Edgar Filing: NUVEEN QUALITY PREFERRED INCOME FUND 2

Registrant’s telephone number, including area code:

Date of fiscal year end:

Date of reporting period:

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)

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 Quality Preferred Income Fund 2 (JPS)
		March 31, 2010

Shares			Description (1)	Coupon		Ratings (2)	Value
			$25 Par (or similar) Preferred Securities – 71.7% (55.6% of Total Investments)
			Capital Markets – 5.0%
381,200			Ameriprise Financial, Inc.	7.750%		A	$ 10,105,612
6,400			Credit Suisse	7.900%		A3	165,696
92,800			Deutsche Bank Capital Funding Trust I	7.350%		BBB+	2,235,552
1,218,735			Deutsche Bank Capital Funding Trust II	6.550%		BBB+	27,872,469
40,700			Deutsche Bank Capital Funding Trust V	8.050%		BBB+	1,036,629
98,051			Deutsche Bank Capital Funding Trust VIII	6.375%		BBB+	2,293,413
68,000			Deutsche Bank Capital Funding Trust IX	6.625%		BBB+	1,567,400
116,500			Deutsche Bank Contingent Capital Trust III	7.600%		BBB+	2,893,860
1,800			Goldman Sachs Group Inc., Series 2003-11 (SATURNS)	5.625%		A1	38,430
70,214			Goldman Sachs Group Inc., Series GSC-3 (PPLUS)	6.000%		A3	1,485,728
1,200			Morgan Stanley Capital Trust III	6.250%		BBB	26,880
800			Morgan Stanley Capital Trust V	5.750%		Baa2	16,536
			Total Capital Markets				49,738,205
			Commercial Banks – 6.3%
25,800			ASBC Capital I	7.625%		Baa3	567,084
136,324			Banco Santander Finance, 144A	10.500%		A-	3,851,153
731,000			Banesto Holdings, Series A, 144A	10.500%		Ba1	18,891,818
243,928			BB&T Capital Trust VI	9.600%		A3	7,000,734
66,429			BB&T Capital Trust VII	8.100%		A3	1,769,669
227,100			CoBank ACB, 144A	7.000%		N/R	9,027,225
42,800			CoBank ACB	11.000%		A	2,276,425
82,000			CoBank ACB	0.000%		A	4,284,500
5,000			Goldman Sachs Group Inc., Series GSC-4 Class A (PPLUS)	6.000%		A3	106,900
102,700			HSBC Holdings PLC	6.200%		A-	2,343,614
202,101			National City Capital Trust II	6.625%		BBB	4,805,962
289,600			PFCI Capital Corporation	7.750%		BBB+	7,149,500
			Total Commercial Banks				62,074,584
			Consumer Finance – 0.0%
19,800			HSBC USA Inc.	6.500%		A-	476,190
			Diversified Financial Services - 3.4%
799,762			ING Groep N.V.	7.200%		Ba1	17,466,802
729,555			ING Groep N.V.	7.050%		Ba1	15,554,113
24,400			JPMorgan Chase Capital Trust XI	5.875%		A2	574,620
			Total Diversified Financial Services				33,595,535
			Diversified Telecommunication Services – 0.1%
6,896			BellSouth Capital Funding (CORTS)	7.120%		A	173,047
43,200			BellSouth Corporation (CORTS)	7.000%		A	1,100,252
5,100			Verizon Communications, Series 2004-1 (SATURNS)	6.125%		A	126,225
			Total Diversified Telecommunication Services				1,399,524
			Electric Utilities - 4.7%
1,157,400			Entergy Mississippi Inc.	7.250%		A-	29,629,440
69,300			Entergy Texas Inc.	7.875%		BBB+	1,936,935
22,342			FPL Group Capital Inc.	6.600%		A3	579,551
1,500			Georgia Power Company	5.900%		A	37,455
3,600			Gulf Power Company	5.875%		A	91,332
221,900			PPL Capital Funding, Inc.	6.850%		Baa2	5,669,545
319,475			PPL Energy Supply LLC	7.000%		BBB	8,220,092
			Total Electric Utilities				46,164,350
			Food Products – 0.4%
53,400			Dairy Farmers of America Inc., 144A	7.875%		BBB-	4,337,084
			Insurance – 21.1%
5,000			Aegon N.V.	6.875%		BBB	107,900
1,742,889			Aegon N.V.	6.375%		BBB	35,450,362
609,923			Allianz SE	8.375%		A+	15,781,758
963,483			Arch Capital Group Limited	8.000%		BBB-	24,877,131
47,700			Axis Capital Holdings Limited	7.500%		BBB	4,233,375
648,807			Delphi Financial Group, Inc.	8.000%		BBB	16,479,698
404,400			Delphi Financial Group, Inc.	7.376%		BB+	8,484,312
