138,070

 

$

112,262,748

 

$

25,338,291

 

$

29,488,089

 

$

388,527,359

 

$

428,547,462

 

$

27,534,736

 

$

32,583,811

 

 

 

                                               

End of period undistributed net investment income

 

$

950,672

 

$

413,761

 

$

204,582

 

$

251,763

 

$

2,144,209

 

$

1,245,028

 

$

257,575

 

$

319,435

 

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
New York Municipal
Income Trust II
(BFY)

 

BlackRock
Virginia Municipal

Bond Trust
(BHV)

 

The Massachusetts
Health & Education
Tax-Exempt Trust
(MHE)

 

 

 

           

Increase (Decrease) in Net Assets Applicable to Common Shareholders:

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended
August 31, 2008

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Period
January 1, 2008
to August 31, 2008

 

Year Ended
December 31, 2007

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

$

2,585,936

 

$

5,330,243

 

$

683,663

 

$

1,723,577

 

$

969,029

 

$

1,371,557

 

$

2,150,393

 

Net realized gain (loss)

 

 

189,599

 

 

(987,855

)

 

551,774

 

 

292,759

 

 

(605,420

)

 

(142,627

)

 

(90,387

)

Net change in unrealized appreciation/depreciation

 

 

(6,601,326

)

 

(1,764,010

)

 

(2,558,804

)

 

(1,013,968

)

 

(3,449,208

)

 

(1,202,802

)

 

(1,821,519

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(621,123

)

 

(1,408,467

)

 

(140,542

)

 

(457,881

)

 

(258,962

)

 

(408,081

)

 

(718,637

)

Net realized gain

 

 

 

 

(35,412

)

 

(45,559

)

 

 

 

 

 

 

 

 

 

 

                                         

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

(4,446,914

)

 

1,134,499

 

 

(1,509,468

)

 

544,487

 

 

(3,344,561

)

 

(381,953

)

 

(480,150

)

 

 

                                         

 

Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,852,764

)

 

(3,827,367

)

 

(675,720

)

 

(1,394,947

)

 

(709,790

)

 

(918,874

)

 

(1,378,312

)

Net realized gain

 

 

 

 

(84,756

)

 

(247,310

)

 

 

 

 

 

 

 

(5,635

)

 

 

                                         

Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(1,852,764

)

 

(3,912,123

)

 

(923,030

)

 

(1,394,947

)

 

(709,790

)

 

(918,874

)

 

(1,383,947

)

 

 

                                         

 

Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reinvestment of common dividends

 

 

 

 

19,335

 

 

63,551

 

 

144,001

 

 

 

 

 

 

 

 

 

                                         

 

Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total decrease in net assets applicable to Common Shareholders

 

 

(6,299,678

)

 

(2,758,289

)

 

(2,368,947

)

 

(706,459

)

 

(4,054,351

)

 

(1,300,827

)

 

(1,864,097

)

Beginning of period

 

 

70,543,984

 

 

73,302,273

 

 

23,346,923

 

 

24,053,382

 

 

29,415,955

 

 

30,716,782

 

 

32,580,879

 

 

 

                                         

End of period

 

$

64,244,306

 

$

70,543,984

 

$

20,977,976

 

$

23,346,923

 

$

25,361,604

 

$

29,415,955

 

$

30,716,782

 

 

 

                                         

End of period undistributed net investment income

 

$

776,907

 

$

664,858

 

$

301,007

 

$

433,606

 

$

357,173

 

$

356,896

 

$

323,091

 

 

 

                                         

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

47



 

 


 

Financial Highlights

BlackRock California Insured Municipal Income Trust (BCK)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

                             

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.08

 

$

14.66

 

$

15.24

 

$

15.22

 

$

14.01

 

$

13.09

 

 

 

                                   

Net investment income

 

 

0.45

1

 

0.95

1

 

0.99

 

 

0.98

 

 

0.99

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

(1.03

)

 

(0.57

)

 

(0.59

)

 

(0.01

)

 

1.27

 

 

0.89

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.10

)

 

(0.27

)

 

(0.28

)

 

(0.24

)

 

(0.15

)

 

(0.08

)

 

 

                                   

Net increase (decrease) from investment operations

 

 

(0.68

)

 

0.11

 

 

0.12

 

 

0.73

 

 

2.11

 

 

1.83

 

 

 

                                   

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.34

)

 

(0.69

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

                                   

Total dividends and distributions to Common Shareholders

 

 

(0.34

)

 

(0.69

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.91

)

 

 

                                   

Net asset value, end of period

 

$

13.06

 

$

14.08

 

$

14.66

 

$

15.24

 

$

15.22

 

$

14.01

 

 

 

                                   

Market price, end of period

 

$

10.78

 

$

12.95

 

$

14.30

 

$

14.61

 

$

16.08

 

$

14.00

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(4.29

)%3

 

0.92

%

 

0.76

%

 

5.22

%

 

15.62

%

 

14.34

%

 

 

                                   

Based on market price

 

 

(14.11

)%3

 

(4.84

)%

 

2.52

%

 

(4.53

)%

 

22.24

%

 

14.97

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees4,5

 

 

1.07

%6

 

1.00

%

 

0.90

%

 

0.95

%

 

0.97

%

 

0.99

%

 

 

                                   

Total expenses after waiver and fees paid indirectly5

 

 

1.34

%6

 

1.07

%

 

0.90

%

 

0.95

%

 

0.97

%

 

0.99

%

 

 

                                   

Total expenses after waiver and before fees paid indirectly5

 

 

1.34

%6

 

1.07

%

 

0.92

%

 

0.97

%

 

0.98

%

 

0.99

%

 

 

                                   

Total expenses5

 

 

1.58

%6

 

1.36

%

 

1.24

%

 

1.28

%

 

1.30

%

 

1.32

%

 

 

                                   

Net investment income5

 

 

7.16

%6

 

6.54

%

 

6.50

%

 

6.58

%

 

6.72

%

 

7.26

%

 

 

                                   

Dividends paid to Preferred Shareholders

 

 

1.58

%6

 

1.85

%

 

1.87

%

 

1.63

%

 

1.04

%

 

0.54

%

 

 

                                   

Net investment income to Common Shareholders

 

 

5.58

%6

 

4.69

%

 

4.63

%

 

4.95

%

 

5.68

%

 

6.72

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shareholders, end of period (000)

 

$

68,944

 

$

74,303

 

$

77,338

 

$

80,418

 

$

80,289

 

$

73,823

 

 

 

                                   

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

37,550

 

$

37,550

 

$

46,500

 

$

46,500

 

$

46,500

 

$

46,500

 

 

 

                                   

Portfolio turnover

 

 

30

%

 

35

%

 

28

%

 

20

%

 

16

%

 

4

%

 

 

                                   

Asset coverage per Preferred Share, end of period

 

$

70,906

 

$

74,484

 

$

66,591

 

$

68,241

 

$

68,170

 

$

64,691

 

 

 

                                   

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Do not reflect the effect of dividends to Preferred Shareholders.

6

Annualized.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

48

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Financial Highlights

BlackRock California Municipal Bond Trust (BZA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

                             

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.85

 

$

15.35

 

$

16.28

 

$

16.19

 

$

14.67

 

$

13.71

 

Net investment income

 

 

0.54

1

 

1.12

1

 

1.13

 

 

1.14

 

 

1.13

 

 

1.15

 

Net realized and unrealized gain (loss)

 

 

(1.52

)

 

(0.41

)

 

(0.82

)

 

0.17

 

 

1.50

 

 

0.92

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.11

)

 

(0.30

)

 

(0.30

)

 

(0.26

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

(0.00

)2

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

                                   

Net increase (decrease) from investment operations

 

 

(1.09

)

 

0.41

 

 

0.01

 

 

1.05

 

 

2.48

 

 

1.99

 

 

 

                                   

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.37

)

 

(0.91

)

 

(0.94

)

 

(0.96

)

 

(0.96

)

 

(0.96

)

Net realized gain

 

 

(0.00

)2

 

 

 

 

 

 

 

 

 

(0.07

)

 

 

                                   

Total dividends and distributions to Common Shareholders

 

 

(0.37

)

 

(0.91

)

 

(0.94

)

 

(0.96

)

 

(0.96

)

 

(1.03

)

 

 

                                   

Net asset value, end of period

 

$

13.39

 

$

14.85

 

$

15.35

 

$

16.28

 

$

16.19

 

$

14.67

 

 

 

                                   

Market price, end of period

 

$

10.97

 

$

14.48

 

$

16.50

 

$

18.05

 

$

16.33

 

$

13.90

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                       

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                       

Based on net asset value

 

 

(6.71

)%4

 

2.64

%

 

(0.33

)%

 

6.71

%

 

17.71

%

 

15.20

%

 

 

                                   

Based on market price

 

 

(21.61

)%4

 

(6.89

)%

 

(3.37

)%

 

17.30

%

 

25.31

%

 

13.80

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5,6

 

 

1.24

%7

 

1.09

%

 

0.94

%

 

0.96

%

 

1.00

%

 

1.06

%

 

 

                                   

Total expenses after waiver and fees paid indirectly6

 

 

1.33

%7

 

1.11

%

 

0.94

%

 

0.96

%

 

1.00

%

 

1.06

%

 

 

                                   

Total expenses after waiver and before fees paid indirectly6

 

 

1.33

%7

 

1.11

%

 

0.96

%

 

0.98

%

 

1.03

%

 

1.07

%

 

 

                                   

Total expenses6

 

 

1.69

%7

 

1.52

%

 

1.41

%

 

1.45

%

 

1.50

%

 

1.55

%

 

 

                                   

Net investment income6

 

 

8.40

%7

 

7.31

%

 

7.08

%

 

7.20

%

 

7.30

%

 

7.87

%

 

 

                                   

Dividends paid to Preferred Shareholders

 

 

1.75

%7

 

1.98

%

 

1.87

%

 

1.64

%

 

0.98

%

 

0.49

%

 

 

                                   

Net investment income to Common Shareholders

 

 

6.65

%7

 

5.33

%

 

5.21

%

 

5.56

%

 

6.32

%

 

7.38

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shareholders, end of period (000)

 

$

45,656

 

$

50,650

 

$

51,983

 

$

54,801

 

$

54,265

 

$

49,145

 

 

 

                                   

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

27,975

 

$

27,975

 

$

29,975

 

$

29,975

 

$

29,975

 

$

29,975

 

 

 

                                   

Portfolio turnover

 

 

21

%

 

24

%

 

21

%

 

16

%

 

22

%

 

24

%

 

 

                                   

Asset coverage per Preferred Share, end of period

 

$

65,805

 

$

70,278

 

$

68,364

 

$

70,714

 

$

70,263

 

$

65,990

 

 

 

                                   

 

 

1

Based on average shares outstanding.

