lp1-852.htm - Generated by SEC Publisher for SEC Filing




Washington, D.C.  20549



Investment Company Act file number





Dreyfus Strategic Municipal Bond Fund, Inc.



(Exact name of Registrant as specified in charter)







c/o The Dreyfus Corporation

200 Park Avenue

New York, New York 10166



(Address of principal executive offices) (Zip code)






John Pak, Esq.

200 Park Avenue

New York, New York 10166



(Name and address of agent for service)



Registrant's telephone number, including area code:

(212) 922-6000



Date of fiscal year end:




Date of reporting period:









Item 1.                         Schedule of Investments.



Dreyfus Strategic Municipal Bond Fund, Inc.           
August 31, 2014 (Unaudited)           
Long-Term Municipal  Coupon  Maturity  Principal    
Investments--144.8%  Rate (%)  Date  Amount ($)   Value ($) 
Alabama Public School and College           
Authority, Capital Improvement           
Revenue  5.00  1/1/26  5,000,000   6,130,600 
Jefferson County,           
Limited Obligation School           
Warrants  5.25  1/1/17  2,000,000   2,014,000 
Jefferson County,           
Limited Obligation School           
Warrants  5.25  1/1/19  2,150,000   2,169,586 
Jefferson County,           
Limited Obligation School           
Warrants  5.00  1/1/24  1,000,000   1,004,910 
Northern Tobacco Securitization           
Corporation of Alaska, Tobacco           
Settlement Asset-Backed Bonds  5.00  6/1/32  2,500,000   1,975,375 
Northern Tobacco Securitization           
Corporation of Alaska, Tobacco           
Settlement Asset-Backed Bonds  5.00  6/1/46  9,465,000   7,049,627 
Barclays Capital Municipal Trust           
Receipts (Series 21 W)           
Recourse (Salt River Project           
Agricultural Improvement and           
Power District, Salt River           
Project Electric System           
Revenue)  5.00  1/1/38  13,198,367 a,b  14,472,893 
Pima County Industrial Development           
Authority, Education Revenue           
(American Charter Schools           



Foundation Project)  5.50  7/1/26  4,000,000   3,760,840 
Pima County Industrial Development           
Authority, IDR (Tucson           
Electric Power Company Project)  5.75  9/1/29  6,000,000   6,069,960 
Salt Verde Financial Corporation,           
Senior Gas Revenue  5.00  12/1/37  4,550,000   5,196,919 
Barclays Capital Municipal Trust           
Receipts (Series 80 W)           
Recourse (Los Angeles           
Department of Airports, Senior           
Revenue (Los Angeles           
International Airport))  5.00  5/15/31  5,247,500 a,b  5,982,815 
GO (Various Purpose)  5.75  4/1/31  7,800,000   9,277,944 
GO (Various Purpose)  6.00  3/1/33  2,250,000   2,729,407 
GO (Various Purpose)  6.50  4/1/33  5,000,000   6,115,750 
GO (Various Purpose)  6.00  11/1/35  5,000,000   6,083,600 
California Statewide Communities           
Development Authority, Revenue           
(Front Porch Communities and           
Services Project)  5.13  4/1/37  4,975,000 b  5,065,794 
JPMorgan Chase Putters/Drivers           
Trust (Series 4361)           
Non-recourse (Los Angeles           
Department of Water and Power,           
Water System Revenue)  5.00  7/1/20  5,000,000 a,b  5,621,250 
JPMorgan Chase Putters/Drivers           
Trust (Series 4414)           
Non-recourse (Los Angeles           
Department of Airports, Senior           
Revenue (Los Angeles           
International Airport))  5.00  5/15/21  6,000,000 a,b  6,682,380 
JPMorgan Chase Putters/Drivers           



