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:    9/30/2006   

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

Shares

Description (1)

Coupon

Ratings (2)

Value

Convertible Preferred Securities - 0.2% (0.1% of Total Investments)

Insurance - 0.2%

118,000

XL Capital Ltd

6.500%

A2

$

2,678,600

Total Convertible Preferred Securities (cost $2,824,775)

2,678,600

Shares				Description (1)		Coupon				Ratings (2)		Value
				$25 Par (or similar) Preferred Securities - 81.1% (57.1% of Total Investments)
				Automobiles - 0.0%
	1,400			Daimler Chrysler, Series DCX (CORTS)		8.250%				A3		$	35,000
	4,300			Daimler Chrysler, Series DCX (CORTS)		7.500%				A3			102,899
	3,000			Daimler Chrysler, Series DCX (CORTS)		6.875%				A3			67,800
	3,400			DaimlerChrysler AG (CORTS)		7.875%				Baa1			85,442
	23,300			DaimlerChrysler Corp. (PPLUS)		7.250%				A3			580,170
				Total Automobiles									871,311
				Capital Markets - 5.1%
	68,324			Bear Stearns Capital Trust III		7.800%				A2			1,750,461
	19,200			BNY Capital Trust IV, Series E		6.875%				A1			484,032
	45,288			BNY Capital Trust V, Series F		5.950%				A-			1,091,441
	399,525			Compass Capital Trust III		7.350%				A3			10,016,092
	28,600			CSFB USA, Series 2002-10 (SATURNS)		7.000%				AA-			733,590
	8,300			Goldman Sachs Capital I (CORTS)		6.000%				A1			196,378
	3,700			Goldman Sachs Capital I, Series A (CORTS)		6.000%				A1			86,025
	3,500			Goldman Sachs Group Inc., Series 2003-11 (SATURNS)		5.625%				Aa3			77,525
	15,700			Goldman Sachs Group Inc., Series 2004-04 (SATURNS)		6.000%				A1			371,148
	4,600			Goldman Sachs Group Inc., Series 2004-06 (SATURNS)		6.000%				A1			106,352
	10,300			Goldman Sachs Group Inc., Series GSC-3 (PPLUS)		6.000%				A1			239,166
	2,800			Goldman Sachs Group Inc., Series GSC-4 Class A (PPLUS)		6.000%				A1			64,400
	6,100			Goldman Sachs Group Inc., Series GSG-2 (PPLUS)		5.750%				Aa3			138,165
	4,300			Goldman Sachs Group Incorporated (SATURNS)		5.750%				Aa3			97,524
	324,900			Lehman Brothers Holdings Capital Trust III, Series K		6.375%				A2			8,057,520
	102,900			Lehman Brothers Holdings Capital Trust IV, Series L		6.375%				A2			2,598,225
	60,300			Lehman Brothers Holdings Capital Trust V, Series M		6.000%				A2			1,468,305
	121,700			Merrill Lynch Capital Trust II		8.000%				A1			3,128,907
	219,500			Merrill Lynch Preferred Capital Trust III		7.000%				A1			5,566,520
	142,300			Merrill Lynch Preferred Capital Trust IV		7.120%				A1			3,625,804
	241,000			Merrill Lynch Preferred Capital Trust V		7.280%				A-			6,176,830
	107,900			Merrill Lynch Preferred Capital Trust		7.750%				A1			2,733,107
	53,600			Morgan Stanley (PPLUS)		7.050%				Aa3			1,342,680
	168,008			Morgan Stanley Capital Trust II		7.250%				A1			4,267,403
	430,350			Morgan Stanley Capital Trust III		6.250%				A1			10,612,431
	380,900			Morgan Stanley Capital Trust IV		6.250%				A1			9,332,050
	51,100			Morgan Stanley Capital Trust V		5.750%				A+			1,189,608
	495,300			Morgan Stanley Capital Trust VI		6.600%				A-			12,521,184
	3,200			Washington Mutual Capital Trust I, Series 2001-22, Class A-1 (CORTS)		7.650%				Baa1			81,952
				Total Capital Markets									88,154,825
				Commercial Banks - 11.6%
	119,000			ABN AMRO Capital Fund Trust V		5.900%				A			2,832,200
	7,000			ABN AMRO Capital Trust Fund VII		6.080%				A			171,640
	159,760			ASBC Capital I		7.625%				Baa1			4,037,135
	267,551			Banco Santander		6.410%				A2			6,849,306
	54,100			Banco Totta & Acores Finance, Series A		8.875%				A3			1,350,812
	17,900			BancorpSouth Capital Trust I		8.150%				Baa2			450,543
	731,000			Banesto Holdings, Series A, 144A		10.500%				A2			22,478,250
	757,100			Bank of America Corporation, Series D		6.204%				A1			19,321,192