2

Amount is less than ($0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

6

Do not reflect the effect of dividends to Preferred Shareholders.

7

Annualized.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

49



 

 


 

Financial Highlights

BlackRock California Municipal Income Trust II (BCL)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

                             

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

                                       

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.03

 

$

14.96

 

$

15.72

 

$

15.52

 

$

13.77

 

$

12.76

 

 

 

                                   

Net investment income

 

 

0.51

1

 

1.06

1

 

1.07

 

 

1.08

 

 

1.09

 

 

1.09

 

Net realized and unrealized gain (loss)

 

 

(1.33

)

 

(0.92

)

 

(0.74

)

 

0.16

 

 

1.75

 

 

0.97

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.10

)

 

(0.29

)

 

(0.30

)

 

(0.25

)

 

(0.15

)

 

(0.08

)

 

 

                                   

Net increase (decrease) from investment operations

 

 

(0.92

)

 

(0.15

)

 

0.03

 

 

0.99

 

 

2.69

 

 

1.98

 

 

 

                                   

Dividends to Common Shareholders from net investment income

 

 

(0.34

)

 

(0.78

)

 

(0.79

)

 

(0.79

)

 

(0.94

)

 

(0.97

)

 

 

                                   

Net asset value, end of period

 

$

12.77

 

$

14.03

 

$

14.96

 

$

15.72

 

$

15.52

 

$

13.77

 

 

 

                                   

Market price, end of period

 

$

10.31

 

$

12.70

 

$

14.44

 

$

15.40

 

$

14.26

 

$

13.71

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(5.87

)%3

 

(0.89

)%

 

0.09

%

 

6.93

%

 

20.38

%

 

15.94

%

 

 

                                   

Based on market price

 

 

(16.04

)%3

 

(7.05

)%

 

(1.38

)%

 

14.01

%

 

11.09

%

 

13.21

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees4,5

 

 

1.09

%6

 

1.08

%

 

0.95

%

 

0.98

%

 

1.01

%

 

1.05

%

 

 

                                   

Total expenses after waiver and fees paid indirectly5

 

 

1.28

%6

 

1.13

%

 

0.95

%

 

0.98

%

 

1.01

%

 

1.05

%

 

 

                                   

Total expenses after waiver and before fees paid indirectly5

 

 

1.28

%6

 

1.13

%

 

0.96

%

 

1.00

%

 

1.02

%

 

1.05

%

 

 

                                   

Total expenses5

 

 

1.49

%6

 

1.29

%

 

1.19

%

 

1.24

%

 

1.26

%

 

1.30

%

 

 

                                   

Net investment income5

 

 

8.41

%6

 

7.30

%

 

6.81

%

 

7.06

%

 

7.46

%

 

7.97

%

 

 

                                   

Dividends paid to Preferred Shareholders

 

 

1.69

%6

 

1.97

%

 

1.89

%

 

1.62

%

 

1.00

%

 

0.58

%

 

 

                                   

Net investment income to Common Shareholders

 

 

6.72

%6

 

5.33

%

 

4.92

%

 

5.44

%

 

6.46

%

 

7.39

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

$

102,138

 

$

112,263

 

$

119,603

 

$

125,525

 

$

123,920

 

$

109,952

 

 

 

                                   

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

59,750

 

$

59,750

 

$

71,950

 

$

71,950

 

$

71,950

 

$

71,950

 

 

 

                                   

Portfolio turnover

 

 

32

%

 

36

%

 

30

%

 

18

%

 

21

%

 

19

%

 

 

                                   

Asset coverage per Preferred Share, end of period

 

$

67,738

 

$

71,981

 

$

66,563

 

$

68,625

 

$

68,063

 

$

63,209

 

 

 

                                   

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Do not reflect the effect of dividends to Preferred Shareholders.

6

Annualized.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

50

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Financial Highlights

BlackRock Maryland Municipal Bond Trust (BZM)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

                             

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

$

14.45

 

$

14.91

 

$

15.98

 

$

16.11

 

$

15.24

 

$

14.36

 

 

 

                                   

Net investment income

 

 

0.48

1

 

1.07

1

 

1.08

 

 

1.07

 

 

1.07

 

 

1.06

 

Net realized and unrealized gain (loss)

 

 

(2.04

)

 

(0.36

)

 

(0.99

)

 

(0.08

)

 

0.83

 

 

0.76

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.11

)

 

(0.28

)

 

(0.31

)

 

(0.26

)

 

(0.17

)

 

(0.08

)

Net realized gain

 

 

(0.00

)2

 

(0.01

)

 

(0.00

)2

 

 

 

 

 

 

 

 

                                   

Net increase (decrease) from investment operations

 

 

(1.67

)

 

0.42

 

 

(0.22

)

 

0.73

 

 

1.73

 

 

1.74

 

 

 

                                   

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.39

)

 

(0.87

)

 

(0.85

)

 

(0.86

)

 

(0.86

)

 

(0.86

)

Net realized gain

 

 

(0.00

)2

 

(0.01

)

 

(0.00

)2

 

 

 

 

 

 

 

 

                                   

Total dividends and distributions

 

 

(0.39

)

 

(0.88

)

 

(0.85

)

 

(0.86

)

 

(0.86

)

 

(0.86

)

 

 

                                   

Net asset value, end of period

 

$

12.39

 

$

14.45

 

$

14.91

 

$

15.98

 

$

16.11

 

$

15.24

 

 

 

                                   

Market price, end of period

 

$

13.17

 

$

15.75

 

$

17.43

 

$

17.45

 

$

15.96

 

$

14.99

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(11.58

)%4

 

2.60

%

 

(1.85

)%

 

4.57

%

 

11.73

%

 

12.50

%

 

 

                                   

Based on market price

 

 

(13.78

)%4

 

(4.33

)%

 

5.08

%

 

15.26

%

 

12.53

%

 

14.31

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5,6

 

 

1.39

%7

 

1.28

%

 

1.07

%

 

1.11

%

 

1.11

%

 

1.18

%

 

 

                                   

Total expenses after waiver and fees paid indirectly6

 

 

1.57

%7

 

1.32

%

 

1.07

%

 

1.11

%

 

1.11

%

 

1.18

%

 

 

                                   

Total expenses after waiver and before fees paid indirectly6

 

 

1.57

%7

 

1.32

%

 

1.10

%

 

1.17

%

 

1.13

%

 

1.19

%

 

 

                                   

Total expenses6

 

 

1.93

%7

 

1.70

%

 

1.54

%

 

1.64

%

 

1.60

%

 

1.67

%

 

 

                                   

Net investment income6

 

 

7.82

%7

 

7.19

%

 

6.87

%

 

6.76

%

 

6.82

%

 

7.05

%

 

 

                                   

Dividends paid to Preferred Shareholders

 

 

1.76

%7

 

1.89

%

 

1.94

%

 

1.66

%

 

1.05

%

 

0.54

%

 

 

                                   

Net investment income to Common Shareholders

 

 

6.06

%7

 

5.30

%

 

4.93

%

 

5.10

%

 

5.77

%

 

6.51

%

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shareholders, end of period (000)

 

$

25,338

 

$

29,488

 

$

30,302

 

$

32,354

 

$

32,492

 

$

30,715

 

 

 

                                   

Preferred Shares outstanding at liquidation preference, end of period (000)

 

$

16,000

 

$

16,000

 

$

18,000

 

$

18,000

 

$

18,000

 

$

18,000

 

 

 

                                   

Portfolio turnover

 

 

2

%

 

15

%

 

7

%

 

%

 

4

%

 

12

%

 

 

                                   

Asset coverage per Preferred Share, end of period

 

$

64,593

 

$

71,083

 

$

67,089

 

$

69,950

 

$

70,138

 

$

67,662

 

 

 

                                   

 

 

1

Based on average shares outstanding.

2

Amount is less than ($0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

6

Do not reflect the effect of dividends to Preferred Shareholders.

7

Annualized.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

51



 

 

 


 

 

 

Financial Highlights

 

BlackRock MuniHoldings New York Insured Fund, Inc. (MHN)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

Net asset value, beginning of period

 

 

$

13.92

 

 

$

14.40

 

$

14.96

 

$

15.54

 

$

15.41

 

$

15.19

 

 

 

                                       

Net investment income1

 

 

 

0.47

 

 

 

0.98

 

 

1.00

 

 

1.03

 

 

1.04

 

 

1.05

 

Net realized and unrealized gain (loss)

 

 

 

(1.34

)

 

 

(0.48

)

 

(0.52

)

 

(0.48

)

 

0.21

 

 

0.18

 

Dividends to Preferred Shareholders from net investment income

 

 

 

(0.11

)

 

 

(0.32

)

 

(0.34

)

 

(0.29

)

 

(0.17

)

 

(0.08

)

Net increase (decrease) from investment operations

 

 

 

(0.98

)

 

 

0.18

 

 

0.14

 

 

0.26

 

 

1.08

 

 

1.15

 

 

 

                                       

Dividends to Common Shareholders from net investment income

 

 

 

(0.32

)

 

 

(0.66

)

 

(0.70

)

 

(0.84

)

 

(0.95

)

 

(0.93

)

 

 

                                       

Net asset value, end of period

 

 

$

12.62

 

 

$

13.92

 

$

14.40

 

$

14.96

 

$

15.54

 

$

15.41

 

 

 

                                       

Market price, end of period

 

 

$

10.42

 

 

$

12.12

 

$

13.53

 

$

14.62

 

$

15.28

 

$

14.10

 

 

 

                                       

 

Total Investment Return2

Based on net asset value

 

 

 

(6.29

)%3

 

 

1.74

%

 

1.12

%

 

1.98

%

 

7.63

%

 

8.36

%

 

 

                                       

Based on market price

 

 

 

(11.14

)%3

 

 

(5.72

)%

 

(2.78

)%

 

1.36

%

 

15.66

%

 

9.21

%

 

 

                                       

 

Ratios to Average Net Assets Applicable to Common Shares

Total expenses after waiver and excluding interest expense and fees4,5

 

 

 

1.10

%6

 

 

1.15

%

 

1.15

%

 

1.15

%

 

1.14

%

 

1.14

%

 

 

                                       

Total expenses after waiver4

 

 

 

1.57

%6

 

