N-Q 1 nq2.htm NCO_NQ nq2.htm



 
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 811-6081
 
Nuveen California Municipal Market Opportunity Fund, Inc.
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        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:            2/28          
 
Date of reporting period:         5/31/10         
 
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
 

  Portfolio of Investments (Unaudited)      
      Nuveen California Municipal Market Opportunity Fund, Inc. (NCO)      
      May 31, 2010      
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Consumer Staples – 6.0% (4.2% of Total Investments)      
$      330  California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma  6/15 at 100.00  BBB  $      311,807 
  County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21       
2,000  Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed  6/17 at 100.00  BBB  1,466,540 
  Bonds, Series 2007A-1, 5.750%, 6/01/47       
8,090  Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed  6/22 at 100.00  BBB  5,189,250 
  Bonds, Series 2007A-2, 0.000%, 6/01/37       
10,420  Total Consumer Staples      6,967,597 
  Education and Civic Organizations – 5.7% (4.0% of Total Investments)      
100  California Educational Facilities Authority, Revenue Bonds, University of Redlands, Series  10/15 at 100.00  A3  96,920 
  2005A, 5.000%, 10/01/35       
  California Educational Facilities Authority, Revenue Bonds, University of the Pacific, Series 2006:       
70  5.000%, 11/01/21  11/15 at 100.00  A2  73,531 
95  5.000%, 11/01/25  11/15 at 100.00  A2  97,352 
1,000  California Infrastructure Economic Development Bond Bank, Revenue Bonds, Scripps Research  7/15 at 100.00  Aa3  1,056,940 
  Institute, Series 2005A, 5.000%, 7/01/24       
1,680  California State Public Works Board, Lease Revenue Bonds, University of California Regents,  3/18 at 100.00  Aa2  1,742,479 
  Tender Option Bond Trust 1065, 9.041%, 3/01/33 (IF)       
2,000  Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach  11/11 at 101.00  BBB  1,887,500 
  Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 – AMBAC Insured       
2,000  San Diego County, California, Certificates of Participation, Burnham Institute, Series 2006,  9/15 at 102.00  Baa3  1,741,320 
  5.000%, 9/01/34       
6,945  Total Education and Civic Organizations      6,696,042 
  Health Care – 24.2% (16.9% of Total Investments)      
5,260  California Health Facilities Financing Authority, Revenue Bonds, Childrens Hospital Los  7/20 at 100.00  AAA  5,271,993 
  Angeles, Series 2010A, 5.250%, 7/01/38 – AGC Insured       
240  California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System,  4/16 at 100.00  A+  232,068 
  Series 2006, 5.000%, 4/01/37       
5,305  California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A,  11/16 at 100.00  Aa3  5,284,364 
  5.250%, 11/15/46 (UB)       
3,200  California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance  8/11 at 102.00  A+  3,240,544 
  LLC, Series 2001A, 5.550%, 8/01/31       
1,060  California Municipal Financing Authority, Certificates of Participation, Community Hospitals  2/17 at 100.00  Baa2  930,754 
  of Central California, Series 2007, 5.250%, 2/01/46       
569  California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health  7/18 at 100.00  AAA  615,943 
  System, Trust 2554, 18.449%, 7/01/47 – AGM Insured (IF)       
1,000  California Statewide Community Development Authority, Insured Health Facility Revenue Bonds,  10/17 at 100.00  A–  917,760 
  Henry Mayo Newhall Memorial Hospital, Series 2007A, 5.000%, 10/01/37       
1,500  California Statewide Community Development Authority, Revenue Bonds, Daughters of Charity  7/15 at 100.00  BBB  1,432,335 
  Health System, Series 2005A, 5.250%, 7/01/24       
755  California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System,  3/16 at 100.00  A+  719,651 
  Series 2006, 5.000%, 3/01/41       
135  California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System,  8/16 at 100.00  A+  135,980 
  Series 2001C, 5.250%, 8/01/31       
675  California Statewide Community Development Authority, Revenue Bonds, Sherman Oaks Health  No Opt. Call  A1  679,982 
