BLACKROCK 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: 811-10501

Name of Fund:  BlackRock Municipal 2018 Term Trust (BPK)

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock 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: 12/31/2016

Date of reporting period: 03/31/2016

Item 1 – Schedule of Investments

Schedule of Investments March 31, 2016 (Unaudited)      BlackRock Municipal 2018 Term Trust (BPK)   
     (Percentages shown are based on Net Assets)   

 

Municipal Bonds    Par
(000)		      Value  

Alabama — 2.9%

      

Alabama 21st Century Authority, Refunding RB, Series A,
5.00%, 6/01/18

    $ 500       $ 541,740   

Alabama Federal Aid Highway Finance Authority, RB, Garvee, 5.00%, 9/01/18

      6,000         6,586,140   
     

 

 

  
                7,127,880   

Alaska — 2.6%

      

City of Valdez Alaska, Refunding RB,
5.00%, 1/01/18

      6,000         6,379,500   

California — 5.7%

      

California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.00%, 8/15/19

      2,570         2,919,443   

California Pollution Control Financing Authority, Refunding RB, Mandatory Put Bonds, Republic Services, Inc. Project, Series C, AMT,
5.25%, 6/01/23 (a)

      4,055         4,271,010   

Los Angeles Regional Airports Improvement Corp., Refunding RB, Facilities Lease, LAXFuel Corp., AMT:

      

5.00%, 1/01/17

      450         464,616   

5.00%, 1/01/18

      930         996,048   

Los Angeles Unified School District California, GO, Series I,
5.00%, 7/01/20

      3,750         4,256,850   

Oakland Unified School District/Alameda County, GO, Refunding,
5.00%, 8/01/18

      1,000         1,083,900   
     

 

 

  
                13,991,867   

Colorado — 1.0%

      

Colorado Educational & Cultural Facilities Authority, Refunding RB, Peak to Peak Charter School, 4.00%, 8/15/18

      175         186,023   

Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran Good Samaritan Society Project:

      

4.00%, 12/01/17

      515         534,127   

4.00%, 12/01/18

      540         570,327   
Municipal Bonds    Par
(000)		      Value  

Colorado (continued)

      

Park Creek Metropolitan District Colorado, Refunding RB, Senior Limited Property Tax, 4.00%, 12/01/18

    $ 1,000       $ 1,070,570   
     

 

 

  
                2,361,047   

Delaware — 0.3%

      

Delaware State Economic Development Authority, RB, State University Project, 5.00%, 10/01/18

      735         805,494   

Florida — 5.4%

      

City of Miami Beach Florida, RB,
5.00%, 9/01/18

      875         959,962   

County of Broward Florida Airport System Revenue, Refunding RB, Series P-1, AMT, 5.00%, 10/01/18

      3,930         4,302,328   

County of Broward Florida School Board, COP, Series A (AGM), 5.25%, 7/01/18 (b)

      1,250         1,363,500   

County of Indian River Florida School Board, COP, Refunding, Series A,
5.00%, 7/01/18

      600         653,676   

County of Miami-Dade Florida, Refunding RB, Series A, AMT, 5.00%, 10/01/18

      2,000         2,192,860   

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center, 4.00%, 11/15/18

      250         267,043   

Miami-Dade County School Board Foundation. Inc, COP, Refunding
Series A, 5.00%, 5/01/18

      1,500         1,626,750   

Pine Island Community Development District, RB, 5.30%, 11/01/10 (c)(d)

      400         224,332   

Stevens Plantation Community Development District, Special Assessment Bonds, Series B, 6.38%, 5/01/13 (c)(d)

      2,270         1,588,637   
     

 

 

  
                13,179,088   

Guam — 0.3%

      

Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/19

      620         701,536   

Hawaii — 0.2%

      

Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose Senior Living Revenue, 5.00%, 11/15/18

      370         397,350   
 

 

 

       BLACKROCK MUNICIPAL 2018 TERM TRUST    MARCH 31, 2016    1  

Schedule of Investments (continued)      BlackRock Municipal 2018 Term Trust (BPK)   
  

