Nuveen Quality Preferred Income Fund 2

N-Q 1 d93485dnq.htm NUVEEN QUALITY PREFERRED INCOME FUND 2 Nuveen Quality Preferred Income Fund 2

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21137

Nuveen Quality Preferred Income Fund 2

(Exact name of registrant as specified in charter)

333 West Wacker Drive, Chicago, Illinois 60606

(Address of principal executive offices) (Zip code)

Kevin J. McCarthy—Vice President and Secretary

333 West Wacker Drive, Chicago, Illinois 60606

(Name and address of agent for service)

Registrant’s telephone number, including area code: 312-917-7700

Date of fiscal year end: July 31

Date of reporting period: October 31, 2015

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments

JPS


Nuveen Quality Preferred Income Fund 2
Portfolio of Investments		October 31, 2015 (Unaudited)


Shares		Description (1)	Coupon		Ratings (2)		Value

		LONG-TERM INVESTMENTS – 136.3% (98.2% of Total Investments)

		CONVERTIBLE PREFERRED SECURITIES – 0.5% (0.3% of Total Investments)

		Banks – 0.5%

	4,300	Wells Fargo & Company		7.500%		BBB	$	5,095,500
		Total Convertible Preferred Securities (cost $5,004,125)						5,095,500

Shares		Description (1)	Coupon		Ratings (2)		Value

		$25 PAR (OR SIMILAR) RETAIL PREFERRED – 47.0% (33.9% of Total Investments)

		Banks – 12.6%

	60,500	AgriBank FCB, (3)		6.875%		BBB+	$	6,329,813
	23,180	Bank of America Corporation		6.500%		BB+		610,098
	141,489	Barclays Bank PLC		8.125%		BB+		3,718,331
	239,308	Citigroup Capital XIII		6.704%		BBB–		6,078,423
	411,100	Citigroup Inc.		6.875%		BB+		11,321,694
	115,255	City National Corporation		5.500%		Baa2		2,849,104
	50,000	Cobank Agricultural Credit Bank, (3)		6.200%		BBB+		5,132,815
	60,000	Fifth Third Bancorp.		6.625%		Baa3		1,674,000
	105,202	First Niagara Finance Group		8.625%		BB–		2,897,263
	298,442	General Electric Capital Corporation		4.875%		AA+		7,649,068
	35,370	General Electric Capital Corporation		4.875%		AA+		905,472
	123,947	General Electric Capital Corporation		4.700%		AA+		3,148,254
	369,048	HSBC Holdings PLC		8.000%		Baa1		9,595,248
	97,100	HSBC Holdings PLC		6.200%		Baa1		2,493,528
	40,100	HSBC USA Inc.		6.500%		BBB+		1,027,362
	768,094	ING Groep N.V.		7.200%		Baa3		20,154,787
	728,846	ING Groep N.V.		7.050%		Baa3		19,183,227
	12,636	JPMorgan Chase & Company		6.300%		BBB–		329,168
	80,000	JPMorgan Chase & Company		6.100%		BBB–		2,024,800
	59,635	JPMorgan Chase & Company		5.500%		BBB–		1,472,388
	1,214,400	PNC Financial Services		6.125%		Baa2		33,821,040
	170,000	Wells Fargo & Company		5.850%		BBB		4,418,300
		Total Banks						146,834,183

		Capital Markets – 4.9%

	57,278	Affiliated Managers Group Inc.		6.375%		BBB+		1,493,237
	130,000	Charles Schwab Corporation		6.000%		BBB		3,368,300
	1,284,535	Deutsche Bank Capital Funding Trust II		6.550%		BB+		33,166,694
	47,579	Deutsche Bank Contingent Capital Trust III		7.600%		BB+		1,272,262
	333,629	Goldman Sachs Group, Inc.		5.500%		Ba1		8,304,026
	22,888	Morgan Stanley Capital Trust III		6.250%		Baa3		592,799
	790	Morgan Stanley		7.125%		Ba1		22,002
	146,300	State Street Corporation		6.000%		Baa1		3,781,855
	37,600	State Street Corporation		5.900%		Baa1		1,000,912
	167,817	State Street Corporation		5.250%		Baa1		4,292,759
		Total Capital Markets						57,294,846

