Nuveen Quality Preferred Income Fund 2

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q


QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number         811-21137         

        Nuveen Quality Preferred Income Fund 2         
(Exact name of registrant as specified in charter)


        333 West Wacker Drive, Chicago, Illinois, 60606         
Address of principal executive offices) (Zip code)


Jessica R. Droeger—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:            12/31          

Date of reporting period:          09/30/04         

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)
September 30, 2004

Ratings*

Market

Shares

Description(1)

Coupon

Moody's

S&P

Value

$25 PAR (or similar) SECURITIES - 63.9% (45.1% of Total Investments)

Auto Components - 1.3%

 

916,800

Delphi Trust I

8.250%

Baa3

NR

$    23,690,112

Automobiles - 0.1%

 

20,000

DaimlerChrysler Corp. (PPLUS)

7.250%

A3

BBB

517,500

14,500

Ford Motor Company (SATURNS)

8.125%

Baa1

BBB-

379,175

38,000

Ford Motor Company, Series F (CORTS)

8.000%

Baa1

BBB-

995,980

Beverages - 0.1%

 

106,100

Grand Metropolitan Delaware LP

9.420%

NR

BBB+

2,716,160

Chemicals - 0.2%

 

68,000

Federal Home Loan Mortgage Corporation (a)

5.100%

Aa3

AA-

2,979,760

Commercial Banks - 12.9%

 

152,060

ASBC Capital I

7.625%

Baa1

BBB-

4,075,208

135,900

BAC Capital Trust I

7.000%

Aa3

A-

3,561,939

168,500

BAC Capital Trust II

7.000%

Aa3

A-

4,448,400

218,300

BAC Capital Trust III

7.000%

Aa3

A-

5,778,401

680,000

Banco Santander SA, 144A

6.410%

A2

BBB+

16,764,720

44,100

Banco Totta & Acores Finance, Series A

8.875%

A3

NR

1,178,299

81,600

BancWest Capital I

9.500%

A3

A-

2,219,520

621,000

Banesto Holdings, Series A, 144A

10.500%

A2

NR

19,522,688

9,400

Bank One Capital I

8.000%

A1

A-

238,572

85,800

Bank One Capital II

8.500%

A1

A-

2,266,836

198,500

Bank One Capital Trust VI

7.200%

A1

A-

5,280,100

47,400

Bank One Capital V

8.000%

A1

A-

1,263,210

57,300

BankNorth Capital Trust II

8.000%

Baa1

BB+

1,535,640

42,900

BBVA Preferred Capital Ltd., Series B

7.750%

A1

A-

1,130,415

340,500

BCH Capital Ltd., Series B

9.430%

A2

BBB+

9,016,440

19,300

BNY Capital Trust IV, Series E

6.875%

A1

A-

487,325

46,200

BNY Capital Trust V, Series F

5.950%

A1

A-

1,137,444

446,100

BSCH Finance Ltd., Series Q

8.625%

A2

BBB+

11,777,040

73,800

Chase Capital Trust VIII, Series H

8.300%

A1

A-

1,944,630

105,000

Chittenden Capital Trust I

8.000%

Baa1

BB+

2,826,600

33,200

CIT Group Incorporated (CORTS)

7.750%

A3

BBB+

899,388

1,800

Citigroup Capital Trust IX

6.000%

Aa2

A

44,640

32,300

Citigroup Capital Trust VI

6.875%

Aa2

A

815,898

258,800

Citigroup Capital Trust VII

7.125%

Aa2

A

6,824,556

415,000

Citigroup Capital Trust VIII

6.950%

Aa2

A

10,868,850

36,900

Citigroup Inc., Series H (a)

6.231%

Aa3

NR

2,027,655

225,500

Cobank ABC, 144A (a)

7.000%

NR

NR

12,369,126

239,700

Comerica Capital Trust I

7.600%

A3

BBB+

6,246,582

380,125

Compass Capital Trust III

7.350%

A3

BBB-

10,088,518

24,300

CSFB USA, Series 2002-10 (SATURNS)

7.000%

Aa3

A+

643,464

85,800

Fannie Mae (a)

5.125%

Aa3

NR

3,852,420

63,300

First Union Capital II, Series II (CORTS)

7.500%

A1

BBB+

1,671,753

31,300

First Union Institutional Capital II (CORTS)

8.200%

A1

BBB+

892,050

128,300

Fleet Capital Trust VI

8.800%

Aa3

A-

3,348,630

16,800

Harris Preferred Capital Corporation, Series A

7.375%

A1

A

423,864

88,300

JPM Capital Trust (CORTS)