 

Municipal Bonds    Par
(000)		      Value  

Illinois — 6.2%

      

Chicago Transit Authority, Refunding RB, 5.00%, 6/01/18

    $ 1,000       $ 1,076,030   

Counties of Du Page & Will Illinois Community School District No 204 Indian Prairie, GO, Refunding Series B,
3.00%, 12/30/18

      1,935         2,031,092   

Fox Valley Park District, GO, Series A, 5.00%, 12/15/18

      1,725         1,912,473   

Illinois Finance Authority, Refunding RB:

      

Central DuPage Health,
Series B, 5.00%, 11/01/18

      2,290         2,509,840   

Peoples Gas Light and Coke Co. Project, Series B,
1.88%, 2/01/33 (a)

      1,000         1,011,870   

University Medical Center Rush, Series A, 5.00%, 11/15/18

      1,000         1,100,660   

State of Illinois, GO, (AGM), 5.00%, 4/01/18

      465         488,236   

State of Illinois, RB, Build Illinois, Series B:

      

5.00%, 6/15/18 (e)

      355         387,163   

Unrefunded Balance, 5.00%, 6/15/18

      1,645         1,789,464   

State of Illinois, GO, Refunding,
5.00%, 8/01/18

      2,500         2,684,900   
     
     

 

 

  
                14,991,728   

Indiana — 3.2%

      

City of Vincennes Indiana, Refunding RB, Southwest Indiana Regional Youth Village, 6.25%, 1/01/24

      2,515         2,375,317   

Indiana Finance Authority, RB, Ohio River Bridges East End Crossing Project, Series B, AMT, 5.00%, 1/01/19

      1,715         1,760,859   

Indiana State Municipal Power Agency, Refunding RB, Series A, 5.00%, 1/01/19

      875         972,720   

Indianapolis Airport Authority, Refunding RB, Special Facilities, FedEx Corp. Project, AMT, 5.10%, 1/15/17

      2,500         2,581,825   
     

 

 

  
                7,690,721   

Iowa — 1.1%

      

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.00%, 12/01/19

      2,000         2,063,000   
Municipal Bonds    Par
(000)		      Value  

Iowa (continued)

      

University of Iowa, Refunding RB, Series S, 5.00%, 11/01/18

    $ 655       $ 724,070   
     

 

 

  
                2,787,070   

Kansas — 1.1%

      

Kansas Development Finance Authority, Refunding RB, Adventist Health,
5.00%, 11/15/18

      2,500         2,759,525   

Kentucky — 3.5%

      

County of Kenton Kentucky School District Finance Corp., Refunding RB,
2.50%, 6/01/18

      3,210         3,310,120   

County of Louisville & Jefferson Kentucky Metropolitan Government, Refunding RB, Catholic Health Initiatives, Series A, 5.00%, 12/01/18

      1,755         1,936,309   

Kentucky Housing Corp., RB, S/F Housing, Series C, AMT, 4.63%, 7/01/22

      3,195         3,213,531   
     

 

 

  
                8,459,960   

Maryland — 3.6%

      

Maryland Health & Higher Educational Facilities Authority, Refunding RB:

      

Charlestown Community,
5.00%, 1/01/19

      1,685         1,826,624   

Meritas Medical Center,
5.00%, 7/01/18

      400         434,288   

University of Maryland Medical
System, 5.00%, 7/01/18

      1,000         1,084,090   

Maryland State Transportation Authority, Refunding RB, Baltimore/Washington Thurgood Marshall Airport Project, Series B, AMT, 5.00%, 3/01/19

      5,000         5,546,000   
     

 

 

  
                8,891,002   

Michigan — 3.9%

      

Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital (AGM), 5.00%, 5/15/18

      2,025         2,182,768   

Michigan State Finance Authority, Refunding RB, AMT:

      

5.00%, 11/01/17

      2,275         2,388,568   

5.00%, 11/01/18

      2,100         2,264,598   

Michigan State Hospital Finance Authority, Refunding RB, Oakwood Obligation Group, Series A, 5.00%, 7/15/17 (b)

