YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report for Dreyfus Strategic Municipal
Bond Fund, Inc. for the 12-month period ended November 30, 1998. Your Fund
produced a total return including share price changes and dividend income
generated of 6.95% .* During the reporting period, the Fund produced income
dividends exempt from federal personal income taxes of $0.620 per share.** This
is equivalent to a federally tax-free distribution rate per share of 6.09%.***
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year. The U.S. economy cooled enough over the months that the Fed decided to
stand pat. Evidence of economic cooling continued to accumulate and worries
about the world economy intensified. Financial stresses pushed the Fed to ease
beginning in September. After many years of subpar economic growth, continental
Europe moved into a sustained economic expansion. The overall European economy
benefited as interest rates in peripheral countries such as Spain and Italy
fell, approaching the lower level established by Germany, on the eve of currency
unification. Unlike the U.S., Europe has substantial excess capacity of
productive plants and labor. In Asia, weak economies were pervasive as a result
of the Asian financial crisis. The Latin American economies weakened as the
financial stresses spread throughout that region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The drop
in inflation helped the consumer sector as more of the growth in consumer income
was left over after inflation to buy goods and services. Consumers benefited
from a combination of good growth in real income, a strong labor market and past
increases in the prices of assets they owned.
The negative effect of Asian weakness was felt in the industrial sector more
than the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports. One result of the industrial weakness was to cool off a U.S.
economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for
commodity-exporting countries throughout the world. The effect on Europe and the
U.S. has been to lower expectations of profit growth and drive down bond yields.
Monetary policy has begun to ease in Europe as well as the U.S.
Evidence of a weaker world economy accumulated as the financial stresses
continued. A worsened financial crisis occurred between the Russian default in
mid-August and the fallout from the Long-Term Capital Management hedge fund
crisis through early October. However, proactive steps were taken to stabilize
the Japanese banks, design a support package for Brazil and ease monetary
policy. There appears to be a shift in the priorities of key policymakers from
fighting potential inflation to restimulating future world economic growth.
MARKET ENVIRONMENT
Prices moved higher during the reporting period as various classes of
investors found municipal bonds appealing, despite the extent to which equities
vied for investors' attention for most of the period. Low inflation and low
interest rates helped create and maintain a bond-friendly atmosphere. Not to be
overlooked, either, is the improved fiscal posture enjoyed by many states and
municipalities, the result of several years of strong economic growth that
enhanced the creditworthiness of many municipal securities issuers, and gave
added comfort to investors. The dollar value of newly issued bonds so far in
1998 has surpassed the volume experienced in all but a few previous years. At
$255 billion, it is approximately 29% above the same period last year but,
nonetheless, a dearth of appropriate bonds persists in several states.
Fortunately, the market has absorbed the new issuance without inordinate
volatility in the process. Municipal yields have been, and continue to be, very
favorably aligned vis-a-vis U.S. Treasury Bonds. Historically, longer-term
municipals have been viewed as being good values when their yields approached
80% to 85% of the yields available on comparable Treasuries. Presently, most
measures place the ratio well in excess of 90%. The environment for municipal
bonds still appears to be positive, particularly with the Federal Reserve
Board's Open Market Committee signaling explicitly, by recent cuts in the target
rate for Federal Funds, its preference for lower interest rates.
PORTFOLIO FOCUS
While the Fund did benefit from a stronger bond market environment during the
past year, active management of the underlying bond portfolio for the purpose of
capitalizing on interest rate moves was not the primary focus. In managing the
Fund, the generation of income exempt from federal income tax was the principal
focus. In the current market environment, because of the narrowing yield
differentials between the highest quality and lower rated tax-exempts,
opportunities to relatively enhance income have been limited. However, we would
anticipate that a softening in the U.S. economy could lead to more opportunities
in the future. We currently anticipate the impending retirement of many of the
Fund' s original high coupon security holdings and, in view of the declining
interest rate environment, we would expect that the proceeds would be invested
in lower yielding securities.
With income being the primary focus, management has elected to maintain an
unchanged posture with respect to the Fund's duration. No attempt was made to
adjust it in response to interest rate changes. Duration was maintained at
approximately five years. This duration positioning generally has worked
successfully in terms of total return measurement whenever interest rates were
flat or rising. During the market's upswing this past year, the Fund did not
capture as much price appreciation as did more aggressively structured funds,
that is, those with longer durations.
While it still appears at this time that the market should continue to
experience steady or even lower rates, we will continue to look to maximize the
Fund' s distribution of tax-free income. We trust that this philosophy is in
keeping with your investment objective.
Very truly yours,
[Richard J. Moynihan signature]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
December 15, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid,
based upon net asset value per share.
