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, 2016

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

New York Municipal Bond Fund II

June 30, 2016

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 154.2%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 4.1%

      

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

    $ 500       $ 626,565   

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

      750         855,097   
     

 

 

  
   $ 1,481,662   
     

 

 

  

Education — 20.7%

      

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

    $ 110       $ 131,369   

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

      605         724,977   

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

      60         70,701   

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

      1,275         1,501,236   

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

      1,275         1,465,689   

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

      565         687,170   

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

      610         685,097   

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

      325         377,497   

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

      1,000         1,162,670   

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

      515         631,380   
     

 

 

  
   $ 7,437,786   
     

 

 

  

Electric Utilities — 4.0%

      

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

    $ 1,160       $ 1,437,159   
     

 

 

  
   $ 1,437,159   
     

 

 

  

Escrowed/Prerefunded — 1.0%

      

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

    $ 335       $ 347,268   
     

 

 

  
   $ 347,268   
     

 

 

  

General Obligations — 10.3%

      

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

    $ 770       $ 862,207   

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

      1,000         1,175,570   

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

      1,350         1,650,240   
     

 

 

  
   $ 3,688,017   
     

 

 

  

Hospital — 12.1%

      

Dutchess County Local Development Corp., (Health Quest Systems, Inc.), 5.00%, 7/1/35(2)

    $ 1,500       $ 1,842,150   

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

      135         153,433   

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

      180         204,205   

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

      500         556,895   

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

      235         269,601   

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

      970         1,107,876   

Suffolk County Economic Development Corp., (Catholic Health Services of Long Island Obligated Group), Prerefunded to 7/1/21, 5.00%, 7/1/28

      165         197,439   
     

 

 

  
   $ 4,331,599   
     

 

 

  

Housing — 1.4%

      

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

    $ 495       $ 522,255   
     

 

 

  
   $ 522,255   
     

 

 

  

Industrial Development Revenue — 1.4%

      

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

    $ 380       $ 513,046   
     

 

 

  
   $ 513,046   
     

 

 

  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured-Education — 17.0%

      

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

    $ 290       $ 302,618   

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

      1,150         1,200,336   

New York Dormitory Authority, (Pratt Institute), (AGC), Prerefunded to 7/1/19,
5.00%, 7/1/34

      345         388,839   

New York Dormitory Authority, (Pratt Institute), (AGC), Prerefunded to 7/1/19,
5.125%, 7/1/39(3)

      545         616,275   

New York Dormitory Authority, (St. John’s University), (NPFG), Prerefunded to 7/1/17,
5.25%, 7/1/37(3)

      850         889,321   

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

      5,425         2,699,317   
     

 

 

  
   $ 6,096,706   
     

 

 

  

Insured-Electric Utilities — 3.2%

      

Long Island Power Authority, Electric System Revenue, (BHAC), Prerefunded to 5/1/19,
5.50%, 5/1/33

    $ 500       $ 567,500   

Long Island Power Authority, Electric System Revenue, (BHAC), Prerefunded to 5/1/19,
6.00%, 5/1/33

      500         574,510   
     

 

 

  
   $ 1,142,010   
     

 

 

  

Insured-Escrowed/Prerefunded — 8.0%

      

Metropolitan Transportation Authority, Dedicated Tax Revenue, (AGM), (NPFG), Prerefunded to 11/15/16, 5.00%, 11/15/31

    $ 1,000       $ 1,017,130   

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

      905         1,005,871   

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.50%, 11/15/19

      185         195,034   

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.50%, 11/15/20

      190         200,306   

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.75%, 11/15/22

      210         222,109   

Wantagh Union Free School District, (AGC), Prerefunded to 11/15/17, 4.75%, 11/15/23

      220         232,685   
     

 

 

  
   $ 2,873,135   
     

 

 

  

Insured-General Obligations — 9.8%

      

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

    $ 535       $ 600,254   

Brentwood Union Free School District, (AGC), 5.00%, 11/15/24(3)