	204,700			Bank One Capital Trust VI		7.200%				A1			5,199,380
	67,200			BankNorth Capital Trust II		8.000%				A3			1,699,488
	27,412			Barclays Bank PLC		6.625%				Aa3			710,245
	605,000			Capital One Capital II Corporation		7.500%				Baa2			15,881,250
	122,800			Chittenden Capital Trust I		8.000%				Baa1			3,131,400
	354,000			Citizens Funding Trust I (WI/DD, Settling 10/03/06)		7.500%				Baa2			8,913,720
	225,500			Cobank ABC, 144A, (3)		7.000%				N/R			12,330,791
	268,700			Comerica Capital Trust I		7.600%				A3			6,749,744
	379,700			HSBC Finance Corporation		6.875%				AA-			9,739,305
	48,400			KeyCorp (PCARS)		7.500%				A3			1,239,524
	8,667			KeyCorp Capital Trust V		5.875%				A3			203,675
	34,398			Keycorp Capital VIII		7.000%				A3			883,169
	277,700			National Commerce Capital Trust II		7.700%				A1			6,981,378
	5,000			National Westminster Bank PLC		7.760%				Aa3			128,500
	3,800			PNC Capital Trust		6.125%				BBB+			92,150
	596,876			Royal Bank of Scotland Group PLC, Series N		6.350%				A1			15,100,963
	237,700			SunTrust Capital Trust IV		7.125%				A1			5,978,155
	162,700			SunTrust Capital Trust V		7.050%				A1			4,091,905
	333,800			USB Capital Trust IV		7.350%				Aa3			8,461,830
	141,600			USB Capital Trust V		7.250%				Aa3			3,564,072
	63,300			USB Capital Trust VI		5.750%				Aa3			1,451,469
	118,600			USB Capital Trust VII		5.875%				Aa3			2,771,682
	92,300			VNB Capital Trust I		7.750%				Baa1			2,322,268
	38,900			Wells Fargo Capital Trust IV		7.000%				Aa2			983,781
	55,900			Wells Fargo Capital Trust IX		5.625%				Aa2			1,283,464
	308,100			Wells Fargo Capital Trust V		7.000%				Aa2			7,764,120
	41,100			Wells Fargo Capital Trust VI		6.950%				A+			1,033,665
	45,975			Wells Fargo Capital Trust VII		5.850%				Aa2			1,099,262
	578,650			Zions Capital Trust B		8.000%				BBB-			14,894,451
				Total Commercial Banks									202,175,884
				Computers & Peripherals - 0.1%
	4,000			IBM Corporation, Class A (CORTS)		5.625%				A+			91,680
	5,700			IBM Inc., Series 2001-1 (SATURNS)		7.125%				A+			145,892
	11,700			IBM Inc., Trust Certificates, Series 2001-2		7.100%				A+			299,286
	21,000			IBM Trust II (CORTS)		7.125%				A+			538,020
	48,300			IBM Trust III (CORTS)		7.200%				A+			1,235,031
				Total Computers & Peripherals									2,309,909
				Consumer Finance - 0.9%
	73,600			Household Capital Trust VII		7.500%				A1			1,860,608
	480,800			HSBC Finance Corporation		6.360%				A			12,404,640
	24,350			SLM Corporation		6.000%				A			587,322
				Total Consumer Finance									14,852,570
				Diversified Financial Services - 8.2%
	463,760			BAC Capital Trust XII		6.875%				Aa3			11,960,370
	163,700			CIT Group Inc., Series A, (3)		6.350%				BBB+			4,225,097
	40,800			CIT Group Incorporated (CORTS)		7.750%				A3			1,070,796
	5,960			Citigroup Capital Trust IX		6.000%				Aa2			145,245
	586,725			Citigroup Capital Trust VIII		6.950%				Aa2			14,738,532
	28,500			Citigroup Capital Trust XI		6.000%				Aa2			691,125
	80,575			Citigroup Capital XIV		6.875%				Aa2			2,067,555
	758			Citigroup Capital XV		6.500%				Aa3			19,327,929
	11,000			Citigroup, Series CIT (CORTS)		6.750%				A3			273,900
	3,900			General Electric Capital Corporation (CORTS)		6.000%				AAA			94,185
	12,400			ING Group N.V.		6.125%				A			307,644
	1,523,600			ING Group N.V.		7.200%				A			39,095,576
	1,445,555			ING Group N.V.		7.050%				A			36,688,186
	2,700			ING Group N.V.		6.200%				A			67,527
	92,500			JPM Capital Trust (CORTS)		7.200%				A1			2,357,825
	10,600			JPMorgan Chase & Company (PCARS)		7.125%				A2			269,664
	323,000			JPMorgan Chase Capital Trust IX, Series I		7.500%				A1			8,210,660
	52,900			JPMorgan Chase Trust, Series 2002-6, Class A (SATURNS)		7.125%				A1			1,337,841