Trust (Series 4421)           
Non-recourse (The Regents of           
the University of California,           
General Revenue)  5.00  5/15/21  6,250,000 a,b  7,147,625 
Los Angeles Department of Water           
and Power, Power System Revenue  5.00  7/1/34  2,885,000   3,237,172 
Sacramento County,           
Airport System Subordinate and           
Passenger Facility Charges           
Grant Revenue  6.00  7/1/35  4,000,000   4,617,200 
San Buenaventura,           
Revenue (Community Memorial           
Health System)  7.50  12/1/41  1,500,000   1,756,950 
Santa Margarita/Dana Point           
Authority, Revenue (Santa           
Margarita Water District           
Improvement Districts Numbers           
2,3 and 4)  5.13  8/1/38  5,000,000   5,632,700 
Tuolumne Wind Project Authority,           
Revenue (Tuolumne Company           
Project)  5.88  1/1/29  2,000,000   2,383,360 
JPMorgan Chase Putters/Drivers           
Trust (Series 4386)           
Non-recourse (Board of           
Governors of the Colorado           
State University, System           
Enterprise Revenue)  5.00  3/1/20  4,950,000 a,b  5,552,613 
Connecticut Resources Recovery           
Authority, Special Obligation           
Revenue (American REF-FUEL           
Company of Southeastern           
Connecticut Project)  6.45  11/15/22  4,985,000   4,993,774 
District of Columbia--4.0%           
RIB Floater Trust (Barclays Bank           
PLC) (Series 15 U) Recourse           



(District of Columbia, Income           
Tax Secured Revenue)  5.00  12/1/35  14,828,227 a,b  17,034,634 
Educational Facilities Revenue           
(Nova Southeastern University           
Project)  6.00  4/1/42  2,000,000   2,319,000 
Mid-Bay Bridge Authority,           
Springing Lien Revenue  7.25  10/1/34  5,000,000   6,140,600 
Palm Beach County Health           
Facilities Authority,           
Retirement Community Revenue           
(Adult Communities Total           
Services, Inc. Retirement -           
Life Communities, Inc.           
Obligated Group)  5.50  11/15/33  6,825,000   7,309,029 
Saint Johns County Industrial           
Development Authority, Revenue           
(Presbyterian Retirement           
Communities Project)  6.00  8/1/45  3,500,000   3,806,145 
South Lake County Hospital           
District, Revenue (South Lake           
Hospital, Inc.)  6.25  4/1/39  2,500,000   2,763,350 
Water and Wastewater Revenue  6.00  11/1/28  4,865,000   5,879,839 
Water and Wastewater Revenue           
(Insured; Assured Guaranty           
Municipal Corp.)  5.25  11/1/34  1,000,000   1,102,730 
Airport Revenue  5.45  1/1/31  2,500,000   2,509,425 
RIB Floater Trust (Barclays Bank           
PLC) (Series 20 U) Recourse           
(Private Colleges and           
Universities Authority,           
Revenue (Emory University))  5.00  10/1/43  6,000,000 a,b  6,853,380 



Hawaii Department of Budget and         
Finance, Special Purpose         
Revenue (Hawai'i Pacific         
Health Obligated Group)  5.63  7/1/30  2,500,000  2,776,825 
Hawaii Department of Budget and         
Finance, Special Purpose         
Revenue (Hawaiian Electric         
Company, Inc. and Subsidiary         
Projects)  6.50  7/1/39  2,000,000  2,328,680 
Idaho Housing and Finance         
Association, SFMR         
(Collateralized; FNMA)  6.35  1/1/30  125,000  125,254 
General Airport Third Lien         
Revenue (Chicago O'Hare         
International Airport)  5.63  1/1/35  3,000,000  3,396,780 
GO  5.00  1/1/24  2,000,000  2,151,680 
GO (Project and Refunding         
Series)  5.00  1/1/36  2,500,000  2,591,400 
Illinois Finance Authority,         
Revenue (Sherman Health         
Systems)  5.50  8/1/37  1,020,000  1,114,891 
Railsplitter Tobacco Settlement         
Authority, Tobacco Settlement         
Revenue  6.00  6/1/28  3,600,000  4,242,528 
Iowa Finance Authority,         
Midwestern Disaster Area         
Revenue (Iowa Fertilizer         
Company Project)  5.25  12/1/25  5,125,000  5,554,270 
Tobacco Settlement Authority of         
Iowa, Tobacco Settlement         