      1,000         1,055,520   
 

 

 

    

 

    BLACKROCK MUNICIPAL 2018 TERM TRUST

   

 

MARCH 31, 2016

    2  

Schedule of Investments (continued)      BlackRock Municipal 2018 Term Trust (BPK)   
  

 

Municipal Bonds    Par
(000)		      Value  

Michigan (continued)

      

Michigan State Housing Development Authority, Refunding RB, Series B,
4.15%, 4/01/18

    $ 1,000       $ 1,054,770   

Saginaw Valley State University, RB, Series A, 5.00%, 7/01/18

      600         652,158   
     

 

 

  
                9,598,382   

Mississippi — 0.4%

      

Mississippi Development Bank, Refunding RB, 5.00%, 3/01/18

      1,000         1,070,860   

Missouri — 0.8%

      

City of Kansas City Missouri, Refunding ARB, AMT, Series A, 5.00%, 9/01/18

      1,750         1,906,293   

Nebraska — 1.6%

      

Central Plains Energy Project, RB, Gas Project (Project No. 3), 5.00%, 9/01/17

      2,330         2,453,304   

Public Power Generation Agency, RB, Whelan Energy Center, Series 2-A (AGC), 5.00%, 1/01/17 (b)

      1,500         1,549,650   
     

 

 

  
                4,002,954   

Nevada — 4.2%

      

City of Las Vegas Nevada, Special Assessment Bonds, Summerlin Area, 5.35%, 6/01/17

      885         889,345   

County of Clark Nevada, Refunding, Special Assessment Bonds, Improvement District No. 142, Mountain’s Edge, 4.00%, 8/01/18

      3,715         3,829,348   

Director of the State of Nevada Department of Business & Industry, RB, Mandatory Put Bonds, Republic Services, Inc. Project, AMT, 5.63%, 12/01/26 (a)

      5,120         5,487,872   
     

 

 

  
                10,206,565   

New Hampshire — 2.1%

      

New Hampshire State Turnpike System, RB, Series A, 5.00%, 10/01/18

      4,740         5,221,821   

New Jersey — 12.5%

      

New Jersey EDA, Refunding RB:

      

Cigarette Tax Revenue,
5.00%, 6/15/18

      5,000         5,298,000   

Lions Gate Project, 3.25%, 1/01/18

      250         251,625   
Municipal Bonds    Par
(000)		      Value  

New Jersey (continued)

      

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.50%, 4/01/16

    $ 960       $ 960,000   

New Jersey Educational Facilities Authority, RB, Seton Hall University, Series D, 5.00%, 7/01/18

      320         346,611   

New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B,
6.25%, 12/01/18 (e)

      2,500         2,844,350   

New Jersey Health Care Facilities Financing Authority, Refunding RB:

      

AHS Hospital Corp.,
5.00%, 7/01/18

      850         920,882   

AtlantiCare Regional Medical Center,
5.00%, 7/01/17 (b)

      1,500         1,580,310   

Barnabas Health, Series A,
5.00%, 7/01/18

      2,000         2,163,520   

Princeton HealthCare System,
5.00%, 7/01/18

      1,620         1,757,732   

New Jersey State Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series T, AMT,
4.55%, 10/01/22

      1,705         1,742,834   

New Jersey State Turnpike Authority, Refunding RB, Series G,
5.00%, 1/01/18

      1,350         1,446,849   

New Jersey Transportation Trust Fund Authority, RB:

      

Series B, 5.00%, 6/15/18

      2,000         2,131,600   

Transportation Program, Series AA,
5.00%, 6/15/18

      2,000         2,131,600   

Transportation System, Series A,
5.75%, 6/15/18

      1,320         1,428,121   

Transportation System, Series A (AMBAC), 5.75%, 6/15/18

      2,070         2,243,777   

Newark Housing Authority, RB, South Ward Police Facility (AGC),
4.50%, 12/01/18

      2,785         2,919,265   

South Jersey Transportation Authority LLC, Refunding RB, Series A,
5.00%, 11/01/20

