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, 2011

Shares			Description (1)	Coupon		Ratings (2)	Value
			$25 Par (or similar) Preferred Securities – 64.6% (50.4% of Total Investments)
			Capital Markets – 5.4%
381,200			Ameriprise Financial, Inc.	7.750%		A	$ 10,578,300
6,400			Credit Suisse	7.900%		A3	172,288
92,800			Deutsche Bank Capital Funding Trust I	7.350%		BBB	2,344,128
1,276,135			Deutsche Bank Capital Funding Trust II	6.550%		BBB	31,469,489
40,500			Deutsche Bank Capital Funding Trust V	8.050%		BBB	1,084,590
95,651			Deutsche Bank Capital Funding Trust VIII	6.375%		BBB	2,293,711
13,800			Deutsche Bank Capital Funding Trust IX	6.625%		BBB	336,444
256,400			Deutsche Bank Contingent Capital Trust III	7.600%		BBB	6,722,808
21,751			Goldman Sachs Group Inc.	6.125%		A1	529,637
70,214			Goldman Sachs Group Inc., Series GSC-3 (PPLUS)	6.000%		A3	1,581,219
4,000			Goldman Sachs Group Inc., Series GSG-1 (PPLUS)	6.000%		A1	94,640
2,290			Morgan Stanley Capital Trust III	6.250%		Baa2	54,388
2,800			Morgan Stanley Capital Trust V	5.750%		Baa2	64,988
			Total Capital Markets				57,326,630
			Commercial Banks – 6.3%
181,000			Banco Santander Finance	10.500%		A-	5,149,450
150,000			Barclays Bank PLC	8.125%		A-	3,943,500
243,928			BB&T Capital Trust VI	9.600%		Baa1	6,815,348
66,429			BB&T Capital Trust VII	8.100%		Baa1	1,790,262
235,100			Cobank ACB, 144A	7.000%		N/R	11,012,977
82,000			Cobank ACB	11.000%		A	4,561,250
42,800			Cobank ACB	11.000%		A	2,386,100
10,930			Fifth Third Capital Trust V	7.250%		Baa3	277,076
2,200			Fifth Third Capital Trust VI	7.250%		Baa3	55,792
5,200			Goldman Sachs Group Inc., Series GSC-4 Class A (PPLUS)	6.000%		A3	117,780
10,500,000			HSBC Bank PLC	1.000%		A	6,615,000
404,800			HSBC Holdings PLC, (3)	8.000%		A-	11,042,944
102,700			HSBC Holdings PLC	6.200%		A-	2,480,205
6,166			KeyCorp Capital Trust X	8.000%		Baa3	161,056
5,600,000			National Australia Bank	8.000%		A+	6,176,240
202,101			National City Capital Trust II	6.625%		BBB	5,115,176
			Total Commercial Banks				67,700,156
			Consumer Finance – 0.0%
19,600			HSBC USA Inc., Series H	6.500%		A-	490,000
			Diversified Financial Services – 4.3%
94,800			Citigroup Capital Trust XII	8.500%		BB+	2,496,084
271,589			Citigroup Capital XIII	7.875%		BB+	7,441,539
40,000			Citigroup Capital XVI	6.450%		BB+	954,400
770,313			ING Groep N.V.	7.200%		Ba1	18,271,824
729,055			ING Groep N.V.	7.050%		Ba1	17,001,563
			Total Diversified Financial Services				46,165,410
			Diversified Telecommunication Services – 0.2%
70,501			Telephone and Data Systems Inc.	6.875%		Baa2	1,760,410
			Electric Utilities – 1.7%
59,650			Entergy Louisiana LLC	5.875%		A-	1,509,742
69,300			Entergy Texas Inc.	7.875%		BBB+	1,944,558
29,500			FPL Group Capital Trust I	5.875%		BBB	751,070
216,900			PPL Capital Funding, Inc.	6.850%		BBB-	5,563,485
315,707			PPL Energy Supply LLC	7.000%		BBB	7,965,288
			Total Electric Utilities				17,734,143
			Food Products – 0.5%
53,400			Dairy Farmers of America Inc., 144A	7.875%		BBB-	4,896,113
			Insurance – 18.2%
1,717,889			Aegon N.V.	6.375%		BBB	39,116,333
617,913			Allianz SE	8.375%		A+	16,509,894
945,091			Arch Capital Group Limited	8.000%		BBB	24,090,370
1,400			Arch Capital Group Limited, Series B	7.875%		BBB	35,532
225,855			Assured Guaranty Municipal Holdings	6.250%		A+	4,934,932
6,500,000			Dai-Ichi Mutual Life, 144A	7.250%		A3	6,425,601
404,700			Delphi Financial Group, Inc.	7.376%		BB+	9,813,975