		Diversified Telecommunication Services – 3.3%

	184,004	Qwest Corporation		7.500%		BBB–		4,820,905
	129,290	Qwest Corporation		7.375%		BBB–		3,336,975
	381,205	Qwest Corporation		7.000%		BBB–		9,957,075
	74,400	Qwest Corporation		7.000%		BBB–		1,964,904
	216,000	Qwest Corporation		6.875%		BBB–		5,572,800
	97,600	Qwest Corporation		6.625%		Baa3		2,448,784
	192,501	Qwest Corporation		6.125%		BBB–		4,789,425
	204,131	Verizon Communications Inc.		5.900%		A–		5,429,885
		Total Diversified Telecommunication Services						38,320,753


Nuveen Investments			1


JPS	Nuveen Quality Preferred Income Fund 2
	Portfolio of Investments (continued)	October 31, 2015 (Unaudited)


Shares		Description (1)	Coupon		Ratings (2)		Value

		Electric Utilities – 3.0%

	360,400	Alabama Power Company, (3)		6.450%		A3	$	9,584,406
	52,640	Duke Energy Capital Trust II		5.125%		Baa1		1,330,739
	11,968	Entergy Arkansas Inc.		5.750%		A–		302,192
	186,100	Entergy Arkansas Inc.		4.750%		A–		4,496,176
	58,267	Entergy Louisiana LLC		5.875%		A2		1,475,903
	20,485	Entergy Louisiana LLC		5.250%		A2		522,572
	48,934	Entergy Louisiana LLC		4.700%		A2		1,179,309
	25,406	Entergy Mississippi Inc.		6.000%		A–		650,394
	10,000	Gulf Power Company, (3)		5.600%		Baa1		1,026,197
	150,833	Integrys Energy Group Inc., (3)		6.000%		Baa1		3,841,536
	143,100	Interstate Power and Light Company		5.100%		BBB		3,684,825
	77,506	NextEra Energy Inc.		5.700%		BBB		2,002,755
	150,000	NextEra Energy Inc.		5.625%		BBB		3,805,500
	9,985	NextEra Energy Inc.		5.125%		BBB		244,133
	23,066	NextEra Energy Inc.		5.000%		BBB		549,663
		Total Electric Utilities						34,696,300

		Food Products – 0.7%

	53,400	Dairy Farmers of America Inc., 144A, (3)		7.875%		Baa3		5,695,446
	19,000	Dairy Farmers of America Inc., 144A, (3)		7.785%		Baa3		1,931,470
		Total Food Products						7,626,916

		Insurance – 12.3%

	1,717,889	Aegon N.V.		6.375%		Baa1		43,977,957
	477,920	Aflac Inc.		5.500%		Baa1		12,206,077
	175,500	Allstate Corporation		6.625%		BBB–		4,771,845
	393,000	Allstate Corporation		5.100%		Baa1		10,111,890
	147,456	American Financial Group		6.250%		Baa2		3,950,346
	301,725	Arch Capital Group Limited		6.750%		BBB+		8,104,334
	74,981	Aspen Insurance Holdings Limited		7.250%		BBB–		1,998,993
	210,600	Aspen Insurance Holdings Limited		5.950%		BBB–		5,368,194
	496,950	Axis Capital Holdings Limited		6.875%		BBB		13,437,528
	233,038	Axis Capital Holdings Limited		5.500%		BBB		5,825,950
	409,482	Delphi Financial Group, Inc., (3)		7.376%		BB+		10,083,494
	853	Protective Life Corporation		6.250%		BBB		22,246
	317,875	Prudential PLC		6.750%		A–		8,337,861
	280,000	Reinsurance Group of America Inc.		6.200%		BBB		8,114,400
	66,028	RenaissanceRe Holdings Limited		5.375%		BBB+		1,640,136
	124,009	Torchmark Corporation		5.875%		BBB+		3,174,630
	77,034	W.R. Berkley Corporation		5.625%		BBB–		1,919,687
		Total Insurance						143,045,568