 

1.52

%

 

1.71

%

 

1.65

%

 

1.52

%

 

1.43

%

 

 

                                       

Total expenses4

 

 

 

1.81

%6

 

 

1.65

%

 

1.79

%

 

1.73

%

 

1.59

%

 

1.50

%

 

 

                                       

Net investment income4

 

 

 

7.68

%6

 

 

6.90

%

 

6.65

%

 

6.94

%

 

6.71

%

 

6.80

%

 

 

                                       

Dividends paid to Preferred Shareholders

 

 

 

1.87

%6

 

 

2.24

%

 

2.29

%

 

1.93

%

 

1.09

%

 

0.55

%

 

 

                                       

Net investment income to Common Shareholders

 

 

 

5.81

%6

 

 

4.66

%

 

4.36

%

 

5.01

%

 

5.62

%

 

6.25

%

 

 

                                       

 

Supplemental Data

Net assets applicable to Common Shares,end of period (000)

 

 

$

388,527

 

 

$

428,547

 

$

443,296

 

$

460,638

 

$

478,413

 

$

474,357

 

 

 

                                       

Preferred Shares outstanding at liquidation preference,end of period (000)

 

 

$

252,875

 

 

$

252,875

 

$

313,000

 

$

313,000

 

$

313,000

 

$

313,000

 

 

 

                                       

Portfolio turnover

 

 

 

13

%

 

 

21

%

 

24

%

 

47

%

 

33

%

 

31

%

 

 

                                       

Asset coverage per Preferred Share, end of period

 

 

$

63,414

 

 

$

67,379

 

$

60,422

7

$

61,799

7

$

63,214

7

$

62,889

7

 

 

                                       

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Do not reflect the effect of dividends to Preferred Shareholders.

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

6

Annualized.

7

Amounts have been recalculated to conform with current period presentation.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

52

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 

 


 

 

 

Financial Highlights

 

BlackRock New Jersey Municipal Bond Trust (BLJ)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

Net asset value, beginning of period

 

 

$

14.16

 

 

$

15.38

 

$

16.33

 

$

16.26

 

$

14.71

 

$

13.77

 

 

 

                                       

Net investment income

 

 

 

0.51

1

 

 

1.14

1

 

1.15

 

 

1.16

 

 

1.16

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

 

(2.19

)

 

 

(1.11

)

 

(0.87

)

 

0.18

 

 

1.48

 

 

0.84

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.11

)

 

 

(0.29

)

 

(0.29

)

 

(0.24

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

(0.00

)2

 

 

 

(0.02

)

 

 

 

 

 

 

                                       

Net increase (decrease) from investment operations

 

 

 

(1.79

)

 

 

(0.26

)

 

(0.01

)

 

1.08

 

 

2.49

 

 

1.93

 

 

 

                                       

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.42

)

 

 

(0.95

)

 

(0.94

)

 

(0.95

)

 

(0.94

)

 

(0.94

)

Net realized gain

 

 

 

 

 

 

(0.01

)

 

 

 

(0.06

)

 

 

 

(0.05

)

 

 

                                       

Total dividends and distributions

 

 

 

(0.42

)

 

 

(0.96

)

 

(0.94

)

 

(1.01

)

 

(0.94

)

 

(0.99

)

 

 

                                       

Net asset value, end of period

 

 

$

11.95

 

 

$

14.16

 

$

15.38

 

$

16.33

 

$

16.26

 

$

14.71

 

 

 

                                       

Market price, end of period

 

 

$

12.00

 

 

$

14.76

 

$

16.90

 

$

18.30

 

$

15.98

 

$

13.91

 

 

 

                                       

 

Total Investment Return3

Based on net asset value

 

 

 

(12.46

)%4

 

 

(2.12

)%

 

(0.61

)%

 

6.77

%

 

17.60

%

 

14.56

%

 

 

                                       

Based on market price

 

 

 

(15.67

)%4

 

 

(7.15

)%

 

(2.54

)%

 

21.74

%

 

22.22

%

 

9.32

%

 

 

                                       

 

Ratios to Average Net Assets Applicable to Common Shares

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5,6

 

 

 

1.38

%7

 

 

1.26

%

 

1.00

%

 

1.06

%

 

1.08

%

 

1.14

%

 

 

                                       

Total expenses after waiver and fees paid indirectly6

 

 

 

1.42

%7

 

 

1.28

%

 

1.00

%

 

1.06

%

 

1.08

%

 

1.14

%

 

 

                                       

Total expenses after waiver and before fees paid indirectly6

 

 

 

1.42

%7

 

 

1.28

%

 

1.03

%

 

1.11

%

 

1.10

%

 

1.15

%

 

 

                                       

Total expenses6

 

 

 

1.83

%7

 

 

1.67

%

 

1.47

%

 

1.59

%

 

1.57

%

 

1.63

%

 

 

                                       

Net investment income6

 

 

 

8.67

%7

 

 

7.64

%

 

7.11

%

 

7.24

%

 

7.44

%

 

7.93

%

 

 

                                       

Dividends paid to Preferred Shareholders

 

 

 

1.95

%7

 

 

1.97

%

 

1.79

%

 

1.50

%

 

0.98

%

 

0.49

%

 

 

                                       

Net investment income to Common Shareholders

 

 

 

6.72

%7

 

 

5.67

%

 

5.32

%

 

5.74

%

 

6.46

%

 

7.44

%

 

 

                                       

 

Supplemental Data

Net assets applicable to Common Shareholders, end of period (000)

 

 

$

27,535

 

 

$

32,584

 

$

35,246

 

$

37,263

 

$

36,928

 

$

33,384

 

 

 

                                       

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

$

19,200

 

 

$

19,200

 

$

20,225

 

$

20,225

 

$

20,225

 

$

20,225

 

 

 

                                       

Portfolio turnover

 

 

 

13

%

 

 

17

%

 

35

%

 

%

 

12

%

 

20

%

 

 

                                       

Asset coverage per Preferred Share, end of period

 

 

$

60,856

 

 

$

67,439

 

$

68,578

 

$

71,067

 

$

70,649

 

$

66,266

 

 

 

                                       

 

 

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

6

Do not reflect the effect of dividends to Preferred Shareholders.

7

Annualized.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

53



 

 

 


 

 

 

Financial Highlights

 

BlackRock New York Insured Municipal Income Trust (BSE)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

Net asset value, beginning of period

 

 

$

13.95

 

 

$

14.58

 

$

15.34

 

$

15.30

 

$

14.18

 

$

13.45

 

 

 

                                       

Net investment income

 

 

 

0.43

1

 

 

0.96

1

 

0.99

 

 

1.00

 

 

1.00

 

 

1.01

 

Net realized and unrealized gain (loss)

 

 

 

(1.45

)

 

 

(0.60

)

 

(0.72

)

 

(0.01

)

 

1.16

 

 

0.69

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.09

)

 

 

(0.25

)

 

(0.26

)

 

(0.24

)

 

(0.14

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

(0.01

)

 

(0.02

)

 

 

 

 

 

 

 

 

                                       

Net increase (decrease) from investment operations

 

 

 

(1.11

)

 

 

0.10

 

 

(0.01

)

 

0.75

 

 

2.02

 

 

1.63

 

 

 

                                       

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.35

)

 

 

(0.70

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

Net realized gain

 

 

 

 

 

 

(0.03

)

 

(0.05

)

 

 

 

 

 

 

 

 

                                       

Total dividends and distributions

 

 

 

(0.35

)

 

 

(0.73

)

 

(0.75

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

 

 

                                       

Net asset value, end of period

 

 

$

12.49

 

 

$

13.95

 

$

14.58

 

$

15.34

 

$

15.30

 

$

14.18

 

 

 

                                       

Market price, end of period

 

 

$

11.68

 

 

$

13.26

 

$

14.12

 

$

14.70

 

$

15.35

 

$

14.08

 

 

 

                                       

 

Total Investment Return2

Based on net asset value

 

 

 

(7.40

)%3

 

 

0.80

%

 

(0.06

)%

 

5.46

%

 

14.72

%

 

12.40

%

 

 

                                       

Based on market price

 

 

 

(8.90

)%3

 

 

(1.07

)%

 

1.01

%

 

0.73

%

 

15.92

%

 

13.04

%

 

 

                                       

 

Ratios to Average Net Assets Applicable to Common Shares

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees4,5

 

 

 

1.08

%6

 

 

0.99

%

 

0.89

%

 

0.90

%

 

0.92

%

 

0.93

%

 

 

                                       

Total expenses after waiver and fees paid indirectly5

 

 

 

1.54

%6

 

 

1.09

%

 

0.89

%

 

0.90

%

 

0.92

%

 

0.93

%

 

 

                                       

Total expenses after waiver and before fees paid indirectly5

 

 

 

1.54

%6

 

 

1.09

%

 

0.90

%

 

0.92

%

 

0.93

%

 

0.95

%

 

 

                                       

Total expenses5

 

 

 

1.76

%6

 

 

1.34

%

 

1.21

%

 

1.25

%

 

1.25

%

 

1.27

%

 

 

                                       

Net investment income5

 

 

 

7.31

%6

 

 

6.59

%

 

6.53

%

 

6.63

%

 

6.77

%

 

7.14

%

 

 

                                       

Dividends paid to Preferred Shareholders

 

 

 

1.52

%6

 

 

1.74

%

 

1.69

%

 

1.58

%

 

0.96

%

 

0.52

%

 

 

                                       

Net investment income to Common Shareholders

 

 

 

5.79

%6

 

 

4.85

%

 

4.84

%

 

5.05

%

 

5.81

%

 

6.62

%

 

 

                                       

 

Supplemental Data

Net assets applicable to Common Shareholders, end of period (000)

 

 

$

80,890

 

 

$

90,331

 

$

94,314

 

$

99,255

 

$

98,853

 

$

91,260

 

 

 

                                       

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

$

41,675

 

 

$

41,675

 

$

56,000

 

$

56,000

 

$

56,000

 

$

56,000

 

 

 

                                       

Portfolio turnover

 

 

 

13

%

 

 

24

%

 

30

%

 

9

%

 

21

%

 

11

%

 

 

                                       

Asset coverage per Preferred Share, end of period

 

 

$

73,526

 

 

$

79,196

 

$

67,107

 

$

69,324

 

$

69,138

 

$

65,744

 

 

 

                                       

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Do not reflect the effect of dividends to Preferred Shareholders.