  System, Series 1998A, 5.000%, 8/01/22 – AMBAC Insured       
2,585  California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series  11/15 at 100.00  Aa3  2,495,430 
  2005A, 5.000%, 11/15/43       
1,000  Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series  12/15 at 100.00  BBB  965,700 
  2005A, 5.000%, 12/01/23       
1,150  Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series  12/17 at 100.00  BBB  1,298,649 
  2008A, 8.250%, 12/01/38       
2,205  Madera County, California, Certificates of Participation, Children’s Hospital Central  3/20 at 100.00  A–  2,167,052 
  California, Series 2010, 5.375%, 3/15/36       
1,000  Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical  7/17 at 100.00  A3  927,490 
  Center, Series 2007A, 5.000%, 7/01/38       
1,000  The Regents of the University of California, Medical Center Pooled Revenue Bonds, Series  5/15 at 101.00  Aa2  953,420 
  2007A, 4.500%, 5/15/37 – NPFG Insured       
28,639  Total Health Care      28,269,115 
  Housing/Single Family – 0.2% (0.1% of Total Investments)      
195  California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%, 8/01/30 –  2/16 at 100.00  199,409 
  FGIC Insured (Alternative Minimum Tax)       
  Industrials – 0.6% (0.4% of Total Investments)      
750  California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste  1/16 at 102.00  BBB  754,913 
  Management Inc., Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)       
  Long-Term Care – 2.1% (1.5% of Total Investments)      
2,900  California Statewide Communities Development Authority, Revenue Bonds, Inland Regional Center  12/17 at 100.00  Baa1  2,446,585 
  Project, Series 2007, 5.250%, 12/01/27       
  Tax Obligation/General – 18.7% (13.1% of Total Investments)      
4,125  Alameda Unified School District, Alameda County, California, General Obligation Bonds, Series  No Opt. Call  AAA  1,765,830 
  2004A, 0.000%, 8/01/25 – AGM Insured       
2,000  California, General Obligation Bonds, Various Purpose Series 2009, 6.000%, 11/01/39  11/19 at 100.00  A1  2,192,860 
1,350  Coachella Valley Unified School District, Riverside County, California, General Obligation  8/15 at 100.00  A1  1,360,922 
  Bonds, Series 2005A, 5.000%, 8/01/30 – FGIC Insured       
2,150  Los Rios Community College District, Sacramento, El Dorado and Yolo Counties, California,  8/14 at 102.00  AAA  2,363,839 
  General Obligation Bonds, Series 2006C, 5.000%, 8/01/24 – AGM Insured (UB)       
4,100  Monrovia Unified School District, Los Angeles County, California, General Obligation Bonds,  No Opt. Call  Aa3  1,490,309 
  Series 2001B, 0.000%, 8/01/27 – FGIC Insured       
2,500  Oakland Unified School District, Alameda County, California, General Obligation Bonds, Series  8/12 at 100.00  A1  2,581,350 
  2002, 5.250%, 8/01/21 – FGIC Insured       
1,000  Pomona Unified School District, Los Angeles County, California, General Obligation Refunding  8/11 at 103.00  1,092,230 
  Bonds, Series 1997A, 6.150%, 8/01/15 – NPFG Insured       
25  Riverside Community College District, California, General Obligation Bonds, Series 2004A,  8/14 at 100.00  Aa2  27,531 
  5.250%, 8/01/24 – NPFG Insured       
210  Roseville Joint Union High School District, Placer County, California, General Obligation  8/15 at 100.00  AA–  217,730 
  Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured       
5,000  San Diego Unified School District, California, General Obligation Bonds, Election of 1998,  7/10 at 100.00  Aa1  5,019,150 
  Series 2000B, 5.125%, 7/01/21 – NPFG Insured       
4,970  San Rafael City High School District, Marin County, California, General Obligation Bonds,  No Opt. Call  AA  1,874,088 
  Series 2004B, 0.000%, 8/01/27 – FGIC Insured       
4,175  Southwestern Community College District, San Diego County, California, General Obligation  No Opt. Call  Aa2  1,786,441 
  Bonds, Series 2004, 0.000%, 8/01/25 – FGIC Insured       
31,605  Total Tax Obligation/General      21,772,280 
  Tax Obligation/Limited – 24.5% (17.1% of Total Investments)      
2,000  California State Public Works Board, Lease Revenue Bonds, Department of Mental Health,  6/14 at 100.00  A2  2,082,940 
  Coalinga State Hospital, Series 2004A, 5.500%, 6/01/19       
260  Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community  9/15 at 100.00  254,023 
  Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured       
770  Chino Redevelopment Agency, California, Merged Chino Redevelopment Project Area Tax Allocation  9/16 at 101.00  A–  684,830 
  Bonds, Series 2006, 5.000%, 9/01/38 – AMBAC Insured       
1,035  Hawthorne Community Redevelopment Agency, California, Project Area 2 Tax Allocation Bonds,  9/16 at 100.00  A–  961,256 
  Series 2006, 5.250%, 9/01/36 – SYNCORA GTY Insured       
  Irvine, California, Unified School District, Community Facilities District Special Tax Bonds,       
  Series 2006A:       
120  5.000%, 9/01/26  9/16 at 100.00  N/R  109,853 
275  5.125%, 9/01/36  9/16 at 100.00  N/R  238,161 
470  Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester Social  9/15 at 100.00  A1  419,362 
  Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured       
  Modesto Schools Infrastructure Financing Agency, Stanislaus County, California, Special Tax       
  Revenue Bonds, Series 2004:       
1,375  5.250%, 9/01/25 – AMBAC Insured  9/14 at 100.00  N/R  1,291,029 
1,500  5.250%, 9/01/26 – AMBAC Insured  9/14 at 100.00  N/R  1,395,840 
10,900  Ontario Redevelopment Financing Authority, San Bernardino County, California, Revenue  No Opt. Call  12,700,898 
  Refunding Bonds, Redevelopment Project 1, Series 1995, 7.400%, 8/01/25 – NPFG Insured       
1,000  Ontario, California, Special Tax Bonds, Community Facilities District 5, Freeway Interchange  9/10 at 100.00  N/R  1,004,190 
  Project, Series 1997, 6.375%, 9/01/17       
1,065  Panama-Buena Vista Union School District, California, Certificates of Participation, School  9/16 at 100.00  A1  1,119,773 
  Construction Project, Series 2006, 5.000%, 9/01/22 – NPFG Insured       
225  Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series  9/15 at 100.00  A–  202,367 
  2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured       
1,440  Riverside County Redevelopment Agency, California, Tax Allocation Housing Bonds, Series 2010A,  10/20 at 100.00  A2  1,462,032 
  6.000%, 10/01/39 (WI/DD, Settling 6/03/10)       
280  Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%,  8/13 at 100.00  AA–  280,549 
  8/01/25 – AMBAC Insured       
2,500  Sacramento City Financing Authority, California, Lease Revenue Refunding Bonds, Series 1993A,  No Opt. Call  A1  2,678,825 
  5.400%, 11/01/20 – AMBAC Insured       
1,200  San Jose Financing Authority, California, Lease Revenue Refunding Bonds, Convention Center  9/11 at 100.00  AA+  1,252,284 
  Project, Series 2001F, 5.000%, 9/01/20 – NPFG Insured       
485  San Mateo Union High School District, San Mateo County, California, Certificates of  12/17 at 100.00  AA–  455,924 
  Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 – AMBAC Insured       
26,900  Total Tax Obligation/Limited      28,594,136 
  Transportation – 11.4% (8.0% of Total Investments)      
1,355  Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series  4/18 at 100.00  AA  1,595,106 
  2008, Trust 3211, 13.261%, 4/01/39 (IF)       
4,000  Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding  1/14 at 101.00  BBB–  4,029,160 
  Bonds, Series 1999, 5.875%, 1/15/29       
5,210  Port of Oakland, California, Revenue Bonds, Series 2000K, 5.750%, 11/01/29 – FGIC Insured  11/10 at 100.00  5,210,521 
2,465  San Francisco Airports Commission, California, Special Facilities Lease Revenue Bonds, San  7/10 at 100.00  AAA  2,467,465 
  Francisco International Airport, SFO Fuel Company LLC, Series 2000A, 6.125%, 1/01/27 – AGM       
  Insured (Alternative Minimum Tax)       
13,030  Total Transportation      13,302,252 
  U.S. Guaranteed – 19.7% (13.8% of Total Investments) (4)      
3,000  California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%,  5/12 at 101.00  Aaa  3,290,160 
  5/01/18 (Pre-refunded 5/01/12)       
25  California Department of Water Resources, Water System Revenue Bonds, Central Valley Project,  12/11 at 100.00  AAA  26,882 
  Series 2001W, 5.500%, 12/01/15 (Pre-refunded 12/01/11)       
10  California Department of Water Resources, Water System Revenue Bonds, Central Valley Project,  No Opt. Call  AAA  12,131 
  Series 2002X, 5.500%, 12/01/17 – FGIC Insured (ETM)       
