Eaton Vance New York Municipal Bond Fund II

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21218

Investment Company Act File Number

Eaton Vance New York Municipal Bond Fund II

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

September 30

Date of Fiscal Year End

June 30, 2012

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

New York Municipal Bond Fund II

June 30, 2012

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 163.0%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 3.9%

      

New York Environmental Facilities Corp., 5.00%, 10/15/39

    $ 750       $ 838,328   

New York Environmental Facilities Corp., (New York City Municipal Water Finance Authority), 5.00%, 6/15/32

      500         519,855   
     

 

 

  
      $ 1,358,183   
     

 

 

  

Education — 16.1%

      

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/23

    $ 60       $ 67,381   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/24

      35         38,817   

Monroe County Industrial Development Corp., (St. John Fisher College), 5.00%, 6/1/25

      25         27,490   

New York City Industrial Development Agency, (St. Francis College), 5.00%, 10/1/34

      350         360,392   

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/41

      1,275         1,462,081   

New York Dormitory Authority, (Cornell University), 5.00%, 7/1/37(1)

      1,275         1,430,690   

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/40

      610         685,951   

New York Dormitory Authority, (Skidmore College), 5.00%, 7/1/28

      325         367,604   

New York Dormitory Authority, (The New School), 5.50%, 7/1/40

      1,000         1,121,900   
     

 

 

  
      $ 5,562,306   
     

 

 

  

Electric Utilities — 1.7%

      

Puerto Rico Electric Power Authority, 5.25%, 7/1/30

    $ 570       $ 598,665   
     

 

 

  
      $ 598,665   
     

 

 

  

Escrowed/Prerefunded — 2.2%

      

Suffolk County Industrial Development Agency, (Huntington Hospital), Prerefunded to 11/1/12, 5.875%, 11/1/32

    $ 750       $ 764,558   
     

 

 

  
      $ 764,558   
     

 

 

  

General Obligations — 8.1%

      

Arlington Central School District, 4.00%, 12/15/29

    $ 380       $ 407,368   

Arlington Central School District, 4.00%, 12/15/30

      375         398,914   

Long Beach City School District, 4.50%, 5/1/26

      770         861,645   

New York, 5.00%, 2/15/34(1)

      1,000         1,136,750   
     

 

 

  
      $ 2,804,677   
     

 

 

  

Hospital — 6.5%

      

New York Dormitory Authority, (Highland Hospital of Rochester), 5.00%, 7/1/26

    $ 135       $ 146,918   

New York Dormitory Authority, (Highland Hospital of Rochester), 5.20%, 7/1/32

      180         196,126   

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/20

      235         280,862   

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), 5.00%, 5/1/26

      335         358,068   

Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), 5.00%, 7/1/28

      1,135         1,273,459   
     

 

 

  
      $ 2,255,433   
     

 

 

  

Industrial Development Revenue — 1.3%

      

New York Liberty Development Corp., (Goldman Sachs Group, Inc.), 5.25%, 10/1/35

    $ 390       $ 438,235   
     

 

 

  
      $ 438,235   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Education — 27.6%

      

New York Dormitory Authority, (Barnard College), (FGIC), (NPFG), 5.00%, 7/1/24(2)

    $ 1,440       $ 1,587,010   

New York Dormitory Authority, (Brooklyn Law School), (XLCA), 5.125%, 7/1/30

      855         887,781   

New York Dormitory Authority, (Fordham University), (AGC), (BHAC), 5.00%, 7/1/38(1)

      2,250         2,447,257   

New York Dormitory Authority, (Pratt Institute), (AGC), 5.00%, 7/1/34

      345         372,124   

New York Dormitory Authority, (Pratt Institute), (AGC), 5.125%, 7/1/39

      545         588,878   

New York Dormitory Authority, (Skidmore College), (FGIC), (NPFG), 5.00%, 7/1/33

      500         516,610   

New York Dormitory Authority, (St. John’s University), (NPFG), 5.25%, 7/1/37

      850         897,175   

Oneida County Industrial Development Agency, (Hamilton College), (NPFG),
0.00%, 7/1/32

      5,425         2,249,530   
     

 

 

  
      $ 9,546,365   
     

 

 

  

Insured-Electric Utilities — 3.4%

      