      200         224,342   
     

 

 

  
                30,391,418   
 

 

 

         BLACKROCK MUNICIPAL 2018 TERM TRUST    MARCH 31, 2016    3  

Schedule of Investments (continued)      BlackRock Municipal 2018 Term Trust (BPK)   
  

 

Municipal Bonds    Par
(000)		      Value  

New York — 5.1%

      

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, Series B,
2.00%, 8/01/28 (a)

    $ 1,530       $ 1,533,427   

Metropolitan Transportation Authority, Refunding RB:

      

Series A, 5.00%, 11/15/18

      1,000         1,109,320   

Series F, 4.00%, 11/15/18

      200         216,356   

New York State Dormitory Authority, RB, General Purpose, Series A,
5.00%, 3/15/18

      6,500         7,039,240   

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC Project, 5.00%, 12/01/20

      1,200         1,363,332   

State of New York Dormitory Authority, Refunding RB, Orignal Regional Medical Center, 5.00%, 12/01/17 (f)

      1,000         1,059,250   
     

 

 

  
                12,320,925   

North Carolina — 0.9%

      

North Carolina HFA, Refunding RB,
Series 28-A, AMT, 4.65%, 7/01/23

      2,170         2,204,698   

Pennsylvania — 11.8%

      

Altoona City Authority, Refunding RB,
5.25%, 11/01/18

      2,500         2,755,850   

Chester County Health & Education Facilities Authority, Refunding RB:

      

3.00%, 12/01/17

      585         591,552   

4.00%, 12/01/18

      805         831,935   

Cumberland County Municipal Authority, Refunding RB:

      

4.00%, 1/01/18

      1,380         1,434,952   

5.75%, 1/01/19 (e)

      2,135         2,412,486   

5.75%, 1/01/19

      240         268,961   

Lancaster Industrial Development Authority, Refunding RB, Garden Spot Village Project:

      

5.00%, 5/01/16

      300         300,870   

5.00%, 5/01/17

      1,175         1,209,028   

Montgomery County Industrial Development Authority, Refunding RB, 5.00%, 1/15/18

      1,000         1,059,460   

Pennsylvania Economic Development Financing Authority, RB:

      

PA Bridges Finco LP, AMT,
5.00%, 12/31/18

      2,100         2,310,987   
Municipal Bonds    Par
(000)		      Value  

Pennsylvania (continued)

      

Pennsylvania Economic Development Financing Authority, RB (continued):

      

University of Pennsylvania Medical Center, 5.00%, 3/15/18

    $ 750       $ 810,600   

Waste Management, Inc. Project,
1.55%, 12/01/33 (a)

      5,000         5,017,550   

Pennsylvania Economic Development Financing Authority, Refunding RB, Amtrak Project, Series A, AMT,
3.00%, 11/01/18

      1,000         1,034,500   

Pennsylvania Higher Educational Facilities Authority, RB, Shippensburg University Student Services, Inc., Student Housing Project:

      

4.00%, 10/01/17

      275         283,583   

4.00%, 10/01/18

      560         585,642   

Pennsylvania Higher Educational Facilities Authority, Refunding RB, Drexel University, Series A, 5.00%, 5/01/18

      1,000         1,080,750   

Pennsylvania IDA, Refunding RB, Economic Development,
5.00%, 7/01/18

      1,500         1,632,090   

Pennsylvania Turnpike Commission, RB, Sub-Series A (AGC),
5.00%, 6/01/19 (b)

      1,000         1,127,820   

Philadelphia Gas Works Co., Refunding RB, 4.00%, 8/01/18

      1,790         1,913,438   

State Public School Building Authority, RB, Community College of Allegheny County Project (AGM), 5.00%, 7/15/18

      900         975,987   

West Chester Area School District, GO, Refunding, Series AA, 5.00%, 5/15/18

      1,000         1,090,040   
     

 