** Some income may be subject to the federal Alternative Minimum Tax (AMT) for
certain shareholders.
*** Distribution rate per share is based upon dividends per share paid from net
investment income during the period, divided by the market price per share
at the end of the period.
<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
SELECTED INFORMATION NOVEMBER 30, 1998 (UNAUDITED)
Market Price per share November 30, 1998 . . . . $10 3/16
Shares Outstanding November 30, 1998 . . . . . . 47,659,365
New York Stock Exchange Ticker Symbol. . . . . . DSM
MARKET PRICE (NEW YORK STOCK EXCHANGE)
Fiscal Year Ended November 30,1998
______________________________________________________________________________________________
Quarter Quarter Quarter Quarter
Ended Ended Ended Ended
February 28, 1998 May 31, 1998 August 31, 1998 November 30, 1998
________________ ____________________ __________________ __________________
<S> <C> <C> <C> <C>
High $10 15/16 $9 13/16 $10 1/4 $10 5/16
Low 9 13/16 9 1/16 9 5/8 9 1/2
Close 9 13/16 9 11/16 9 11/16 10 3/16
PERCENTAGE GAIN based on change in Market Price*
November 22, 1989 (commencement of operations) through November 30, 1998 90.98%
December 1, 1993 through November 30, 1998 . . . . . . . . . 40.64
December 1, 1997 through November 30, 1998 . . . . . . . . . 2.23
March 1, 1998 through November 30, 1998. . . . . . . . . . . 8.92
June 1, 1998 through November 30, 1998 . . . . . . . . . . .. 8.59
September 1, 1998 through November 30, 1998. . . . . . . . .. 6.86
NET ASSET VALUE PER SHARE
November 22, 1989 (commencement of operations) . . . . . . . . . . $9.32
November 30, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . 9.49
February 28, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . 9.59
May 31, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.54
August 31, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . 9.58
November 30, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . 9.52
PERCENTAGE GAIN based on change in Net Asset Value*
November 22, 1989 (commencement of operations) through November 30, 1998 91.50%
December 1, 1993 through November 30, 1998 . . . . . . . . . 35.67
December 1, 1997 through November 30, 1998 . . . . . . . . . 6.95
March 1, 1998 through November 30, 1998. . . . . . . . . . . 4.15
June 1, 1998 through November 30, 1998 . . . . . . . . . . . 3.04
September 1, 1998 through November 30, 1998. . . . . . . . . .98
* With dividends reinvested.
</TABLE>
<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments--98.4% Amount Value
- ------------------------------------------------------- _____________ _____________
<S> <C> <C>
Alabama--.7%
Alabama Industrial Development Authority, SWDR
(Pine City Fiber Co.) 6.45%, 12/1/2023 . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 $ 3,202,680
Arizona--1.8%
Apache County Industrial Development Authority, PCR, Refunding
(Tuscon Electric Power Co. Project) 5.85%, 3/1/2028 . . . . . . . . . . . . . . . . . . 8,000,000 7,989,120
Arkansas--.5%
Saline County, HR, Refunding
7.875%, 9/1/2019 (Prerefunded 9/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,108,280
Colorado--1.2%
Colorado Health Facilities Authority, Revenue
(American Housing Foundation 1, Inc. Project) 10.25%, 12/1/2020 . . . . . . . . . . . . 5,700,000 5,619,801
Connecticut--2.0%
Connecticut Development Authority, PCR, Refunding
(Connecticut Light and Power) 5.95%, 9/1/2028 . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,047,000
Connecticut Housing Finance Authority, Housing Mortgage Finance Program
6%, 11/15/2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000,000 4,252,560
Delaware--1.4%
Delaware Health Facilities Authority, Revenue, Refunding
(Beebe Medical Center Project) 6.80%, 6/1/2024 . . . . . . . . . . . . . . . . . . . . . 5,905,000 6,506,837
District of Columbia--1.7%
Metropolitan Washington Airports Authority, Special Facilities Revenue
(Caterair International Corp.) 10.125%, 9/1/2011 . . . . . . . . . . . . . . . . . . . . 7,520,000 7,831,930
Florida--5.6%
Florida Board of Education, Capital Outlay 8.957%, 6/1/2019 (b,c). . . . . . . . . . . . . 15,000,000 17,659,500