				Total Diversified Financial Services									142,929,657
				Diversified Telecommunication Services - 0.7%
	116,999			AT&T Inc.		7.000%				A			2,946,035
	17,500			BellSouth Capital Funding (CORTS)		7.100%				A			440,125
	42,100			BellSouth Corporation (CORTS)		7.000%				Aa3			1,066,393
	16,300			BellSouth Corporation, Series 2001-3 (SATURNS)		7.125%				A			409,701
	16,200			BellSouth Corporation, Series BLS (CORTS)		7.000%				A			406,458
	42,600			BellSouth Corporation		7.125%				A			1,071,390
	38,100			BellSouth Inc. (CORTS)		7.000%				A			966,597
	29,200			BellSouth Telecommunications (PPLUS)		7.300%				A			740,220
	30,600			Verizon Communications (CORTS)		7.625%				A			795,600
	7,600			Verizon Communications (CORTS)		7.375%				A			194,864
	70,100			Verizon Global Funding Corporation (SATURNS)		7.500%				A			1,809,982
	22,100			Verizon New England Inc., Series B		7.000%				A3			561,561
	13,000			Verizon South Inc., Series F		7.000%				A			329,420
				Total Diversified Telecommunication Services									11,738,346
				Electric Utilities - 5.0%
	128,600			Alabama Power Company, (3)		5.830%				BBB+			3,189,280
	17,200			Consolidated Edison Company of New York Inc.		7.500%				A1			430,688
	2,800			Consolidated Edison, Inc.		7.250%				A-			70,840
	27,400			DTE Energy Trust I		7.800%				BB+			698,426
	4,200			Entergy Arkansas Inc.		6.700%				AAA			105,630
	57,650			Entergy Louisiana LLC		7.600%				A-			1,455,663
	1,299,100			Entergy Mississippi Inc.		7.250%				A-			33,133,546
	1,700			Georgia Power Capital Trust VII		5.875%				A3			40,205
	12,700			Georgia Power Capital Trust V		7.125%				BBB+			320,040
	59,500			Georgia Power Company		5.900%				A			1,439,900
	940,400			Interstate Power and Light Company, Series B, (3)		8.375%				Baa2			29,387,500
	30,200			National Rural Utilities Cooperative Finance Corporation		7.400%				A3			765,570
	7,700			National Rural Utilities Cooperative Finance Corporation		6.100%				A3			187,880
	22,600			National Rural Utilities Cooperative Finance Corporation		5.950%				A3			523,416
	331,800			PPL Energy Supply LLC		7.000%				BBB			8,533,498
	2,600			Southern Company Capital Trust I (CORTS)		8.190%				BBB+			68,822
	3,900			Southern Company Capital Trust I (CORTS)		7.375%				BBB+			98,748
	265,500			Virginia Power Capital Trust		7.375%				BB+			6,770,250
				Total Electric Utilities									87,219,902
				Food Products - 0.5%
	88,000			Dairy Farmers of America Inc., 144A, (3)		7.875%				BBB-			8,734,000
				Household Durables - 0.7%
	486,240			Pulte Homes Inc.		7.375%				BBB			12,569,304
				Industrial Conglomerates - 0.0%
	9,200			General Electric Company, Series GE (CORTS)		6.800%				AAA			232,392
				Insurance - 19.1%
	1,214,900			Ace Ltd., Series C		7.800%				Baa2			31,526,655
	1,500			Aegon N.V.		6.875%				A-			38,730
	93,100			Aegon N.V.		6.500%				A-			2,361,947
	2,129,500			Aegon N.V.		6.375%				A-			53,855,054
	20,200			AMBAC Financial Group Inc.		7.000%				AA			505,000
	63,400			AMBAC Financial Group Inc.		5.950%				AA			1,535,548
	9,100			AMBAC Financial Group Inc.		5.875%				AA			217,854
	8,400			Arch Capital Group Limited, Series B		7.785%				Baa3			217,140
	989,383			Arch Capital Group Limited		8.000%				Baa3			26,317,588
	479,357			Delphi Financial Group, Inc.		8.000%				BBB			12,556,757
	1,702,521			EverestRe Group Limited		7.850%				Baa1			43,822,891
	62,600			Financial Security Assurance Holdings		6.875%				AA			1,570,008
	710,100			Financial Security Assurance Holdings		6.250%				AA			17,709,894
	369,700			Hartford Capital Trust III, Series C		7.450%				A3			9,257,288
	54,300			Lincoln National Capital Trust VI		6.750%				A-			1,376,505
	12,500			Lincoln National Corporation		6.750%				A-			317,625