      560         633,528   

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

      250         274,255   

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

      185         196,398   

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

      190         202,097   

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

      725         799,595   

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

      410         414,535   

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

      350         391,342   
     

 

 

  
   $ 3,512,004   
     

 

 

  

Insured-Hospital — 3.0%

  

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

    $ 500       $ 538,240   

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

      500         523,260   
     

 

 

  
   $ 1,061,500   
     

 

 

  

Insured-Other Revenue — 2.9%

      

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

    $ 950       $ 1,043,356   
     

 

 

  
   $ 1,043,356   
     

 

 

  

Insured-Special Tax Revenue — 3.6%

      

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

    $ 510       $ 598,954   

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

      1,700         479,094   

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

      1,185         216,049   
     

 

 

  
   $ 1,294,097   
     

 

 

  

Other Revenue — 8.0%

      

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

    $ 1,100       $ 614,383   

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

      1,865         2,258,273   
     

 

 

  
   $ 2,872,656   
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Special Tax Revenue — 24.7%

      

New York City Transitional Finance Authority, Future Tax Revenue, 5.50%, 11/1/35(1)(4)

    $ 500       $ 597,855   

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

      2,750         3,380,245   

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

      650         765,999   

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

      1,020         1,228,937   

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

      530         607,990   

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

      1,410         1,792,124   

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

      390         493,958   
     

 

 

  
   $ 8,867,108   
     

 

 

  

Transportation — 19.0%

      

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

    $ 2,000       $ 2,332,840   

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

      350         399,347   

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

      65         73,848   

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

      205         248,185   

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

      1,175         1,374,503   

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

      200         255,388   

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

      160         200,597   

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

      820         1,015,603   

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

      340         366,132   

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

      500         547,515   
     

 

 

  
   $ 6,813,958   
     

 

 

  

Total Tax-Exempt Investments — 154.2%
(identified cost $49,848,206)

       $ 55,335,322   
     

 

 

  

Auction Preferred Shares Plus Cumulative Unpaid Dividends — (4.9)%

  

    $ (1,750,072 ) 
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value — (32.1)%

  

    $ (11,500,000 ) 
     

 

 

  

Other Assets, Less Liabilities — (17.2)%

       $ (6,191,499 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 35,893,751   
     

 

 

  

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

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, 2016, 30.8% 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 1.9% to 12.2% of total investments.

 

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

 

(2) When-issued security.

 

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

 

(4) Security (or a portion thereof) has been pledged as collateral for residual interest bond transactions. The aggregate value of such collateral is $222,855.

Futures Contracts

 

Description

    Contracts    Position    Expiration
Month/Year		      Aggregate Cost     Value     Net Unrealized
Depreciation		  

Interest Rate Futures

  

U.S. Long Treasury Bond    15    Short      Sep-16       $     (2,440,087 )    $     (2,585,156 )    $     (145,069 ) 
               

 

 

  
  $ (145,069 ) 
               

 

 

  

 

3

 

 

Abbreviations:

 

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.

At June 30, 2016, the Fund had sufficient cash and/or securities to cover commitments under open derivative 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, 2016, 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 $145,069.

The cost and unrealized appreciation (depreciation) of investments of the Fund at June 30, 2016, as determined on a federal income tax basis, were as follows:

 

Aggregate cost

    $     42,648,519   
  

 

 

  

Gross unrealized appreciation

    $ 5,842,623   

Gross unrealized depreciation

      (255,820 ) 
  

 

 

  

Net unrealized appreciation

    $ 5,586,803   
  

 

 

  

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, 2016, 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

    $ —       $ 55,335,322       $ —       $ 55,335,322   

Total Investments

    $ —       $     55,335,322       $ —       $     55,335,322   
Liability Description                        

Futures Contracts

    $ (145,069 )     $ —       $ —       $ (145,069 ) 

Total

    $     (145,069 )     $ —       $     —       $ (145,069 ) 

The Fund held no investments or other financial instruments as of September 30, 2015 whose fair value was determined using Level 3 inputs. At June 30, 2016, 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 22, 2016

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 22, 2016

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 22, 2016