301,900			EverestRe Capital Trust II	6.200%		Baa1	6,596,515
599,080			Financial Security Assurance Holdings	6.250%		A+	11,588,484
485,400			Markel Corporation	7.500%		BBB	12,838,830
604,741			PartnerRe Limited, Series C	6.750%		BBB+	15,033,861
107,300			PLC Capital Trust III	7.500%		BBB	2,602,025
443,898			PLC Capital Trust IV	7.250%		BBB	10,808,916
12,463			Protective Life Corporation	7.250%		BBB	292,507
200,842			Prudential Financial Inc.	9.000%		BBB+	5,553,281
322,005			Prudential PLC	6.750%		A-	7,805,401
139,500			RenaissanceRe Holdings Limited, Series B	7.300%		BBB+	3,465,180
385,974			RenaissanceRe Holdings Limited, Series D	6.600%		BBB+	9,000,914
6,900			Torchmark Capital Trust III	7.100%		BBB+	171,120
720,846			W. R. Berkley Corporation, Capital Trust II	6.750%		BBB-	17,696,769
			Total Insurance				208,868,339
			IT Services – 0.0%
5,800			Vertex Industries Inc. (PPLUS)	7.625%		A	149,988
			Media – 7.5%
29,063			CBS Corporation	7.250%		BBB-	715,240
746,750			CBS Corporation	6.750%		BBB-	17,802,520
1,084,356			Comcast Corporation	7.000%		BBB+	27,542,642
145,000			Comcast Corporation	6.625%		BBB+	3,567,000
965,340			Viacom Inc.	6.850%		BBB	24,104,540
			Total Media				73,731,942
			Multi-Utilities – 4.0%
543,823			Dominion Resources Inc.	8.375%		BBB	15,107,403
148,500			Scana Corporation	7.700%		BBB-	4,067,415
773,382			Xcel Energy Inc.	7.600%		Baa2	20,819,443
			Total Multi-Utilities				39,994,261
			Oil, Gas & Consumable Fuels – 2.0%
803,273			Nexen Inc.	7.350%		BB+	20,057,727
			Pharmaceuticals – 0.0%
5,000			Bristol-Myers Squibb Company (CORTS)	6.250%		A+	124,700
			Real Estate/Mortgage – 17.1%
268,403			Developers Diversified Realty Corporation, Series G	8.000%		Ba1	6,463,144
19,908			Developers Diversified Realty Corporation, Series H	7.375%		Ba1	445,939
162,167			Duke Realty Corporation, Series L	6.600%		Baa3	3,512,537
3,001			Duke Realty Corporation, Series O	8.375%		Baa3	76,766
8,300			Harris Preferred Capital Corporation, Series A	7.375%		A-	205,674
957,365			HRPT Properties Trust, Series B	8.750%		Baa3	24,269,203
42,480			HRPT Properties Trust, Series C	7.125%		Baa3	987,660
73,300			Kimco Realty Corporation, Series F	6.650%		Baa2	1,654,381
799,689			Kimco Realty Corporation, Series G	7.750%		Baa2	20,208,141
89,050			Prologis Trust, Series G	6.750%		Baa3	1,957,319
11,500			Public Storage, Inc., Series C	6.600%		Baa1	274,045
110,300			Public Storage, Inc., Series E	6.750%		Baa1	2,654,921
10,900			Public Storage, Inc., Series F	6.450%		Baa1	252,880
2,600			Public Storage, Inc., Series G	7.000%		Baa1	65,260
17,530			Public Storage, Inc., Series H	6.950%		Baa1	427,907
67,600			Public Storage, Inc., Series Y	6.850%		Baa1	1,649,866
121,200			Realty Income Corporation	7.375%		Baa2	3,112,416
447,758			Realty Income Corporation, Series E	6.750%		Baa2	11,090,966
190,545			Regency Centers Corporation	7.450%		Baa3	4,601,662
221,836			Regency Centers Corporation	7.250%		BBB-	5,266,387
962,221			Vornado Realty LP	7.875%		BBB	24,219,103
1,930,392			Wachovia Preferred Funding Corporation	7.250%		A-	44,843,004
198,268			Weingarten Realty Investors, Series F	6.500%		Baa3	4,282,589
160,100			Weingarten Realty Trust	8.100%		BBB	3,559,023
149,245			Weingarten Realty Trust, Series E	6.950%		Baa3	3,468,454
			Total Real Estate/Mortgage				169,549,247
			Wireless Telecommunication Services – 0.1%
37,100			Telephone and Data Systems Inc.	7.600%		Baa2	920,080
3,900			United States Cellular Corporation	7.500%		Baa2	97,578
			Total Wireless Telecommunication Services				1,017,658
			Total $25 Par (or similar) Preferred Securities (cost $725,052,156)				711,279,334