315,140			EverestRe Capital Trust II	6.200%		Baa1	7,345,913
479,400			Markel Corporation	7.500%		BBB	12,560,280
579,892			PartnerRe Limited, Series C	6.750%		BBB+	14,184,158
107,300			PLC Capital Trust III	7.500%		BBB	2,714,690
443,898			PLC Capital Trust IV	7.250%		BBB	11,070,816
11,153			Protective Life Corporation	7.250%		BBB	278,602
200,842			Prudential Financial Inc.	9.000%		BBB+	5,525,163
317,875			Prudential Financial Inc.	6.750%		A-	7,959,590
4,000,000			Reinsurance Group of America Inc.	6.750%		BBB-	3,908,504
410,974			RenaissanceRe Holdings Limited, Series D	6.600%		BBB+	10,093,521
1,200			Torchmark Capital Trust III	7.100%		BBB+	30,540
717,785			W. R. Berkley Corporation, Capital Trust II	6.750%		BBB-	17,937,447
			Total Insurance				194,535,861
			Media – 7.0%
746,750			CBS Corporation	6.750%		BBB-	18,773,295
1,084,356			Comcast Corporation	7.000%		BBB+	27,748,670
145,000			Comcast Corporation	6.625%		BBB+	3,774,350
961,340			Viacom Inc.	6.850%		BBB+	24,985,227
			Total Media				75,281,542
			Multi-Utilities – 3.8%
543,823			Dominion Resources Inc.	8.375%		BBB	15,439,135
148,500			Scana Corporation	7.700%		BBB-	4,140,180
768,182			Xcel Energy Inc.	7.600%		BBB	21,409,232
			Total Multi-Utilities				40,988,547
			Oil, Gas & Consumable Fuels – 1.9%
800,273			Nexen Inc.	7.350%		BB+	20,286,921
			Pharmaceuticals – 0.0%
5,000			Bristol Myers Squibb Company (CORTS)	6.250%		A+	126,100
			Real Estate/Mortgage – 15.3%
16,607			AMB Property Corporation, Series L	6.500%		Baa2	413,348
44,480			Commomwealth REIT	7.125%		Baa3	1,117,338
267,403			Developers Diversified Realty Corporation, Series G	8.000%		Ba1	6,711,815
19,908			Developers Diversified Realty Corporation, Series H	7.375%		Ba1	493,718
162,167			Duke Realty Corporation, Series L	6.600%		Baa3	3,788,221
8,710			Harris Preferred Capital Corporation, Series A	7.375%		A-	218,969
73,100			Kimco Realty Corporation, Series F	6.650%		Baa2	1,800,453
909,886			Kimco Realty Corporation, Series G	7.750%		Baa2	23,529,652
62,865			Kimco Realty Corporation, Series H	6.900%		Baa2	1,564,081
82,301			Prologis Trust, Series C	8.540%		Baa3	4,601,144
6,524			Prologis Trust, Series F	6.750%		Baa3	154,293
89,050			Prologis Trust, Series G	6.750%		Baa3	2,135,419
10,357			Public Storage, Inc., Series C	6.600%		BBB+	258,304
110,300			Public Storage, Inc., Series E	6.750%		BBB+	2,781,766
10,900			Public Storage, Inc., Series F	6.450%		BBB+	269,230
17,530			Public Storage, Inc., Series H	6.950%		BBB+	440,178
4,377			Public Storage, Inc., Series I	7.250%		BBB+	110,826
46,000			Public Storage, Inc., Series K	7.250%		BBB+	1,173,460
67,600			Public Storage, Inc., Series Y, (3)	6.850%		BBB+	1,495,650
68,484			Realty Income Corporation	7.375%		Baa2	1,750,451
447,758			Realty Income Corporation	6.750%		Baa2	11,408,874
182,300			Regency Centers Corporation	7.450%		Baa3	4,593,960
223,406			Regency Centers Corporation	7.250%		Baa3	5,560,575
1,079,521			Vornado Realty LP	7.875%		BBB	29,244,224
1,770,027			Wachovia Preferred Funding Corporation	7.250%		A-	45,224,190
159,700			Weingarten Realty Trust	8.100%		BBB	3,625,190
149,245			Weingarten Realty Trust	6.950%		Baa3	3,634,116
232,192			Weingarten Realty Trust	6.500%		Baa3	5,507,594
			Total Real Estate/Mortgage				163,607,039
			Wireless Telecommunication Services – 0.0%
19,272			Telephone and Data Systems Inc.	7.600%		Baa2	484,304
			Total $25 Par (or similar) Preferred Securities (cost $668,226,989)				691,383,176

