Unassociated Document



 
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 811-22253
 
Nuveen Municipal Value Fund 2
(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:            10/31          
 
Date of reporting period:         7/31/10         
 
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 Municipal Value Fund 2 (NUW)
      
   
July 31, 2010
      
Principal
    
Optional Call
    
Amount (000)
  
Description (1)
Provisions (2)
Ratings (3)
Value
   
Alaska – 0.0%
      
$      155 
  
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, 
6/14 at 100.00 
Baa3 
$     100,228 
   
Series 2006A, 5.000%, 6/01/46 
      
   
Arizona – 3.4%
      
4,000 
  
Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Bonds, El 
2/19 at 100.00 
BBB 
4,537,160 
   
Paso Electric Company, Refunding Series 2009A, 7.250%, 2/01/40 
      
2,995 
  
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc 
No Opt. Call 
A 
2,670,102 
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 
      
6,995 
  
Total Arizona 
    
7,207,262 
   
California – 10.2%
      
11,000 
  
Alhambra Unified School District, Los Angeles County, California, General Obligation Bonds, 
No Opt. Call 
AAA 
1,560,130 
   
Capital Appreciation Series 2009B, 0.000%, 8/01/41 – AGC Insured 
      
2,500 
  
California State Public Works Board, Lease Revenue Bonds, Department of General Services 
4/19 at 100.00 
A2 
2,632,975 
   
Buildings 8 & 9, Series 2009A, 6.250%, 4/01/34 
      
500 
  
California, General Obligation Bonds, Tender Option Bond Trust 3162, 19.453%, 3/01/18 – 
No Opt. Call 
AAA 
600,200 
   
AGM Insured (IF) 
      
1,800 
  
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement 
6/15 at 100.00 
A2 
1,645,398 
   
Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 
      
2,200 
  
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed 
6/17 at 100.00 
BBB 
1,681,350 
   
Bonds, Series 2007A-1, 5.000%, 6/01/33 
      
450 
  
M-S-R Energy Authority, California, Gas Revenue Bonds, Citigroup Prepay Contracts, Series 
No Opt. Call 
A 
494,397 
   
2009A, 6.500%, 11/01/39 
      
   
Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A: 
      
9,320 
  
0.000%, 8/01/33 – AGC Insured 
No Opt. Call 
AAA 
2,252,458 
10,200 
  
0.000%, 8/01/38 – AGC Insured 
8/29 at 100.00 
AAA 
6,487,506 
   
Poway Unified School District, San Diego County, California, School Facilities Improvement 
      
   
District 2007-1 General Obligation Bonds, Series 2009A: 
      
8,000 
  
0.000%, 8/01/32 
No Opt. Call 
Aa2 
2,174,000 
8,000 
  
0.000%, 8/01/33 
No Opt. Call 
Aa2 
2,039,840 
53,970 
  
Total California 
    
21,568,254 
   
Colorado – 5.2%
      
5,000 
  
Denver City and County, Colorado, Airport System Revenue Bonds, Series 2005A, 5.000%, 
11/15 at 100.00 
A+ 
5,229,950 
   
11/15/25 – SYNCORA GTY Insured 
      
3,605 
  
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/27 – 
9/20 at 67.94 
A 
1,186,730 
   
NPFG Insured 
      
4,000 
  
Park Creek Metropolitan District, Colorado, Senior Property Tax Supported Revenue Bonds, 
No Opt. Call 
AAA 
4,494,880 
   
Series 2009, 6.375%, 12/01/37 – AGC Insured 
      
12,605 
  
Total Colorado 
    
10,911,560 
   
Florida – 8.9%
      
9,500 
  
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2009A, 
10/19 at 100.00 
A2 
9,722,395 
   
5.500%, 10/01/41 
      
   
Miami-Dade County, Florida, General Obligation Bonds, Build Better Communities Program, 
      
   
Series 2009-B1: 
      
2,500 
  
6.000%, 7/01/38 
7/18 at 100.00 
Aa2 
2,799,525 
2,000 
  
5.625%, 7/01/38 
7/18 at 100.00 
Aa2 
2,140,860 
4,500 
  
Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007, 
5/18 at 100.00 
N/R 
4,030,695 
   
6.450%, 5/01/23 
      
18,500 
  
Total Florida 
    
18,693,475 
   
Georgia – 0.8%
      
500 
  
Atlanta, Georgia, Tax Allocation Bonds, Beltline Project Series 2008A. Remarketed, 
1/19 at 100.00 
N/R 
519,200 
   
7.500%, 1/01/31 
      
1,000 
  
Clayton County Development Authority, Georgia, Special Facilities Revenue Bonds, Delta Air 
6/20 at 100.00 
CCC+ 
1,083,890 
   