6

Annualized.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

54

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 

 


 

Financial Highlights

 

BlackRock New York Municipal Bond Trust (BQH)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

 

$

14.71

 

 

$

15.39

 

$

16.02

 

$

16.09

 

$

15.09

 

$

14.15

 

 

 

                                       

Net investment income

 

 

 

0.541

 

 

 

1.14

1

 

1.14

 

 

1.13

 

 

1.13

 

 

1.13

 

Net realized and unrealized gain (loss)

 

 

 

(1.32

)

 

 

(0.57

)

 

(0.56

)

 

(0.02

)

 

0.95

 

 

0.81

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.11

)

 

 

(0.29

)

 

(0.29

)

 

(0.25

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

 

(0.00

)2

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

                                       

Net increase (decrease) from investment operations

 

 

 

(0.89

)

 

 

0.27

 

 

0.29

 

 

0.86

 

 

1.93

 

 

1.87

 

 

 

                                       

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.41

)

 

 

(0.93

)

 

(0.92

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

Net realized gain

 

 

 

(0.00

)2

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

                                       

Total dividends and distributions

 

 

 

(0.41

)

 

 

(0.95

)

 

(0.92

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

 

 

                                       

Net asset value, end of period

 

 

$

13.41

 

 

$

14.71

 

$

15.39

 

$

16.02

 

$

16.09

 

$

15.09

 

 

 

                                       

Market price, end of period

 

 

$

12.28

 

 

$

14.62

 

$

16.32

 

$

16.81

 

$

15.85

 

$

13.97

 

 

 

                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

 

(5.54

)%4

 

 

1.62

%

 

1.52

%

 

5.51

%

 

13.56

%

 

13.97

%

 

 

                                       

Based on market price

 

 

 

(12.97

)%4

 

 

(4.76

)%

 

2.60

%

 

12.39

%

 

20.83

%

 

11.83

%

 

 

                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5,6

 

 

 

1.27

%7

 

 

1.23

%

 

1.00

%

 

1.06

%

 

1.06

%

 

1.11

%

 

 

                                       

Total expenses after waiver and fees paid indirectly6

 

 

 

1.35

%7

 

 

1.25

%

 

1.00

%

 

1.06

%

 

1.06

%

 

1.11

%

 

 

                                       

Total expenses after waiver and before fees paid indirectly6

 

 

 

1.35

%7

 

 

1.25

%

 

1.02

%

 

1.09

%

 

1.08

%

 

1.12

%

 

 

                                       

Total expenses6

 

 

 

1.70

%7

 

 

1.63

%

 

1.47

%

 

1.56

%

 

1.56

%

 

1.60

%

 

 

                                       

Net investment income

 

 

 

8.40

%7

 

 

7.45

%

 

7.16

%

 

7.16

%

 

7.20

%

 

7.57

%

 

 

                                       

Dividends paid to Preferred Shareholders

 

 

 

1.70

%7

 

 

1.90

%

 

1.81

%

 

1.60

%

 

0.97

%

 

0.48

%

 

 

                                       

Net investment income to Common Shareholders

 

 

 

6.70

%7

 

 

5.55

%

 

5.35

%

 

5.56

%

 

6.23

%

 

7.09

%

 

 

                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shareholders, end of period (000)

 

 

$

37,016

 

 

$

40,603

 

$

42,160

 

$

43,541

 

$

43,460

 

$

40,757

 

 

 

                                       

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

$

22,400

 

 

$

22,400

 

$

24,200

 

$

24,200

 

$

24,200

 

$

24,200

 

 

 

                                       

Portfolio turnover

 

 

 

19

%

 

 

19

%

 

23

%

 

12

%

 

3

%

 

16

%

 

 

                                       

Asset coverage per Preferred Share, end of period

 

 

$

66,316

 

 

$

70,327

 

$

68,560

 

$

69,985

 

$

69,899

 

$

67,108

 

 

 

                                       

 

 

1

Based on average shares outstanding.

2

Amount is less than ($0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Aggregate total investment return.

5

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

6

Do not reflect the effect of dividends to Preferred Shareholders.

7

Annualized.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

55



 

 

 


 

Financial Highlights

 

BlackRock New York Municipal Income Trust II (BFY)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

 

 

 

 

2008

 

 

2007

 

 

2006

 

 

2005

 

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period

 

 

$

14.28

 

 

$

14.84

 

$

15.47

 

$

15.23

 

$

14.16

 

$

13.36

 

 

 

                                       

Net investment income

 

 

 

0.521

 

 

 

1.081

 

 

1.07

 

 

1.06

 

 

1.04

 

 

1.04

 

Net realized and unrealized gain (loss)

 

 

 

(1.29

)

 

 

(0.55

)

 

(0.67

)

 

0.14

 

 

1.07

 

 

0.79

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.13

)

 

 

(0.29

)

 

(0.30

)

 

(0.25

)

 

(0.15

)

 

(0.08

)

Net realized gain

 

 

 

 

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

                                       

Net increase (decrease) from investment operations

 

 

 

(0.90

)

 

 

0.23

 

 

0.10

 

 

0.95

 

 

1.96

 

 

1.75

 

 

 

                                       

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.38

)

 

 

(0.77

)

 

(0.73

)

 

(0.71

)

 

(0.89

)

 

(0.95

)

Net realized gain

 

 

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

                                       

Total dividends and distributions

 

 

 

(0.38

)

 

 

(0.79

)

 

(0.73

)

 

(0.71

)

 

(0.89

)

 

(0.95

)

 

 

                                       

Net asset value, end of period

 

 

$

13.00

 

 

$

14.28

 

$

14.84

 

$

15.47

 

$

15.23

 

$

14.16

 

 

 

                                       

Market price, end of period

 

 

$

10.83

 

 

$

13.60

 

$

14.22

 

$

14.38

 

$

14.02

 

$

13.70

 

 

 

                                       

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

 

(5.66

)%3

 

 

1.70

%

 

0.69

%

 

6.93

%

 

14.46

%

 

13.50

%

 

 

                                       

Based on market price

 

 

 

(17.48

)%3

 

 

1.08

%

 

3.80

%

 

7.97

%

 

8.91

%

 

11.82

%

 

 

                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly4

 

 

 

1.19

%5

 

 

1.13

%

 

1.00

%

 

1.02

%

 

1.04

%

 

1.07

%

 

 

                                       

Total expenses after waiver and before fees paid indirectly4

 

 

 

1.19

%5

 

 

1.13

%

 

1.01

%

 

1.05

%

 

1.05

%

 

1.08

%

 

 

                                       

Total expenses4

 

 

 

1.38

%5

 

 

1.30

%

 

1.25

%

 

1.29

%

 

1.30

%

 

1.32

%

 

 

                                       

Net investment income4

 

 

 

8.40

%5

 

 

7.33

%

 

6.92

%

 

6.96

%

 

7.04

%

 

7.36

%

 

 

                                       

Dividends paid to Preferred Shareholders

 

 

 

2.02

%5

 

 

1.94

%

 

1.94

%

 

1.66

%

 

0.99

%

 

0.59

%

 

 

                                       

Net investment income to Common Shareholders

 

 

 

6.38

%5

 

 

5.39

%

 

4.98

%

 

5.30

%

 

6.05

%

 

6.77

%

 

 

                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets applicable to Common Shares, end of period (000)

 

 

$

64,244

 

 

$

70,544

 

$

73,302

 

$

76,393

 

$

75,193

 

$

69,903

 

 

 

                                       

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

$

44,650

 

 

$

44,650

 

$

44,650

 

$

44,650

 

$

44,650

 

$

44,650

 

 

 

                                       

Portfolio turnover

 

 

 

10

%

 

 

12

%

 

27

%

 

22

%

 

27

%

 

14

%

 

 

                                       

Asset coverage per Preferred Share, end of period

 

 

$

60,974

 

 

$

64,508

 

$

66,048

 

$

67,775

 

$

67,113

 

$

64,144

 

 

 

                                       

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Do not reflect the effect of dividends to Preferred Shareholders.

5

Annualized.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

56

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 



 

Financial Highlights

BlackRock Virginia Municipal Bond Trust (BHV)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Year Ended August 31,

 

 

 

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

                                       

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                       

Net asset value, beginning of period

 

 

$

15.03

 

 

$

15.57

 

$

16.35

 

$

16.34

 

$

15.47

 

$

14.46

 

 

 

                                       

Net investment income

 

 

 

0.44

1

 

 

1.11

1

 

1.11

 

 

1.10

 

 

1.10

 

 

1.09

 

Net realized and unrealized gain (loss)

 

 

 

(1.29

)

 

 

(0.45

)

 

(0.68

)

 

0.04

 

 

0.80

 

 

0.86

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.09

)

 

 

(0.30

)

 

(0.27

)

 

(0.26

)

 

(0.16

)

 

(0.07

)

Net realized gain

 

 

 

(0.03

)

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

                                       

Net increase (decrease) from investment operations

 

 

 

(0.97

)

 

 

0.36

 

 

0.14

 

 

0.88

 

 

1.74

 

 

1.88

 

 

 

                                       

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.47

)

 

 

(0.90

)

 

(0.87

)

 

(0.87

)

 

(0.87

)

 

(0.87

)

Net realized gain

 

 

 

(0.12

)

 

 

 

 

(0.05

)

 

 

 

 

 

 

 

 

                                       

Total dividends and distributions

 

 

 

(0.59

)

 

 

(0.90

)

 

(0.92

)

 

(0.87

)

 

(0.87

)

 

(0.87

)

 

 

                                       

Net asset value, end of period

 

 

$

13.47

 

 

$

15.03

 

$

15.57

 

$

16.35

 

$

16.34

 

$

15.47

 

 

 

                                       

Market price, end of period

 

 

$

16.70

 

 

$

19.50

 

$

17.85

 

$

18.45

 

$

17.30

 

$

15.34

 

 

 

                                       

 

                                           

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                           

Based on net asset value

 

 

 

(6.95

)%3

 

 

1.59

%

 

0.21

%

 

5.30

%

 

11.52

%

 

13.28

%

 

 

                                       

Based on market price

 

 

 

(11.08

)%3

 

 

14.97

%

 

1.80

%

 

12.23

%

 

19.07

%

 

12.79

%

 

 

                                       

 

                                           

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                           

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees4,5

 

 

 

1.42

%6

 

 

1.31

%

 

1.09

%

 

1.15

%

 

1.18

%

 

1.25

%

 

 

                                       

Total expenses after waiver and fees paid indirectly

 

 

 

1.53

%6

 

 

1.34

%

 

1.09

%

 

1.15

%

 