Asset-Backed Bonds  5.60  6/1/34  2,000,000   1,779,340 
Louisville/Jefferson County Metro           
Government, Health Facilities           
Revenue (Jewish Hospital and           
Saint Mary's HealthCare, Inc.           
Project) (Prerefunded)  6.13  2/1/18  1,000,000 c  1,185,160 
Lakeshore Villages Master           
Community Development           
District, Special Assessment           
Revenue  5.25  7/1/17  1,987,000 d  736,223 
Louisiana Local Government           
Environmental Facilities and           
Community Development           
Authority, Revenue (Westlake           
Chemical Corporation Projects)  6.75  11/1/32  4,000,000   4,456,600 
Maine Health and Higher           
Educational Facilities           
Authority, Revenue           
(MaineGeneral Medical Center           
Issue)  7.50  7/1/32  2,000,000   2,338,120 
JPMorgan Chase Putters/Drivers           
Trust (Series 4422)           
Non-recourse (Mayor and City           
Council of Baltimore, Project           
Revenue (Water Projects))  5.00  7/1/21  4,000,000 a,b  4,556,320 
GO (State and Local Facilities           
Loan)  5.00  8/1/22  2,500,000   3,096,350 
Barclays Capital Municipal Trust           
Receipts (Series 15 W)           
Recourse (Massachusetts Health           
and Educational Facilities           



Authority, Revenue           
(Massachusetts Institute of           
Technology Issue))  5.00  7/1/38  10,200,000 a,b  11,360,352 
JPMorgan Chase Putters/Drivers           
Trust (Series 3840)           
Non-recourse (Massachusetts           
Development Finance Agency,           
Revenue (Harvard University           
Issue))  5.25  8/1/18  10,000,000 a,b  11,733,700 
JPMorgan Chase Putters/Drivers           
Trust (Series 3898)           
Non-recourse (Massachusetts,           
Consolidated Loan)  5.00  4/1/19  6,400,000 a,b  7,573,312 
JPMorgan Chase Putters/Drivers           
Trust (Series 4395)           
Non-recourse (University of           
Massachusetts Building           
Authority, Project and           
Refunding Revenue)  5.00  5/1/21  7,406,665 a,b  8,340,251 
Massachusetts Development Finance           
Agency, Revenue (Tufts Medical           
Center Issue)  7.25  1/1/32  2,500,000   3,055,725 
Massachusetts Educational           
Financing Authority, Education           
Loan Revenue (Issue K)  5.25  7/1/29  2,500,000   2,744,525 
Massachusetts Health and           
Educational Facilities           
Authority, Revenue (Suffolk           
University Issue)  6.25  7/1/30  5,000,000   5,895,700 
Massachusetts Housing Finance           
Agency, Housing Revenue  7.00  12/1/38  4,575,000   5,088,818 
Massachusetts Housing Finance           
Agency, SFHR  5.00  12/1/31  1,605,000   1,625,255 
Sewage Disposal System Senior           
Lien Revenue (Insured; Assured           



Guaranty Municipal Corp.)  7.50  7/1/33  3,500,000   4,168,640 
Water Supply System Senior           
Lien Revenue  5.00  7/1/31  3,780,000   3,938,533 
Water Supply System Senior           
Lien Revenue  5.00  7/1/36  3,290,000   3,388,634 
Kent Hospital Finance Authority,           
Revenue (Metropolitan Hospital           
Project)  6.00  7/1/35  2,000,000   2,060,900 
Michigan Finance Authority,           
Local Government Loan Program           
Revenue (Detroit Water and           
Sewerage Department, Water           
Supply System Revenue)           
(Insured; National Public           
Finance Guarantee Corp.)  5.00  7/1/36  1,000,000   1,037,320 
Michigan Strategic Fund,           
SWDR (Genesee Power Station           
Project)  7.50  1/1/21  2,695,000   2,695,458 
Royal Oak Hospital Finance           
Authority, HR (William           
Beaumont Hospital Obligated           
Group) (Prerefunded)  8.00  9/1/18  5,000,000 c  6,417,350 
Wayne County Airport Authority,           
Airport Revenue (Detroit           
Metropolitan Wayne County           
Airport) (Insured; National           
Public Finance Guarantee Corp.)  5.00  12/1/34  2,450,000   2,538,421 
New Jersey--2.9%           
New Jersey Economic Development           
Authority, School Facilities           
Construction Revenue  5.50  12/15/29  5,000,000   5,567,100 
New Jersey Economic Development           
Authority, Water Facilities           
Revenue (New Jersey - American           
Water Company, Inc. Project)  5.70  10/1/39  3,000,000   3,326,790 



Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  4.50  6/1/23  1,000,000   991,730 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  4.63  6/1/26  1,600,000   1,444,800 
Tobacco Settlement Financing           
Corporation of New Jersey,           
Tobacco Settlement           
Asset-Backed Bonds  5.00  6/1/41  1,000,000   758,350 
New Mexico--1.3%           
PCR (Public Service Company of           
New Mexico San Juan Project)  5.90  6/1/40  5,000,000   5,548,800 
New York--18.5%           
Austin Trust (Series 1107)           
Non-recourse (Port Authority           
of New York and New Jersey,           
Consolidated Bonds, 151st           
Series)  6.00  9/15/28  10,000,000 a,b  11,425,800 
Barclays Capital Municipal Trust           
Receipts (Series 11 B)           
Recourse (New York City           
Transitional Finance           
Authority, Future Tax Secured           
Revenue)  5.00  5/1/30  4,488,203 a,b  5,152,588 
Barclays Capital Municipal Trust           
Receipts (Series 7 B) Recourse           
(New York City Transitional           
Finance Authority, Future Tax           
Secured Subordinate Revenue)  5.50  11/1/27  5,000,000 a,b  5,997,750 
JPMorgan Chase Putters/Drivers           
Trust (Series 3857)           
Non-recourse (New York City           
Transitional Finance           



Authority, Future Tax Secured           
Subordinate Revenue)  5.25  11/1/18  5,000,000 a,b  5,966,650 
Long Island Power Authority,           
Electric System General Revenue  6.25  4/1/33  3,000,000   3,529,710 
Metropolitan Transportation           
Authority, Transportation           
Revenue  6.25  11/15/23  9,425,000   11,378,708 
New York City Educational           
Construction Fund, Revenue  6.50  4/1/28  2,785,000   3,510,855 
New York City Industrial           
Development Agency, Special           
Facility Revenue (American           
Airlines, Inc. John F. Kennedy           
International Airport Project)  7.75  8/1/31  5,000,000   5,521,900 
New York State Dormitory           
Authority, State Personal           
Income Tax Revenue (General           
Purpose)  5.00  3/15/32  3,500,000   4,085,095 
Niagara Area Development           
Corporation, Solid Waste           
Disposal Facility Revenue           
(Covanta Energy Project)  5.25  11/1/42  2,000,000   2,046,420 
Port Authority of New York and New           
Jersey, Special Project Bonds           
(JFK International Air           
Terminal LLC Project)  6.00  12/1/36  4,710,000   5,486,867 
RIB Floater Trust (Barclays Bank           
PLC) (Series 16 U) Recourse           
(New York City Municipal Water           
Finance Authority, Water and           
Sewer System Second General           
Resolution Revenue  5.00  6/15/44  12,600,000 a,b  13,901,076 
North Carolina--2.6%           
Barclays Capital Municipal Trust           
Receipts (Series 31 W)           
Recourse (North Carolina           
Medical Care Commission,           



Health Care Facilities Revenue           
(Duke University Health           
System))  5.00  6/1/42  10,000,000 a,b  10,826,800 
Butler County,           
Hospital Facilities Revenue           
(UC Health)  5.50  11/1/40  3,000,000   3,311,040 
Ohio Air Quality Development           
Authority, Air Quality Revenue           
(Ohio Valley Electric           
Corporation Project)  5.63  10/1/19  4,200,000   4,753,602 
Port of Greater Cincinnati           
Development Authority, Tax           
Increment Development Revenue           
(Fairfax Village Red Bank           
Infrastructure Project)  5.63  2/1/36  2,530,000 b  2,347,132 
Southeastern Ohio Port Authority,           
Hospital Facilities           
Improvement Revenue (Memorial           
Health System Obligated Group           
Project)  6.00  12/1/42  2,000,000   2,060,100 
Toledo-Lucas County Port           
Authority, Special Assessment           
Revenue (Crocker Park Public           
Improvement Project)  5.38  12/1/35  3,000,000   3,019,980 
Warm Springs Reservation           
Confederated Tribes,           
Hydroelectric Revenue (Pelton           
Round Butte Project)  6.38  11/1/33  1,500,000   1,635,600 
JPMorgan Chase Putters/Drivers           
Trust (Series 3916)           
Non-recourse (Geisinger           
Authority, Health System           
Revenue (Geisinger Health           
System))  5.13  6/1/35  3,000,000 a,b  3,293,730 