Principal
Amount (000)			Description (1)	Coupon	Maturity	Ratings (2)	Value
			Corporate Bonds – 1.6% (1.3% of Total Investments)
			Commercial Banks – 0.8%
$	6,000		National Australia Bank	8.000%	9/24/16	A+	$ 6,475,200
2,250			Swedbank ForengingsSparbanken AB, 144A	7.500%	9/11/12	Ba1	2,090,950
8,250			Total Commercial Banks				8,566,150
			Electric Utilities – 0.8%
8,000			FPL Group Capital Inc.	6.650%	6/15/17	A3	7,610,616
$	16,250		Total Corporate Bonds (cost $15,975,225)				16,176,766

Principal
Amount (000)/
Shares			Description (1)	Coupon	Maturity	Ratings (2)	Value
			Capital Preferred Securities – 50.2% (38.9% of Total Investments)
			Capital Markets – 0.8%
7,900			UBS Perferred Funding Trust I	8.622%	10/01/51	BBB-	$ 7,823,354
			Commercial Banks – 27.3%
5,500			AB Svensk Exportkredit	6.375%	10/27/49	Aa3	4,847,469
23,400			AgFirst Farm Credit Bank	8.393%	12/15/16	A	23,107,500
6,800			AgFirst Farm Credit Bank	7.300%	12/15/53	A	5,316,104
15,724			Banco Santander Finance	10.500%	9/29/49	A-	17,573,803
481			Barclays Bank PLC, 144A	7.434%	12/15/57	A-	481,000
5,000			Barclays Bank PLC	6.278%	12/15/34	A-	4,250,000
1,353			BB&T Capital Trust IV	6.820%	6/12/37	A3	1,281,968
8,650			BBVA International Unipersonal	5.919%	4/18/58	A-	7,212,967
7,000			BNP Paribas, 144A	7.195%	12/25/57	A	6,825,000
35,650			Credit Agricole, S.A.	9.750%	12/26/54	A-	39,393,250
3,000			Credit Suisse thru Claudius Limited	8.250%	6/27/49	A3	3,210,000
1,500			First Empire Capital Trust I	8.234%	2/01/27	Baa2	1,336,923
17,095			First Union Capital Trust II, Series A	7.950%	11/15/29	A-	17,259,009
6,800			Fulton Capital Trust I	6.290%	2/01/36	BBB-	4,281,940
4,650			HSBC Capital Funding LP, Debt	10.176%	6/30/50	A-	5,993,850
6,000			KeyCorp Capital III	7.750%	7/15/29	Baa3	5,749,584
6,900			LBG Capital I PLC	8.000%	6/15/20	B+	6,037,500
11,900			Nordea Bank AB	8.375%	3/25/15	A-	12,844,622
8,000			North Fork Capital Trust II	8.000%	12/15/27	Baa3	7,860,000
7,100			Northgroup Preferred Capital Corporation, 144A	6.378%	10/15/57	A	6,543,772
26,200			Rabobank Nederland, 144A	11.000%	6/30/19	AA-	33,814,532
8,000			Reliance Capital Trust I, Series B	8.170%	5/01/28	N/R	5,860,880
28,316			Societe Generale	8.750%	10/07/49	BBB+	29,135,578
5,000			Sparebanken Rogaland, Notes, 144A	6.443%	5/01/49	Ba1	4,376,760