7.200%

A2

A-

2,321,407

10,600

JPM Capital Trust I, Series 2001-1, Class A-1 (CORTS)

7.850%

A1

NR

281,854

221,100

JPMorgan Chase Capital Trust IX, Series I

7.500%

A1

A-

5,859,150

120,500

JPMorgan Chase Capital Trust X

7.000%

A1

NR

3,161,920

49,600

JPMorgan Chase Trust, Series 2002-6, Class A (SATURNS)

7.125%

A1

A-

1,301,752

34,400

KeyCorp (PCARS)

7.500%

A3

NR

927,768

30,400

KeyCorp, Series 2001-7 (CORTS)

7.750%

A3

BBB

803,168

91,300

KeyCorp, Series B (CORTS)

8.250%

A3

BBB

2,437,710

239,800

National Commerce Capital Trust II

7.700%

A1

A-

6,417,048

112,200

National Westminster Bank plc, Series A

7.875%

Aa2

A+

2,883,540

38,100

Regions Finance Trust I

8.000%

A2

BBB+

1,017,270

139,600

SunTrust Capital Trust IV

7.125%

A1

A-

3,665,896

108,300

SunTrust Capital Trust V

7.050%

A1

A-

2,829,879

658,100

USB Capital Trust III

7.750%

A1

A-

17,472,555

225,400

USB Capital Trust IV

7.350%

A1

A-

5,966,338

95,900

USB Capital Trust V

7.250%

A1

A-

2,515,457

90,800

VNB Capital Trust I

7.750%

Baa1

BBB

2,413,464

41,400

Washington Mutual Capital Trust I, Series 2001-22, Class A-1 (CORTS)

7.650%

Baa1

BBB

1,092,132

10,200

Well Fargo Capital Trust IX

5.625%

Aa2

A

238,782

16,700

Wells Fargo Capital Trust IV

7.000%

Aa2

A

441,047

182,200

Wells Fargo Capital Trust V

7.000%

Aa2

A

4,751,776

25,700

Wells Fargo Capital Trust VI

6.950%

Aa2

A-

672,569

539,200

Zions Capital Trust B

8.000%

Baa1

BB+

14,677,024

Consumer Finance - 1.7%

 

528,700

Household Capital Trust V, Series X

10.000%

A3

BBB+

13,931,245

620,196

Household Capital Trust VI

8.250%

A3

BBB+

16,751,494

61,200

Household Capital Trust VII

7.500%

A3

BBB+

1,639,548

Diversified Financial Services - 6.0%

 

101,400

Bear Stearns Capital Trust III

7.800%

A2

BBB

2,706,366

40,490

Citigroup Inc., Series M (a)

5.864%

Aa3

A

2,105,480

1,043,000

Countrywide Capital Trust IV

6.750%

Baa1

BBB+

26,314,890

80,000

Federal Home Loan Mortgage Corporation (a)

5.000%

Aa3

AA-

3,496,000

300,000

General Electric Capital Corporation

6.100%

Aaa

NR

7,620,000

199,700

General Electric Capital Corporation

6.625%

Aaa

AAA

5,254,107

360,600

Household Finance Corporation

6.875%

A1

A

9,483,780

11,000

JPMorgan Chase Capital Trust XI

5.875%

A1

A-

262,020

5,000

JPMorgan Chase Capital Trust XII

6.250%

A1

A-

125,550

278,100

Lehman Brothers Holdings Capital Trust III, Series K

6.375%

A2

BBB+

6,952,500

102,900

Lehman Brothers Holdings Capital Trust IV, Series L

6.375%

A2

BBB+

2,582,790

37,300

Lehman Brothers Holdings Capital Trust V, Series M

6.000%

A2

BBB+

894,827

42,000

Lehman Brothers Holdings Inc., Series C (a)

5.940%

NR

BBB+

2,140,950

156,200

Merrill Lynch Capital Trust

7.000%

A1

A-

4,100,250

117,500

Merrill Lynch Capital Trust II

8.000%

A1

A-

3,217,150

103,500

Merrill Lynch Preferred Capital Trust

7.750%

A1

A-

2,783,115

80,800

Merrill Lynch Preferred Capital Trust IV

7.120%

A1

A-

2,142,008

135,200

Merrill Lynch Preferred Capital Trust V

7.280%

A1

A-

3,650,400

47,700

Morgan Stanley (PPLUS)