GO  6.50  8/1/41  4,700,000   5,490,540 
Rhode Island--1.4%           
Rhode Island Health and           
Educational Building           
Corporation, Hospital           
Financing Revenue (Lifespan           
Obligated Group Issue)           
(Insured; Assured Guaranty           
Corp.)  7.00  5/15/39  5,000,000   5,779,500 
South Carolina--2.7%           
JPMorgan Chase Putters/Drivers           
Trust (Series 4379)           
Non-recourse (South Carolina           
Public Service Authority,           
Revenue Obligations (Santee           
Cooper))  5.13  6/1/37  10,200,000 a,b  11,328,120 
JPMorgan Chase Putters/Drivers           
Trust (Series 4416)           
Non-recourse (Metropolitan           
Government of Nashville and           
Davidson County, Water and           
Sewer Revenue)  5.00  7/1/21  3,000,000 a,b  3,428,880 
Metropolitan Government of           
Nashville and Davidson County           
Health and Educational           
Facilities Board, Revenue (The           
Vanderbilt University)  5.50  10/1/29  2,500,000   2,937,850 
Metropolitan Government of           
Nashville and Davidson County           
Health and Educational           
Facilities Board, Revenue (The           
Vanderbilt University)  5.50  10/1/34  3,000,000   3,479,580 
Barclays Capital Municipal Trust           
Receipts (Series 28 W)           



Recourse (Leander Independent           
School District, Unlimited Tax           
School Building Bonds           
(Permanent School Fund           
Guarantee Program))  5.00  8/15/40  9,997,299 a,b  11,391,999 
Barclays Capital Municipal Trust           
Receipts (Series 39 W)           
Recourse (Texas A&M University           
System Board of Regents,           
Financing System Revenue)  5.00  5/15/39  13,160,000 a,b  15,019,245 
Clifton Higher Education Finance           
Corporation, Revenue (Uplift           
Education)  4.50  12/1/44  2,500,000   2,500,000 
Gulf Coast Industrial Development           
Authority, SWDR (CITGO           
Petroleum Corporation Project)  4.88  5/1/25  1,000,000   1,036,610 
Harris County Health Facilities           
Development Corporation, HR           
(Memorial Hermann Healthcare           
System) (Prerefunded)  7.25  12/1/18  7,290,000 c  9,216,455 
Airport System Special           
Facilities Revenue (United           
Airlines, Inc. Terminal E           
Project)  4.75  7/1/24  2,000,000   2,103,460 
Combined Utility System First           
Lien Revenue (Insured; Assured           
Guaranty Corp.)  6.00  11/15/36  5,000,000   5,944,500 
JPMorgan Chase Putters/Drivers           
Trust (Series 4356)           
Non-recourse (San Antonio,           
Electric and Gas Systems           
Junior Lien Revenue)  5.00  2/1/21  12,450,000 a,b  13,912,377 
Love Field Airport Modernization           
Corporation, Special           
Facilities Revenue (Southwest           