	501,300			Markel Corporation		7.500%				BBB-			12,768,111
	646,320			PartnerRe Limited, Series C		6.750%				BBB+			16,248,485
	27,400			PartnerRe Limited, Series D		6.500%				BBB+			682,260
	301,581			PartnerRe Limited		7.900%				A3			7,560,636
	108,700			PLC Capital Trust III		7.500%				BBB+			2,751,197
	453,940			PLC Capital Trust IV		7.250%				BBB+			11,443,827
	21,500			PLC Capital Trust V		6.125%				BBB+			509,550
	90,700			Protective Life Corporation		7.250%				BBB			2,335,525
	6,900			Prudential Financial Inc. (CORTS)		6.000%				A			160,770
	223,000			Prudential PLC		6.750%				A			5,679,810
	324,060			RenaissanceRe Holdings Limited, Series A		8.100%				BBB+			8,185,756
	145,800			RenaissanceRe Holdings Limited, Series B		7.300%				BBB			3,682,908
	20,200			RenaissanceRe Holdings Limited, Series C		6.080%				BBB+			448,844
	24,000			Safeco Capital Trust I (CORTS)		8.750%				Baa2			695,160
	6,600			Safeco Capital Trust III (CORTS)		8.072%				Baa2			168,993
	2,300			Safeco Capital Trust IV (CORTS)		8.375%				Baa2			63,825
	2,600			Safeco Corporation, Series 2001-7 (SATURNS)		8.250%				Baa2			66,846
	8,500			Safeco Corporation, Series 2002-5 (SATURNS)		8.250%				Baa2			219,513
	147,900			Saint Paul Capital Trust I		7.600%				Baa1			3,761,097
	130,400			Torchmark Capital Trust I		7.750%				A-			3,260,000
	8,300			Torchmark Capital Trust II		7.750%				A-			212,397
	23,900			W.R. Berkley (CORTS)		8.250%				BBB-			612,557
	27,900			W.R. Berkley Capital Trust, Series 2002-1 (CBTCS)		8.125%				BBB-			285,138
	711,146			W.R. Berkley Corporation		6.750%				BBB-			17,629,309
	572,200			XL Capital Ltd, Series A		8.000%				Baa1			14,568,212
	607,617			XL Capital Ltd, Series B		7.625%				Baa1			15,530,691
				Total Insurance									332,717,901
				IT Services - 0.0%
	16,100			Vertex Industries Inc. (PPLUS)		7.625%				A			412,643
				Media - 2.1%
	178,000			CBS Corporation		7.250%				BBB			4,467,800
	10,500			Comcast Corporation		7.000%				BBB+			269,063
	1,261,514			Comcast Corporation		7.000%				BBB+			32,089,762
	1,800			Walt Disney Company (CORTS)		6.875%				A-			45,216
	18,200			Walt Disney Company		7.000%				A-			461,916
				Total Media									37,333,757
				Multi-Utilities - 0.2%
	119,400			Dominion CNG Capital Trust I		7.800%				Baa2			3,036,342
	44,100			Dominion Resources Capital Trust II		8.400%				Baa3			1,118,376
				Total Multi-Utilities									4,154,718
				Oil, Gas & Consumable Fuels - 1.6%
	908,811			Nexen Inc.		7.350%				Baa3			23,356,443
	147,400			TransCanada Pipeline		8.250%				A3			3,817,660
				Total Oil, Gas & Consumable Fuels									27,174,103
				Pharmaceuticals - 0.0%
	10,800			Bristol Myers Squibb Company (CORTS)		6.250%				A+			265,356
	7,500			Bristol-Myers Squibb Company Trust (CORTS)		6.800%				A+			186,900
				Total Pharmaceuticals									452,256
				Real Estate - 22.3%
	201,379			AMB Property Corporation, Series P		6.850%				Baa2			5,084,820
	95,400			AvalonBay Communities, Inc., Series H		8.700%				BBB			2,613,006
	16,400			BRE Properties, Series B		8.080%				BBB-			420,824
	155,943			BRE Properties, Series C		6.750%				BBB-			3,848,673
	30,335			BRE Properties, Series D		6.750%				BBB-			741,387
	135,925			Developers Diversified Realty Corporation, Series F		8.600%				BBB-			3,456,573
	639,813			Developers Diversified Realty Corporation, Series G		8.000%				BBB-			16,411,203
	187,823			Developers Diversified Realty Corporation, Series H		7.375%				BBB-			4,759,435
	40,467			Developers Diversified Realty Corporation		7.500%				BBB-			1,027,862
	298,900			Duke Realty Corporation, Series L		6.600%				BBB			7,472,500
	1,400			Duke Realty Corporation, Series N		7.250%				BBB			36,400
	220,650			Duke-Weeks Realty Corporation, Series B		7.990%				BBB			11,004,919
