BLACKROCK NEW YORK MUNICIPAL 2018 TERM TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-10503

Name of Fund: BlackRock New York Municipal 2018 Term Trust (BLH)

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock New York Municipal 2018 Term Trust, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2018

Date of reporting period: 09/30/2018

Item 1 – Schedule of Investments

Schedule of Investments  (unaudited)

September 30, 2018

   

BlackRock New York Municipal 2018 Term Trust (BLH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		     Value  
Municipal Bonds — 96.0%  
New York — 96.0%  

County/City/Special District/School District — 15.4%

 

  

City of New York New York, GO, Fiscal 2017, Sub Series A-4, 1.53%, 08/01/44(a)

   $ 2,000     $ 2,000,000  

City of New York New York Transitional Finance Authority, RB, Future Tax Secured Bonds(a):

    

Series A-1, 1.54%, 11/15/28

     1,400       1,400,000  

VRDN, Series C-5 (Sumitomo Mitsui Banking Corp. LOC), 1.50%, 11/01/41

     2,000       2,000,000  

Haverstraw-Stony Point Central School District, GO, Refunding, 4.00%, 10/15/18

     1,000       1,000,790  

New York Local Government Assistance Corp., Refunding RB, VRDN, Series B (Series Lien), 1.52%, 04/01/20(a)

     2,000       2,000,000  
   

 

 

  
      8,400,790  
Education — 21.7%        

County of Onondaga New York Industrial Development Agency, RB, Syracuse University Project, VRDN, Series B (JPMorgan Chase Bank NA SBPA), 1.50%, 07/01/37(a)

     200       200,000  

County of Onondaga New York Trust for Cultural Resources, Refunding RB, VRDN, Syracuse University Project, Series A (Wells Fargo Bank NA LOC), 1.50%, 12/01/29(a)

     2,000       2,000,000  

County of Westchester Industrial Development Agency, RB, VRDN, Mercy College Project, Series B (TD Bank NA LOC), 1.49%, 07/01/30(a)

     300       300,000  

New York City Trust for Cultural Resources, Refunding RB, VRDN, The New York Botanical Garden, Series A, 1.50%, 07/01/32(a)

     2,000       2,000,000  

New York State Dormitory Authority, RB:

    

Columbia University, Series A,
1.20%, 09/01/39(a)

     1,800       1,800,000  

School Districts Financing Program, Series C, 4.00%, 10/01/18

     535       535,000  

VRDN, Rockefeller University, Series A2, 1.48%, 07/01/32(a)

     2,000       2,000,000  

New York State Dormitory Authority, Refunding RB, VRDN, City University, Consolidated 5th, Series D (TD Bank NA LOC), 1.48%, 07/01/31(a)

     2,000       2,000,000  
Security   Par
(000)		     Value  
Education (continued)        

Syracuse Industrial Development Agency, RB, VRDN, Syracuse University Project(a):

    

Series A-1 (JPMorgan Chase Bank NA SBPA), 1.38%, 07/01/37

   $ 555     $ 555,000  

Series B (US Bank NA LOC), 1.50%, 12/01/35

     400       400,000  
   

 

 

  
      11,790,000  
Health — 10.4%        

County of Westchester Industrial Development Agency, Refunding RB, VRDN, Northern Westchester Hospital Association Civic Facility, 1.48%, 11/01/24(a)

     1,600       1,600,000  

Nassau Health Care Corp., Refunding RB, Sub-Series B-1, 1.48%, 08/01/29(a)

     1,870       1,870,000  

New York City Health & Hospital Corp., Refunding RB(a):

    

Health System Bonds, Series B, 1.54%, 02/15/31

     2,000       2,000,000  

VRDN, Series C (TD Bank NA LOC), 1.52%, 02/15/31

     200       200,000  
   

 

 

  
      5,670,000  
Housing — 23.7%        

New York City Housing Development Corp., RB, VRDN, M/F(a):

    

Sustainable Nighborhood Bonds, Series D-4, 1.47%, 05/01/20

     1,925       1,925,000  

90 West Street, Series A (Fannie Mae LOC), 1.52%, 03/15/36

     900       900,000  

New York State Housing Finance Agency, HRB, VRDN, M/F, 10 Barclay Street, Series A (Fannie Mae Liquidity Facility), 1.54%, 11/15/37(a)

     1,850       1,850,000  

New York State Housing Finance Agency, Refunding RB(a):

    

M/F, Dock Street Housing Revenue Bonds, Series A, 1.54%, 11/01/46

     1,900       1,900,000  

Series M-1, 1.53%, 09/15/21

     460       460,000  

VRDN, Economic Development and Housing, Series C, 1.52%, 03/15/33

     2,000       2,000,000  

VRDN, Series L (Bank of America NA LOC), 1.52%, 09/15/21

     1,540       1,540,000  

New York State Urban Development Corp., RB, State Personal Income Tax, Series A-1,
5.00%, 12/15/18(b)

     500       503,280  
 

 

 

          1  

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock New York Municipal 2018 Term Trust (BLH)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)		     Value  
Housing (continued)  

New York State Urban Development Corp., Refunding RB, Series A-3(a):

    

(JPMorgan Chase Bank NA SBPA), 1.53%, 03/15/33

   $ 800     $ 800,000  

VRDN, 1.53%, 03/15/33

     1,000       1,000,000  
   

 