 

  
                28,728,081   

Tennessee — 0.1%

      

Metropolitan Gov’t Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A,
4.00%, 10/01/18

      260         277,477   

Texas — 13.4%

      

Alliance Airport Authority Texas, Refunding RB, FedEx Corp. Project, AMT,
4.85%, 4/01/21

      2,000         2,000,000   
 

 

 

         BLACKROCK MUNICIPAL 2018 TERM TRUST    MARCH 31, 2016    4  

Schedule of Investments (continued)      BlackRock Municipal 2018 Term Trust (BPK)   
  

 

Municipal Bonds    Par
(000)		      Value  

Texas (continued)

      

Birdville ISD Texas, GO, Refunding, CAB (PSF-GTD), 0.00%, 2/15/18 (g)

    $ 1,615       $ 1,589,402   

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien,
5.75%, 1/01/18

      750         811,020   

City of Dallas Texas, GO, Refunding,
5.00%, 2/15/18

      3,500         3,774,820   

City of Dallas Texas, Refunding RB, Civic Center Convention Complex (AGC), 5.00%, 8/15/21

      2,500         2,794,725   

City of Houston Texas, Refunding RB, Sub Lien, Series B, 5.00%, 7/01/18

      1,000         1,087,590   

Houston ISD Public Facilities Authority, RB, 5.00%, 9/15/18

      5,000         5,496,550   

Lower Colorado River Authority, Refunding RB, LCRA Transmission, Series B, 5.00%, 5/15/18

      5,000         5,429,450   

New Hope Cultural Education Facilities Corp., RB, Stephenville LLC Tarleton State University Project, Series A:

      

4.00%, 4/01/17

      160         163,216   

4.00%, 4/01/18

      405         419,912   

4.00%, 4/01/18

      280         289,475   

4.00%, 4/01/20

      165         179,250   

North Texas Tollway Authority, Refunding RB, Series C, 5.00%, 1/01/19

      2,215         2,454,707   

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB,
5.00%, 11/15/18

      1,195         1,285,163   

Texas Municipal Gas Acquisition & Supply Corp. III, RB, 5.00%, 12/15/18

      4,360         4,788,632   
     

 

 

  
                32,563,912   

Virginia — 0.9%

      

City of Norfolk Virginia, Refunding RB, Water Revenue, 5.00%, 11/01/18

      1,230         1,360,245   

Virginia College Building Authority, Refunding RB, Series A, 5.00%, 7/01/18 (f)

      785         831,009   
     

 

 

  
                2,191,254   

Washington — 1.5%

      

Energy Northwest, Refunding RB, Wind Project Revenue, 5.00%, 7/01/18

      2,865         3,121,990   
Municipal Bonds   

Par

(000)

      Value  

Washington (continued)

      

Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series B, 5.00%, 10/01/18

    $ 500       $ 550,825   
     

 

 

  
                3,672,815   

Wisconsin — 1.8%

      

City of Franklin Wisconsin, RB, Waste Management, Inc. Project, AMT, 4.95%, 4/01/16

      1,990         1,990,000   

State of Wisconsin, Refunding RB, Series A, 5.00%, 5/01/18

      1,000         1,087,030   

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., 5.00%, 4/01/19

      1,265         1,414,586   
     

 

 

  
                4,491,616   

Total Municipal Bonds — 98.1%

  

      239,372,839   
     
   
Municipal Bonds Transferred to Tender Option Bond Trusts (h)                  

Illinois — 2.2%

      

City of Chicago Illinois Waterworks, Refunding RB, 2nd Lien (AGM), 5.00%, 11/01/20

      5,000         5,399,800   

Total Long-Term Investments

(Cost — $ 239,367,204) — 100.3%

               244,772,639   
     
   
Short-Term Securities    Shares          

BlackRock Liquidity Funds, MuniCash, 0.17% (i)(j)

      1,902,193         1,902,193   

Total Short-Term Securities

(Cost — $ 1,902,193) — 0.8%

               1,902,193   

Total Investments

(Cost — $ 241,269,397*) — 101.1%

  