7.050%

Aa3

A+

1,222,074

161,408

Morgan Stanley Capital Trust II

7.250%

A1

A-

4,241,802

457,500

Morgan Stanley Capital Trust III

6.250%

A1

A-

11,359,725

380,000

Morgan Stanley Capital Trust IV

6.250%

A1

A-

9,378,400

18,600

Morgan Stanley Capital Trust V

5.750%

A1

NR

437,100

Diversified Telecommunication Services - 0.2%

 

12,400

BellSouth Corporation

7.125%

NR

A

325,872

10,100

BellSouth Inc. (CORTS)

7.000%

Aa3

NR

265,832

9,100

BellSouth Telecommunications (PPLUS)

7.300%

Aa3

A

242,515

31,800

SBC Communications Inc.

7.000%

A1

A

828,072

28,400

Verizon Communications (CORTS)

7.625%

A2

A+

773,900

62,200

Verizon Global Funding Corporation (SATURNS)

7.500%

A2

A+

1,671,625

4,000

Verizon South Inc., Series F

7.000%

A1

A+

104,520

Electric Utilities - 4.6%

 

189,500

Alabama Power Company (a)

5.830%

Baa1

BBB+

4,718,550

17,200

Consolidated Edison Company of New York Inc.

7.500%

A1

A

456,316

1,000

Detroit Edison Company

7.540%

Baa2

BBB-

25,430

9,500

Detroit Edison Company

7.625%

Baa2

BBB-

241,300

92,500

Dominion CNG Capital Trust I

7.800%

Baa1

BBB-

2,474,375

46,200

Dominion Resources Capital Trust II

8.400%

Baa2

NR

1,244,628

27,400

DTE Energy Trust I

7.800%

Baa3

BBB-

728,018

5,500

Entergy Arkansas Inc.

6.700%

Aaa

AAA

146,685

49,000

Entergy Louisiana Inc.

7.600%

Baa1

A-

1,309,280

1,298,000

Entergy Mississippi Inc.

7.250%

Baa2

A-

34,526,800

3,000

Georgia Power Capital Trust V

7.125%

A3

BBB+

79,020

942,120

Interstate Power & Light Company, Series B (a)

8.375%

Baa3

NR

30,289,158

41,000

OGE Energy Capital Trust I

8.375%

Baa2

BBB-

1,045,500

51,000

Public Service Company of Oklahoma, Series B

6.000%

Aaa

AAA

1,287,750

56,700

Tennessee Valley Authority, Series D

6.750%

Aaa

NR

1,419,768

254,000

Virginia Power Capital Trust

7.375%

Baa1

BBB

6,832,600

Food Products - 0.7%

 

125,000

Dairy Farmers of America Inc., 144A (a)

7.875%

Baa3

NR

13,000,000

Gas Utilities - 0.3%

 

51,700

AGL Capital Trust II

8.000%

Baa2

BBB

1,373,669

151,900

TransCanada Pipeline

8.250%

A3

BBB

3,926,615

Healthcare Providers & Services - 0.1%

 

53,700

Aetna Incorporated

8.500%

Baa2

BBB

1,445,067

Industrial Conglomerates - 0.0%

 

16,000

Philadelphia Authority for Industrial Development, Pennsylvania, Pension Funding Bonds, Series 1999C

6.550%

NR

AAA

401,600

Insurance - 16.7%

 

972,600

Ace Ltd., Series C

7.800%

Baa2

BBB-

26,162,940

30,500

AMBAC Financial Group Inc.

5.950%

Aa2

AA

750,910

33,900

American General Capital III

8.050%

Aa1

AA

906,825

472,557

Delphi Financial Group Inc.

8.000%

Ba1

BBB

12,527,486

20,000

EverestRe Capital Trust II

6.200%

Baa1

BBB

469,400

2,827,000

EverestRe Group Limited

7.850%

Baa1

BBB

77,459,800

43,400

Financial Security Assurance Holdings

6.875%

Aa2

AA

1,129,702

693,000

Financial Security Assurance Holdings

6.250%

Aa2

AA

17,519,040

25,900

Great-West L&A Capital Trust I, Series A

7.250%

A3

A-

651,385

258,000

Hartford Capital Trust III, Series C

7.450%

Baa1

BBB

6,731,220

62,700

Hartford Life Capital Trust II, Series B

7.625%

Baa1

BBB

1,653,399

63,600

ING Capital Funding Trust II

9.200%

A2

A-

1,695,576

5,000

ING Groep NV

6.200%

A2

A-

122,650

1,406,955

ING Group NV

7.050%

NA

A-

36,763,734

1,476,400

ING Group NV

7.200%

A2

A-

39,272,240

78,300

Lincoln National Capital Trust V, Series E

7.650%

Baa1

BBB

2,074,950

34,100

Lincoln National Capital Trust VI

6.750%

Baa1

BBB

895,125

22,200

MBIA Inc.