Lines, Inc. Project, Series 2009A, 8.750%, 6/01/29 
      
1,500 
  
Total Georgia 
    
1,603,090 
   
Illinois – 11.7%
      
5,000 
  
Illinois Finance Authority, Revenue Bonds, Northwestern Memorial Hospital, Series 2009A, 
8/19 at 100.00 
AA+ 
5,485,800 
   
6.000%, 8/15/39 
      
3,500 
  
Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2009A, 
5/19 at 100.00 
A 
3,848,355 
   
7.125%, 11/15/37 
      
5,000 
  
Illinois Finance Authority, Revenue Bonds, Rush University Medical Center Obligated Group, 
11/18 at 100.00 
A– 
5,658,650 
   
Series 2009A, 7.250%, 11/01/38 
      
3,990 
  
Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., 
5/17 at 100.00 
Baa3 
3,544,197 
   
Refunding Series 2007A, 5.250%, 5/01/34 
      
28,000 
  
Metropolitan Pier and Exposition Authority, Illinois, Revenue Bonds, McCormick Place Expansion 
No Opt. Call 
AAA 
6,185,760 
   
Project, Series 2002A, 0.000%, 12/15/35 – AGM Insured 
      
45,490 
  
Total Illinois 
    
24,722,762 
   
Indiana – 5.3%
      
5,000 
  
Indiana Finance Authority, Hospital Revenue Bonds, Deaconess Hospital Obligated Group, Series 
3/19 at 100.00 
A 
5,473,000 
   
2009A, 6.750%, 3/01/39 
      
3,650 
  
Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest 
3/17 at 100.00 
BBB 
3,634,634 
   
Indiana, Series 2007, 5.500%, 3/01/37 
      
2,000 
  
Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2009B, 
1/19 at 100.00 
A+ 
2,181,160 
   
6.000%, 1/01/39 
      
10,650 
  
Total Indiana 
    
11,288,794 
   
Iowa – 1.0%
      
3,000 
  
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 
6/15 at 100.00 
BBB 
2,151,750 
   
5.375%, 6/01/38 
      
   
Louisiana – 7.4%
      
5,000 
  
Louisiana Citizens Property Insurance Corporation, Assessment Revenue Bonds, Series 2006C-3, 
6/18 at 100.00 
AAA 
5,578,000 
   
6.125%, 6/01/25 – AGC Insured 
      
   
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, 
      
   
Series 2007A: 
      
7,000 
  
5.375%, 5/15/43 
5/17 at 100.00 
Baa1 
6,520,640 
275 
  
5.500%, 5/15/47 
5/17 at 100.00 
Baa1 
259,427 
3,255 
  
St John Baptist Parish, Louisiana, Revenue Bonds, Marathon Oil Corporation, Series 2007A, 
6/17 at 100.00 
BBB+ 
3,145,665 
   
5.125%, 6/01/37 
      
15,530 
  
Total Louisiana 
    
15,503,732 
   
Maine – 1.8%
      
3,335 
  
Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Bowdoin College, 
7/19 at 100.00 
Aa2 
3,792,329 
   
Tender Option Bond Trust 2009-5B, 13.017%, 7/01/39 (IF) 
      
   
Massachusetts – 0.6%
      
1,000 
  
Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Tender Option Bond 
8/19 at 100.00 
AAA 
1,207,390 
   
Trust 2989, 13.298%, 8/01/38 (IF) 
      
   
Michigan – 2.3%
      
5,000 
  
Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, 
7/15 at 100.00 
A1 
4,922,750 
   
7/01/35 – NPFG Insured 
      
   
Nevada – 4.3%
      
   
Clark County, Nevada, Airport Revenue Bonds, Tender Option Bond Trust Series 11823: 
      
750 
  
19.945%, 1/01/18 (IF) 
No Opt. Call 
Aa3 
957,930 
1,250 
  
19.945%, 1/01/36 (IF) 
1/20 at 100.00 
Aa3 
1,596,550 
250 
  
Clark County, Nevada, Senior Lien Airport Revenue Bonds, Series 2005A, 5.000%, 7/01/40 – 
No Opt. Call 
Aa2 
250,475 
   
AMBAC Insured 
      
5,415 
  
Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A, 
6/19 at 100.00 
A 
6,305,443 
   
8.000%, 6/15/30 
      
7,665 
  
Total Nevada 
    
9,110,398 
   
New Jersey – 2.8%
      
   
New Jersey Educational Facilities Authority, Revenue Refunding Bonds, University of Medicine 
      
   
and Dentistry of New Jersey, Series 2009B: 
      
2,135 
  
7.125%, 12/01/23 
6/19 at 100.00 
Baa1 
2,516,162 
3,000 
  
7.500%, 12/01/32 
6/19 at 100.00 
Baa1 
3,453,720 
5,135 
  
Total New Jersey 
    
5,969,882 
   
New York – 1.5%
      
3,000 
  
Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds Series 
No Opt. Call 
A1 
3,191,220 
   
