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, 2015

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

New York Municipal Bond Fund II

June 30, 2015

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 162.1%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 4.2%

      

New York Environmental Facilities Corp., 5.00%, 11/15/33

    $ 500       $ 578,450   

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

      750         845,550   
     

 

 

  
      $ 1,424,000   
     

 

 

  

Education — 21.1%

      

Geneva Development Corp., (Hobart and William Smith Colleges), 5.00%, 9/1/33

    $ 110       $ 122,873   

Geneva Development Corp., (Hobart and William Smith Colleges),
Series 2012, 5.00%, 9/1/32

      605         668,942   

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

      60         67,670   

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

      1,275         1,428,931   

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

      1,275         1,441,324   

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

      565         642,004   

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

      610         682,932   

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

      325         369,454   

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

      1,000         1,133,970   

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

      515         578,082   
     

 

 

  
      $ 7,136,182   
     

 

 

  

Electric Utilities — 3.9%

      

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

    $ 1,160       $ 1,333,107   
     

 

 

  
      $ 1,333,107   
     

 

 

  

Escrowed/Prerefunded — 1.1%

      

New York Dormitory Authority, (North Shore-Long Island Jewish Obligated Group), Prerefunded to 5/1/17, 5.00%, 5/1/26

    $ 335       $ 361,093   
     

 

 

  
      $ 361,093   
     

 

 

  

General Obligations — 10.3%

      

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

    $ 770       $ 848,833   

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

      1,000         1,123,080   

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

      1,350         1,518,817   
     

 

 

  
      $ 3,490,730   
     

 

 

  

Hospital — 7.0%

      

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

    $ 135       $ 149,506   

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

      180         198,499   

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

      500         523,765   

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

      235         268,682   

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

      1,135         1,233,495   
     

 

 

  
      $ 2,373,947   
     

 

 

  

Housing — 1.4%

      

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

    $ 500       $ 489,440   
     

 

 

  
      $ 489,440   
     

 

 

  

Industrial Development Revenue — 1.3%

      

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

    $ 380       $ 439,136   
     

 

 

  
      $ 439,136   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Education — 25.0%

      

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

    $ 290       $ 313,113   

New York Dormitory Authority, (Barnard College), (NPFG), Prerefunded to
7/1/17, 5.00%, 7/1/24

      1,150         1,247,819   

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

      2,250         2,458,530   

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

      345         373,131   

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

      545         585,924   

New York Dormitory Authority, (St. John’s University), (NPFG), Prerefunded to
7/1/17, 5.25%, 7/1/37

      850         925,803   

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

      5,425         2,569,172   
     

 

 

  
      $ 8,473,492   
     

 

 

  

Insured-Electric Utilities — 3.4%

      

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

    $ 500       $ 573,610   

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

      500         580,855   
     

 

 

  
      $ 1,154,465   
     

 

 

  

Insured-Escrowed/Prerefunded — 6.1%

      

Nassau County Sewer and Storm Water Finance Authority, (BHAC), Prerefunded to
11/1/18, 5.375%, 11/1/28

    $ 905       $ 1,034,288   

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

      1,000         1,035,700   
     

 

 

  
      $ 2,069,988   
     

 

 

  

Insured-General Obligations — 12.8%

      

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

    $ 535       $ 597,895   

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

      560         634,698   

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

      250         268,910   

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

      185         197,806   

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

      190         203,824   

Oyster Bay, (AGM), 4.00%, 8/1/28

      725         760,597   

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

      410         422,370   

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

      185         199,872   

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

      190         205,092   

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

      210         227,598   

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

      220         238,436   

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

      350         378,655   
     

 

 

  
      $ 4,335,753   
     

 

 

  

Insured-Hospital — 3.2%

      

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

    $ 500       $ 554,450   

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

      500         535,960   
     

 

 

  
      $ 1,090,410   
     

 

 

  

Insured-Other Revenue — 3.1%

      

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

    $ 950       $ 1,064,390   
     

 

 

  
      $ 1,064,390   
     

 

 

  

Insured-Special Tax Revenue — 6.6%

      

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

    $ 1,000       $ 1,055,530   

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

      510         604,778   

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

      1,700         408,663   

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

      1,185         155,069   
     

 

 

  
      $ 2,224,040   
     

 

 

  

Other Revenue — 7.9%

      

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

    $ 1,100       $ 528,264   

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

      1,865         2,131,434   
     

 

 

  
      $ 2,659,698   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Special Tax Revenue — 24.6%

      

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

    $ 500       $ 589,520   

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

      2,750         3,129,857   

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

      650         736,145   

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

      1,020         1,153,793   

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

      530         599,610   

Sales Tax Asset Receivables Corp., 5.00%, 10/15/30

      1,410         1,659,655   

Sales Tax Asset Receivables Corp., 5.00%, 10/15/31

      390         456,620   
     

 

 

  
      $ 8,325,200   
     

 

 

  

Transportation — 19.1%

      

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

    $ 2,000       $ 2,215,560   

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

      350         373,415   

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

      65         69,477   

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

      205         236,980   

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

      1,175         1,298,645   

Niagara Falls Bridge Commission, 5.00%, 10/1/24

      200         240,884   

Niagara Falls Bridge Commission, 5.00%, 10/1/26

      160         187,373   

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

      820         930,110   

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

      340         370,365   

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

      500         550,365   
     

 

 

  
      $ 6,473,174   
     

 

 

  

Total Tax-Exempt Investments — 162.1%
(identified cost $51,269,717)

       $ 54,918,245   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (39.1)%

       $ (13,250,419 ) 
     

 

 

  

Other Assets, Less Liabilities — (23.0)%

       $ (7,794,156 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 33,873,670   
     

 

 

  

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 June 30, 2015, 37.2% 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 1.8% to 12.2% 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 $214,520.

A summary of open financial instruments at June 30, 2015 is as follows:

Futures Contracts

 

Expiration
Month/Year		   

Contracts

    Position    Aggregate Cost     Value     Net Unrealized
Appreciation		  
9/15    15 U.S. Long Treasury Bond    Short    $     (2,320,401 )    $     (2,262,656 )    $     57,745   

 

3

 

 

At June 30, 2015, 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 enters into U.S. Treasury futures contracts to hedge against changes in interest rates.

At June 30, 2015, 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 $57,745.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2015, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     41,860,446   
  

 

 

  

Gross unrealized appreciation

    $ 4,145,685   

Gross unrealized depreciation

      (392,886 ) 
  

 

 

  

Net unrealized appreciation

    $ 3,752,799   
  

 

 

  

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 June 30, 2015, 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

    $ —       $ 54,918,245       $ —       $ 54,918,245   

Total Investments

    $ —       $ 54,918,245       $ —       $ 54,918,245   

Futures Contracts

    $ 57,745       $ —       $ —       $ 57,745   

Total

    $     57,745       $     54,918,245       $     —       $     54,975,990   

The Fund held no investments or other financial instruments as of September 30, 2014 whose fair value was determined using Level 3 inputs. At June 30, 2015, 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:   August 24, 2015

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:   August 24, 2015

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 24, 2015