Palm Beach County, Solid Waste IDR:
(Okeelanta Power Limited Partnership Project)
6.70%, 2/15/2015 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,000,000
(Osceola Power Limited Partnership Project)
6.95%, 1/1/2022 (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 3,950,000
Georgia--2.7%
Private Colleges and Universities Facilities Authority, Revenue, Refunding
(Clark Atlanta University Project) 8.25%, 1/1/2015 (Prerefunded 1/1/2003) (a) . . . . . 10,245,000 12,343,688
Illinois--8.7%
Chicago-O'Hare International Airport, Special Facility Revenue
Refunding (Delta Airlines Project) 6.45%, 5/1/2018 . . . . . . . . . . . . . . . . . . . 2,790,000 2,967,249
(United Airlines, Inc. Project):
8.20%, 5/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,930,000 7,249,265
8.40%, 5/1/2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,350,000 6,642,227
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Illinois (continued)
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facilities Acquisition Program):
6.05%, 7/1/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,290,000 $ 5,555,082
8.50%, 9/1/2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,710,000 1,818,209
8.50%, 9/1/2010 (Prerefunded 9/1/2000) (a) . . . . . . . . . . . . . . . . . . . . . . 3,290,000 3,623,442
Illinois Health Facilities Authority, Revenue
(Ravenswood Hospital Medical Center Project) 8.25%, 11/1/2010 . . . . . . . . . . . . . 11,199,998 11,797,071
Indiana--3.5%
Burns Harbor Industrial Solid Waste Disposal Facilities, Revenue
(Bethlehem Steel Corp. Project) 8%, 4/1/2024 . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,637,980
Indianapolis Airport Authority, Special Facility Revenue
(United Airlines, Inc. Project) 6.50%, 11/15/2031 . . . . . . . . . . . . . . . . . . . 8,750,000 9,406,863
Kentucky--2.1%
Kenton County Airport Board, Airport Revenue
(Special Facilities--Delta Airlines Project) 6.125%, 2/1/2022 . . . . . . . . . . . . . 5,000,000 5,080,600
Morgantown Health Care Facility, Revenue (Southern Health Care System Project)
10.50%, 3/1/2020 (Prerefunded 3/1/2000) (a) . . . . . . . . . . . . . . . . . . . . . . 4,100,000 4,524,637
Louisiana--5.6%
Lake Charles Harbor and Terminal, District Port Facilities Revenue, Refunding
(Trunkline LNG Co. Project) 7.75%, 8/15/2022 . . . . . . . . . . . . . . . . . . . . . . 15,000,000 16,983,750
Parish of De Soto, Environmental Improvement Revenue, Refunding
(International Paper Co. Project) 6.55%, 4/1/2019 . . . . . . . . . . . . . . . . . . . 2,900,000 3,180,517
West Feliciana Parish, PCR (Gulf States) 5.80%, 12/1/2015. . . . . . . . . . . . . . . . . 5,000,000 5,093,350
Maryland--2.1%
Baltimore County, PCR, Refunding
(Bethlehem Steel Corp. Project) 7.50%, 6/1/2015 . . . . . . . . . . . . . . . . . . . . 5,000,000 5,459,950
Maryland Industrial Development Financing Authority, EDR
(Medical Waste Associates Limited Partnership) 8.75%, 11/15/2010 . . . . . . . . . . . . 4,135,000 4,190,285
Massachusetts--3.9%
Massachusetts Health and Educational Facilities Authority, Revenue, Refunding
(Beth Israel Hospital) 8.522%, 7/1/2025 (Insured; AMBAC) (b). . . . . . . . . . . . . . 3,250,000 3,745,625
Massachusetts Industrial Finance Agency, Revenue (Sturdy Memorial Hospital)
7.90%, 6/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,450,000 4,635,120
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt)
10%, 3/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000,000 7,733,670
Pittsfield, SWDR (Vicon Recovery Associates Project) 7.95%, 11/1/2004. . . . . . . . . . . 1,550,000 1,603,041
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Michigan--2.3%
Michigan Hospital Finance Authority, HR, Refunding
(Genesys Health System Obligated Group)
8.125%, 10/1/2021 (Prerefunded 10/1/2005) (a) . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 6,290,250
Michigan Strategic Fund, SWDR, Refunding
(Genesee Power Station Project) 7.50%, 1/1/2021 . . . . . . . . . . . . . . . . . . . . 4,000,000 4,342,800
Minnesota--1.1%
Washington County Housing and Redevelopment Authority,
Governmental Housing Revenue (Woodland Park Apartments) 9.75%, 5/1/2020 . . . . . . . . 5,035,000 4,783,250