2007, 5.500%, 10/01/37 
      
   
North Carolina – 1.6%
      
3,000 
  
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, 
1/13 at 100.00 
A 
3,241,680 
   
1/01/19 – NPFG Insured 
      
   
Ohio – 5.7%
      
5,000 
  
American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project 
2/19 at 100.00 
AAA 
5,407,750 
   
Series 2009A, 5.750%, 2/15/39 – AGC Insured 
      
5,685 
  
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue 
6/17 at 100.00 
BBB 
4,429,297 
   
Bonds, Senior Lien, Series 2007A-2, 6.500%, 6/01/47 
      
2,000 
  
Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University 
1/15 at 100.00 
A 
2,139,920 
   
Hospitals Health System, Series 2009, 6.750%, 1/15/39 
      
12,685 
  
Total Ohio 
    
11,976,967 
   
Puerto Rico – 4.9%
      
4,390 
  
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 
7/18 at 100.00 
Baa1 
4,582,106 
   
6.000%, 7/01/44 
      
3,000 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 
8/19 at 100.00 
A+ 
3,224,340 
   
2009A, 6.000%, 8/01/42 
      
2,500 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Tender Option Bonds 
No Opt. Call 
Aa2 
2,595,600 
   
Trust 11851, 18.600%, 2/01/16 – BHAC Insured (IF) 
      
9,890 
  
Total Puerto Rico 
    
10,402,046 
   
Rhode Island – 3.1%
      
3,000 
  
Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, 
5/19 at 100.00 
A– 
3,352,170 
   
Lifespan Obligated Group Issue, Series 2009A, 7.000%, 5/15/39 
      
3,240 
  
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, 
6/12 at 100.00 
BBB 
3,206,984 
   
Series 2002A, 6.125%, 6/01/32 
      
6,240 
  
Total Rhode Island 
    
6,559,154 
   
Texas – 6.2%
      
13,510 
  
Leander Independent School District, Williamson and Travis Counties, Texas, General Obligation 
8/17 at 27.35 
AAA 
2,585,003 
   
Bonds, Series 2008, 0.000%, 8/15/39 
      
5,300 
  
North Texas Thruway Authority, Second Tier System Revenue Refunding Bonds, Series 2008, 
1/18 at 100.00 
A3 
5,558,693 
   
5.750%, 1/01/38 
      
5,000 
  
Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center, 
12/13 at 100.00 
Baa2 
4,844,200 
   
Series 2004, 6.000%, 12/01/34 
      
23,810 
  
Total Texas 
    
12,987,896 
   
Virgin Islands – 0.5%
      
1,000 
  
Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, 
10/19 at 100.00 
BBB 
1,117,850 
   
Series 2009A, 6.750%, 10/01/37 
      
   
Virginia – 1.1%
      
2,000 
  
Washington County Industrial Development Authority , Virginia, Hospital Revenue Bonds, 
1/19 at 100.00 
BBB+ 
2,294,080 
   
Mountain States Health Alliance, Series 2009C, 7.750%, 7/01/38 
      
   
Wisconsin – 8.0%
      
160 
  
Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed 
6/12 at 100.00 
AAA 
172,160 
   
Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12) 
      
5,000 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Healthcare Inc., 
4/13 at 100.00 
BBB+ 
5,116,350 
   
Series 2003, 6.400%, 4/15/33 
      
1,500 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, ProHealth Care, Inc. 
2/19 at 100.00 
A+ 
1,637,235 
   
Obligated Group, Series 2009, 6.625%, 2/15/39 
      
9,000 
  
Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Refunding Series 2009A, 
5/19 at 100.00 
AA– 
10,022,219 
   
6.000%, 5/01/36 
      
15,660 
  
Total Wisconsin 
    
16,947,964 
$    267,815 
  
Total Investments (cost $179,352,567) – 98.3% 
    
207,472,513 
   
Other Assets Less Liabilities – 1.7% 
    
3,624,587 
   
Net Assets – 100% 
    
$ 211,097,100 

 

 
 
 
 
 
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 July 31, 2010:
 
         
 
Level 1
Level 2
Level 3
Total
Investments: 
        
Municipal Bonds 
$ — 
$207,472,513 
$ — 
$207,472,513 

 
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 July 31, 2010, the cost of investments was $178,990,654.
 
 
Gross unrealized appreciation and gross unrealized depreciation of investments at July 31, 2010, were as follows:
 
   
Gross unrealized: 
  
Appreciation 
$28,481,859 
Depreciation 
— 
Net unrealized appreciation (depreciation) of investments 
$28,481,859 

   
(1) 
All percentages shown in the Portfolio of Investments are based on net assets. 
(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. 
N/R 
Not rated. 
(IF) 
Inverse floating rate investment. 


 
 
 
 
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 Municipal Value Fund 2 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         September 29, 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         September 29, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         September 29, 2010