8.000%

Aa2

AA

592,962

7,500

Metlife Inc.

5.875%

A2

A

181,500

233,681

PartnerRe Limited

7.900%

A3

BBB+

6,286,019

449,720

PartnerRe Limited, Series C

6.750%

Baa1

NR

11,436,380

104,200

PLC Capital Trust III

7.500%

Baa1

BBB+

2,736,292

440,940

PLC Capital Trust IV

7.250%

Baa1

BBB+

11,636,407

10,200

PLC Capital Trust V

6.125%

Baa1

BBB+

247,758

143,000

Prudential plc

6.750%

Baa1

A

3,636,490

304,360

RenaissanceRe Holdings Ltd., Series A

8.100%

NR

NR

8,175,110

138,400

RenaissanceRe Holdings Ltd., Series B

7.300%

Baa2

NR

3,660,680

5,400

RenaissanceRe Holdings Ltd., Series C

6.080%

Baa2

BBB+

127,332

12,100

Safeco Capital Trust I (CORTS)

8.750%

Baa2

BBB-

363,000

78,900

Safeco Capital Trust I (CORTS)

8.700%

Baa2

BBB-

2,116,098

59,700

Safeco Capital Trust I, Series 2001-4 (CORTS)

8.750%

Baa2

BBB-

1,596,975

1,200

Safeco Corporation, Series 2002-5 (SATURNS)

8.250%

Baa2

BBB-

32,160

63,200

Torchmark Capital Trust I

7.750%

Baa1

A-

1,701,344

17,900

W.R. Berkley (CORTS)

8.250%

NR

BBB-

489,923

558,900

XL Capital Ltd., Series A

8.000%

A3

NR

15,269,148

537,617

XL Capital Ltd., Series B

7.625%

A3

NR

14,542,540

IT Services - 0.0%

 

1,700

Vertex Industries Inc. (PPLUS)

7.625%

A2

A+

45,730

Media - 0.1%

 

78,000

Viacom Inc.

7.300%

A3

A-

2,043,600

Multi-Utilities & Unregulated Power - 0.2%

 

111,100

Energy East Capital Trust I

8.250%

Baa3

BBB-

2,965,259

Oil & Gas - 1.0%

 

697,011

Nexen Inc.

7.350%

Baa3

BBB-

18,672,925

Pharmaceuticals - 0.1%

 

14,500

Bristol Myers Squibb Company (CORTS)

6.250%

A1

NR

369,025

87,800

Rhone-Poulenc Overseas, Series A

8.125%

A3

BBB

2,248,558

Real Estate - 15.4%

 