 

  
      12,878,280  
Transportation — 19.3%        

Metropolitan Transportation Authority, RB, VRDN, Sub-Series B-1, 1.51%, 11/01/22(a)

     950       950,000  

Metropolitan Transportation Authority, Refunding RB:

    

Series C, 5.00%, 11/15/18

     1,965       1,972,369  

Series F, 4.00%, 11/15/18

     300       300,771  

VRDN, Sub-Series G-2 (TD Bank NA LOC), 1.48%, 11/01/32(a)

     500       500,000  

Port Authority of New York & New Jersey, Refunding RB, AMT:

    

178th Series, 5.00%, 12/01/18

     900       904,572  

193rd Series, 4.00%, 10/15/18

     1,000       1,000,760  

Triborough Bridge & Tunnel Authority, RB, VRDN, General, Series A, 1.48%, 11/01/35(a)

     1,900       1,900,000  

Triborough Bridge & Tunnel Authority, Refunding RB, General, Series B, 4.00%, 11/15/18

     3,000       3,007,890  
   

 

 

  
      10,536,362  
Utilities — 5.5%        

City of New York New York Water & Sewer System, Refunding RB, VRDN, 2nd General Resolution, Series BB-1, 1.44%, 06/15/36(a)

     800       800,000  

New York City Muniicipal Water Finance Authority, Refunding RB, Second Genaral Resolution Revenue Bonds, Adjustable Rate, Series AA, 1.54%, 06/15/46(a)

     2,000       2,000,000  

New York State Energy Research & Development Authority, Refunding RB, VRDN, Consolidated Edison Company of New York, Inc., Sub- Series A-3 (Mizuho Bank Ltd.), 1.56%, 05/01/39(a)

     200       200,000  
   

 

 

  
      3,000,000  
   

 

 

  

Total Municipal Bonds in New York

 

     52,275,432  
   

 

 

  

Total Long-Term investments — 96.0%
(Cost — $52,276,172)

 

     52,275,432  
 

 

 

  
Security  

    

Shares

     Value  
Short-Term Securities — 3.7%  

Commercial Paper — 3.7%

 

  

State of New York Power Authority, 1.68%

   $ 2,000,000     $ 2,000,000  
   

 

 

  

Total Commercial Paper — 3.7%
(Cost — $2,000,000)

 

     2,000,000  
Short-Term Investment Fund — 0.0%  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.39%(c)(d)

     14,223       14,224  
   

 

 

  

Total Short-Term Investment Fund — 0.0%
(Cost — $14,224)

 

     14,224  
   

 

 

  

Total Short-Term Securities — 3.7%
(Cost — $2,014,224)

 

     2,014,224  
   

 

 

  

Total Investments — 99.7%
(Cost — $54,290,396)

 

     54,289,656  

Other Assets Less Liabilities — 0.3%

 

     138,122  
   

 

 

  

Net Assets Applicable to Common Shares — 100.0%

 

   $ 54,427,778  
   

 

 

  

 

(a) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(b) 

U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

(c) 

Annualized 7-day yield as of period end.

(d) 

During the period ended September 30, 2018, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows

 

 

 

2        

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock New York Municipal 2018 Term Trust (BLH)

 

 

Affiliate   Shares
Held at
12/31/17		     Net
Activity		    

Shares

Held at
09/30/18

     Value at
09/30/18		     Income    

Net

Realized
Gain (Loss)(a)

     Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, MuniCash, Institutional Class

     261,493       (247,270 )      14,223     $ 14,224     $ 13,992     $ 277     $ 52  
       

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Includes net capital gain distributions, if applicable.

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

Portfolio Abbreviations

 

AMT    Alternative Minimum Tax (subject to)
GO    General Obligation Bonds
HRB    Housing Revenue Bonds
LOC    Letter of Credit
M/F    Multi-Family
RB    Revenue Bonds
SBPA    Stand-by Bond Purchase Agreements
VRDN    Variable Rate Demand Notes

 

 

          3  

Schedule of Investments  (unaudited) (continued)

September 30, 2018

   

BlackRock New York Municipal 2018 Term Trust (BLH)

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that Trust has the ability to access

 

  •  

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

  •  

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including Trust’s own assumptions used in determining the fair value of investments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

    $ —        $ 52,275,432        $ —        $ 52,275,432  

Short-Term Securities

      14,224          2,000,000          —          2,014,224  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 14,224        $ 54,275,432        $             —        $ 54,289,656  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

See above Schedule of Investments for values in each sector.

 

During the period ended September 30, 2018, there were no transfers between levels.

 

 

4        

Item 2 – Controls and Procedures

 

2(a) –   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) –   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

 

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.

 

BlackRock New York Municipal 2018 Term Trust
By:  

/s/ John M. Perlowski

                       
  John M. Perlowski  
  Chief Executive Officer (principal executive officer) of
  BlackRock New York Municipal 2018 Term Trust
Date: November 19, 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/ John M. Perlowski

                       
  John M. Perlowski  
  Chief Executive Officer (principal executive officer) of
  BlackRock New York Municipal 2018 Term Trust
Date: November 19, 2018  
By:  

/s/ Neal J. Andrews

                       
  Neal J. Andrews  
  Chief Financial Officer (principal financial officer) of
  BlackRock New York Municipal 2018 Term Trust
Date: November 19, 2018