1.18

%

 

1.25

%

 

 

                                       

Total expenses after waiver and before fees paid indirectly5

 

 

 

1.53

%6

 

 

1.34

%

 

1.14

%

 

1.22

%

 

1.20

%

 

1.26

%

 

 

                                       

Total expenses5

 

 

 

1.86

%6

 

 

1.70

%

 

1.58

%

 

1.68

%

 

1.67

%

 

1.73

%

 

 

                                       

Net investment income5

 

 

 

6.67

%6

 

 

7.14

%

 

6.85

%

 

6.83

%

 

6.90

%

 

7.15

%

 

 

                                       

Dividends paid to Preferred Shareholders

 

 

 

1.37

%6

 

 

1.90

%

 

1.69

%

 

1.60

%

 

1.00

%

 

0.47

%

 

 

                                       

Net investment income to Common Shareholders

 

 

 

5.30

%6

 

 

5.24

%

 

5.16

%

 

5.23

%

 

5.90

%

 

6.68

%

 

 

                                       

 

                                           

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                           

Net assets applicable to Common Shareholders, end of period (000)

 

 

$

20,978

 

 

$

23,347

 

$

24,053

 

$

25,097

 

$

24,966

 

$

23,527

 

 

 

                                       

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

$

12,175

 

 

$

12,175

 

$

13,525

 

$

13,525

 

$

13,525

 

$

13,525

 

 

 

                                       

Portfolio turnover

 

 

 

18

%

 

 

11

%

 

12

%

 

5

%

 

5

%

 

14

%

 

 

                                       

Asset coverage per Preferred Share, end of period

 

 

$

68,078

 

 

$

72,948

 

$

69,463

 

$

71,404

 

$

71,158

 

$

68,490

 

 

 

                                       

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Aggregate total investment return.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Do not reflect the effect of dividends to Preferred Shareholders.

6

Annualized.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

57



 

 



 

Financial Highlights

The Massachusetts Health & Tax-Exempt Trust (MHE)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009
(Unaudited)

 

Period
January 1, 2008
to August 31, 2008

 

Year Ended December 31,

 

 

 

 

 

 

 

 

 

 

 

2007

 

2006

 

2005

 

20041

 

2003

 

                               

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                             

Net asset value, beginning of period

 

 

$

12.55

 

 

 

$

13.10

 

 

$

13.90

 

$

13.59

 

$

13.74

 

$

13.91

 

$

13.76

 

 

 

                                                 

Net investment income2

 

 

 

0.41

 

 

 

 

0.59

 

 

 

0.92

 

 

0.90

 

 

0.83

 

 

0.82

 

 

0.93

 

Net realized and unrealized gain (loss)

 

 

 

(1.73

)

 

 

 

(0.58

)

 

 

(0.82

)

 

0.47

 

 

0.15

 

 

0.08

 

 

0.07

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.11

)

 

 

 

(0.17

)

 

 

(0.31

)

 

(0.25

)

 

(0.11

)

 

(0.03

)

 

(0.03

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

 

(0.01

)

 

(0.01

)

 

 

 

 

                                                 

Net increase (decrease) from investment operations

 

 

 

(1.43

)

 

 

 

(0.16

)

 

 

(0.21

)

 

1.09

 

 

0.86

 

 

0.86

 

 

0.97

 

 

 

                                                 

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

 

(0.30

)

 

 

 

(0.39

)

 

 

(0.59

)

 

(0.68

)

 

(0.78

)

 

(0.87

)

 

(0.82

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.00

)3

 

(0.10

)

 

(0.13

)

 

(0.16

)

 

 

 

 

                                                 

Total dividends and distributions

 

 

 

(0.30

)

 

 

 

(0.39

)

 

 

(0.59

)

 

(0.78

)

 

(0.91

)

 

(1.03

)

 

(0.82

)

 

 

                                                 

Capital charges with respect to issuance of preferred shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.10

)

 

 

 

 

 

 

                                                 

Net asset value, end of period

 

 

$

10.82

 

 

 

$

12.55

 

 

$

13.10

 

$

13.90

 

$

13.59

 

$

13.74

 

$

13.91

 

 

 

                                                 

Market price, end of period

 

 

$

10.30

 

 

 

$

11.22

 

 

$

11.95

 

$

13.10

 

$

13.60

 

$

16.24

 

$

15.26

 

 

 

                                                 

 

                                                     

Total Investment Return4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                     

Based on net asset value

 

 

 

(10.94

)%5

 

 

 

(1.01

)%5

 

 

(1.23

)%

 

8.30

%

 

5.46

%

 

6.08

%

 

7.26

%

 

 

                                                 

Based on market price

 

 

 

(5.17

)%5

 

 

 

(2.99

)%5

 

 

(4.40

)%

 

1.99

%

 

(10.71

)%

 

14.29

%

 

20.11

%

 

 

                                                 

 

                                                     

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                     

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees6,7

 

 

 

1.61

%8

 

 

 

1.73

%8

 

 

1.47

%

 

1.64

%

 

1.30

%

 

1.45

%

 

1.16

%

 

 

                                                 

Total expenses after waiver and fees paid indirectly7

 

 

 

1.74

%8

 

 

 

1.77

%8

 

 

1.47

%

 

1.64

%

 

1.30

%

 

1.45

%

 

1.16

%

 

 

                                                 

Total expenses7

 

 

 

1.74

%8

 

 

 

1.77

%8

 

 

1.47

%

 

1.64

%

 

1.30

%

 

1.45

%

 

1.16

%

 

 

                                                 

Net investment income7

 

 

 

7.80

%8

 

 

 

6.82

%8

 

 

6.78

%

 

6.61

%

 

6.00

%

 

5.97

%

 

6.74

%

 

 

                                                 

Dividends paid to Preferred Shareholders

 

 

 

2.00

%8

 

 

 

2.03

%8

 

 

2.27

%

 

2.07

%

 

0.76

%

 

0.24

%

 

0.25

%

 

 

                                                 

Net investment income Common Shareholders

 

 

 

5.80

%8

 

 

 

4.79

%8

 

 

4.51

%

 

4.54

%

 

5.24

%

 

5.73

%

 

6.49

%

 

 

                                                 

 

                                                     

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                     

Net assets applicable to Common Shareholders, end of period (000)

 

 

$

25,362

 

 

 

$

29,416

 

 

$

30,717

 

$

32,581

 

$

31,792

 

$

32,076

 

$

32,390

 

 

 

                                                 

Preferred Shares outstanding at liquidation preference, end of period (000)

 

 

$

18,500

 

 

 

$

129,523

 

 

$

20,000

 

$

20,000

 

$

20,000

 

$

10,000

 

$

10,000

 

 

 

                                                 

Portfolio turnover

 

 

 

6

%

 

 

 

5

%

 

 

18

%

 

9

%

 

16

%

 

21

%

 

26

%

 

 

                                                 

Asset coverage per Preferred Share, end of period

 

 

$

118,551

 

 

 

$

129,523

 

 

$

126,835

9

$

131,484

9

$

129,506

9

$

210,378

9

$

211,950

9

 

 

                                                 

 

 

1

On September 1, 2004, Fund Asset Management, L.P. became the investment adviser, which combined with BlackRock, Inc. on September 26, 2006.

2

Based on average shares outstanding.

3

Amount is less than $(0.01) per share.

4

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

5

Aggregate total investment return.

6

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

7

Do not reflect the effect of dividends to Preferred Shareholders.

8

Annualized.

9

Amounts have been recalculated to conform with current period presentation.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

58

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock California Insured Municipal Income Trust (“California Insured”), BlackRock MuniHoldings New York Insured Fund, Inc. (“MuniHoldings New York”), BlackRock New York Insured Municipal Income Trust (“New York Insured”) (collectively the “Insured Trusts”), BlackRock California Municipal Bond Trust (“California Bond”), BlackRock Maryland Municipal Bond Trust (“Maryland Bond”), BlackRock New Jersey Municipal Bond Trust (“New Jersey Bond”), BlackRock New York Municipal Bond Trust (“New York Bond”), BlackRock Virginia Municipal Bond Trust (“Virginia Bond”) (collectively the “Bond Trusts”), BlackRock California Municipal Income Trust II (“California Income II”) and BlackRock New York Municipal Income Trust II (“New York Income II”) (collectively the “Income II Trusts”), and The Massachusetts Health & Education Tax-Exempt Trust (“MA HEFA”) (all, collectively the “Trusts” or individually as the “Trust”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as non-diversified, closed-end management investment companies. All Trusts are organized as Delaware statutory trusts except MuniHoldings New York and MA HEFA, which are organized as a Maryland corporation and a Massachusetts business trust, respectively. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. Each Trust determines, and makes available for publication the net asset value of its Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Trusts:

Valuation of Investments: Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees/Directors (the “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from bond dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Swap agreements are valued by utilizing quotes received daily by the Trusts’ pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Short-term securities with maturities less than 60 days are valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by each Trust’s Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’slength transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Derivative Financial Instruments: Each Trust may engage in various portfolio investment strategies both to increase the return of the Trust and to hedge, or protect, its exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security or if the counterparty does not perform under the contract.

 

 

Financial futures contracts: Each Trust may purchase or sell financial futures contracts and options on such futures contracts for investment purposes or to manage its interest rate risk. Futures are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Pursuant to the contract, the Trust agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Trust as unrealized gains or losses. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of futures transactions involves the risk of an imperfect correlation in the movements in the price of futures contracts, interest rates and the underlying assets, and the possible inability of counterparties to meet the terms of their contracts.

 

 

Forward interest rate swaps - The Trusts may enter into forward interest rate swaps for investment purposes. The Trusts may enter into swap agreements, in which the Trust and a counterparty agree to make periodic net payments on a specified notional amount. In a forward interest rate swap, a Trust and the counterparty agreed to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. These periodic payments received or made by the Trusts are recorded in the accompanying Statements of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, the Trusts will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts’ basis in the contract, if any. The Trusts generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap. Swap transactions involve, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

59



 

 


 

Notes to Financial Statements (continued)

Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed-delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Trusts leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal securities to a TOB into which each Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Trust include the right of the Trust (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to the Trust. The TOB may also be terminated without the consent of the Trust upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Trust, which typically invests the cash in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Trusts’ Schedule of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown on the Statements of Assets and Liabilities as trust certificates.