2,100  California, General Obligation Bonds, Series 2004, 5.250%, 4/01/34 (Pre-refunded 4/01/14)  4/14 at 100.00  AAA  2,420,061 
1,475  Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed  6/13 at 100.00  AAA  1,644,227 
  Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)       
5,000  Los Angeles Unified School District, California, General Obligation Bonds, Series 2000D,  7/10 at 100.00  Aa2 (4)  5,023,350 
  5.375%, 7/01/25 (Pre-refunded 7/01/10) – FGIC Insured       
2,000  Monterey County, California, Certificates of Participation, Master Plan Financing, Series 2001,  8/11 at 100.00  AA– (4)  2,104,280 
  5.000%, 8/01/21 (Pre-refunded 8/01/11) – NPFG Insured       
875  Orange County Water District, California, Revenue Certificates of Participation, Series 2003B,  8/13 at 100.00  AAA  978,696 
  5.000%, 8/15/34 – NPFG Insured (ETM)       
4,000  Pomona, California, GNMA/FHLMC Collateralized Single Family Mortgage Revenue Refunding Bonds,  No Opt. Call  AAA  5,265,480 
  Series 1990B, 7.500%, 8/01/23 (ETM)       
1,875  Riverside Community College District, California, General Obligation Bonds, Series 2004A,  8/14 at 100.00  AA– (4)  2,175,900 
  5.250%, 8/01/24 (Pre-refunded 8/01/14) – NPFG Insured       
20,360  Total U.S. Guaranteed      22,941,167 
  Utilities – 6.4% (4.5% of Total Investments)      
1,500  California Pollution Control Financing Authority, Revenue Refunding Bonds, Southern California  9/10 at 100.50  1,513,650 
  Edison Company, Series 1999A, 5.450%, 9/01/29 – NPFG Insured       
2,815  California Statewide Community Development Authority, Certificates of Participation Refunding,  6/10 at 100.00  N/R  2,601,989 
  Rio Bravo Fresno Project, Series 1999A, 6.500%, 12/01/18 (5)       
1,365  Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series  No Opt. Call  1,340,307 
  2007A, 5.500%, 11/15/37       
455  Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005, 5.125%,  9/15 at 100.00  N/R  424,019 
  9/01/31 – SYNCORA GTY Insured       
1,500  Southern California Public Power Authority, California, Milford Wind Corridor Phase I Revenue  No Opt. Call  AA–  1,567,350 
  Bonds, Series 2010-1, 5.000%, 7/01/28       
7,635  Total Utilities      7,447,315 
  Water and Sewer – 23.4% (16.4% of Total Investments)      
1,020  California Department of Water Resources, Water System Revenue Bonds, Central Valley Project,  No Opt. Call  AAA  1,234,975 
  Series 2002X, 5.500%, 12/01/17 – FGIC Insured       
2,500  El Centro Financing Authority, California, Water Revenue Bonds, Series 2006A, 4.750%, 10/01/31 –  10/16 at 100.00  AAA  2,450,550 
  AGM Insured       
750  Fortuna Public Finance Authority, California, Water Revenue Bonds, Series 2006, 5.000%,  10/16 at 100.00  AAA  753,593 
  10/01/36 – AGM Insured       
3,380  Orange County Sanitation District, California, Certificates of Participation, Trust 11738,  2/19 at 100.00  AAA  4,153,750 
  Series 2009, 17.573%, 2/01/35 (IF)       
3,500  Placerville Public Financing Authority, California, Wastewater System Refinancing and  9/16 at 100.00  N/R  3,162,810 
  Improvement Project Revenue Bonds, Series 2006, 5.000%, 9/01/34 – SYNCORA GTY Insured       
350  Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series  6/16 at 100.00  AA  360,608 
  2006, 5.000%, 12/01/31 – FGIC Insured       
2,630  San Diego Public Facilities Financing Authority, California, Sewerage Revenue Bonds, Refunding  5/20 at 100.00  Aa3  2,888,870 
  Series 2010A, 5.250%, 5/15/27       
2,000  San Francisco City and County Public Utilities Commission, California, Clean Water Revenue  4/13 at 100.00  AA–  2,168,819 
  Refunding Bonds, Series 2003A, 5.250%, 10/01/20 – NPFG Insured       
10,000  Santa Maria, California, Subordinate Water and Wastewater Revenue Certificates of  8/12 at 101.00  N/R  10,182,299 
  Participation, Series 1997A, 5.550%, 8/01/27 – AMBAC Insured       
26,130  Total Water and Sewer      27,356,274 
$      175,509  Total Investments (cost $164,648,633) – 142.9%      166,747,085 
  Floating Rate Obligations – (3.7)%      (4,285,000)
  Other Assets Less Liabilities – 3.5%      4,050,640 
  Variable Rate Demand Preferred Shares, at Liquidation Value – (42.7)% (6)      (49,800,000)
  Net Assets Applicable to Common Shares – 100%      $ 116,712,725 