Mississippi--3.4%
Claiborne County, PCR (Middle South Energy, Inc.) 9.875%, 12/1/2014. . . . . . . . . . . . 10,000,000 10,301,800
Mississippi Business Finance Corporation, PCR, Refunding
(Systems Energy Resources, Inc. Project) 5.875%, 4/1/2022 . . . . . . . . . . . . . . . 5,000,000 5,008,150
Missouri--1.6%
Jackson County Industrial Development Authority, Health Facilities Revenue
(Carondelet Health Corp. Project) 9%, 7/1/2020 . . . . . . . . . . . . . . . . . . . . . 6,735,000 7,088,722
New Hampshire--1.4%
New Hampshire Business Finance Authority, PCR, Refunding
(Public Service Co.) 6%, 5/1/2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 6,113,280
New Jersey--1.3%
New Jersey Economic Development Authority, First Mortgage Revenue
(The Evergreens) 9.25%, 10/1/2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 6,028,200
New Mexico--.5%
New Mexico Mortgage Finance Authority, SFMR 7.80%, 3/1/2021. . . . . . . . . . . . . . . . 2,150,000 2,222,928
New York--4.6%
New York City 8%, 8/15/2018 (Prerefunded 8/15/2001) (a). . . . . . . . . . . . . . . . . . 1,485,000 1,671,575
New York City Industrial Development Agency, Civic Facility Revenue
(YMCA of Greater New York Project) 8%, 8/1/2016 (Prerefunded 8/1/2001) (a) . . . . . . . 3,000,000 3,369,630
New York State Dormitory Authority, Revenue,
Judicial Facility Lease (Suffolk County) 9.50%, 4/15/2014 . . . . . . . . . . . . . . . 6,000,000 7,005,060
New York State Mortgage Agency, Revenue:
8.10%, 10/1/2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,495,000 8,678,917
North Carolina--1.4%
Halifax County Industrial Facilities and Pollution Control Financing Authority,
SWDR
(Champion International Project) 8.15%, 11/1/2019 . . . . . . . . . . . . . . . . . . . 1,000,000 1,049,380
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
North Carolina (continued)
Haywood County Industrial Facilities and Pollution Control Financing Authority,
SWDR
(Champion International Project):
8.10%, 11/1/2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,820,000 $ 5,053,625
8.10%, 11/1/2009 (Prerefunded 11/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . 180,000 191,340
Pennsylvania--9.4%
Beaver County Industrial Development Authority, PCR, Refunding
(Cleveland Electric Project) 7.625%, 5/1/2025 . . . . . . . . . . . . . . . . . . . . . 8,800,000 9,941,536
Langhorne Manor Borough Higher Education and Health Authority, Revenue
(Woods Schools) 8.75%, 11/15/2014 (Prerefunded 11/15/1999) (a) . . . . . . . . . . . . . 5,000,000 5,362,100
Lehigh County General Purpose Authority, Revenue (Wiley House)
8.75%, 11/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000,000 11,757,900
Montgomery County Higher Education and Health Authority, Revenue:
(Northwestern Corp.) 8.50%, 6/1/2016 . . . . . . . . . . . . . . . . . . . . . . . . . . 4,390,000 4,797,260
(Retirement Community-G.D.L. Farms)
9.50%, 1/1/2020 (Prerefunded 1/1/2000) (a) . . . . . . . . . . . . . . . . . . . . . . 5,500,000 5,957,435
Pennsylvania Economic Development Financing Authority, RRR
(Northhampton Generating Project) 6.60%, 1/1/2019 . . . . . . . . . . . . . . . . . . . 4,200,000 4,487,280
Pennsylvania Housing Finance Agency, Multi-Family Development Revenue
8.25%, 12/15/2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295,000 308,384
Rhode Island--1.8%
Rhode Island Health and Educational Building Corp., Revenue, Refunding
(Landmark Medical Center) 8.125%, 7/1/2019 (Prerefunded 7/1/1999) (a) . . . . . . . . . 7,520,000 7,886,750
Tennessee--1.5%
Maury County Health and Educational Facilities Board, Health Care Facilities
Revenue
(Southern Health Care-Heritage) 10.50%, 3/1/2020 (Prerefunded 3/1/2000) (a) . . . . . . 6,025,000 6,648,226
Texas--12.0%
Georgetown Hospital Authority, HR, Refunding, Improvement and First Mortgage
8.625%, 7/1/2015 (Prerefunded 7/1/1999) (a) . . . . . . . . . . . . . . . . . . . . . . 6,535,000 6,867,043
Houston Airport System, Special Facilities Revenue,
Airport Improvement (Continental Airlines) 6.125%, 7/15/2017 . . . . . . . . . . . . . . 2,875,000 2,959,094
Mesquite Health Facilities Development Corp., Revenue (Christian Care Centers,
Inc.)