Interest income from the underlying security is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Trusts. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At February 28, 2009, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for the trust certificates were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Underlying
Municipal Bonds
Transferred to
TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest Rates

 

 

California Insured

 

$

9,399,053

 

$

4,771,849

 

 

1.559% - 4.464%

 

California Bond

 

$

2,930,627

 

$

1,998,847

 

 

1.666%

 

California Income II

 

$

17,182,868

 

$

10,035,291

 

 

1.496% - 2.353%

 

Maryland Bond

 

$

3,008,700

 

$

1,500,000

 

 

1.517% - 4.383%

 

MuniHoldings New York

 

$

87,334,246

 

$

56,312,240

 

 

1.198% - 3.226%

 

New York Insured

 

$

15,166,398

 

$

9,308,740

 

 

2.497% - 3.727%

 

New York Bond

 

$

2,435,231

 

$

1,321,257

 

 

1.169% - 3.821%

 

Virginia Bond

 

$

2,025,000

 

$

1,000,000

 

 

1.002% - 5.283%

 

MA HEFA

 

$

2,030,559

 

$

1,339,595

 

 

2.227%

 

 

Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds when short-term interest rates rise, but tend to outperform the market for fixed rate bonds when short-term interest rates decline or remain relatively stable. Should short-term interest rates rise, the Trusts’ investments in TOBs may adversely affect the Trusts’ investment income and distributions to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Trusts’ net asset value per share.

Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust segregates assets in connection with certain investments (e.g., financial futures contracts and swaps), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on their books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, the Trusts may also be required to deliver or deposit securities as collateral for certain investments (e.g., financial futures contracts and swaps).

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Trust amortizes all premiums and discounts on debt securities.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 5.

Income Taxes: It is each Trust’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

 

 

 

 

 

 

 

 

60

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Notes to Financial Statements (continued)

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ US federal tax returns remains open for each of the four years ended August 31, 2008 (three years ended December 31, 2007 and the period ended August 31, 2008 for MA HEFA). The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“FAS 161”), was issued. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for and how derivative instruments affect an entity’s results of operations and financial position. FAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees or Directors (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Each Trust may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees in order to match their deferred compensation obligations. Investments to cover each Trust’s deferred compensation liability are included in other assets on the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated on the Statements of Operations.

Other: Expenses directly related to each Trust are charged to that Trust. Other operating expenses shared by several funds are pro-rated among those funds on the basis of relative net assets or other appropriate methods.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory and administration services. The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Trusts under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

The Advisor is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Advisor a monthly fee at an annual rate of 0.50% for MA HEFA, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for the Bond Trusts of each Trust’s average daily net assets. Average daily net assets is the average daily value of the respective Trust’s total assets minus the sum of its accrued liabilities.

The Advisor has voluntarily agreed to waive its advisory fee on the proceeds of Preferred Shares and TOBs that exceed 35% of the average daily net assets of MuniHoldings New York. For the six months ended February 28, 2009, the Advisor waived $408,418, which is included in fees waived by advisor on the Statements of Operations.

The Advisor has voluntarily agreed to waive a portion of the investment advisory fee. With respect to California Insured and New York Insured, the waiver, as a percentage of average daily net assets is as follows: 0.15% through October 2008, 0.10% through October 2009, and 0.05% through October 2010. With respect to the Bond Trusts, the waiver, as a percentage of average daily net assets, is as follows: 0.20% through April 2009, 0.15% through April 2010, 0.10% through April 2011 and 0.05% through April 2012. With respect to the Income II Trusts, the waiver, as a percentage of average daily net assets, is 0.10% through July 2009, and 0.05% through July 2012. For the six months ended February 28, 2009, the Advisor waived the following amounts, which are included in fees waived by advisor on the Statements of Operations:

 

 

 

 

 

 

California Insured

 

$

67,070

 

California Bond

 

$

65,580

 

California Income II

 

$

83,815

 

Maryland Bond

 

$

37,693

 

New Jersey Bond

 

$

46,560

 

New York Insured

 

$

75,392

 

New York Bond

 

$

59,281

 

New York Income II

 

$

52,915

 

Virginia Bond

 

$

28,265

 

 

The Advisor has agreed to waive its advisory fees by the amount of investment advisory fees each Trust pays to the Advisor indirectly through its investment in affiliated money market funds. This amount is shown on the Statements of Operations as fees waived by advisor. For the six months ended February 28, 2009, the amounts were as follows:

 

 

 

 

 

 

 

 

Fees Waived
by Advisor

 

 

California Insured

 

$

11,350

 

California Bond

 

$

13,381

 

California Income II

 

$

17,875

 

Maryland Bond

 

$

7,792

 

MuniHoldings New York

 

$

35,291

 

New Jersey Bond

 

$

8,436

 

New York Insured

 

$

8,154

 

New York Bond

 

$

3,487

 

New York Income II

 

$

4,651

 

Virginia Bond

 

$

5,435

 

 

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

61



 


 

Notes to Financial Statements (continued)

The Advisor has entered into a separate sub-advisory agreements with BlackRock Investment Management, LLC (“BIM”) for MuniHoldings New York and MA HEFA and BlackRock Financial Management, Inc. (“BFM”) for all other Trusts. BIM and BFM are affiliates of the Advisor. The Advisor pays BIM and BFM for services they provide, a monthly fee that is a percentage of the investment advisory fee paid by the Trusts to the Advisor.

For the six months ended February 28, 2009, each Trust reimbursed the Advisor for certain accounting services in the following amounts, which are included in accounting services on the Statements of Operations:

 

 

 

 

 

 

 

 

Amount

 

 

California Insured

 

$

994

 

California Bond

 

$

733

 

California Income II

 

$

1,521

 

Maryland Bond

 

$

382

 

MuniHoldings New York

 

$

6,528

 

New Jersey Bond

 

$

477

 

New York Insured

 

$

1,172

 

New York Bond

 

$

463

 

New York Income II

 

$

984

 

Virginia Bond

 

$

331

 

MA HEFA

 

$

452

 

 

Pursuant to the terms of the custody agreement, custodian fees may be reduced by amounts calculated on uninvested cash balances, which are shown on the Statements of Operations as fees paid indirectly.

Certain officers and/or trustees/directors of each Trust are officers and/or directors of BlackRock, Inc. or its affiliates. The Trusts reimburse the Advisor for compensation paid to the Trusts’ Chief Compliance Officer.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended February 28, 2009 were as follows:

 

 

 

 

 

 

 

 

 

 

 

Purchases

 

Sales

 

 

California Insured

 

$

30,872,926

 

$

29,932,931

 

California Bond

 

$

14,914,607

 

$

18,624,708

 

California Income II

 

$

47,732,609

 

$

50,794,748

 

Maryland Bond

 

$

739,868

 

$

3,576,301

 

MuniHoldings New York

 

$

65,370,129

 

$

106,769,089

 

New Jersey Bond

 

$

5,454,228

 

$

8,842,662

 

New York Insured

 

$

16,409,344

 

$

23,885,808

 

New York Bond

 

$

10,817,462

 

$

12,792,153

 

New York Income II

 

$

11,189,618

 

$

10,703,596

 

Virginia Bond

 

$

8,864,677

 

$

8,084,759

 

MA HEFA

 

$

2,335,315

 

$

5,753,209

 

 

4. Concentration, Market and Credit Risk:

The Trusts invest a substantial amount of its assets in issuers located in a single state or limited number of states. Please see the Schedule of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the issuer will meet its obligation.

In the normal course of business, the Trusts invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to credit risk, the Trusts may be exposed to counterparty risk, or the risk that an entity with which the Trusts have unsettled or open transactions may default. Financial assets, which potentially expose the Trusts to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Trusts’ exposure to credit and counterparty risks with respect to these financial assets is approximated by their value recorded in the Trusts’ Statements of Assets and Liabilities.

5. Capital Share Transactions:

The Trusts, except MuniHoldings New York, are authorized to issue an unlimited number of shares (200 million shares for MuniHoldings New York), all of which were initially classified as Common Shares. The par value for the Trusts, except MuniHoldings New York and MA HEFA, is $0.001 per share ($0.10 for MuniHoldings New York and $0.01 for MA HEFA). Each Trust’s Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

Common Shares

Shares issued and outstanding during the six months ended February 28, 2009 and during the year ended August 31, 2008 increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended
February 28, 2009

 

Year Ended
August 31, 2008

 

 

California Insured

 

 

 

 

1,344

 

California Bond

 

 

 

 

22,468

 

California Income II

 

 

 

 

5,688

 

Maryland Bond

 

 

4,276

 

 

8,599

 

New Jersey Bond

 

 

3,171

 

 

10,138

 

New York Insured

 

 

 

 

5,180

 

New York Bond

 

 

 

 

20,407

 

New York Income II

 

 

 

 

1,272

 

Virginia Bond

 

 

3,974

 

 

8,252

 

 

Shares issued and outstanding remained constant for MuniHoldings New York and MA HEFA for the periods ended February 28, 2009, August 31, 2008 and the year ended December 31, 2007 for the MA HEFA.

Preferred Shares

The Preferred Shares of each of California Insured, California Bond, California Income II, Maryland Bond, MuniHoldings New York, New York Insured, New York Bond, Virginia Bond and MA HEFA (each, a “Preferred Trust”) are redeemable at the option of the Preferred Trust, in whole or in part, on any dividend payment date at their liquidation preference plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of each Trust, as set forth in each Trust’s Statements of

 

 

 

 

 

 

 

 

62

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 


 

Notes to Financial Statements (continued)

Preferences/Articles Supplementary/Certificates of Designation, as applicable, (“Governing Instrument”) are not satisfied.