650			Standard Chartered PLC, 144A	7.014%	7/30/37	BBB	600,035
—		(3)	Union Planters Preferred Fund, 144A	7.750%	7/15/53	Ba3	15,090,000
			Total Commercial Banks				270,284,046
			Diversified Financial Services – 3.8%
5,000			Bank One Capital III	8.750%	9/01/30	A2	5,826,330
12,811			Countrywide Capital Trust III, Series B	8.050%	6/15/27	Baa3	12,840,645
2,500			JPMorgan Chase & Company	7.900%	4/30/49	BBB+	2,674,260
3,000			JPMorgan Chase Capital Trust XVIII	6.950%	8/17/36	A2	2,949,102
1,775			JPMorgan Chase Capital Trust XX Series T	6.550%	9/29/36	A2	1,670,735
8,000			JPMorgan Chase Capital Trust XXVII	7.000%	11/01/39	A2	8,189,760
3,200			MBNA Corporation, Capital Trust A	8.278%	12/01/26	Baa3	3,248,000
			Total Diversified Financial Services				37,398,832
			Diversified Telecommunication Services – 3.4%
31			Centaur Funding Corporation, Series B, 144A	9.080%	4/21/20	BBB	34,091,797
			Electric Utilities - 0.7%
6,400			Dominion Resources Inc.	7.500%	6/30/66	BBB	6,439,910
			Insurance - 13.6%
2,200			AXA S.A., 144A	6.463%	12/14/18	Baa1	1,936,000
12,680			AXA S.A., 144A	6.379%	12/14/36	Baa1	11,158,400
6,750			AXA-UAP	8.600%	12/15/30	A3	8,206,481
7,100			Catlin Insurance Company Limited	7.249%	1/19/17	BBB+	6,319,000
6,600			Great West Life and Annuity Insurance Company, 144A	7.153%	5/16/46	A-	6,468,000
800			Hartford Financial Services Group Inc.	8.125%	6/15/18	BB+	838,000
14,800			MetLife Capital Trust IV, 144A	7.875%	12/15/37	BBB	15,244,000
11,400			National Financial Services Inc.	6.750%	5/15/37	Baa2	9,619,639
1,200			Nationwide Financial Services Capital Trust	7.899%	3/01/37	Baa2	756,500
12,300			Oil Insurance Limited, 144A	7.558%	6/30/11	Baa1	10,668,897
17,600			Old Mutual Capital Funding, Notes	8.000%	6/22/53	Baa3	16,987,520
6,300			Progressive Corporation	6.700%	6/15/67	A2	6,194,450
6,600			Prudential Financial Inc.	8.875%	6/15/18	BBB+	7,474,500
8,250			Prudential PLC	6.500%	6/29/49	A-	7,486,875
28,900			XL Capital, Limited	6.500%	10/15/57	BBB-	24,854,000
957			ZFS Finance USA Trust V	6.500%	5/09/67	A	913,935
			Total Insurance				135,126,197
			Road & Rail – 0.6%
6,400			Burlington Northern Santa Fe Funding Trust I	6.613%	12/15/55	BBB	6,231,437
			Total Capital Preferred Securities (cost $508,139,734)				497,395,573