	150,000			Duke-Weeks Realty Corporation		6.950%				BBB			3,822,000
	5,600			Duke-Weeks Realty Corporation		6.625%				BBB			138,488
	537,700			Equity Office Properties Trust, Series G		7.750%				BBB-			13,657,580
	68,250			Equity Residential Properties Trust, Series D		8.600%				BBB			1,735,598
	36,484			Equity Residential Properties Trust, Series N		6.480%				BBB			909,911
	332,800			Federal Realty Investment Trust		8.500%				BBB-			8,469,760
	446,000			First Industrial Realty Trust, Inc., Series C		8.625%				BBB-			11,738,720
	279,700			First Industrial Realty Trust, Inc., Series J		7.250%				BBB-			7,034,455
	1,808,525			HRPT Properties Trust, Series B		8.750%				BBB-			46,840,797
	71,980			HRPT Properties Trust, Series C		7.125%				BBB-			1,839,809
	199,550			New Plan Excel Realty Trust, Series D		7.800%				BBB-			10,133,408
	771,600			New Plan Excel Realty Trust, Series E		7.625%				BBB-			19,706,664
	1,700			Prologis Trust, Series F		6.750%				BBB			42,500
	97,728			Prologis Trust, Series G		6.750%				BBB			2,443,200
	108,300			PS Business Parks, Inc., Series I		6.875%				BBB-			2,639,271
	110,700			PS Business Parks, Inc., Series K		7.950%				BBB-			2,900,340
	401,000			PS Business Parks, Inc., Series L		7.600%				BBB-			10,283,645
	5,000			PS Business Parks, Inc., Series O		7.375%				BBB-			128,282
	735,970			PS Business Parks, Inc.		7.000%				BBB-			18,399,250
	67,600			Public Storage Inc, Series Y		6.850%				BBB+			1,630,850
	400,100			Public Storage Inc., Series I		7.250%				BBB+			10,370,592
	234,300			Public Storage, Inc., Series C		6.600%				BBB+			5,766,123
	36,000			Public Storage, Inc., Series D		6.180%				BBB+			846,720
	38,600			Public Storage, Inc., Series E		6.750%				BBB+			971,176
	72,566			Public Storage, Inc., Series F		6.450%				BBB+			1,766,982
	128,300			Public Storage, Inc., Series H		6.950%				BBB+			3,249,839
	344,701			Public Storage, Inc., Series K		7.250%				BBB+			8,983,770
	137,065			Public Storage, Inc., Series T		7.625%				BBB+			3,445,814
	114,900			Public Storage, Inc., Series U		7.625%				BBB+			2,896,629
	148,000			Public Storage, Inc., Series V		7.500%				BBB+			3,757,720
	2,129			Public Storage, Inc., Series X		6.450%				BBB+			52,267
	7,500			Public Storage, Inc.		7.125%				BBB+			194,250
	165,900			Realty Income Corporation		7.375%				BBB-			4,213,860
	325,223			Regency Centers Corporation		7.450%				BBB-			8,351,727
	245,800			Regency Centers Corporation		7.250%				BBB-			6,231,030
	34,500			Simon Property Group, Inc., Series F		8.750%				Baa2			862,500
	326,041			Simon Property Group, Inc., Series G		7.890%				BBB+			16,823,716
	82,000			United Dominion Realty Trust		8.600%				BBB-			2,107,400
	22,300			Vornado Realty Trust, Series F		6.750%				BBB-			551,033
	213,940			Vornado Realty Trust, Series G		6.625%				BBB-			5,198,742
	113,500			Vornado Realty Trust, Series H		6.750%				BBB-			2,810,260
	220,250			Vornado Realty Trust, Series I		6.625%				BBB-			5,363,088
	2,489,300			Wachovia Preferred Funding Corporation		7.250%				A2			69,526,144
	158,600			Weingarten Realty Trust, Series E		6.950%				A-			4,044,300
				Total Real Estate									389,757,812
				Thrifts & Mortgage Finance - 1.6%
	17,500			Countrywide Capital Trust II, Series II (CORTS)		8.000%				BBB+			447,125
	1,051,100			Countrywide Capital Trust IV		6.750%				BBB+			26,372,099
	17,700			Harris Preferred Capital Corporation, Series A		7.375%				A1			444,447
				Total Thrifts & Mortgage Finance									27,263,671
				Wireless Telecommunication Services - 1.4%
	939,840			United States Cellular Corporation		8.750%				A-			25,084,330
				Total $25 Par (or similar) Preferred Securities (cost $1,367,312,408)									1,416,139,291