		Machinery – 1.2%

	518,351	Stanley Black and Decker Inc.		5.750%		BBB+		13,523,778

		Media – 0.1%

	68,154	Comcast Corporation		5.000%		A–		1,796,539

		Multi-Utilities – 0.2%

	104,929	DTE Energy Company		5.250%		Baa1		2,577,056

		Real Estate Investment Trust – 7.2%

	5,000	Alexandria Real Estate Equities Inc., Series B		6.450%		Baa3		128,350
	100,000	DDR Corporation		6.250%		Baa3		2,578,000
	98,467	Digital Realty Trust Inc.		7.375%		Baa3		2,702,919
	15,675	Digital Realty Trust Inc.		7.000%		Baa3		405,512
	3,000	Digital Realty Trust Inc.		6.350%		Baa3		75,270
	63,611	Digital Realty Trust Inc.		5.875%		Baa3		1,545,111
	321,594	Hospitality Properties Trust		7.125%		Baa3		8,474,002
	58,372	Kimco Realty Corporation		6.900%		Baa2		1,469,807
	251,438	Kimco Realty Corporation		5.625%		Baa2		6,328,694
	133,372	National Retail Properties Inc.		6.625%		Baa2		3,529,023


	2			Nuveen Investments


Shares		Description (1)	Coupon				Ratings (2)		Value
		Real Estate Investment Trust (continued)

	82,301	Prologis Inc., (3)		8.540%				BBB–	$	5,305,847
	152,633	PS Business Parks, Inc.		6.450%				BBB		3,992,879
	483,895	PS Business Parks, Inc.		6.000%				BBB		12,547,397
	6,371	PS Business Parks, Inc.		5.700%				BBB		156,663
	3,400	Public Storage, Inc.		6.500%				A3		87,006
	200,757	Public Storage, Inc.		5.750%				A3		5,161,462
	193,922	Public Storage, Inc., (4)		5.900%				A3		4,993,492
	213,778	Public Storage, Inc., (4)		6.375%				A3		5,718,562
	104,090	Public Storage, Inc., (4)		5.875%				A3		2,712,585
	18,609	Public Storage, Inc., (4)		5.625%				A3		479,368
	99,006	Public Storage, Inc., (4)		5.200%				A3		2,458,319
	44,071	Public Storage, Inc., (4)		5.200%				A3		1,088,994
	183,646	Realty Income Corporation		6.625%				Baa2		4,872,128
	146,600	Regency Centers Corporation		6.625%				Baa2		3,808,668
	113,899	Ventas Realty LP		5.450%				BBB+		3,011,490
	3,203	Welltower Inc.		6.500%				Baa3		85,040
		Total Real Estate Investment Trust								83,716,588

		U.S. Agency – 1.3%

	144,000	Farm Credit Bank of Texas, 144A, (3)		6.750%				Baa1		15,142,507

		Wireless Telecommunication Services – 0.2%

	2,150	Telephone and Data Systems Inc.		7.000%				BB+		55,040
	81,428	Telephone and Data Systems Inc.		6.875%				BB+		2,081,300
		Total Wireless Telecommunication Services								2,136,340
		Total $25 Par (or similar) Retail Preferred (cost $517,212,767)								546,711,374

Principal Amount (000)		Description (1)	Coupon		Maturity		Ratings (2)		Value

		CORPORATE BONDS – 5.0% (3.6% of Total Investments)

		Banks – 3.0%

$	1,000	Den Norske Bank		0.625%		2/18/35		Baa2	$	617,500
	1,000	Den Norske Bank		0.482%		2/24/37		Baa2		617,500
	700	ING Groep N.V.		6.500%		10/16/65		Ba1		673,313
	19,000	JPMorgan Chase & Company		6.750%		12/31/49		BBB–		20,615,000
	7,600	Nordea Bank AB, 144A		5.500%		9/23/49		BBB		7,463,200
	5,000	Societe Generale, Reg S		8.250%		12/31/49		BB+		5,263,330
	34,300	Total Banks								35,249,843

		Capital Markets – 0.2%

	1,700	Macquarie Bank Limited, Reg S		10.250%		6/20/57		BB+		1,812,610

		Construction & Engineering – 0.2%

	1,800	Hutchison Whampoa International 12 Limited, 144A		6.000%		11/07/62		BBB		1,881,004

		Electric Utilities – 0.2%

	2,900	WPS Resource Corporation		6.110%		12/01/16		Baa1		2,439,625

		Insurance – 1.2%

	2,800	AIG Life Holdings Inc., 144A		7.570%		12/01/45		BBB		3,654,000
	2,300	Liberty Mutual Group Inc., 144A		7.697%		10/15/97		BBB+		2,882,850
	6,300	Mitsui Sumitomo Insurance Company Limited, 144A		7.000%		3/15/72		A–		7,308,000
	11,400	Total Insurance								13,844,850

