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

December 31, 2013

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

New York Municipal Bond Fund II

December 31, 2013

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 168.8%

 

                                                 
Security   

Principal
Amount

(000’s omitted)

      Value  

Bond Bank — 2.5%

      

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

    $ 750       $ 790,440   
     

 

 

  
      $ 790,440   
     

 

 

  

Education — 21.9%

      

Geneva Development Corp., (Hobart and William Smith Colleges), 5.00%, 9/1/32

    $ 605       $ 630,888   

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

      60         64,856   

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

      350         350,906   

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

      1,275         1,344,628   

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

      1,275         1,338,712   

New York Dormitory Authority, (Rockefeller University), 5.00%, 7/1/34

      565         607,482   

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

      610         638,621   

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

      325         344,799   

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

      1,000         1,043,790   

Onondaga County Cultural Resources Trust, (Syracuse University), 5.00%, 12/1/38

      515         532,896   
     

 

 

  
      $ 6,897,578   
     

 

 

  

Electric Utilities — 5.2%

      

Puerto Rico Electric Power Authority, 5.25%, 7/1/31

    $ 580       $ 368,822   

Utility Debt Securitization Authority, 5.00%, 12/15/33

      1,160         1,261,430   
     

 

 

  
      $ 1,630,252   
     

 

 

  

General Obligations — 10.4%

      

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

    $ 770       $ 814,283   

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

      1,000         1,061,400   

New York City, 5.00%, 8/1/34(1)

      1,350         1,410,588   
     

 

 

  
      $ 3,286,271   
     

 

 

  

Hospital — 8.2%

      

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

    $ 135       $ 144,254   

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

      180         184,232   

New York Dormitory Authority, (Memorial Sloan-Kettering Cancer Center), 4.375%, 7/1/34(1)

      500         494,990   

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

      235         267,023   

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

      335         344,762   

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

      1,135         1,156,679   
     

 

 

  
      $ 2,591,940   
     

 

 

  

Housing — 1.4%

      

New York Mortgage Agency, 3.55%, 10/1/33

    $ 500       $ 433,065   
     

 

 

  
      $ 433,065   
     

 

 

  

Industrial Development Revenue — 1.2%

      

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

    $ 380       $ 395,048   
     

 

 

  
      $ 395,048   
     

 

 

  

 

1

 

 

                                                 
Security   

Principal
Amount

(000’s omitted)

      Value  

Insured – Education — 26.8%

      

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

    $ 1,440       $ 1,541,045   

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

      2,250         2,278,192   

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

      345         353,829   

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

      545         556,641   

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

      500         501,970   

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

      850         868,504   

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

      5,425         2,352,497   
     

 

 

  
      $ 8,452,678   
     

 

 

  

Insured – Electric Utilities — 3.5%

      

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

    $ 500       $ 548,330   

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

      500         566,115   
     

 

 

  
      $ 1,114,445   
     

 

 

  

Insured – Escrowed/Prerefunded — 3.5%

      

New York City, (AGM), Prerefunded to 4/1/16, 5.00%, 4/1/22

    $ 1,000       $ 1,102,330   
     

 

 

  
      $ 1,102,330   
     

 

 

  

Insured – General Obligations — 11.2%

      

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

    $ 535       $ 592,534   

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

      560         622,586   

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

      250         262,610   

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

      185         194,724   

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

      190         199,432   

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

      410         414,817   

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

      185         205,487   

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

      190         207,955   

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

      210         226,867   

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

      220         236,020   

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

      350         365,008   
     

 

 

  
      $ 3,528,040   
     

 

 

  

Insured – Hospital — 3.4%

      

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

    $ 500       $ 565,810   

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

      500         507,945   
     

 

 

  
      $ 1,073,755   
     

 

 

  

Insured – Housing — 3.2%

      

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

    $ 1,000       $ 1,002,240   
     

 

 

  
      $ 1,002,240   
     

 

 

  