Principal
Amount (000)			Description (1)	Coupon	Maturity	Ratings (2)	Value
			Corporate Bonds – 3.3% (2.6% of Total Investments)
			Capital Markets – 0.0%
$	600		Man Group PLC	5.000%	8/09/17	Baa3	$ 521,745
			Commercial Banks – 1.1%
1,000			Den Norske Bank	0.875%	2/18/35	Baa1	600,000
1,000			Den Norske Bank	0.657%	2/24/37	Baa1	600,000
5,000			Groupe BCPE	3.800%	12/30/49	BBB-	3,532,500
6,500			LBG Capital I PLC, 144A	7.875%	11/01/20	BB	6,340,750
500			Lloyds Banking Group LBG Capital 1, 144A	8.000%	6/15/20	BB-	477,500
650			Swedbank ForengingsSparbanken AB, 144A	7.500%	9/11/12	Ba1	659,678
14,650			Total Commercial Banks				12,210,428
			Diversified Financial Services – 0.3%
2,600			Fortis Hybrid Financing	8.250%	8/27/49	BBB	2,613,000
			Electric Utilities – 1.0%
8,000			FPL Group Capital Inc.	6.650%	6/15/17	BBB	7,990,000
2,900			WPS Resource Corporation	6.110%	12/01/16	Baa2	2,831,125
10,900			Total Electric Utilities				10,821,125
			Insurance – 0.7%
2,000			AXA S.A.	2.983%	8/06/49	A3	1,482,500
5,200			Prudential PLC.	11.750%	12/23/14	A-	6,159,660
7,200			Total Insurance				7,642,160
			Multi-Utilities – 0.2%
2,000			Wisconsin Energy Corporation	6.250%	5/15/17	Baa1	2,007,500
$	37,950		Total Corporate Bonds (cost $34,145,620)				35,815,958

