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, 2018

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

 

Eaton Vance

New York Municipal Bond Fund II

June 30, 2018

PORTFOLIO OF INVESTMENTS (Unaudited)

Tax-Exempt Investments — 164.7%

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Bond Bank — 10.6%

      

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

    $ 750      $ 789,742  

New York Environmental Facilities Corp., Clean Water and Drinking Water,
4.00%, 6/15/46(1)

      2,500        2,607,225  
     

 

 

  
      $ 3,396,967  
     

 

 

  

Education — 34.1%

      

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

    $ 110      $ 122,333  

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

      605        665,155  

New York Dormitory Authority, (Columbia University), 5.00%, 10/1/38(1)

      2,000        2,374,760  

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

      1,275        1,372,002  

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

      1,275        1,350,187  

New York Dormitory Authority, (New York University), 5.00%, 7/1/39(1)

      2,000        2,339,440  

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

      100        110,530  

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

      610        630,136  

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

      325        351,624  

New York Dormitory Authority, (The New School), Prerefunded to 7/1/20, 5.50%, 7/1/40

      1,000        1,073,190  

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

      515        577,557  
     

 

 

  
      $ 10,966,914  
     

 

 

  

Electric Utilities — 4.1%

      

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

    $ 1,160      $ 1,315,104  
     

 

 

  
      $ 1,315,104  
     

 

 

  

Escrowed/Prerefunded — 7.6%

      

Metropolitan Transportation Authority, Prerefunded to 11/15/20, 5.00%, 11/15/34

    $ 2,000      $ 2,154,360  

Triborough Bridge and Tunnel Authority, Prerefunded to 11/15/18, 5.00%, 11/15/38(1)

      300        304,107  
     

 

 

  
      $ 2,458,467  
     

 

 

  

General Obligations — 8.0%

      

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

    $ 1,000      $ 1,074,760  

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

      1,350        1,509,975  
     

 

 

  
      $ 2,584,735  
     

 

 

  

Hospital — 4.3%

      

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

    $ 135      $ 142,391  

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

      180        189,830  

 

1

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

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

    $ 500      $ 531,185  

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

      490        528,073  
     

 

 

  
      $ 1,391,479  
     

 

 

  

Housing — 11.3%

      

New York City Housing Development Corp., 3.80%, 11/1/43

    $ 825      $ 829,414  

New York City Housing Development Corp., 4.05%, 11/1/41

      330        337,339  

New York Housing Finance Agency, (FHLMC), (FNMA), (GNMA), 3.20%, 11/1/46

      675        622,755  

New York Housing Finance Agency, (FHLMC), (FNMA), (GNMA), 4.00%, 11/1/42

      500        514,895  

New York Mortgage Agency, 3.60%, 10/1/34

      515        521,546  

New York Mortgage Agency, 3.90%, 10/1/36

      810        822,239  
     

 

 

  
      $ 3,648,188  
     

 

 

  

Industrial Development Revenue — 1.5%

      

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

    $ 380      $ 472,834  
     

 

 

  
      $ 472,834  
     

 

 

  

Insured – Education — 3.8%

      

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

    $ 290      $ 290,832  

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

      345        356,527  

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

      545        563,879  
     

 

 

  
      $ 1,211,238  
     

 

 

  

Insured – Electric Utilities — 3.2%

      

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

    $ 500      $ 516,550  

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

      500        518,810  
     

 

 

  
      $ 1,035,360  
     

 

 

  

Insured – Escrowed/Prerefunded — 3.6%

      

Hoosic Valley Central School District, (AGC), Prerefunded to 6/15/19, 4.00%, 6/15/23

    $ 250      $ 255,872  

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

      905        916,883  
     

 

 

  
      $ 1,172,755  
     

 

 

  

Insured – General Obligations — 3.5%

      

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

    $ 185      $ 185,363  

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

      190        190,391  

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

      725        761,721  
     

 

 

  
      $ 1,137,475  
     

 

 

  

Insured – Hospital — 1.6%

      

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

    $ 500      $ 501,555  
     

 

 

  
      $ 501,555  
     

 

 

  

Insured – Other Revenue — 3.0%

      

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

    $ 950      $ 952,755  
     

 

 

  
      $ 952,755  
     

 

 

  

 

2

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Insured – Special Tax Revenue — 4.6%

      

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

    $ 510      $ 544,435  

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

      1,700        650,896  

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

      1,185        270,950  
     

 

 

  
      $ 1,466,281  
     

 

 

  

Lease Revenue/Certificates of Participation — 1.8%

      