		Multi-Utilities – 0.1%

	2,000	WEC Energy Group, Inc.		6.250%		5/15/67		Baa1		1,675,000

		Wireless Telecommunication Services – 0.1%

	1,600	Koninklijke KPN NV, 144A		7.000%		3/28/73		BB		1,654,591
$	55,700	Total Corporate Bonds (cost $56,607,084)								58,557,523


Nuveen Investments			3


JPS	Nuveen Quality Preferred Income Fund 2
	Portfolio of Investments (continued)	October 31, 2015 (Unaudited)


Principal Amount (000)/ Shares		Description (1)	Coupon		Maturity		Ratings (2)		Value

		$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 82.6% (59.5% of Total Investments)

		Banks – 32.8%

	7,400	Banco Bilbao Vizcaya Argentaria S.A, Reg S		9.000%		N/A (5)		BB	$	7,973,870
	10,980	Bank of America Corporation		8.125%		N/A (5)		BB+		11,433,913
	2,394	Bank of America Corporation		8.000%		N/A (5)		BB+		2,495,984
	10,800	Bank of America Corporation		6.500%		N/A (5)		BB+		11,286,108
	3,400	Bank One Capital III		8.750%		9/01/30		Baa2		4,830,574
	1,600	Barclays Bank PLC, 144A		6.860%		N/A (5)		BBB–		1,832,000
	10,500	Barclays PLC		8.250%		N/A (5)		BB+		11,179,403
	17,575	Barclays PLC		7.434%		N/A (5)		BB+		17,343,362
	1,200	Chase Capital Trust II, Series B		0.725%		2/01/27		Baa2		1,026,000
	20,000	Chase Capital Trust III, Series C, (6)		0.777%		3/01/27		Baa2		16,900,000
	5,400	Citigroup Capital III		7.625%		12/01/36		BBB–		6,702,637
	6,000	Citigroup Inc.		8.400%		N/A (5)		BB+		6,690,000
	5,500	Citigroup Inc.		5.950%		N/A (5)		BB+		5,458,750
	5,500	Citizens Financial Group Inc., 144A		5.500%		N/A (5)		BB+		5,403,750
	3,000	Credit Agricole SA, 144A		7.875%		N/A (5)		BB+		3,078,369
	17,095	First Union Capital Trust II, Series A		7.950%		11/15/29		Baa1		22,528,663
	35,500	General Electric Capital Corporation		7.125%		N/A (5)		Baa1		41,712,499
	3,200	General Electric Capital Corporation		6.250%		N/A (5)		Baa1		3,566,720
	10,000	Groupe BCPE		3.300%		N/A (5)		BBB–		8,150,000
	10,500	HSBC Bank PLC		0.688%		N/A (5)		A3		6,090,000
	5,500	HSBC Bank PLC		0.600%		N/A (5)		A3		3,250,500
	13,850	HSBC Capital Funding LP, Debt, 144A		10.176%		N/A (5)		Baa1		20,913,500
	7,800	JPMorgan Chase & Company		6.000%		N/A (5)		BBB–		7,913,100
	1,400	JPMorgan Chase & Company		5.150%		N/A (5)		BBB–		1,347,500
	2,800	JPMorgan Chase Capital XXIII		1.324%		5/15/47		Baa2		2,079,000
	6,000	KeyCorp Capital III, (6)		7.750%		7/15/29		Baa2		7,187,532
	1,802	Lloyd’s Banking Group PLC		7.500%		N/A (5)		BB+		1,914,625
	6,350	Lloyd’s Banking Group PLC, 144A		6.657%		N/A (5)		Ba1		7,112,000
	6,200	M&T Bank Corporation		6.375%		N/A (5)		Baa1		6,399,563
	26,000	M&T Bank Corporation		6.875%		N/A (5)		Baa2		26,113,750
	10,400	Nordea Bank AB, 144A		6.125%		N/A (5)		BBB		10,270,000
	20,000	PNC Financial Services Inc.		6.750%		N/A (5)		Baa2		21,554,200
	3,400	Royal Bank of Scotland Group PLC		7.648%		N/A (5)		BB		4,233,000
	3,000	Royal Bank of Scotland Group PLC		8.000%		N/A (5)		BB–		3,135,000
	3,000	Royal Bank of Scotland Group PLC, 144A		7.500%		N/A (5)		BB–		3,105,000
	25,600	Societe Generale, 144A		8.000%		N/A (5)		BB+		25,864,191
	2,000	Societe Generale, 144A		7.875%		N/A (5)		BB+		2,006,260
	800	Societe Generale, 144A		1.074%		N/A (5)		BB+		736,000
	2,000	Societe Generale, 144A		7.875%		N/A (5)		BB+		2,006,260
	6,450	Standard Chartered PLC, 144A		7.014%		N/A (5)		Baa2		6,966,000
	20,000	Wells Fargo & Company		7.980%		N/A (5)		BBB		21,300,000
		Total Banks								381,089,583