9.375%, 3/1/2020 (Prerefunded 3/1/2000) (a) . . . . . . . . . . . . . . . . . . . . . . 11,540,000 12,689,384
Texas Department of Housing and Community Affairs,
Collateralized Home Mortgage Revenue, Refunding 6.90%, 7/2/2024 . . . . . . . . . . . . 13,700,000 15,635,399
Texas Health Facilities Development Corp., HR (All Saints Episcopal Hospitals)
7.80%, 8/15/2021 (Prerefunded 8/15/1999) (a) . . . . . . . . . . . . . . . . . . . . . . 3,000,000 3,153,900
Texas Public Property Finance Corp., Revenue (Mental Health and Retardation
Project):
8.625%, 9/1/2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935,000 984,265
8.875%, 9/1/2011 (Prerefunded 9/1/2001) (a) . . . . . . . . . . . . . . . . . . . . . . 5,100,000 5,863,623
Tyler Health Facilities Development Corp., HR, Refunding
(East Texas Medical Center Regional Health Care System Project)
6.75%, 11/1/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,850,000 6,291,383
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------- _____________ _____________
Utah--2.4%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration) 9.25%, 7/1/2018 (d). . . . . . . . $ 10,000,000 $ 6,002,000
Tooele County, Hazardous Waste Treatment Revenue (Union Pacific Project)
5.70%, 11/1/2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 4,983,800
Vermont--.5%
Vermont Housing Finance Agency, Home Mortgage Purchase 8.10%, 6/1/2022 . . . . . . . . . . 2,130,000 2,200,673
Virginia--6.1%
Fairfax County Water Authority, Revenue 7.779%, 4/1/2029 (b,c) . . . . . . . . . . . . . . 4,000,000 4,396,440
Henrico County Industrial Development Authority, Revenue
(Bon Secours Health Care System Project) 8.025%, 8/23/2027 (b) . . . . . . . . . . . . . 7,500,000 9,862,500
Virginia Housing Development Authority, MFHR 7.05%, 5/1/2018 . . . . . . . . . . . . . . . 12,000,000 13,177,800
Wisconsin--2.6%
Wisconsin Housing and Economic Development Authority, Homeownership Revenue
8.874%, 7/1/2025 (b,c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,600,000 11,947,260
Wyoming--1.0%
Sweetwater County, SWDR (FMC Corp. Project):
7%, 6/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200,000 2,417,250
6.90%, 9/1/2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000 2,193,600
U.S. Related--1.3%
Puerto Rico Commonwealth Highway and Transportation Authority
Transportation Revenue 6.55%, 4/1/2008 (Insured; MBIA) (b,c) . . . . . . . . . . . . . . 6,000,000 6,020,460
_____________
TOTAL INVESTMENTS (cost $433,385,428). . . . . . . . . . . . . . . . . . . . . . . . . . . 99.7% $452,430,981
_______ _____________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3% $ 1,461,896
_______ _____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $453,892,877
_______ _____________
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
Summary of Abbreviations
- -----------------------------------------------------------------------------
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
EDR Economic Development Revenue PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
IDR Industrial Development Revenue SFMR Single Family Mortgage Revenue
MBIA Municipal Bond Investors Assurance SWDR Solid Waste Disposal Revenue
Insurance Corporation
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch or Moody's or Standard & Poor's Percentage of Value
____ ________ ________________ __________________
AAA Aaa AAA 16.3%
AA Aa AA 11.9
A A A 6.0
BBB Baa BBB 24.8
BB Ba BB 8.1
B B B 1.8
Not Rated (e) Not Rated (e) Not Rated (e) 31.1
_______
100.0%
_______
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) 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.
(b) Inverse floater security--the interest rate is subject to change
periodically.
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At November 30, 1998,
these securities amounted to $40,023,660 or 8.8% of net assets.
(d) Non-income producing security, interest payments in default.
(e) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those rated
securities in which the Fund may invest.