97,800

AvalonBay Communities, Inc., Series H

8.700%

Baa2

BBB

2,748,180

13,300

BRE Properties, Series B

8.080%

Baa3

BBB-

351,120

39,200

BRE Properties, Series C

6.750%

Baa3

BBB-

969,024

1,002,995

CarrAmerica Realty Corporation, Series E

7.500%

Baa3

BBB-

26,639,547

103,200

Developers Diversified Realty Corporation, Series F

8.600%

Ba1

BBB-

2,765,760

279,800

Developers Diversified Realty Corporation, Series G

8.000%

NR

BBB-

7,383,922

115,000

Developers Diversified Realty Corporation, Series H

7.375%

NR

BBB-

2,933,650

200,650

Duke-Weeks Realty Corporation, Series B

7.990%

Baa2

NR

10,954,246

38,600

Duke-Weeks Realty Corporation, Series I

8.450%

Baa2

BBB

1,019,426

323,900

Equity Office Properties Trust, Series G

7.750%

Baa3

BBB

8,657,847

88,800

Equity Residential Properties Trust

9.125%

Baa2

NR

2,349,648

40,000

Equity Residential Properties Trust, Series C

9.125%

Baa2

NR

1,094,400

63,250

Equity Residential Properties Trust, Series D

8.600%

Baa2

NR

1,745,068

1,000

Equity Residential Properties Trust, Series N

6.480%

NR

BBB

24,750

18,600

First Industrial Realty Trust, Inc., Series C

8.625%

Baa3

NR

524,148

25,918

Gables Residential Trust, Series D

7.500%

Baa3

BBB-

675,164

219,600

HRPT Properties Trust, Series A

9.875%

Baa3

BBB-

5,990,688

1,542,125

HRPT Properties Trust, Series B

8.750%

Baa3

BBB-

42,053,749

153,000

Kimco Realty Corporation, Series F

6.650%

Baa2

BBB+

3,978,000

147,350

New Plan Excel Realty Trust, Series D

7.800%

Baa3

NR

7,537,881

768,000

New Plan Excel Realty Trust, Series E

7.625%

NR

BBB-

19,952,640

91,728

Prologis Trust, Series G

6.750%

NR

BBB

2,283,110

107,600

PS Business Park Inc., Series I

6.875%

Ba1

BBB-

2,555,500

148,970

PS Business Parks Inc.

7.000%

Ba1

BBB-

3,649,765

400,000

PS Business Parks Inc., Series L

7.600%

Ba1

BBB-

10,204,000

5,000

Public Storage Inc.

6.125%

Baa2

BBB+

118,250

13,000

Public Storage Inc., Series F

9.750%

Baa2

BBB+

339,560

63,700

Public Storage Inc., Series Q

8.600%

Baa2

NR

1,699,516

215,395

Public Storage Inc., Series R

8.000%

Baa2

BBB+

5,690,736

39,600

Public Storage Inc., Series S

7.875%

Baa2

BBB+

1,045,044

91,365

Public Storage Inc., Series T

7.625%

Baa2

BBB+

2,379,145

94,900

Public Storage Inc., Series U

7.625%

Baa2

BBB+

2,491,125

142,300

Public Storage Inc., Series V

7.500%

Baa2

NR

3,770,950

32,900

Public Storage Inc., Series Z

6.250%

Baa2

NR

792,232

300,000

Regency Centers Corporation

7.450%

Baa3

BBB-

7,929,000

135,600

Regency Centers Corporation

7.250%

Baa3

BBB-

3,464,580

34,500

Simon Property Group, Inc., Series F

8.750%

Baa2

BBB-

931,155

326,041

Simon Property Group, Inc., Series G

7.890%

Baa2

BBB

17,319,298

40,700

Vornado Realty Trust, Series C

8.500%

Ba1

BBB-

1,048,025

2,461,900

Wachovia Preferred Funding Corporation

7.250%

A2

BBB+

68,071,535

156,000

Weingarten Realty Trust, Series E

6.950%

Baa1

A-

4,009,200

Specialty Retail - 0.0%

 

19,600

Sherwin Williams Company, Series III (CORTS)

7.250%

A2

A

516,460

Wireless Telecommunication Services - 2.2%

 

157,500

Telephone and Data Systems Inc.

7.600%

Baa1

A-

4,146,975

1,317,400

United States Cellular Corporation

8.750%

Baa1

NR

36,900,374

6,400

Verizon Communications (CORTS)

7.375%

NR

A+

171,456

Total $25 Par (or similar) Securities (cost $1,139,416,880)

1,198,712,496

CONVERTIBLE PREFERRED SECURITIES - 7.1% (5.0% of Total Investments)

Diversified Financial Services - 0.4%

 

210,000

Citigroup Global Markets

2.000%

Aa1

NR

8,407,350

Diversified Telecommunication Services - 1.5%

 

546,000

Alltel Corporation

7.750%

A2

NR

28,260,960

Electric Utilities - 3.3%

 

357,900

Ameren Corporation

9.750%

A3

BBB+

9,827,934

22,100

American Electric Power

9.250%

Baa3

NR

1,006,655

468,500

Dominion Resources Inc.

8.750%

Baa1

BBB+

25,345,850

126,500

FPL Group Inc.

8.000%

NR

A-

7,080,205

334,500

Public Service Enterprise Group

10.250%

Baa3

NR

19,584,975

Gas Utilities - 1.3%

 

452,500

Keyspan Corporation

8.750%

A3

NR

23,982,500

Healthcare Equipment & Supplies - 0.4%

 

128,600

Baxter International Inc.

7.000%

Baa1

NR

6,912,250

Insurance - 0.2%

 

69,700

PMI Group Inc.