Long Island Power Authority, Electric System Revenue, (BHAC), 5.50%, 5/1/33

    $ 500       $ 577,250   

Long Island Power Authority, Electric System Revenue, (BHAC), 6.00%, 5/1/33

      500         608,485   
     

 

 

  
      $ 1,185,735   
     

 

 

  

Insured-General Obligations — 14.8%

      

Brentwood Union Free School District, (AGC), 4.75%, 11/15/23

    $ 535       $ 630,380   

Brentwood Union Free School District, (AGC), 5.00%, 11/15/24

      560         663,841   

Hauppauge Union Free School District, (AGC), 4.00%, 7/15/24

      250         275,660   

Hoosic Valley Central School District, (AGC), 4.00%, 6/15/23

      250         278,947   

Longwood Central School District, Suffolk County, (AGC), 4.15%, 6/1/23

      185         204,342   

Longwood Central School District, Suffolk County, (AGC), 4.25%, 6/1/24

      190         209,405   

New York, (AGM), 5.00%, 4/1/22

      1,000         1,127,050   

Sachem Central School District, (FGIC), (NPFG), 4.25%, 10/15/28

      410         429,225   

Wantagh Union Free School District, (AGC), 4.50%, 11/15/19

      185         214,067   

Wantagh Union Free School District, (AGC), 4.50%, 11/15/20

      190         217,795   

Wantagh Union Free School District, (AGC), 4.75%, 11/15/22

      210         239,198   

Wantagh Union Free School District, (AGC), 4.75%, 11/15/23

      220         249,185   

William Floyd Union Free School District, (AGC), 4.00%, 12/15/24

      350         385,546   
     

 

 

  
      $ 5,124,641   
     

 

 

  

Insured-Hospital — 3.3%

      

New York City Health and Hospitals Corp., (AGM), 5.50%, 2/15/20

    $ 500       $ 595,275   

New York Dormitory Authority, (Hudson Valley Hospital Center), (AGM), (BHAC), 5.00%, 8/15/36

      500         536,240   
     

 

 

  
      $ 1,131,515   
     

 

 

  

Insured-Housing — 3.0%

      

New York City Housing Corp., (NPFG), 4.95%, 11/1/33

    $ 1,000       $ 1,028,120   
     

 

 

  
      $ 1,028,120   
     

 

 

  

Insured-Other Revenue — 9.8%

      

New York City Cultural Resource Trust, (American Museum of Natural History), (NPFG), 5.00%, 7/1/44

    $ 700       $ 750,673   

New York City Industrial Development Agency, (Yankee Stadium), (NPFG),
4.75%, 3/1/46

      1,575         1,576,969   

New York City Transitional Finance Authority, (BHAC), 5.50%, 7/15/38

      950         1,073,937   
     

 

 

  
      $ 3,401,579   
     

 

 

  

Insured-Special Tax Revenue — 7.5%

      

New York Thruway Authority, Miscellaneous Tax Revenue, (AMBAC), 5.50%, 4/1/20

    $ 510       $ 646,343   

Puerto Rico Infrastructure Financing Authority, (AMBAC), 0.00%, 7/1/35

      1,700         426,003   

Puerto Rico Sales Tax Financing Corp., (NPFG), 0.00%, 8/1/45

      2,240         336,471   

Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/29

      385         420,724   

Sales Tax Asset Receivables Corp., (AMBAC), 5.00%, 10/15/32

      690         752,376   
     

 

 

  
      $ 2,581,917   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Transportation — 10.6%

      

Metropolitan Transportation Authority, (AGM), (NPFG), 5.00%, 11/15/31

    $ 1,000       $ 1,117,730   

Port Authority of New York and New Jersey, (AGM), 5.00%, 11/1/27(1)

      2,500         2,558,517   
     

 

 

  
      $ 3,676,247   
     

 

 

  

Insured-Water and Sewer — 4.1%

      

Nassau County Sewer and Storm Water Finance Authority, (BHAC), 5.375%, 11/1/28

    $ 905       $ 1,054,596   

Suffolk County Water Authority, (NPFG), 4.50%, 6/1/25

      350         368,326   
     

 

 

  
      $ 1,422,922   
     

 

 

  

Other Revenue — 9.3%

      

Brooklyn Arena Local Development Corp., (Barclays Center), 0.00%, 7/15/31

    $ 1,100       $ 429,473   

New York Liberty Development Corp., (7 World Trade Center), 5.00%, 9/15/40

      2,500         2,800,900   
     

 

