Company: BLE
Filing Date: 2025-08-07
Form Type: PRE 14A
Source: 0001193125-25-175555
Chunk: 137

Company: BLACKROCK MUNICIPAL INCOME TRUST II
Filing Date: 2025-08-07
Form: PRE 14A
Chunk 137
---
creditworthiness of the financial institution that provided such credit enhancement.

BYM may invest up to 20% of its managed assets in
securities that are rated below investment grade, or are considered by the Manager to be of comparable quality, at the time of purchase, subject to BYM’s other investment policies. Bonds of below investment grade quality are regarded as having
predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. Such securities are sometimes referred to as “high yield” or “junk” bonds.

The foregoing credit quality policies apply only at the time a security is purchased, and BYM is not required to dispose of a security if a
rating agency downgrades its assessment of the credit characteristics of a particular issue. In determining whether to retain or sell a security that a rating agency has downgraded, the Manager may consider such factors as the Manager’s
assessment of the credit quality of the issuer of the security, the price at which the security could be sold and the rating, if any, assigned to the security by other rating agencies. In the event that BYM disposes of a portfolio security
subsequent to its being downgraded, BYM may experience a greater risk of loss than if such security had been sold prior to such downgrade.

BYM may purchase Municipal Bonds that are additionally secured by insurance, bank credit agreements or escrow accounts. The credit quality of
companies which provide these credit enhancements will affect the value of those securities. Although the insurance feature reduces certain financial risks, the premiums for insurance and the higher market price paid for insured obligations may
reduce BYM’s income. The insurance feature does not guarantee the

72

market value of the insured obligations or the net asset value of the common shares. BYM may purchase insured bonds and may purchase insurance for bonds in its portfolio.

The average maturity of BYM’s portfolio securities varies from time to time based upon an assessment of economic and market conditions by
the Manager. BYM’s portfolio at any given time may include both long-term and intermediate-term Municipal Bonds.

BYM’s stated
expectation is that it will invest in Municipal Bonds that, in the Manager’s opinion, are underrated or undervalued. Underrated Municipal Bonds are those whose ratings do not, in the opinion of the Manager, reflect their true higher
creditworthiness. Undervalued Municipal Bonds are bonds that, in the opinion of the Manager, are worth more than the value assigned to them in the marketplace. The Manager may at