Hudson Yards Infrastructure Corp., 5.00%, 2/15/42(1)

    $ 500      $ 570,525  
     

 

 

  
      $ 570,525  
     

 

 

  

Other Revenue — 18.2%

 

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

    $ 1,100      $ 674,333  

Brooklyn Arena Local Development Corp., (Barclays Center), 5.00%, 7/15/42

      500        549,105  

New York City Transitional Finance Authority, (Building Aid), 5.00%, 7/15/37(1)

      2,200        2,560,118  

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

      1,865        2,053,719  
     

 

 

  
      $ 5,837,275  
     

 

 

  

Special Tax Revenue — 18.7%

 

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

    $ 280      $ 303,842  

New York City Transitional Finance Authority, Future Tax Revenue, Prerefunded to 11/1/20, 5.50%, 11/1/35(1)

      220        238,416  

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

      2,750        3,061,108  

New York Dormitory Authority, Personal Income Tax Revenue, Series 2011A, 5.00%, 3/15/33

      650        699,738  

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

      1,020        1,140,064  

New York Thruway Authority, Miscellaneous Tax Revenue, Prerefunded to 4/1/20, 5.00%, 4/1/26

      530        560,581  
     

 

 

  
      $ 6,003,749  
     

 

 

  

Senior Living/Life Care — 0.8%

 

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.00%, 11/1/24

    $ 20      $ 22,746  

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.25%, 11/1/25

      50        58,135  

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.25%, 11/1/26

      30        35,157  

Brookhaven Local Development Corp., (Jeffersons Ferry), 5.25%, 11/1/36

      125        142,421  
     

 

 

  
      $ 258,459  
     

 

 

  

Transportation — 13.3%

 

Metropolitan Transportation Authority, 4.00%, 11/15/42

    $ 1,240      $ 1,276,679  

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

      350        370,860  

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

      65        68,757  

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

      820        924,017  

Port Authority of New York and New Jersey, 5.00%, 10/15/36

      30        34,702  

Port Authority of New York and New Jersey, 5.00%, 10/15/36(1)

      1,200        1,388,064  

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

      200        202,344  
     

 

 

  
      $ 4,265,423  
     

 

 

  

 

3

 

 

                                                 
Security    Principal
Amount
(000’s omitted)		      Value  

Water and Sewer — 7.1%

 

New York City Municipal Water Finance Authority, (Water and Sewer System),
5.00%, 6/15/46(1)

    $ 2,000      $ 2,271,940  
     

 

 

  
      $ 2,271,940  
     

 

 

  

Total Tax-Exempt Investments — 164.7%
(identified cost $51,134,264)

       $ 52,919,478  
     

 

 

  

Institutional MuniFund Term Preferred Shares, at Liquidation Value (net of unamortized deferred offering costs) — (17.8)%

       $ (5,717,804 ) 
     

 

 

  

Other Assets, Less Liabilities — (46.9)%

       $ (15,077,474 ) 
     

 

 

  

Net Assets Applicable to Common Shares — 100.0%

       $ 32,124,200  
     

 

 

  

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, 2018, 14.1% 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 1.1% to 5.5% of total investments.

 

(1)

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

Abbreviations:

 

AGC

   -   Assured Guaranty Corp.

AGM

   -   Assured Guaranty Municipal Corp.

AMBAC

   -   AMBAC Financial Group, Inc.

BHAC

   -   Berkshire Hathaway Assurance Corp.

FHLMC

   -   Federal Home Loan Mortgage Corp.

FNMA

   -   Federal National Mortgage Association

GNMA

   -   Government National Mortgage Association

NPFG

   -   National Public Finance Guaranty Corp.
 

 

The Fund did not have any open derivative instruments at June 30, 2018.

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)

 

4

 

 

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, 2018, the hierarchy of inputs used in valuing the Fund’s investments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Tax-Exempt Investments

    $ —      $ 52,919,478      $ —      $ 52,919,478  

Total Investments

    $     —      $     52,919,478      $     —      $     52,919,478  

At June 30, 2018, 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.

Proposed Plan of Reorganization

In April 2018, the Trustees of the Fund approved an Agreement and Plan of Reorganization whereby Eaton Vance New York Municipal Bond Fund (New York Municipal Bond Fund) would acquire substantially all the assets and assume substantially all the liabilities of the Fund in exchange for common shares of New York Municipal Bond Fund. The proposed reorganization is subject to approval by the shareholders of the Fund.

 

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.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

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 21, 2018

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 21, 2018

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   August 21, 2018