		Capital Markets – 4.0%

	9,000	Bank of New York Mellon Corporation		4.950%		N/A (5)		Baa1		9,000,000
	11,000	Charles Schwab Corporation		7.000%		N/A (5)		BBB		12,787,500
	14,600	Credit Suisse Group AG, 144A		7.500%		N/A (5)		BB+		15,413,074
	1,200	Credit Suisse Group AG, 144A		6.250%		N/A (5)		BB+		1,191,857
	1,800	Credit Suisse Guernsey, Reg S		7.875%		2/24/41		BBB–		1,866,470
	750	Goldman Sachs Group Inc.		5.700%		N/A (5)		Ba1		760,313
	1,200	Macquarie PMI LLC, Reg S		8.375%		N/A (5)		Ba1		1,202,790
	4,000	Morgan Stanley		5.550%		N/A (5)		Ba1		3,995,000
		Total Capital Markets								46,217,004

		Diversified Financial Services – 3.3%

	3,000	BNP Paribas, 144A		7.375%		N/A (5)		BBB–		3,105,000
	2,861	Countrywide Capital Trust III, Series B		8.050%		6/15/27		BBB–		3,565,639
	23,730	Rabobank Nederland, 144A		11.000%		N/A (5)		Baa2		29,514,188
	2,300	Voya Financial Inc.		5.650%		5/15/53		Baa3		2,328,750
		Total Diversified Financial Services								38,513,577


	4			Nuveen Investments


Principal Amount (000)/ Shares		Description (1)	Coupon		Maturity		Ratings (2)		Value

		Electric Utilities – 2.3%

	15,900	Electricite de France, 144A		5.250%		N/A (5)		Baa1	$	15,820,500
	5,000	FPL Group Capital Inc., (6)		6.650%		6/15/67		BBB		4,040,625
	7,700	PPL Capital Funding Inc.		6.700%		3/30/67		BBB		6,506,500
		Total Electric Utilities								26,367,625