Fair Value Measurements
 
In determining the value of the Fund's investments, various inputs are used. These inputs are summarized in the three broad levels listed below:
 
  Level 1 – Quoted prices in active markets for identical securities.
 
  Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
 
  Level 3 – Significant unobservable inputs (including management's assumptions in determining the fair value of investments).
 
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund's fair value measurements as of May 31, 2010:
 
  Level 1 Level 2 Level 3 Total
Investments:         
Municipal Bonds  $ —  $166,747,085  $ —  $166,747,085 

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 timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. 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.
 
At May 31, 2010, the cost of investments was $160,310,541.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at May 31, 2010, were as follows:
 
Gross unrealized:   
  Appreciation  $ 7,409,004 
  Depreciation  (5,257,402)
Net unrealized appreciation (depreciation) of investments  $ 2,151,602 

(1)  All percentages shown in the Portfolio of Investments are based on net assets applicable to Common 
  shares unless otherwise noted. 
(2)  Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
  There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
  may be subject to periodic principal paydowns. 
(3)  Ratings: Using the highest of Standard & Poor’s Group ("Standard & Poor's"), Moody’s Investor 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. 
(4)  Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, 
  which ensure the timely payment of principal and interest. Such investments are normally considered to 
  be equivalent to AAA rated securities. 
(5)  This debt has been restructured to accommodate capital maintenance at the facility. Major highlights of the 
  debt restructuring include the following: (1) the principal balance outstanding on and after December 1, 2007, 
  shall accrue interest at a rate of 6.500% per annum commencing December 1, 2007; (2) the interest shall 
  accrue but not be payable on June 1, 2008 or December 1, 2008, but shall instead be deferred and paid by 
  the end of calendar year 2011; (3) no principal component shall be pre-payable from the Minimum Sinking 
  Fund Account during calendar years 2008 and 2009 but such pre-payments shall recommence beginning in 
  calendar year 2010 according to a revised schedule. Management believes that the restructuring is in the 
  best interest of Fund shareholders and that it is more-likely-than-not that the borrower will fulfill its 
  obligation. Consequently, the Fund continues to accrue interest on this obligation. 
(6)  Variable Rate Demand Preferred Shares, at Liquidation Value as a percentage of Total Investments is 29.9%. 
N/R  Not rated. 
WI/DD  Purchased on a when-issued or delayed delivery basis. 
(ETM)  Escrowed to maturity. 
(IF)  Inverse floating rate investment. 
(UB)  Underlying bond of an inverse floating rate trust reflected as a financing transaction. 
 

Item 2. Controls and Procedures.

a.  
The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (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)).
 
 
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: See 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 California Municipal Market Opportunity Fund, Inc. 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         July 30, 2010        
 
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         July 30, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date        July 30, 2010