(f) At November 30, 1998, the Fund had $140,343,045 (30.9% of net assets)
invested in securities whose payment of principal and interest is dependent upon
revenues generated from housing projects.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1998
Cost Value
_____________ _____________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $433,385,428 $452,430,981
Interest receivable . . . . . . . . . . . . . . . . . . . 8,421,209
Prepaid expenses and other assets . . . . . . . . . . . . 197,664
_____________
461,049,854
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 288,130
Cash overdrafts due to Custodian . . . . . . . . . . . . 650,125
Payable for investment securities purchased . . . . . . . 6,102,904
Accrued expenses . . . . . . . . . . . . . . . . . . . . 115,818
_____________
7,156,977
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $453,892,877
_____________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $446,707,192
Accumulated undistributed investment income--net . . . . 1,951,438
Accumulated net realized gains (loss) on investments . . (13,811,306)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 . . . . . . . . . . . . . . . . 19,045,553
_____________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $453,892,877
_____________
SHARES OUTSTANDING
(110 MILLION SHARES OF $.001 PAR VALUE COMMON STOCK AUTHORIZED). . . . . . . . . . . . . . 47,659,365
NET ASSET VALUE per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9.52
_____
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . . . . . $31,914,108
EXPENSES: Investment advisory fee--Note 3(a) . . . . . . . . . . . $ 2,257,767
Administration fee--Note 3(a) . . . . . . . . . . . . . . 1,128,883
Shareholders' reports . . . . . . . . . . . . . . . . . . 97,062
Professional fees . . . . . . . . . . . . . . . . . . . . 43,108
Directors' fees and expenses--Note 3(b) . . . . . . . . . 33,632
Shareholder servicing costs . . . . . . . . . . . . . . . 32,821
Registration fees . . . . . . . . . . . . . . . . . . . . 32,807
Custodian fees . . . . . . . . . . . . . . . . . . . . . 876
Miscellaneous . . . . . . . . . . . . . . . . . . . . . . 24,380
____________
Total Expenses . . . . . . . . . . . . . . . . . . . . 3,651,336
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,262,772
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments . . . . . . . . . $ 306,745
Net unrealized appreciation (depreciation) on investments . . 2,076,465
____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS . . . . . . . . . . . . . . . . . . 2,383,210
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . . . . . $30,645,982
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
November 30, 1998 November 30, 1997
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,262,772 $ 28,832,146
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . 306,745 161,700
Net unrealized appreciation (depreciation) on investments . . . . . . . . . . 2,076,465 (698,707)
_____________ _____________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 30,645,982 28,295,139
_____________ _____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . (29,319,019) (30,573,584)
_____________ _____________
CAPITAL STOCK TRANSACTIONS:
Dividends reinvested--Note 1(c) . . . . . . . . . . . . . . . . . . . . . . . 6,413,712 7,749,563
_____________ _____________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . 7,740,675 5,471,118
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 446,152,202 440,681,084
_____________ _____________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $453,892,877 $446,152,202
_____________ _____________
UNDISTRIBUTED INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . $ 1,951,438 $ 3,007,685
_____________ _____________
Shares Shares
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Increase in Shares Outstanding as a Result of Dividends Reinvested . . . . . 664,058 799,653
_____________ _____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund' s financial statements and market price data for the
Fund's shares.
Year Ended November 30,
______________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . . . $ 9.49 $ 9.54 $ 9.60 $ 8.68 $ 9.93
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . . . .60 .62 .64 .66 .65
Net realized and unrealized gain (loss)
on investments . . . . . . . . . . . . . . . . . . . .05 (.01) (.08) .90 (1.16)
______ ______ ______ ______ ______
Total from Investment Operations . . . . . . . . . . . . .65 .61 .56 1.56 (.51)
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . . . (.62) (.66) (.62) (.64) (.67)
Dividends in excess of net realized gains
on investments . . . . . . . . . . . . . . . . . . . -- -- -- -- (.07)
______ ______ ______ ______ ______
Total Distributions . . . . . . . . . . . . . . . . . . . (.62) (.66) (.62) (.64) (.74)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . . . $ 9.52 $ 9.49 $ 9.54 $ 9.60 $ 8.68
______ ______ ______ ______ ______
Market value, end of period . . . . . . . . . . . . . . . $10 3/16 $ 10 5/8 $ 9 3/4 $ 9 1/4 $ 8 5/8
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN* . . . . . . . . . . . . . . . . . . 2.23% 16.60% 12.61% 15.12% (8.97%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . . . . . .81% .81% .82% .84% .86%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . . 6.26% 6.55% 6.82% 7.12% 6.94%
Portfolio Turnover Rate . . . . . . . . . . . . . . . . . 6.33% 2.95% 13.47% 13.19% 10.96%
Net Assets, end of period (000's Omitted) . . . . . . . . $453,893 $446,152 $440,681 $439,192 $396,316
- -----------------------------
* Calculated based on market value.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Strategic Municipal Bond Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended (the "Act") as a diversified
closed-end management investment company. The Fund's investment objective is to
maximize current income exempt from Federal income tax to the extent believed by
the Fund's investment adviser to be consistent with the preservation of capital.
The Dreyfus Corporation ("Dreyfus") serves as the Fund's investment adviser and
administrator. Boston Safe Deposit and Trust Company (the "Custodian") acts as
the Fund' s custodian. The Custodian is an indirect wholly-owned subsidiary of
Mellon Bank Corporation (" Mellon"). Dreyfus is a direct subsidiary of Mellon
Bank, N.A. First Data Investor Services Group, Inc. ("FDIS"), a subsidiary of
First Data Corporation (" FDC" ), serves as the Fund' s transfer agent,
dividend-paying agent, registrar and plan agent.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles and may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in municipal debt securities (excluding
options and financial futures on municipal and U.S. treasury securities) are
valued on the last business day of each week and month by an independent pricing
service (" Service" ) approved by the Board of Directors. 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: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal securities and U.S. treasury securities are
valued at the last sales price on the securities exchange on which such
securities are primarily traded or at the last sales price on the national
securities market on the last business day of each week and month. Investments
not listed on an exchange or the national securities market, or securities for
which there were no transactions, are valued at the average of the most recent
bid and asked prices. Bid price is used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.