 

  
      $ 3,230,373   
     

 

 

  

Special Tax Revenue — 15.7%

      

New York City Transitional Finance Authority, Future Tax Revenue,
5.50%, 11/1/35(1)(3)

    $ 500       $ 588,970   

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 6/15/31(1)

      2,750         3,193,740   

New York Dormitory Authority, Personal Income Tax Revenue, 5.00%, 3/15/33

      900         1,016,793   

New York Thruway Authority, Miscellaneous Tax Revenue, 5.00%, 4/1/26

      530         616,496   
     

 

 

  
      $ 5,415,999   
     

 

 

  

Transportation — 14.1%

      

Metropolitan Transportation Authority, 5.00%, 11/15/34

    $ 2,000       $ 2,189,520   

Nassau County Bridge Authority, 5.00%, 10/1/35

      350         381,444   

Nassau County Bridge Authority, 5.00%, 10/1/40

      65         70,407   

New York Thruway Authority, 5.00%, 1/1/37(4)

      1,175         1,287,107   

Triborough Bridge and Tunnel Authority, 5.00%, 11/15/37

      340         377,584   

Triborough Bridge and Tunnel Authority, 5.00%, 11/15/38(1)

      500         559,890   
     

 

 

  
      $ 4,865,952   
     

 

 

  

Total Tax-Exempt Investments — 163.0%
(identified cost $52,410,508)

       $ 56,393,422   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (38.3)%

       $ (13,250,420 ) 
     

 

 

  

Other Assets, Less Liabilities — (24.7)%

       $ (8,548,570 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 34,594,432   
     

 

 

  

The percentage shown for each investment category in the Portfolio of Investments is based on net assets applicable to common shares.

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FGIC

   -   Financial Guaranty Insurance Company

NPFG

   -   National Public Finance Guaranty Corp.

XLCA

   -   XL Capital Assurance, Inc.

 

3

 

 

The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at June 30, 2012, 51.6% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.6% to 19.3% of total investments.

 

(1) Security represents the municipal bond held by a trust that issues residual interest bonds.

 

(2) Security (or a portion thereof) has been segregated to cover payable for when-issued securities.

 

(3) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $213,970.

 

(4) When-issued security.

A summary of open financial instruments at June 30, 2012 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Depreciation		  
9/12    22 U.S. 30-Year Treasury Bond    Short    $     (3,239,460 )    $     (3,255,313 )    $     (15,853 ) 

At June 30, 2012, the Fund had sufficient cash and/or securities to cover commitments under these contracts.

The Fund is subject to interest rate risk in the normal course of pursuing its investment objective. Because the Fund holds fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Fund purchases and sells U.S. Treasury futures contracts to hedge against changes in interest rates.

At June 30, 2012, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is interest rate risk was $15,853.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2012, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     43,472,407   
  

 

 

  

Gross unrealized appreciation

    $ 4,270,033   

Gross unrealized depreciation

      (224,018 ) 
  

 

 

  

Net unrealized appreciation

    $ 4,046,015   
  

 

 

  

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

•  

Level 1 — quoted prices in active markets for identical investments

 

•  

Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

•  

Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

4

 

 

At June 30, 2012, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1     Level 2      Level 3      Total  

Tax-Exempt Investments

    $ —      $     56,393,422       $ —       $     56,393,422   

Total Investments

    $ —      $ 56,393,422       $ —       $ 56,393,422   
Liability Description                               

Futures Contracts

    $     (15,853 )    $ —       $ —       $ (15,853 ) 

Total

    $ (15,853 )    $ —       $ —       $ (15,853 ) 

The Fund held no investments or other financial instruments as of September 30, 2011 whose fair value was determined using Level 3 inputs. At June 30, 2012, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

 

5

 

 

Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Signatures

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

 

Eaton Vance New York Municipal Bond Fund II
By:   /s/ Cynthia J. Clemson
  Cynthia J. Clemson
  President
Date:   August 27, 2012

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/ Cynthia J. Clemson
  Cynthia J. Clemson
  President
Date:   August 27, 2012

 

By:   /s/ Barbara E. Campbell
  Barbara E. Campbell
  Treasurer
Date:   August 27, 2012