Principal
Amount (000)/
Shares			Description (1)	Coupon	Maturity	Ratings (2)	Value
			Capital Preferred Securities – 55.6% (43.4% of Total Investments)
			Capital Markets – 1.2%
5,800			ABN AMRO North America Holding Capital, 144A	6.523%	12/31/49	BB+	$ 5,539,000
800			BNY Institutional Capital, 144A	7.780%	12/01/26	A1	819,000
8,200			Credit Suisse Guernsey	1.003%	5/15/17	A3	6,556,146
			Total Capital Markets				12,914,146
			Commercial Banks – 23.8%
5,500			AB Svensk Exportkredit, (3)	6.375%	10/27/49	Aa3	5,036,174
20,400			AgFirst Farm Credit Bank	8.393%	12/15/11	A	21,216,000
2,800			AgFirst Farm Credit Bank	7.300%	12/15/53	A	2,470,804
3,900			American Express Company	6.800%	9/01/16	Baa2	3,978,000
12,974			Banco Santander Finance	10.500%	9/29/49	A-	14,676,825
600			BankAmerica Capital II, Series 2	8.000%	12/15/26	Baa3	613,500
14,420			BankAmerica Institutional Capital Trust, Series B, 144A	7.700%	12/31/26	Baa3	14,672,350
1,000			BankAmerica Institutional Trust, 144A	8.070%	12/31/26	Baa3	1,025,000
481			Barclays Bank PLC, 144A	7.434%	12/15/17	A-	481,000
2,400			Barclays Bank PLC, 144A	6.860%	6/15/32	A-	2,244,000
5,000			Barclays Bank PLC	6.278%	12/15/34	A-	4,350,000
9,153			BB&T Capital Trust IV	6.820%	6/12/37	Baa1	9,107,235
8,650			BBVA International Unipersonal	5.919%	4/18/17	A-	7,321,005
9,385			Credit Agricole, S.A., 144A	8.375%	10/13/49	A-	10,041,950
2,074			Credit Agricole, S.A.	9.750%	12/26/54	A-	2,255,475
3,100			Credit Suisse AG	7.875%	12/12/49	BBB+	3,193,000
8,500			Credit Suisse thru Claudius Limited	8.250%	6/27/49	A3	8,967,500
1,500			First Empire Capital Trust I	8.234%	2/01/27	Baa2	1,519,074
17,095			First Union Capital Trust II, Series A	7.950%	11/15/29	A-	18,547,477
6,800			Fulton Capital Trust I	6.290%	2/01/36	Baa3	5,848,000
5,500			HSBC Bank PLC	0.850%	6/11/49	A	3,520,000
4,650			HSBC Capital Funding LP, Debt	10.176%	6/30/50	A-	6,231,000
1,300			HSBC Financial Capital Trust IX	5.911%	11/30/15	Baa1	1,244,750
6,000			KeyCorp Capital III	7.750%	7/15/29	Baa3	6,136,044
300			NB Capital Trust IV	8.250%	4/15/27	Baa3	308,250
11,900			Nordea Bank AB	8.375%	3/25/15	A-	12,911,500
8,000			North Fork Capital Trust II	8.000%	12/15/27	Baa3	8,144,000
9,230			Rabobank Nederland, 144A	11.000%	6/30/19	AA-	12,022,075
8,000			Reliance Capital Trust I, Series B	8.170%	5/01/28	N/R	8,111,232
28,144			Societe Generale	8.750%	10/07/49	BBB+	29,762,280
600			Sovereign Capital Trust VI	7.908%	6/13/36	BBB+	599,891
5,000			Sparebanken Rogaland, Notes, 144A	6.443%	5/01/49	Ba1	4,626,270
650			Standard Chartered PLC, 144A	7.014%	7/30/37	BBB	632,145
1,500			Suntrust Capital Trust VIII	6.100%	12/01/66	Baa3	1,462,500
—		(7)	Union Planters Preferred Fund, 144A	7.750%	7/15/53	B	21,142,500
			Total Commercial Banks				254,418,806
			Consumer Finance – 0.8%
7,019			Capital One Capital IV Corporation	6.745%	2/17/32	Baa3	7,045,321
1,180			Capital One Capital VI	8.875%	5/15/40	Baa3	1,243,425
			Total Consumer Finance				8,288,746
			Diversified Financial Services – 3.3%