(C) DIVIDENDS TO SHAREHOLDERS: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid monthly.
Dividends from net realized capital gain are normally declared and paid at least
annually. To the extent that net realized capital gain can be offset by capital
loss carryovers, it is the policy of the Fund not to distribute such gain.
For shareholders who elect to receive their distributions in additional
shares of the Fund, in lieu of cash, such distributions will be reinvested at
the lower of the market price or net asset value per share (but not less than
95% of the market price) as defined in the dividend reinvestement plan.
On November 25, 1998, the Board of Directors declared a cash dividend of
$.051 per share from investment income-net, payable on December 24, 1998 to
shareholders of record as of the close of business on December 10, 1998.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Internal Revenue Code of 1986 as
amended, and to make distributions of income and net realized capital gain
sufficient to relieve it from substantially all Federal income and excise taxes
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $13,811,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1998. If not
applied, $4,498,000 of the carryover expires in fiscal 2002 and $9,313,000
expires in fiscal 2003.
NOTE 2--BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed Funds in a $100 million
unsecured line of credit primarily to be utilized for temporary or emergency
purposes. Interest is charged to the Fund at rates which are related to the
Federal Funds in effect at the time of borrowings. During the period ended
November 30, 1998, the Fund did not borrow under the line of credit.
NOTE 3--INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER TRANSACTIONS WITH
AFFILIATES:
(A) The fee payable by the Fund, pursuant to the provisions of an Investment
Advisory Agreement with Dreyfus, is payable monthly based on an annual rate of
. 50 of 1% of the value of the Fund's average weekly net assets. The fee payable
by the Fund, pursuant to the provisions of an Administration Agreement with
Dreyfus, is payable monthly based on an annual rate of .25 of 1% of the value of
the Fund's average weekly net assets.
(B) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation and the Director Emeritus receives 50% of such compensation.
NOTE 4--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended November 30, 1998
amounted to $43,840,550 and $28,112,568, respectively.
At November 30, 1998, accumulated net unrealized appreciation on investments
was $19,045,553, consisting of $33,074,437 gross unrealized appreciation and
$14,028,884 gross unrealized depreciation.
At November 30, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Strategic Municipal Bond Fund, Inc., including the statement of
investments, as of November 30, 1998, and the related statement of operations
for the year then ended, the statement of changes in net assets for each of the
two years in the period then ended, and financial highlights for each of the
years indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included verification by
examination of securities held by the custodian as of November 30, 1998 and
confirmation of securities not held by the custodian by correspondence with
others. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Dreyfus Strategic Municipal Bond Fund, Inc. at November 30, 1998, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the indicated years, in conformity with generally accepted accounting
principles.
New York, New York
January 4, 1999
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended November
30, 1998 as "exempt-interest dividends" (not generally subject to regular
Federal income tax).
As required by Federal tax law rules, shareholders will receive notification
of their portion of the Fund' s taxable ordinary dividends and capital gain
distributions paid for the 1998 calendar year on Form 1099-DIV which will be
mailed by January 31, 1999.
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN (UNAUDITED)
Under the Fund' s Dividend Reinvestment Plan (the "Plan"), a holder of the
Common Stock ("Common Stockholder") who has Fund shares registered in his name
will have all dividends and distributions reinvested automatically by The First
Data Investor Services Group, Inc., as Plan agent (the "Agent"), in additional
shares of the Fund's Common Stock at the lower of prevailing market price or net
asset value (but not less than 95% of market value at the time of valuation)
unless such shareholder elects to receive cash as provided below. If market
price is equal to or exceeds net asset value, shares will be issued at net asset
value. If net asset value exceeds market price or if a dividend or other
distribution payable only in cash is declared, the Agent, as agent for the Plan
participants, will buy shares of the Fund's Common Stock in the open market. A
Plan participant is not relieved of any income tax that may be payable on such
dividends or distributions.
A Common Shareholder who owns Fund shares registered in the name of his
broker/dealer or other nominee (i.e., in "street name") may not participate in
the Plan, but may elect to have cash dividends and distributions reinvested by
his broker/dealer or other nominee in additional shares of the Fund if such
service is provided by the broker/dealer or other nominee; otherwise such
dividends and distributions will be treated like any other cash dividend or
distribution.