From time to time in the future, a Preferred Trust may effect repurchases of its Preferred Shares at prices below its liquidation preference as agreed upon by the Preferred Trust and seller. The Preferred Trust also may redeem its Preferred Shares from time to time as provided in the applicable Governing Instrument. The Preferred Trust intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors/Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

The Trusts had the following series of Preferred Shares outstanding and effective yields as of February 28, 2009:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series

 

Shares

 

Yield

 

Reset
Frequency

 

 

California Insured

 

 

F-7

 

 

1,502

 

 

0.899

%

 

7

 

 

California Bond

 

 

F-7

 

 

1,119

 

 

0.899

%

 

7

 

 

California Income II

 

 

T-7

 

 

1,195

 

 

0.959

%

 

7

 

 

 

 

R-7

 

 

1,195

 

 

0.899

%

 

7

 

 

Maryland Bond

 

 

R-7

 

 

640

 

 

0.899

%

 

7

 

 

MuniHoldings New York

 

 

A

 

 

1,535

 

 

0.944

%

 

7

 

 

 

 

B

 

 

1,535

 

 

0.899

%

 

7

 

 

 

 

C

 

 

2,456

 

 

0.914

%

 

7

 

 

 

 

D

 

 

2,973

 

 

0.899

%

 

7

 

 

 

 

E

 

 

1,616

 

 

0.960

%

 

7

 

 

New Jersey Bond

 

 

M-7

 

 

768

 

 

0.914

%

 

7

 

 

New York Insured

 

 

R-7

 

 

1,667

 

 

0.899

%

 

7

 

 

New York Bond

 

 

T-7

 

 

896

 

 

0.959

%

 

7

 

 

New York Income II

 

 

W-7

 

 

1,786

 

 

0.944

%

 

7

 

 

Virginia Bond

 

 

R-7

 

 

487

 

 

0.899

%

 

7

 

 

MA HEFA

 

 

A

 

 

185

 

 

0.944

%

 

7

 

 

 

 

B

 

 

185

 

 

0.959

%

 

7

 

 

Dividends on seven-day Preferred Shares are cumulative at a rate, which is reset every seven days based on the results of an auction. Dividends on 28 day Preferred Shares are cumulative at a rate which is reset every 28 days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the Trust is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The low, high and average dividend rates on the Preferred Shares for each Trust for the six months ended February 28, 2009 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series

 

Low

 

High

 

Average

 

 

California Insured

 

 

F-7

 

 

0.594

%

 

11.728

%

 

2.775

%

 

California Bond

 

 

F-7

 

 

0.594

%

 

11.728

%

 

2.773

%

 

California Income II

 

 

T-7

 

 

0.594

%

 

11.347

%

 

2.729

%

 

 

 

R-7

 

 

0.594

%

 

12.261

%

 

2.737

%

 

Maryland Bond

 

 

R-7

 

 

0.594

%

 

12.261

%

 

2.789

%

 

MuniHoldings New York

 

 

A

 

 

0.640

%

 

12.565

%

 

2.859

%

 

 

 

B

 

 

0.594

%

 

12.261

%

 

2.747

%

 

 

 

C

 

 

0.594

%

 

10.205

%

 

2.800

%

 

 

 

D

 

 

0.594

%

 

11.728

%

 

2.820

%

 

 

 

E

 

 

0.594

%

 

11.347

%

 

2.738

%

 

New Jersey Bond

 

 

M-7

 

 

0.594

%

 

10.205

%

 

2.759

%

 

New York Insured

 

 

R-7

 

 

0.594

%

 

12.261

%

 

2.747

%

 

New York Bond

 

 

T-7

 

 

0.594

%

 

11.347

%

 

2.774

%

 

New York Income II

 

 

W-7

 

 

0.640

%

 

12.565

%

 

2.845

%

 

Virginia Bond

 

 

R-7

 

 

0.594

%

 

12.261

%

 

2.835

%

 

MA HEFA

 

 

A

 

 

0.640

%

 

12.565

%

 

2.739

%

 

 

 

B

 

 

0.594

%

 

11.347

%

 

2.77

%

 

For the six months ended February 28, 2009, the Preferred Shares of each Trust failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 0.594% to 12.565%. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a Trust’s auction rate preferred shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Trust’s Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

The Trusts may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

63



 

 


 

Notes to Financial Statements (concluded)

Prior to December 22, 2008, the Trusts paid commissions to certain broker-dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. In December 22, 2008, commissions paid to broker-dealers on preferred shares that experienced a failed auction were reduced to 0.15% on the aggregate principal amount. The Trusts will continue to pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a wholly owned subsidiary of Merrill Lynch, earned commissions for the period September 1, 2008 through December 31, 2008, as follows:

 

 

 

 

 

 

Commissions

 

 

California Insured

 

$

739

 

California Bond

 

$

1,811

 

California Income II

 

$

10,139

 

Maryland Bond

 

$

1,116

 

MuniHoldings New York

 

$

101,126

 

New Jersey Bond

 

$

3,984

 

New York Insured

 

$

1,653

 

New York Bond

 

$

2,602

 

New York Income II

 

$

12,083

 

Virginia Bond

 

$

434

 

MA HEFA

 

$

10,877

 

 

During the year ended August 31, 2008, the Trusts announced the following redemptions of Preferred Shares at a price of $25,000 ($50,000 for MA HEFA) per share plus any accrued and unpaid dividends through the redemption date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 

 

California Insured

 

 

F-7

 

 

6/30/08

 

 

358

 

 

$

8,950,000

 

 

California Bond

 

 

F-7

 

 

6/30/08

 

 

80

 

 

$

2,000,000

 

 

California Income II

 

 

T-7

 

 

6/25/08

 

 

244

 

 

$

6,100,000

 

 

 

 

R-7

 

 

6/27/08

 

 

244

 

 

$

6,100,000

 

 

Maryland Bond

 

 

R-7

 

 

6/27/08

 

 

80

 

 

$

2,000,000

 

 

MuniHoldings New York

 

 

A

 

 

6/26/08

 

 

365

 

 

$

9,125,000

 

 

 

 

B

 

 

6/27/08

 

 

365

 

 

$

9,125,000

 

 

 

 

C

 

 

6/24/08

 

 

584

 

 

$

14,600,000

 

 

 

 

D

 

 

6/23/08

 

 

707

 

 

$

17,675,000

 

 

 

 

E

 

 

6/25/08

 

 

384

 

 

$

9,600,000

 

 

New Jersey Bond

 

 

M-7

 

 

6/24/08

 

 

41

 

 

$

1,025,000

 

 

New York Insured

 

 

R-7

 

 

6/27/08

 

 

573

 

 

$

14,325,000

 

 

New York Bond

 

 

T-7

 

 

6/25/08

 

 

72

 

 

$

1,800,000

 

 

Virginia Bond

 

 

R-7

 

 

6/27/08

 

 

54

 

 

$

1,350,000

 

 

MA HEFA

 

 

A

 

 

6/12/08

 

 

15

 

 

$

750,000

 

 

 

 

B

 

 

6/11/08

 

 

15

 

 

$

750,000

 

 

The Trusts financed the Preferred Share redemptions with cash received from TOB transactions.

Shares issued and outstanding remained constant during the six months ended February 28, 2009 for all the Trusts and during the year ended August 31, 2008 for New York Income II.

6. Capital Loss Carryforward:

As of August 31, 2008, the following Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expires August 31,

 

California
Insured

 

California
Bond

 

California
Income II

 

MuniHoldings
New York

 

 

2009

 

 

 

 

 

 

 

$

17,055,889

 

2012

 

 

 

$

477,260

 

$

3,224,992

 

 

 

2013

 

$

717,737

 

 

 

 

 

 

15,054,033

 

2014

 

 

 

 

 

 

 

 

1,097,743

 

2015

 

 

 

 

 

 

360,789

 

 

2,782,666

 

2016

 

 

351,912

 

 

 

 

113,830

 

 

710,089

 

 

 

                       

Total

 

$

1,069,649

 

$

477,260

 

$

3,699,611

 

$

36,700,420

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

Expires August 31,

 

New Jersey
Bond

 

New York
Income II

 

MA
HEFA

 

 

2015

 

 

 

$

70,160

 

$

35,869

 

2016

 

$

25,168

 

 

383,137

 

 

285,683

 

 

 

                 

Total

 

$

25,168

 

$

453,297

 

$

321,552

 

 

 

                 

7. Subsequent Events:

The Trusts paid a net investment income dividend in the following amounts per share on April 1, 2009 to shareholders of record on March 16, 2009:

 

 

 

 

 

 

Common
Dividend
Per Share

 

 

California Insured

 

$

0.056000

 

California Bond

 

$

0.062000

 

California Income II

 

$

0.057000

 

Maryland Bond

 

$

0.065400

 

MuniHoldings New York

 

$

0.053000

 

New Jersey Bond

 

$

0.070500

 

New York Insured

 

$

0.058000

 

New York Bond

 

$

0.068000

 

New York Income II

 

$

0.062500

 

Virginia Bond

 

$

0.072428

 

MA HEFA

 

$

0.049000

 

 

The dividends declared on Preferred Shares for the period March 1, 2009 to March 31, 2009 for the Trusts were as follows:

 

 

 

 

 

 

 

 

 

 

 

Series

 

Dividends
Declared

 

 

California Insured

 

 

F-7

 

$

24,347

 

 

California Bond

 

 

F-7

 

$

18,139

 

 

California Income II

 

 

T-7

 

$

19,473

 

 

 

 

R-7

 

$

19,006

 

 

Maryland Bond

 

 

R-7

 

$

10,173

 

 

MuniHoldings New York

 

 

A    

 

$

24,851

 

 

 

 

B    

 

$

24,399

 

 

 

 

C    

 

$

40,102

 

 

 

 

D    

 

$

48,192

 

 

 

 

E    

 

$

26,320

 

 

New Jersey Bond

 

 

M-7

 

$

12,540

 

 

New York Insured

 

 

R-7

 

$

26,498

 

 

New York Bond

 

 

T-7

 

$

14,593

 

 

New York Income II

 

 

W-7

 

$

28,914

 

 

Virginia Bond

 

 

R-7

 

$

12,451

 

 

MA HEFA

 

 

A    

 

$

40,094

 

 

 

 

B    

 

$

37,614

 

 

 

 

 

 

 

 

 

 

64

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 


Officers and Directors/Trustees

Richard E. Cavanagh, Chairman of the Board and Director/Trustee
Karen P. Robards, Vice Chair of the Board, Chair of the Audit
Committee and Director/Trustee
G. Nicholas Beckwith, III, Director/Trustee
Richard S. Davis, Director/Trustee
Kent Dixon, Director/Trustee
Frank J. Fabozzi, Director/Trustee
Kathleen F. Feldstein, Director/Trustee
James T. Flynn, Director/Trustee
Henry Gabbay, Director/Trustee
Jerrold B. Harris, Director/Trustee
R. Glenn Hubbard, Director/Trustee
W. Carl Kester, Director/Trustee
Donald C. Burke, Trust President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Trusts
Howard B. Surloff, Secretary

Effective January 1, 2009, Robert S. Salomon, Jr. retired as Director/Trustee of the Trusts. The Board wishes Mr. Salomon well in his retirement.

Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036

Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Trust Address
BlackRock Closed-End Funds
c/o BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809

Custodians
For all Trusts except BlackRock MuniHoldings
New York Insured Fund, Inc.:
State Street Bank and Trust Company
Boston, MA 02101

For BlackRock MuniHoldings New York Insured Fund, Inc.:
The Bank of New York Mellon
New York, NY 10286

Transfer Agents
Common Stock:
For all Trusts except BlackRock MuniHoldings
New York Insured Fund, Inc. and The Massachusetts
Health & Education Tax-Exempt Trust:
Computershare Trust Companies, N.A.
Canton, MA 02021

For BlackRock MuniHoldings
New York Insured Fund, Inc. and The Massachusetts
Health & Education Tax-Exempt Trust:
BNY Mellon Shareowner Services
Jersey City, NJ 07310

Preferred Stock:
For the Insured Trusts, Bond Trusts and
BlackRock MuniHoldings New York Insured Fund, Inc.:
BNY Mellon Shareowner Services
Jersey City, NJ 07310

For the Income II Trusts and The Massachusetts
Health & Education Tax-Exempt Trust:
Deutsche Bank Trust Company Americas
New York, NY 10005

 

 


 

Additional Information

 

 

 

Availability of Quarterly Schedule of Investments

 

Each Trust files their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Trust’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.

Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

65



 

 


 

Additional Information (continued)

 

 

 

Proxy Results

 

The Annual Meeting of Shareholders was held on September 12, 2008 for shareholders of record on July 14, 2008 to elect director or trustee nominees of each Trust:

Approved the Class I Directors/Trustees as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

               

 

 

G. Nicholas Beckwith, III

 

Kent Dixon

 

R. Glenn Hubbard

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

                           

BlackRock California Municipal Income Trust II

 

 

6,585,380

 

 

117,302

 

 

6,588,280

 

 

114,402

 

 

6,586,780

 

 

115,902

 

BlackRock California Insured Municipal Income Trust

 

 

4,374,207

 

 

126,498

 

 

4,375,907

 

 

124,798

 

 

4,373,310

 

 

127,395

 

BlackRock California Municipal Bond Trust

 

 

2,899,569

 

 

60,056

 

 

2,899,569

 

 

60,056

 

 

2,898,069

 

 

61,556

 

BlackRock Maryland Municipal Bond Trust

 

 

2,010,851

 

 

16,459

 

 

2,015,218

 

 

12,092

 

 

2,015,351

 

 

11,959

 

BlackRock New Jersey Municipal Bond Trust

 

 

2,177,858

 

 

53,157

 

 

2,176,608

 

 

54,407

 

 

2,177,858

 

 

53,157

 

BlackRock New York Insured Municipal Income Trust

 

 

5,775,873

 

 

191,972

 

 

5,773,970

 

 

193,875

 

 

5,781,137

 

 

186,708

 

BlackRock New York Municipal Bond Trust

 

 

2,524,166

 

 

31,603

 

 

2,524,166

 

 

31,603

 

 

2,524,166

 

 

31,603

 

BlackRock New York Municipal Income Trust II

 

 

4,345,939

 

 

163,046

 

 

4,345,939

 

 

163,046

 

 

4,345,939

 

 

163,046

 

BlackRock Virginia Municipal Bond Trust

 

 

1,420,649

 

 

113,703

 

 

1,419,649

 

 

114,703

 

 

1,420,649

 

 

113,703

 

                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

W. Carl Kester

 

Robert S. Salomon, Jr.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

 

 

 

 

 

 

                           

 

 

 

 

 

 

BlackRock California Municipal Income Trust II

 

 

1,546

1

 

159

1

 

6,586,530

 

 

116,152

 

 

 

 

 

 

 

BlackRock California Insured Municipal Income Trust

 

 

1,202

1

 

17

1

 

4,374,207

 

 

126,498

 

 

 

 

 

 

 

BlackRock California Municipal Bond Trust

 

 

702

1

 

15

1

 

2,899,570

 

 

60,055

 

 

 

 

 

 

 

BlackRock Maryland Municipal Bond Trust

 

 

540

1

 

22

1

 

2,015,351

 

 

11,959

 

 

 

 

 

 

 

BlackRock New Jersey Municipal Bond Trust

 

 

425

1

 

202

1

 

2,176,608

 

 

54,407

 

 

 

 

 

 

 

BlackRock New York Insured Municipal Income Trust

 

 

1,559

1

 

8

1

 

5,783,266

 

 

184,579

 

 

 

 

 

 

 

BlackRock New York Municipal Bond Trust

 

 

830

1

 

2

1

 

2,524,166

 

 

31,603

 

 

 

 

 

 

 

BlackRock New York Municipal Income Trust II

 

 

1,382

1

 

334

1

 

4,345,939

 

 

163,046

 

 

 

 

 

 

 

BlackRock Virginia Municipal Bond Trust

 

 

450

1

 

13

1

 

1,419,649

 

 

114,703

 

 

 

 

 

 

 

                                       

Approved the Directors/Trustees as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                       

 

 

 

G. Nicholas Beckwith, III

 

Kent Dixon

 

R. Glenn Hubbard

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

               

BlackRock MuniHoldings New York Insured Fund, Inc.

 

 

27,684,424

 

 

947,285

 

 

27,687,519

 

 

944,190

 

 

27,681,615

 

 

950,094

 

The Massachusetts Health & Education Tax-Exempt Trust

 

 

2,046,284

 

 

91,814

 

 

2,046,284

 

 

91,814

 

 

2,044,684

 

 

93,414

 

                                       

 

 

 

W. Carl Kester

 

Robert S. Salomon, Jr.

 

Richard S. Davis

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

                                       

BlackRock MuniHoldings New York Insured Fund, Inc.

 

 

8,753

1

 

926

1

 

27,665,324

 

 

966,385

 

 

27,708,729

 

 

922,980

 

The Massachusetts Health & Education Tax-Exempt Trust

 

 

356

1

 

0

1

 

2,046,284

 

 

91,814

 

 

2,046,674

 

 

91,424

 

                                       

 

 

 

Frank J. Fabozzi

 

James T. Flynn

 

Karen P. Robards

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

               

BlackRock MuniHoldings New York Insured Fund, Inc.

 

 

8,753

1

 

926

1

 

27,685,199

 

 

946,510

 

 

27,679,452

 

 

952,257

 

The Massachusetts Health & Education Tax-Exempt Trust

 

 

356

1

 

0

1

 

2,046,284

 

 

91,814

 

 

2,046,284

 

 

91,814

 

                                       

 

 

 

Richard E. Cavanagh

 

Kathleen F. Feldstein

 

Henry Gabbay

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

Votes For

 

Votes Withheld

 

                                       

BlackRock MuniHoldings New York Insured Fund, Inc.

 

 

27,669,541

 

 

962,168

 

 

27,668,324

 

 

963,385

 

 

27,705,612

 

 

926,097

 

The Massachusetts Health & Education Tax-Exempt Trust

 

 

2,046,674

 

 

91,424

 

 

2,045,184

 

 

92,914

 

 

2,046,284

 

 

91,814

 

                                       

 

 

 

Jerrold B. Harris

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes Withheld

 

 

 

 

 

 

 

 

 

 

 

 

 

             

BlackRock MuniHoldings New York Insured Fund, Inc.

 

 

27,691,502

 

 

940,207

 

 

 

 

 

 

 

 

 

 

 

 

 

The Massachusetts Health & Education Tax-Exempt Trust

 

 

2,045,184

 

 

92,914

 

 

 

 

 

 

 

 

 

 

 

 

 

             

 

 

 

 

 

 

 

 

 

 

 

 

 

1      Voted on by holders of Preferred Shares only.

 

 

Electronic Delivery

 

Electronic copies of most financial reports are available on the Trusts’ website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Trusts’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

 

 

 

 

 

 

 

 

66

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

 



 

 


 

Additional Information (concluded)

 

 

 

Section 19 Notices

 

The amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Trust’s investment experience during the year and may be subject to changes based on the tax regulations. Each Trust will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

 

Total Fiscal Year-to-Date
Cumulative Distributions
by Character
    Percentage of Fiscal
Year-to-Date
5Cumulative Distributions
by Character

 

 

                     

 

 

Net
Investment
Income

 

Net Realized
Capital Gains

 

Return of
Capital

 

Total Per
Common
Share

 

Net
Investment
Income

 

Net Realized
Capital Gains

 

Return of
Capital

 

Total Per
Common
Share

 

                                   

California Bond

 

$

0.37200

 

$

0.00292

 

 

 

$

0.37492

 

 

99

%

 

1

%

 

0

%

 

100

%

Maryland Bond

 

$

0.39240

 

$

0.00321

 

 

 

$

0.39561

 

 

99

%

 

1

%

 

0

%

 

100

%

MuniHoldings New York

 

$

0.32008

 

 

 

 

 

$

0.32008

 

 

100

%

 

0

%

 

0

%

 

100

%

New York Bond

 

$

0.40800

 

$

0.00394

 

 

 

$

0.41194

 

 

99

%

 

1

%

 

0

%

 

100

%

Virginia Bond

 

$

0.47091

 

$

0.12273

 

 

 

$

0.59363

 

 

79

%

 

21

%

 

0

%

 

100

%

MA HEFA

 

$

0.30280

 

 

 

 

 

$

0.30280

 

 

100

%

 

0

%

 

0

%

 

100

%

                                   

 

 

General Information

 

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 441-7762.

Quarterly performance, semi-annual and annual reports and other information regarding each Trust may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding each Trust and does not, and is not intended to, incorporate BlackRock’s website into this report.

 

 

BlackRock Privacy Principles

 

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to nonaffiliated third parties any nonpublic information about its Clients, except as permitted by law or as necessary to service Client accounts. These nonaffiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

 

 

 

 

 

 

 

SEMI-ANNUAL REPORT

FEBRUARY 28, 2009

67



This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 411-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how each Trust voted proxies relating to securities held in each Trust’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

 

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Item 2 –   Code of Ethics – Not Applicable to this semi-annual report

Item 3 –   Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 –   Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 –   Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

Item 6 –   Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 –   Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

Item 8 –   Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-annual report

Item 9 –   Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 –  Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.

Item 11 –  Controls and Procedures

11(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 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

11(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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 –  Exhibits attached hereto

12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

12(a)(2) – Certifications – Attached hereto

12(a)(3) – Not Applicable


12(b) –     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 MuniHoldings New York Insured Fund, Inc.

By:      /s/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer of
  BlackRock MuniHoldings New York Insured Fund, Inc.

Date: April 22, 2009

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/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer (principal executive officer) of
  BlackRock MuniHoldings New York Insured Fund, Inc.

Date: April 22, 2009

By:      /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock MuniHoldings New York Insured Fund, Inc.

Date: April 22, 2009