Airlines Company - Love Field           
Modernization Program Project)  5.00  11/1/28  1,000,000   1,066,920 
Matagorda County Navigation           
District Number One, Revenue           
(Houston Lighting and Power           
Company Project) (Insured;           
AMBAC)  5.13  11/1/28  4,295,000   4,949,687 
North Texas Tollway Authority,           
First Tier System Revenue           
(Insured; Assured Guaranty           
Corp.)  5.75  1/1/40  14,705,000   16,560,771 
North Texas Tollway Authority,           
Second Tier System Revenue  5.75  1/1/38  6,650,000   7,413,686 
San Antonio,           
General Improvement GO  5.00  2/1/21  2,500,000   3,028,625 
Texas Department of Housing and           
Community Affairs, Home           
Mortgage Revenue           
(Collateralized: FHLMC, FNMA           
and GNMA)  13.43  7/2/24  300,000 e  318,804 
Airport Revenue  3.50  7/1/18  3,010,000   3,065,745 
Chesterfield County Economic           
Development Authority,           
Retirement Facilities First           
Mortgage Revenue (Brandermill           
Woods Project)  5.13  1/1/43  1,000,000   1,017,830 
Henrico County Industrial           
Development Authority, Revenue           
(Bon Secours Health System,           
Inc.) (Insured; Assured           
Guaranty Municipal Corp.)  11.30  8/23/27  6,850,000 e  8,571,953 
Washington County Industrial           
Development Authority, HR           
(Mountain States Health           



Alliance)  7.75  7/1/38  3,000,000   3,538,050  
Barclays Capital Municipal Trust             
Receipts (Series 27 B)             
Recourse (King County, Sewer             
Revenue)  5.00  1/1/29  8,577,246 a,b  9,905,602  
Washington Health Care Facilities             
Authority, Mortgage Revenue             
(Highline Medical Center)             
(Collateralized; FHA)             
(Prerefunded)  6.25  8/1/18  5,975,000 c  7,208,300  
West Virginia--1.9%             
The County Commission of Harrison             
County, SWDR (Allegheny Energy             
Supply Company, LLC Harrison             
Station Project)  5.50  10/15/37  7,920,000   8,140,097  
Total Long-Term Municipal Investments             
(cost $545,913,434)          609,780,650  
Short-Term Municipal  Coupon  Maturity  Principal      
Investment--.1%  Rate (%)  Date  Amount ($)   Value ($)  
Massachusetts Health and             
Educational Facilities             
Authority, Revenue (Harvard             
University Issue)             
(cost $500,000)  0.02  9/2/14  500,000 f  500,000  
Total Investments (cost $546,413,434)      144.9 %  610,280,650  
Liabilities, Less Cash and Receivables      (22.8 %)  (96,231,003 ) 
Preferred Stock, at redemption value      (22.1 %)  (93,000,000 ) 
Net Assets Applicable to Common Shareholders      100.0 %  421,049,647  


a  Collateral for floating rate borrowings. 
b  Securities exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be 
  resold in transactions exempt from registration, normally to qualified institutional buyers. At August 31, 2014, these 
  securities were valued at $241,875,068 or 57.4% of net assets applicable to Common Shareholders. 
c  These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are 
  collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on the 



  municipal issue and to retire the bonds in full at the earliest refunding date. 
d  Non-income producing--security in default. 
e  Inverse floater security--the interest rate is subject to change periodically. Rate shown is the interest rate in effect 
  at August 31, 2014. 
f  Variable rate demand note - rate shown is the interest rate in effect at August 31, 2014. Maturity date represents the 
  next demand date, or the ultimate maturity date if earlier. 


At August 31, 2014, net unrealized appreciation on investments was $63,867,216 of which $65,481,812 related to appreciated investment securities and $1,614,596 related to depreciated investment securities. At August 31, 2014, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes.