5.875%

A1

A

1,819,170

73,000

XL Capital Limited

6.500%

A2

A

1,803,830

Total Convertible Preferred Securities (cost $120,429,105)

134,031,679

Principal

Ratings*

Amount (000)/

Market

Shares

Description(1)

Coupon

Maturity

Moody's

S&P

Value

CAPITAL PREFERRED SECURITIES - 62.9% (44.4% of Total Investments)

Commercial Banks - 44.8%

 $

19,000

AB Svensk Exportkredit, 144A

6.375%

10/27/49

Aa3

AA-

$    19,217,398

62,474

Abbey National Capital Trust I

8.963%

12/30/49

A2

A-

84,560,933

15,000

ABN AMRO North America Holding Capital, 144A

6.523%

12/31/49

A3

A-

16,573,755

7,400

AgFirst Farm Credit Bank

7.300%

12/15/53

NR

NR

7,474,370

15,000

Ahmanson Capital Trust I, 144A

8.360%

12/01/26

Baa1

BBB

16,791,450

2,200

ANZ Capital Trust I, 144A

5.360%

12/29/49

A2

A-

2,221,446

6,500

Bank One Capital III

8.750%

9/01/30

A1

A-

8,700,328

26,355

BankBoston Capital Trust I, Series B

8.250%

12/15/26

Aa3

A-

29,821,025

3,031

BankBoston Capital Trust II, Series B

7.750%

12/15/26

Aa3

A-

3,352,037

5,000

BanPonce Trust I, Series A

8.327%

2/01/27

Baa1

BBB-

5,622,835

36,000

Barclays Bank plc, 144A

8.550%

6/15/49

Aa3

A+

44,152,884

5,300

Barnett Capital I

8.060%

12/01/26

Aa3

A-

5,929,592

2,750

BNP Paribas Capital Trust

7.200%

12/31/49

NR

A+

2,888,933

1,000

BNP Paribas Capital Trust, 144A

9.003%

12/29/49

A1

A+

1,243,434

4,000

BT Capital Trust, Series B1

7.900%

1/15/27

A2

NR

4,517,516

2,000

BT Institutional Capital Trust B, 144A

7.750%

12/01/26

A2

A-

2,199,514

500

BT Preferred Capital Trust II

7.875%

2/25/27

A2

NR

560,305

5,000

C.A. Preferred Fund Trust II

7.000%

10/30/49

NR

A

5,199,240

18,600

C.A. Preferred Funding Trust

7.000%

1/30/49

NR

A

19,293,613

7,750

Chase Capital Trust I, Series A

7.670%

12/01/26

A1

A-

8,406,510

2,229

Corestates Capital Trust I, 144A

8.000%

12/15/26

A1

A-

2,473,593

4,200

DBS Capital Funding Corporation, 144A

7.657%

3/15/49

A1

A-

4,885,654

11,825

Dime Capital Trust I, Series A

9.330%

5/06/27

Baa1

BBB

13,708,604

7,500

Dresdner Funding Trust I, 144A

8.151%

6/30/31

A3

BBB+

9,090,953

3,500

Farm Credit Bank of Texas

7.561%

11/05/49

NR

NR

3,632,171

5,000

FBS Capital Trust I

8.090%

11/15/26

A1

A-

5,628,670

3,500

First Chicago NBD Institutional Capital, 144A

7.950%

12/01/26

A1

NR

3,906,756

1,500

First Empire Capital Trust I

8.234%

2/01/27

Baa1

BBB

1,691,415

4,850

First Hawaiian Capital Trust I, Series B

8.343%

7/01/27

A3

A-

5,532,861

1,500

First Midwest Bancorp Inc.

6.950%

12/01/33

Baa2

BBB-

1,604,865

17,095

First Union Capital Trust II, Series A

7.950%

11/15/29

A1

BBB+

21,090,187

22,080

Fleet Capital Trust II

7.920%

12/11/26

Aa3

A-

24,626,575

10,000

Goldman Sachs Group Inc.