		Insurance – 34.1%

	800	Ace Capital Trust II		9.700%		4/01/30		BBB+		1,170,000
	6,200	AG Insurance SA/NV, Reg S		6.750%		N/A (5)		BBB+		6,677,400
	6,400	AIG Life Holdings Inc., (6)		8.500%		7/01/30		BBB		8,480,000
	2,000	Allstate Corporation		5.750%		8/15/53		Baa1		2,082,500
	1,200	Allstate Corporation		6.500%		5/15/57		Baa1		1,326,000
	6,805	American International Group, Inc.		8.175%		5/15/58		BBB		8,982,600
	11,350	AXA SA, (6)		8.600%		12/15/30		A3		15,542,462
	9,450	AXA SA, 144A		6.380%		N/A (5)		Baa1		10,146,938
	19,659	Catlin Insurance Company Limited, 144A		7.249%		N/A (5)		BBB+		16,857,592
	4,400	Chubb Corporation		6.375%		4/15/37		A3		4,224,000
	6,500	Dai-Ichi Life Insurance Company Ltd, 144A		7.250%		N/A (5)		A–		7,621,250
	2,500	Dai-Ichi Life Insurance Company Ltd, 144A		5.100%		N/A (5)		A–		2,603,125
	1,200	Everest Reinsurance Holdings, Inc.		6.600%		5/15/37		BBB		1,113,000
	16,150	Glen Meadows Pass Through Trust, 144A		6.505%		2/12/67		BBB–		13,969,750
	2,600	Great West Life & Annuity Capital I, 144A		6.625%		11/15/34		A–		2,887,092
	6,600	Great West Life & Annuity Insurance Capital LP II, 144A		7.153%		5/16/46		A–		6,641,250
	2,488	Hartford Financial Services Group Inc.		8.125%		6/15/38		BBB–		2,762,924
	13,669	Liberty Mutual Group, 144A, (6)		7.000%		3/15/37		Baa3		13,105,154
	10,481	Liberty Mutual Group, 144A		7.800%		3/15/37		Baa3		12,288,973
	2,500	Lincoln National Corporation		6.050%		4/20/67		BBB		2,075,000
	16,600	MetLife Capital Trust IV, 144A		7.875%		12/15/37		BBB		20,584,000
	31,100	MetLife Capital Trust X, 144A		9.250%		4/08/38		BBB		43,235,220
	2,000	MetLife Inc.		10.750%		8/01/39		BBB		3,150,000
	23,754	National Financial Services Inc.		6.750%		5/15/37		Baa2		24,347,850
	8,200	Nippon Life Insurance Company, 144A		5.100%		10/16/44		A–		8,548,500
	4,200	Oil Insurance Limited, 144A		3.309%		N/A (5)		Baa1		3,696,000
	3,750	Provident Financing Trust I		7.405%		3/15/38		Baa3		4,239,863
	28,850	Prudential Financial Inc., (6)		5.625%		6/15/43		BBB+		30,191,525
	6,225	Prudential Financial Inc.		5.875%		9/15/42		BBB+		6,598,500
	1,135	Prudential Financial Inc.		8.875%		6/15/38		BBB+		1,294,615
	14,250	Prudential PLC, Reg S		6.500%		N/A (5)		A–		14,428,125
	29,870	QBE Cap Funding III Limited, 144A		7.250%		5/24/41		BBB		33,081,024
	20,500	Sompo Japan Insurance, 144A		5.325%		3/28/73		A–		21,730,000
	5,000	Sumitomo Life Insurance Company, 144A		4.000%		9/20/73		A3		5,630,100
	9,400	Swiss Re Capital I, 144A		6.854%		N/A (5)		A		9,533,950
	1,400	Swiss Re Capital I, Reg S		6.854%		N/A (5)		A		1,419,950
	1,000	XL Capital Ltd		6.500%		N/A (5)		BBB		797,700
	6,000	XLIT Limited		3.687%		N/A (5)		BBB–		4,950,000
	18,257	ZFS Finance USA Trust V, 144A		6.500%		5/09/37		A		18,667,783
		Total Insurance								396,681,715

		Machinery – 0.3%

	3,450	Stanley Black & Decker Inc.		5.750%		12/15/53		BBB+		3,648,375

		Multi-Utilities – 0.5%

	6,400	Dominion Resources Inc.		7.500%		6/30/66		BBB		5,728,000

		Real Estate Investment Trust – 0.2%

	2,772	Sovereign Capital Trusts		7.908%		6/13/36		Ba1		2,839,373

		Road & Rail – 1.1%

	11,400	Burlington Northern Santa Fe Funding Trust I		6.613%		12/15/55		BBB		12,779,400

		U.S. Agency – 0.2%

	1,700	Farm Credit Bank of Texas, 144A		10.000%		N/A (5)		Baa1		2,142,000


Nuveen Investments			5


JPS	Nuveen Quality Preferred Income Fund 2
	Portfolio of Investments (continued)	October 31, 2015 (Unaudited)

Principal
Amount (000)/
Shares

Description (1)

Coupon

Maturity

Ratings (2)

Value

Wireless Telecommunication Services – 3.8%

36,228

Centaur Funding Corporation, Series B, 144A

9.080%

4/21/20

BBB–

44,741,580

Total $1,000 Par (or similar) Institutional Preferred (cost $896,316,872)

960,748,232

Shares

Description (1), (7)

Value

INVESTMENT COMPANIES – 1.2% (0.9% of Total Investments)

599,835

Blackrock Credit Allocation Income Trust IV

7,515,933

395,914

John Hancock Preferred Income Fund III

6,797,843

Total Investment Companies (cost $21,285,098)

14,313,776

Total Long-Term Investments (cost $1,496,425,946)

1,585,426,405

Principal
Amount (000)

Description (1)

Coupon

Maturity

Value

SHORT-TERM INVESTMENTS – 2.5% (1.8% of Total Investments)

REPURCHASE AGREEMENTS – 2.5% (1.8% of Total Investments)

29,039

Repurchase Agreement with Fixed Income Clearing Corporation, dated 10/30/15, repurchase price $29,038,727,
collateralized by $29,885,000 U.S. Treasury Bonds,
2.875%, due 8/15/45, value $29,623,506

0.000%

11/02/15

29,038,727

Total Short-Term Investments (cost $29,038,727)