  

      246,674,832   

Other Assets Less Liabilities — 0.4%

  

      978,985   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (1.5)%          (3,754,346 ) 
     

 

 

  

Net Assets Applicable to Common

Shares — 100.0%

  

  

    $ 243,899,471   
     

 

 

  

 

* As of March 31, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 237,543,035   
  

 

 

  

Gross unrealized appreciation

    $ 6,437,822   

Gross unrealized depreciation

      (1,056,025 ) 
  

 

 

  

Net unrealized appreciation

    $ 5,381,797   
  

 

 

  
 

 

 

     BLACKROCK MUNICIPAL 2018 TERM TRUST    MARCH 31, 2016    5  

Schedule of Investments (continued)      BlackRock Municipal 2018 Term Trust (BPK)   

 

Notes to Schedule of Investments

 

(a) Variable rate security. Rate 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) Non-income producing security.
(d) Issuer filed for bankruptcy and/or is in default of interest payments.
(e) Security is collateralized by municipal bonds or U.S. Treasury obligations.
(f) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(g) Zero-coupon bond.
(h) Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing.
(i) During the period ended March 31, 2016, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate    Shares
Held at
December 31, 2015		    Net
Activity		   Shares
Held at
March 31, 2016		    Income

BlackRock Liquidity Funds, MuniCash

    —    1,902,193   1,902,193    —

FFI Institutional Tax-Exempt Fund

    69    (69)   —    $    109

 

(j) Current yield as of period end.

 

Portfolio Abbreviations

 

AGC

    Assured Guarantee Corp.

AGM

    Assured Guaranty Municipal Corp.

AMBAC

    American Municipal Bond Assurance Corp.

AMT

    Alternative Minimum Tax (subject to)

ARB

    Airport Revenue Bonds

CAB

    Capital Appreciation Bonds

COP

    Certificates of Participation

EDA

    Economic Development Authority

GO

    General Obligation Bonds

HFA

    Housing Finance Agency

IDA

    Industrial Development Authority

ISD

    Independent School District

PSF-GTD

    Permanent School Fund Guaranteed

RB

    Revenue Bonds

S/F

    Single-Family

 

 

     BLACKROCK MUNICIPAL 2018 TERM TRUST    MARCH 31, 2016    6  

Schedule of Investments (concluded)      BlackRock Municipal 2018 Term Trust (BPK)   

 

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 the 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 the 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. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3.

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 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 Investments1

      —          $ 244,772,639           —          $ 244,772,639   

Short-Term Securities

    $     1,902,193            —           —            1,902,193   
  

 

 

  

Total

    $     1,902,193          $     244,772,639           —          $     246,674,832   
  

 

 

  

1   See above Schedule of Investments for values in each sector.

 

                    

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial reporting purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

   

      Level 1            Level 2           Level 3            Total  

Liabilities:

                    

Bank overdraft

      —          $ (6 )         —          $ (6 ) 

TOB Trust Certificates

      —            (3,750,000 )         —            (3,750,000 ) 
  

 

 

  

Total

      —          $ (3,750,006 )         —          $ (3,750,006 ) 
  

 

 

  

During the period ended March 31, 2016, there were no transfers between levels.

 

 

 

     BLACKROCK MUNICIPAL 2018 TERM TRUST    MARCH 31, 2016    7

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 Municipal 2018 Term Trust

 

By:        /s/ John M. Perlowski                    
   John M. Perlowski
   Chief Executive Officer (principal executive officer) of 
   BlackRock Municipal 2018 Term Trust
Date: May 23, 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/ John M. Perlowski                    
   John M. Perlowski
   Chief Executive Officer (principal executive officer) of 
   BlackRock Municipal 2018 Term Trust
Date: May 23, 2016

 

By:        /s/ Neal J. Andrews                    
   Neal J. Andrews
   Chief Financial Officer (principal financial officer) of 
   BlackRock Municipal 2018 Term Trust
Date: May 23, 2016