6.345%

2/15/34

A1

A-

10,064,890

13,000

Great Western Financial Trust II, Series A

8.206%

2/01/27

Baa1

BBB

14,729,819

44,010

HBOS Capital Funding LP, Notes

6.850%

3/01/49

NR

A

45,136,920

2,400

HSBC Capital Funding LP, 144A

9.547%

12/31/49

A1

A-

3,026,189

6,250

HSBC Capital Funding LP, Debt

10.176%

6/30/50

A1

A-

9,573,794

3,600

JPM Capital Trust I

7.540%

1/15/27

A1

A-

3,852,824

22,085

JPM Capital Trust II

7.950%

2/01/27

A1

A-

24,659,669

32,000

KBC Bank Fund Trust III, 144A

9.860%

11/02/49

A2

A-

39,613,312

2,500

KeyCorp Institutional Capital Trust A

7.826%

12/01/26

A3

BBB

2,770,860

13,500

Lloyds TSB Bank plc, Subordinate Note

6.900%

11/22/49

Aa2

A+

14,024,030

25,000

M&I Capital Trust A

7.650%

12/01/26

A2

BBB+

27,761,625

25,000

Mellon Capital Trust I, Series A

7.720%

12/01/26

A2

NR

27,807,050

19,500

NB Capital Trust II

7.830%

12/15/26

Aa3

A-

22,206,503

14,000

Nordbanken AB, 144A

8.950%

11/29/49

A2

A-

16,885,806

2,000

North Fork Capital Trust I, Capital Securities

8.700%

12/15/26

A3

BBB-

2,277,110

8,000

North Fork Capital Trust II

8.000%

12/15/27

A3

BBB-

9,043,960

2,000

Peoples Heritage Capital Trust I, Series B

9.060%

2/01/27

Baa1

BB+

2,343,480

33,085

PNC Institutional Capital Securities, 144A

7.950%

12/15/26

A3

BBB+

36,730,735

2,000

Popular North American Capital Trust I

6.564%

9/15/34

Baa1

BBB-

2,039,070

11,600

RBS Capital Trust B

6.800%

12/31/49

NR

A

11,931,366

8,000

Reliance Capital Trust I, Series B

8.170%

5/01/28

NR

NR

9,157,792

500

Republic New York Capital II, Capital Securities

7.530%

12/04/26

A1

A-

546,517

17,500

Royal Bank of Scotland Group plc

9.118%

3/31/49

A1

A

21,538,248

2,150

Royal Bank of Scotland Group plc

7.648%

8/31/49

A1

A

2,572,746

1,500

SocGen Real Estate Company LLC, 144A

7.640%

12/29/49

A2

A

1,665,891

5,000

Sparebanken Rogaland, Notes, 144A

6.443%

5/01/49

Baa1

NR

5,106,000

9,000

St. George Funding Company LLC, 144A

8.485%

6/30/47

Baa1

NR

10,365,390

3,240

State Street Institutional Capital Trust, 144A

7.940%

12/30/26

A1

A

3,702,251

21,000

UBS Preferred Funding Trust I

8.622%

10/29/49

A1

AA-

25,383,708

7,500

Union Planters Capital Trust A

8.200%

12/15/26

A2

BBB+

8,417,325

240

Union Planters Preferred Fund, 144A

7.750%

7/15/53

A2

BBB-

26,160,000

1,000

Wells Fargo Capital I

7.960%

12/15/26

Aa2

A

1,136,014

10,000

Zions Institutional Capital Trust, Series A

8.536%

12/15/26

Baa1

BBB-

11,558,620

Consumer Finance - 1.6%

 

8,595

Countrywide Capital Trust I

8.000%

12/15/26

Baa1

BBB+

9,283,674

18,460

Countrywide Capital Trust III, Series B

8.050%

6/15/27

Baa1

BBB+

21,666,373

Diversified Financial Services - 1.3%

 

8,000

Keycorp Capital III

7.750%

7/15/29

A3

BBB

9,426,056

13,800

Old Mutual Capital Funding, Notes

8.000%

6/22/53

NR

NR

14,192,638

Diversified Telecommunication Services - 3.1%

 

45,250

Centaur Funding Corporation, Series B, 144A

9.080%

4/21/20

Baa1

BBB+

58,556,351

Gas Utilities - 0.6%

 

10,750

KN Capital Trust III

7.630%

4/15/28

Baa3

BB+

11,835,524

Insurance - 11.0%

 

14,280

Ace Capital Trust II

9.700%

4/01/30

Baa1

BBB-

19,691,934

2,000

Allstate Financing II

7.830%

12/01/45

A2

A-

2,232,960

28,000

American General Institutional Capital, 144A

8.125%

3/15/46

Aa1

AA

36,176,168

10,000

Berkeley Capital Trust

8.197%

12/15/45

Baa3

BBB-

10,860,900

6,000

MIC Financing Trust I

8.375%

2/01/27

A1

A+

6,484,140

8,500

Prudential plc

6.500%

6/29/49

Baa1

A

8,291,929

10,000

RenaissanceRe Capital Trust

8.540%

3/01/27

Baa1

BBB+

11,520,310

51,700

Sun Life Canada Capital Trust, Capital Securities, 144A

8.526%

5/06/47

A1

A+

59,696,542

44,515

Zurich Capital Trust I, 144A

8.376%

6/01/37

Baa2

A-

50,957,033

Oil & Gas - 0.4%

 