Summary of Abbreviations     
ABAG  Association of Bay Area Governments  ACA  American Capital Access 
AGC  ACE Guaranty Corporation  AGIC  Asset Guaranty Insurance Company 
AMBAC  American Municipal Bond Assurance Corporation  ARRN  Adjustable Rate Receipt Notes 
BAN  Bond Anticipation Notes  BPA  Bond Purchase Agreement 
CIFG  CDC Ixis Financial Guaranty  COP  Certificate of Participation 
CP  Commercial Paper  DRIVERS  Derivative Inverse Tax-Exempt Receipts 
EDR  Economic Development Revenue  EIR  Environmental Improvement Revenue 
FGIC  Financial Guaranty Insurance Company  FHA  Federal Housing Administration 
FHLB  Federal Home Loan Bank  FHLMC  Federal Home Loan Mortgage Corporation 
FNMA  Federal National Mortgage Association  GAN  Grant Anticipation Notes 
GIC  Guaranteed Investment Contract  GNMA  Government National Mortgage Association 
GO  General Obligation  HR  Hospital Revenue 
IDB  Industrial Development Board  IDC  Industrial Development Corporation 
IDR  Industrial Development Revenue  LIFERS  Long Inverse Floating Exempt Receipts 
LOC  Letter of Credit  LOR  Limited Obligation Revenue 
LR  Lease Revenue  MERLOTS  Municipal Exempt Receipts Liquidity Option Tender 
MFHR  Multi-Family Housing Revenue  MFMR  Multi-Family Mortgage Revenue 
PCR  Pollution Control Revenue  P-FLOATS  Puttable Floating Option Tax-Exempt Receipts 
PILOT  Payment in Lieu of Taxes  PUTTERS  Puttable Tax-Exempt Receipts 
RAC  Revenue Anticipation Certificates  RAN  Revenue Anticipation Notes 
RAW  Revenue Anticipation Warrants  RIB  Residual Interest Bonds 
ROCS  Reset Option Certificates  RRR  Resources Recovery Revenue 
SAAN  State Aid Anticipation Notes  SBPA  Standby Bond Purchase Agreement 
SFHR  Single Family Housing Revenue  SFMR  Single Family Mortgage Revenue 
SONYMA  State of New York Mortgage Agency  SPEARS  Short Puttable Exempt Adjustable Receipts 



SWDR  Solid Waste Disposal Revenue  TAN  Tax Anticipation Notes 
TAW  Tax Anticipation Warrants  TRAN  Tax and Revenue Anticipation Notes 
XLCA  XL Capital Assurance     



The following is a summary of the inputs used as of August 31, 2014 in valuing the fund's investments:     
      Level 3 -   
  Level 1 -  Level 2 - Other  Significant   
  Unadjusted Quoted  Significant  Unobservable   
Assets ($)  Prices  Observable Inputs  Inputs  Total 
Investments in Securities:         
Municipal Bonds+  -  610,280,650  -  610,280,650 


+ See Statement of Investments for additional detailed categorizations. 



The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants. The fund's financial statements are prepared in accordance with GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

Portfolio valuation: The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). GAAP establishes a fair value hierarchy that prioritizes the inputs of valuation techniques used to measure fair value. This 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).

Additionally, GAAP provides guidance on determining whether the volume and activity in a market has decreased significantly and whether such a decrease in activity results in transactions that are not orderly. GAAP requires enhanced disclosures around valuation inputs and techniques used during annual and interim periods.

Various inputs are used in determining the value of the fund’s investments relating to fair value measurements. These inputs are summarized in the three broad levels listed below:

Level 1—unadjusted 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 the fund’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the fund’s investments are as follows:


Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the fund's Board.

Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service, based on methods which include consideration of the following: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. All preceding securities are categorized as Level 2 in the hierarchy.

When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the fund's Board. Certain factors may be considered when fair valuing investments such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading in similar securities of the issuer or comparable issuers. These securities are either categorized as Level 2 or 3 depending on the relevant inputs used.

For restricted securities where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Inverse Floater Securities: The fund participates in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds are transferred to a trust. The trust subsequently issues two or more variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One or more of these variable rate securities pays interest based on a short-term floating rate set by a remarketing agent at predetermined intervals. A residual interest tax-exempt security is also created by the trust, which is transferred to the fund, and is paid


interest based on the remaining cash flow of the trust, after payment of interest on the other securities and various expenses of the trust.

Additional investment related disclosures are hereby incorporated by reference to the annual and semi-annual reports previously filed with the Securities and Exchange Commission on Form N-CSR.



Item 2.             Controls and Procedures.

(a)        The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)        There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting. 

Item 3.             Exhibits.

(a)        Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.






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.

Dreyfus Strategic Municipal Bond Fund, Inc.

By:       /s/ Bradley J. Skapyak

            Bradley J. Skapyak



Date:    October 23, 2014


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/ Bradley J. Skapyak

            Bradley J. Skapyak



Date:    October 23, 2014


By:       /s/ James Windels

            James Windels



Date:    October 23, 2014



(a)        Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.  (EX-99.CERT)