29,038,727

Total Investments (cost $1,525,464,673) – 138.8%

1,614,465,132

Borrowings – (40.0)% (8), (9)

(465,800,000

)

Other Assets Less Liabilities – 1.2% (10)

14,660,610

Net Assets Applicable to Common Shares – 100%

1,163,325,742

Investments in Derivatives as of October 31, 2015

Interest Rate Swaps outstanding:


Counterparty	Notional Amount		Fund Pay/Receive Floating Rate		Floating Rate Index		Fixed Rate (Annualized)			Fixed Rate Payment Frequency		Effective Date (11)		Termination Date		Unrealized Appreciation (Depreciation)
JPMorgan	$	134,344,000		Receive		1-Month USD-LIBOR-ICE		1.462	%		Monthly		12/01/15		12/01/20	$	(2,711,585	)
JPMorgan		134,344,000		Receive		1-Month USD-LIBOR-ICE		1.842			Monthly		12/01/15		12/01/22		(4,231,438	)
	$	268,688,000														$	(6,943,023	)

Fair Value Measurements

Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.


Level 1 –		Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 –		Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 –		Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).


	6			Nuveen Investments

The inputs or methodologies used for valuing securities are not an indication of the risks associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:


	Level 1		Level 2			Level 3		Total
Long-Term Investments:
Convertible Preferred Securities	$	5,095,500	$	—		$	—	$	5,095,500
$25 Par (or similar) Retail Preferred		482,637,843		64,073,531			—		546,711,374
Corporate Bonds		—		58,557,523			—		58,557,523
$1,000 Par (or similar) Institutional Preferred		—		960,748,232			—		960,748,232
Investment Companies		14,313,776		—			—		14,313,776

Short-Term Investments:
Repurchase Agreements		—		29,038,727			—		29,038,727

Investments in Derivatives:
Interest Rate Swaps*		—		(6,943,023	)		—		(6,943,023	)
Total	$	502,047,119	$	1,105,474,990		$	—	$	1,607,522,109

*	Represents net unrealized appreciation (depreciation).

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization, timing differences in the recognition of income and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

As of October 31, 2015, the cost of investments (excluding investments in derivatives) was $1,538,043,578.

Gross unrealized appreciation and gross unrealized depreciation of investments (excluding investments in derivatives) as of October 31, 2015, were as follows:


Gross unrealized:
Appreciation	$	107,640,490
Depreciation		(31,218,936	)
Net unrealized appreciation (depreciation) of investments	$	76,421,554


Nuveen Investments			7


JPS	Nuveen Quality Preferred Income Fund 2
	Portfolio of Investments (continued)	October 31, 2015 (Unaudited)

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

(1)	All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

(2)

Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

(3)	For fair value measurement disclosure purposes, investment classified as Level 2.

(4)	Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives.

(5)	Perpetual security. Maturity date is not applicable.

(6)	Investment, or a portion of investment, is out on loan. The total value of investments hypothecated as of the end of the reporting period was $68,137,794.

(7)	A copy of the most recent financial statements for these investment companies can be obtained directly from the Securities and Exchange Commission on its website at http://www.sec.gov.

(8)	Borrowings as a percentage of Total Investments is 28.9%.

(9)

The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) as collateral for borrowings. As of the end of the reporting period, investments with a value of $944,976,702 have been pledged as collateral for borrowings.

(10)	Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter derivatives as well as the exchange-cleared and exchange-traded derivatives, when applicable.

(11)	Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract.

144A	Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

Reg S

Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

REIT	Real Estate Investment Trust

USD-LIBOR-ICE

United States Dollar – London Inter-Bank Offered Rate – Intercontinental Exchange


	8			Nuveen Investments

Item 2. Controls and Procedures.

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”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(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 (17 CFR 270.30a-3(d)) 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.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

SIGNATURES

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.


(Registrant)		Nuveen Quality Preferred Income Fund 2

By (Signature and Title)		/s/ Kevin J. McCarthy
		Kevin J. McCarthy
		Vice President and Secretary

Date: December 30, 2015

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 (Signature and Title)		/s/ Gifford R. Zimmerman
		Gifford R. Zimmerman
		Chief Administrative Officer (principal executive officer)

Date: December 30, 2015

By (Signature and Title)		/s/ Stephen D. Foy
		Stephen D. Foy
		Vice President and Controller (principal financial officer)

Date: December 30, 2015