7,355

Phillips 66 Capital Trust II

8.000%

1/15/37

Baa2

BBB

8,378,147

Real Estate - 0.1%

 

2,000

Mangrove Bay, Class 3, 144A

6.102%

7/15/33

NR

BBB+

2,042,324

Total Capital Preferred Securities (cost $1,095,687,914)

1,181,681,939

CORPORATE BONDS - 4.7% (3.3% of Total Investments)

Automobiles - 4.7%

 

7,525

Ford Motor Company

8.900%

1/15/32

Baa1

BBB-

8,466,980

4,000

Ford Motor Company

7.450%

7/16/31

Baa1

BBB-

3,933,324

21,500

Ford Motor Company, Debenture

7.400%

11/01/46

Baa1

BBB-

20,276,452

52,860

General Motors Acceptance Corporation, Notes

8.000%

11/01/31

A3

BBB

54,863,812

600

General Motors Corporation, Senior Debentures

8.375%

7/15/33

Baa1

BBB

638,861

Total Corporate Bonds (cost $78,440,727)

88,179,429

REPURCHASE AGREEMENTS - 3.1% (2.2% of Total Investments)
$

9,893

State Street Bank, 1.7000%, dated 9/30/04, due 10/01/04, repurchase price

9,892,607

   $9,893,074 collateralized by $10,145,000 U.S. Treasury Bonds, 0.000%,

   due 1/20/05, value $10,094,275

24,000

State Street Bank, 1.7000%, dated 9/30/04, due 10/01/04, repurchase price

24,000,000

   $24,001,133 collateralized by $24,605,000 U.S. Treasury Bonds, 0.000%,

   due 1/20/05, value $24,481,975

24,000

State Street Bank, 1.7000%, dated 9/30/04, due 10/01/04, repurchase price

24,000,000

   $24,001,133 collateralized by $16,390,000 U.S. Treasury Bonds, 9.000%,

   due 11/15/18, value $24,482,563

Total Repurchase Agreements (cost $57,892,607)

57,892,607

Total Investments (cost $2,491,867,233) - 141.7%

2,660,498,150

Other Assets Less Liabilities - 0.9%

17,464,546

FundPreferred Shares, at Liquidation Value - (42.6)%

(800,000,000)

Net Assets Applicable to Common Shares - 100%

$1,877,962,696

  

Interest Rate Swap Transactions Outstanding at September 30, 2004:

Unrealized

Notional

Termination

Appreciation

Amount

Fixed Rate

Floating Rate**

Date

(Depreciation)
 

$200,000,000

2.6300%

1.6963%

11/06/05

$    (365,956)

200,000,000

3.3750

1.6963

11/06/07

(924,859)

200,000,000

3.9100

1.6963

11/06/09

(1,837,245)

$(3,128,060)

(1)  

All percentages shown in the Portfolio of Investments are based on net assets applicable to Common

shares unless otherwise noted.

*  

Ratings below Baa by Moody's Investor Service, Inc. or BBB by Standard & Poor's Group are considered

to be below investment grade.

**  

Based on LIBOR (London Interbank Offered Rate)

(a)  

Security is eligible for the Dividends Received Deduction.

144A  

144A securities are those which are exempt from registration under Rule 144A of the Securities Act of

1933, as amended. These securities 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.

NR  

Security is not rated.

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 the recognition of income on certain

securities, which are treated as debt securities for income tax purposes and equity securities for fiinancial

statement purposes, and timing differences in recognizing certain gains and losses on security transactions.

At September 30, 2004, the cost of investments was $2,492,836,325.

Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2004,

were as follows:

Gross unrealized:

   Appreciation

$174,694,816

   Depreciation

(7,032,991)

Net unrealized appreciation of investments

$167,661,825

Item 2. Controls and Procedures.

  1. 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)).
  2. 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 has materially affected, or is 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 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/ Jessica R. Droeger--Vice President and Secretary        

Date         11/29/04        

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--Chief Administrative Officer (Principal Executive Officer)        

Date         11/29/04        

By (Signature and Title)*         /s/ Stephen D. Foy--Vice President and Controller (Principal Financial Officer)        

Date         11/29/04        

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