Shares			Description (1)				Value
			Investment Companies – 3.5% (2.8% of Total Investments)
838,654			Blackrock Preferred Income Strategies Fund				$ 8,445,246
1,025,979			Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.				15,697,479
728,065			John Hancock Preferred Income Fund III				11,758,250
			Total Investment Companies (cost $51,111,125)				35,900,975

Principal
Amount (000)			Description (1)	Coupon	Maturity	Ratings (2)	Value
			Short-Term Investments - 1.9% (1.4% of Total Investments)
			U.S. Government and Agency Obligations - 0.7% (0.5% of Total Investments)
$	7,000		U.S Treasury Notes	1.500%	10/31/10	AAA	$ 7,050,862
7,000			Total U.S. Government and Agency Obligations				7,050,862
			Repurchase Agreements – 1.2% (0.9% of Total Investments)
11,340			Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/10, repurchase price $11,339,736, collateralized by $11,320,000 U.S. Treasury Notes, 3.750%, due 11/15/18, value $11,567,908	0.000%	4/01/10	N/A	11,339,736
			Total Short-Term Investments (cost $18,355,111)				18,390,598
			Total Investments (cost $1,318,633,351) – 128.9%				1,279,143,246
			Borrowings – (29.2)% (4), (5)				(289,500,000	)
			Other Assets Less Liabilities – 0.3%				2,348,203
			Net Assets Applicable to Common Shares – 100%				$ 991,991,449

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 methodology 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 March 31, 2010:

Level 1

Level 2

Level 3

Total

Investments:

Preferred Securities*

$ 630,786,002

$ 577,888,905

–

$ 1,208,674,907

Corporate Bonds

–

16,176,766

–

16,176,766

Investment Companies

35,900,975

–

35,900,975

Short-Term Investments

18,390,598

–

18,390,598

Total

$ 685,077,575

$ 594,065,671

–

$ 1,279,143,246

* Preferred Securities includes Convertible Preferred Securities, $25 Par (or similar) Preferred Securities and Capital Preferred Securities held by the Fund at the end of the reporting period, if any.

The following is a reconciliation of the Fund's Level 3 investments held at the beginning and end of the measurement period:

	Level 3 Corporate Bonds
Balance as of beginning of period	$ 6,150,000
Gains (losses):
Net realized gains (losses)	–
Net change in unrealized appreciation (depreciation)	325,200
Net purchases at cost (sales at proceeds)	–
Net discounts (premiums)	–
Net transfers in to (out of) at end of period fair value	(6,475,200	)
Balance as of end of period	$ –

Income Tax Information

The following information is presented on an income tax basis based on the information currently available to the Fund. 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.

At March 31, 2010, the cost of investments was $1,322,097,116.

Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2010, were as follows:

Gross unrealized:
Appreciation	$ 39,307,415
Depreciation	(82,261,285	)
Net unrealized appreciation (depreciation) of investments	$ (42,953,870	)

(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 higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
(3)		Principal Amount (000) rounds to less than $1,000.
(4)		Borrowings as a percentage of Total Investments is 22.6%.
(5)		The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of March 31, 2010, investments with a value of $1,049,955,242 have been pledged as collateral for Borrowings.
N/A		Not applicable.
N/R		Not rated.
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.
CORTS		Corporate Backed Trust Securities
PPLUS		PreferredPlus Trust
SATURNS		Structured Asset Trust Unit Repackaging

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: 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 May 28, 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 May 28, 2010

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

Date May 28, 2010

* Print the name and title of each signing officer under his or her signature.