3,400			Bank One Capital III	8.750%	9/01/30	A2	4,185,332
500			CitiGroup Capital XXI	8.300%	12/21/37	BB+	520,000
12,811			Countrywide Capital Trust III, Series B	8.050%	6/15/27	Baa3	13,195,330
19,900			JP Morgan Chase Capital Trust XI	5.875%	6/15/33	A2	492,724
3,000			JP Morgan Chase Capital Trust XVIII	6.950%	8/17/36	A2	3,054,399
1,775			JP Morgan Chase Capital Trust XX Series T	6.550%	9/29/36	A2	1,804,099
8,000			JP Morgan Chase Capital Trust XXVII	7.000%	11/01/39	A2	8,243,008
3,200			MBNA Corporation, Capital Trust	8.278%	12/01/26	Baa3	3,280,000
			Total Diversified Financial Services				34,774,892
			Diversified Telecommunication Services – 3.2%
31			Centaur Funding Corporation, Series B	9.080%	4/21/20	BBB	34,531,250
			Electric Utilities – 1.3%
6,400			Dominion Resources Inc.	7.500%	6/30/16	BBB	6,696,000
7,700			PPL Capital Funding, Inc.	6.700%	3/30/17	BB+	7,594,125
			Total Electric Utilities				14,290,125
			Insurance – 21.0%
2,200			AXA S.A., 144A	6.463%	12/14/18	Baa1	1,919,500
8,680			AXA S.A., 144A	6.379%	12/14/36	Baa1	7,681,800
18,050			AXA	8.600%	12/15/30	A3	21,351,038
117			Axis Capital Holdings Limited	7.500%	12/01/15	BBB	11,509,538
9,600			Catlin Insurance Company Limited	7.249%	1/19/17	BBB+	9,048,000
23,200			Glen Meadows Pass Through Trust	6.505%	2/15/17	BB+	20,474,000
6,600			Great West Life and Annuity Insurance Company, 144A	7.153%	5/16/16	A-	6,798,000
4,803			Liberty Mutual Group, 144A	7.800%	3/15/37	Baa3	4,778,985
5,946			Lincoln National Corporation	7.000%	5/17/16	BBB	5,901,405
2,500			Lincoln National Corporation	6.050%	4/20/17	BBB	2,337,500
16,600			MetLife Capital Trust IV, 144A	7.875%	12/15/37	BBB	17,845,000
1,400			MetLife Capital Trust X, 144A	9.250%	4/08/68	BBB	1,690,500
18,600			National Financial Services Inc.	6.750%	5/15/37	Baa2	17,251,500
1,200			Nationwide Financial Services Capital Trust	7.899%	3/01/37	Baa2	1,030,247
14,200			Oil Insurance Limited, 144A	7.558%	6/30/11	Baa1	13,473,812
15,600			Old Mutual Capital Funding, Notes	8.000%	6/22/53	Baa3	15,366,000
6,300			Progressive Corporation	6.700%	6/15/67	A2	6,646,500
6,600			Prudential Financial Inc.	8.875%	6/15/18	BBB+	7,788,000
8,250			Prudential PLC	6.500%	6/29/49	A-	7,631,250
10,400			Swiss Re Capital I	6.854%	5/25/16	A-	10,176,816
2,600			White Mountains Re Group Limited	7.506%	6/30/17	BB	2,487,212
29,650			XL Capital Ltd	6.500%	10/15/57	BBB-	27,203,875
3,600			ZFS Finance USA Trust II 144A	6.450%	12/15/65	A	3,672,000
957			ZFS Finance USA Trust V	6.500%	5/09/67	A	959,393
			Total Insurance				225,021,871
			Oil, Gas & Consumable Fuels – 0.2%
1,625			TranCanada Pipelines Limited	6.350%	5/15/17	Baa1	1,631,624
			Road & Rail – 0.6%
6,400			Burlington Northern Santa Fe Funding Trust I	6.613%	1/15/26	BBB	6,648,000
			Thrifts & Mortgage Finance – 0.0%
500			Onbank Capital Trust I	9.250%	2/01/27	Baa2	509,561
			U.S. Agency – 0.2%
2			Farm Credit Bank of Texas	10.000%	12/15/60	A3	1,905,061
			Total Capital Preferred Securities (cost $571,352,788)				594,934,082