Insured – Other Revenue — 8.1%

      

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

    $ 700       $ 695,660   

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

      835         800,272   

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

      950         1,047,233   
     

 

 

  
      $ 2,543,165   
     

 

 

  

Insured – Special Tax Revenue — 6.8%

      

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

    $ 510       $ 610,312   

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

      1,700         303,297   

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

      1,185         130,836   

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

      385         396,092   

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

      690         706,622   
     

 

 

  
      $ 2,147,159   
     

 

 

  

Insured – Transportation — 3.2%

      

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

    $ 1,000       $ 1,025,200   
     

 

 

  
      $ 1,025,200   
     

 

 

  

 

2

 

 

                                                 
Security   

Principal
Amount

(000’s omitted)

      Value  

Insured – Water and Sewer — 4.3%

      

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

    $ 905       $ 1,007,889   

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

      350         355,754   
     

 

 

  
      $ 1,363,643   
     

 

 

  

Other Revenue — 7.6%

      

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

    $ 1,100       $ 411,180   

New York Liberty Development Corp., (7 World Trade Center), 5.00%, 9/15/32

      1,865         1,984,864   
     

 

 

  
      $ 2,396,044   
     

 

 

  

Special Tax Revenue — 18.5%

      

New York City Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(2)

    $ 500       $ 543,805   

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

      2,750         2,944,535   

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

      650         684,892   

New York Dormitory Authority, Sales Tax Revenue, 5.00%, 3/15/34

      1,020         1,077,712   

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

      530         577,599   
     

 

 

  
      $ 5,828,543   
     

 

 

  

Transportation — 17.9%

      

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

    $ 2,000       $ 2,047,760   

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

      350         354,172   

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

      65         65,551   

New York Bridge Authority, 5.00%, 1/1/26

      205         228,413   

New York Thruway Authority, 5.00%, 1/1/37

      1,175         1,204,586   

Port Authority of New York and New Jersey, 5.00%, 12/1/34(1)

      820         872,045   

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

      340         350,333   

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

      500         516,320   
     

 

 

  
      $ 5,639,180   
     

 

 

  

Total Tax-Exempt Investments — 168.8%
(identified cost $52,272,277)

       $ 53,241,016   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (42.0)%

       $ (13,250,291 ) 
     

 

 

  

Other Assets, Less Liabilities — (26.8)%

       $ (8,450,822 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 31,539,903   
     

 

 

  

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.

NPFG

   -   National Public Finance Guaranty Corp.

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 December 31, 2013, 43.9% 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 or financial guaranty assurance agency ranged from 3.8% to 18.2% 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 pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $168,805.

 

3

 

 

A summary of open financial instruments at December 31, 2013 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
3/14    22 U.S. Long Treasury Bond    Short    $     (2,869,928 )    $     (2,822,875 )    $     47,053   

At December 31, 2013, 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 December 31, 2013, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is interest rate risk was $47,053.

The cost and unrealized appreciation (depreciation) of investments of the Fund at December 31, 2013, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     42,857,788   
  

 

 

  

Gross unrealized appreciation

    $ 2,070,688   

Gross unrealized depreciation

      (992,460 ) 
  

 

 

  

Net unrealized appreciation

    $ 1,078,228   
  

 

 

  

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.

At December 31, 2013, 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

    $ —       $ 53,241,016       $ —       $ 53,241,016   

Total Investments

    $ —       $ 53,241,016       $ —       $ 53,241,016   

Futures Contracts

    $ 47,053       $ —       $ —       $ 47,053   

Total

    $     47,053       $     53,241,016       $     —       $     53,288,069   

The Fund held no investments or other financial instruments as of September 30, 2013 whose fair value was determined using Level 3 inputs. At December 31, 2013, 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.

 

4

 

 

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/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 24, 2014

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/ Payson F. Swaffield
  Payson F. Swaffield
  President
Date:   February 24, 2014

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   February 24, 2014