A Common Shareholder who has Fund shares registered in his name may elect to
withdraw from the Plan at any time for a $5.00 fee and thereby elect to receive
cash in lieu of shares of the Fund. Changes in elections must be by direct mail
to First Data Investor Services Group, Inc., Attention: Closed-End Funds, Post
Office Box 8030, Boston, Massachusetts 02266, or by telephone at 1-800-331-1710,
and should include the shareholder' s name and address as they appear on the
Agent' s records. Elections received by the Agent will be effective only if
received prior to the record date for any distribution.
The Agent maintains all shareholder accounts in the Plan and furnishes
written confirmations of all transactions in the account. Shares in the account
of each Plan participant will be held by the Agent in non-certificated form in
the name of the participant, and each such participant's proxy will include
those shares purchased pursuant to the Plan.
The Fund pays the Agent' s fee for reinvestment of dividends and
distributions. Plan participants pay a pro rata share of brokerage commissions
incurred with respect to the Agent's open market purchases in connection with
the reinvestment of dividends or distributions.
The Fund reserves the right to amend or terminate the Plan as applied to any
dividend or distribution paid subsequent to written notice of the change sent to
Plan participants at least 90 days before the record date for such dividend or
distribution. The Plan also may be amended or terminated by the Agent on at
least 90 days' written notice to Plan participants.
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
- -----------------------------------------------------------------------------
PROXY RESULTS (UNAUDITED)
Stockholders voted on the following proposals presented at the annual
stockholders' meeting held on May 15, 1998. The description of each proposal and
the number of shares voted are as follows:
<TABLE>
Shares
______________________________________
For Authority Withheld
_________________ ________________
<S> <C> <C>
1. To elect two Class II Directors:*
Ehud Houminer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,430,599 947,316
Robin A. Smith . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43,418,776 959,139
For Against Abstained
_____________ _____________ _____________
2. To ratify the selection of Ernst & Young LLP
as independent auditors of the Fund. . . . . . . . . . . . . . 43,742,552 297,949 607,414
- -------------
</TABLE>
* The terms of these Class II Directors expire in 2001.
[This page intentionally left blank.]
OFFICERS AND DIRECTORS
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
Directors
Joseph S. DiMartino, Chairman
David W. Burke
Hodding Carter, III
Ehud Houminer
Richard C. Leone
Hans C. Mautner
Robin A. Smith
John E. Zuccotti
Officers
President and Treasurer
Marie E. Connolly
Vice President and Secretary
Margart W. Chambers
Vice President, Assistant Treasurer and Assistant Secretary
Michael S. Petrucelli
Vice President, Assistant Treasurer and Assistant Secretary
Stephanie Pierce
Vice President and Assistant Treasurer
Mary A. Nelson
Vice President and Assistant Treasurer
George A. Rio
Vice President and Assistant Treasurer
Joseph F. Tower, III
Vice President and Assistant Secretary
Douglas C. Conroy
Vice President and Assistant Secretary
Christopher J. Kelly
Vice President and Assistant Secretary
Kathleen K. Morrisey
Vice President and Assistant Secretary
Elba Vasquez
Portfolio Managers
Joseph P. Darcy
A. Paul Disdier
Karen M. Hand
Stephen C. Kris
Richard J. Moynihan
Jill C. Shaffro
Samuel J. Weinstock
Monica S. Wieboldt
Investment Adviser
and Administrator
The Dreyfus Corporation
Custodian
Boston Safe Deposit and Trust Company
Counsel
Stroock & Stroock & Lavan LLP
Transfer Agent, Dividend-Paying Agent, Registrar and Plan Agent First Data
Investor Services Group, Inc.
Stock Exchange Listing
NYSE Symbol: DSM
Initial SEC Effective Date
11/22/89
The Net Asset Value appears in the following publications: Barron's, Closed-End
Bond Funds section under the heading "Municipal Bond Funds" every Monday; Wall
Street Journal, Mutual Funds section under the heading "Closed-End Bond Funds"
every Monday; New York Times, Money and Business Section under the heading
"Closed-End Bond Funds--National Municipal Bond Funds" every Sunday.
- --------------------------------------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Fund may purchase shares of its common
stock in the open market when it can do so at prices below the then current net
asset value per share.
- --------------------------------------------------------------------------------
[reg.tm logo]
(reg.tm)
DREYFUS STRATEGIC MUNICIPAL BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02108
TRANSFER AGENT,
DIVIDEND-PAYING AGENT,
REGISTRAR AND PLAN AGENT
First Data Investor Services Group, Inc.
One Exchange Place
Boston, MA 02109
Printed in U.S.A. 852AR9811
Strategic
Municipal
Bond Fund, Inc.
Annual Report
November 30, 1998