Shares			Description (1)				Value
			Investment Companies – 3.6% (2.8% of Total Investments)
838,654			BlackRock Credit Allocation Income Trust II				$ 8,243,969
1,025,979			Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.				17,523,721
728,065			John Hancock Preferred Income Fund III				12,195,089
			Total Investment Companies (cost $50,903,795)				37,962,779

Principal
Amount (000)			Description (1)	Coupon	Maturity		Value
			Short-Term Investments – 1.1% (0.8% of Total Investments)
$	11,155		Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/31/11, repurchase price $11,155,182, collateralized by $11,540,000 U.S. Treasury Notes, 0.500%, due 11/15/13, value $11,381,325	0.010%	4/01/11		$ 11,155,179
			Total Short-Term Investments (cost $11,155,179)				11,155,179
			Total Investments (cost $1,335,784,371) – 128.2%				1,371,251,174
			Borrowings – (28.9)% (4), (5)				(308,800,000	)
			Other Assets Less Liabilities – 0.7%				7,245,528
			Net Assets Applicable to Common Shares – 100%				$ 1,069,696,702

Investments in Derivatives

Interest Rate Swaps outstanding at March 31, 2011:

Fund

Fixed Rate

Unrealized

Notional

Pay/Receive

Floating Rate

Fixed Rate

Payment

Effective

Termination

Appreciation

Counterparty

Amount

Floating Rate

Index

(Annualized)

Frequency

Date (6)

Date

(Depreciation)

JP Morgan Chase

$77,200,000

Receive

1-Month USD-LIBOR

0.360%

Monthly

3/21/11

3/21/12

$ 10,086

JP Morgan Chase

77,200,000

Receive

1-Month USD-LIBOR

1.193%

Monthly

3/21/11

3/21/14

520,267

Morgan Stanley

77,200,000

Receive

1-Month USD-LIBOR

2.064%

Monthly

3/21/11

3/21/16

997,256

$1,527,609

Fair Value Measurements

Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market of 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 three-tier hierarchy of inputs is 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 March 31, 2011:

Level 1

Level 2

Level 3

Total

Investments:

$25 Par (or similar) Preferred Securities

$615,353,164

$ 76,030,012

$ –

$ 691,383,176

Corporate Bonds

–

35,815,958

–

35,815,958

Capital Preferred Securities

492,724

594,441,358

–

594,934,082

Investment Companies

37,962,779

–

37,962,779

Short-Term Investments

–

11,155,179

–

11,155,179

Derivatives:

Interest Rate Swaps*

–

1,527,609

–

1,527,609

Total

$653,808,667

$718,970,116

$ –

$1,372,778,783

* Represents net unrealized appreciation (depreciation).

During the period ended March 31, 2011, the Fund recognized no significant transfers to/from Level 1, Level 2 or Level 3.

Derivative Instruments and Hedging Activities

The Fund records derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Fund’s investments in derivatives may represent economic hedges, they are considered to be hedge

The following table presents the fair value of all derivative instruments held by the Fund as of March 31, 2011, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure.

Location on the Statements of Assets Liabilities

Underlying

Derivative

Asset Derivatives

Liability Derivatives

Risk Exposure

Instrument

Location

Value

Location

Value

Equity

Swaps

Unrealized appreciation on forward swaps*

1,587,224

—

Total

1,587,224

—

* Represents cumulative appreciation (depreciation) of swap contracts as reported in the Portfolio of Investments. Some swap contracts require acounterparty to pay or receive a premium.

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, 2011, the cost of investments was $1,339,464,097.

Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2011, were as follows:

Gross unrealized:

Appreciation

$ 66,704,689

Depreciation

(34,917,612

)

Net unrealized appreciation (depreciation) of investments

$ 31,787,077

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. The 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 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. Holdings designated N/R are not rated by any of these national rating agencies.

(3)

Non-income producing; issuer has not declared a dividend within the past twelve months.

(4)

Borrowings as a percentage of Total Investments is 22.5%.

(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, 2011, investments with a value of $904,771,058 have been pledges as collateral for Borrowings

(6)

Effective date represents the date on which both the Fund and Counterparty commence interest payment accruals on each forward swap contract.

(7)

Principal Amount (000) rounds to less than $1,000.

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.

USD-LIBOR

United States Dollar-London Inter-Bank Offered Rate.

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 27, 2011

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 27, 2011

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

Date May 27, 2011

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