Principal
Amount (000)/
Shares				Description (1)		Coupon		Maturity		Ratings (2)		Value
				Capital Preferred Securities - 58.0% (40.7% of Total Investments)
				Capital Markets - 7.6%
	15,000			Ahmanson Capital Trust I, 144A		8.360%		12/01/26		Baa1		$	15,661,380
	1,465			Bank of New York Capital I, Series B		7.970%		12/31/26		A1			1,529,863
	4,000			BT Capital Trust, Series B1		7.900%		1/15/27		A2			4,157,260
	2,000			BT Institutional Capital Trust B, 144A		7.750%		12/01/26		A2			2,082,958
	500			BT Preferred Capital Trust II		7.875%		2/25/27		A2			522,259
	5,000			C.A. Preferred Fund Trust II		7.000%		10/30/49		A1			5,071,585
	18,600			C.A. Preferred Funding Trust		7.000%		1/30/49		A1			18,818,197
	4,990			Dresdner Funding Trust I, 144A		8.151%		6/30/31		A-			5,926,513
	5,050			First Hawaiian Capital Trust I, Series B		8.343%		7/01/27		A-			5,331,664
	1,000			First Security Capital I		8.410%		12/15/26		Aa2			1,046,328
	17,095			First Union Capital Trust II, Series A		7.950%		11/15/29		A1			20,860,447
	20,000			Mellon Capital Trust I, Series A		7.720%		12/01/26		A2			20,827,700
	3,600			MUFG Capital Finance 2		4.850%		7/25/56		BBB			4,488,378
	3,240			State Street Institutional Capital Trust, 144A		7.940%		12/30/26		A1			3,381,850
	19,800			UBS Preferred Funding Trust I		8.622%		10/29/49		AA-			22,052,804
				Total Capital Markets									131,759,186
				Commercial Banks - 29.2%
	19,000			AB Svensk Exportkredit, 144A		6.375%		10/27/49		AA-			18,907,622
	37,250			Abbey National Capital Trust I		8.963%		6/30/50		A			49,372,117
	7,100			AgFirst Farm Credit Bank		7.300%		12/15/53		N/R			7,253,949
	6,500			Bank One Capital III		8.750%		9/01/30		A1			8,530,964
	5,000			BanPonce Trust I, Series A		8.327%		2/01/27		Baa1			5,234,180
	36,000			Barclays Bank PLC, 144A		8.550%		6/15/49		Aa3			40,503,132
	200			Barclays Bank PLC		6.278%		12/15/55		Aa3			191,000
	24,400			BOI Capital Funding 3, 144A		6.107%		8/04/56		A2			23,854,684
	2,000			Corestates Capital Trust I, 144A		8.000%		12/15/26		A1			2,084,450
	3,700			DBS Capital Funding Corporation, 144A		7.657%		3/15/49		A1			4,014,045
	1,500			First Empire Capital Trust I		8.234%		2/01/27		Baa1			1,570,863
	1,500			First Midwest Bancorp Inc.		6.950%		12/01/33		Baa2			1,591,161
	32,010			HBOS Capital Funding LP, Notes		6.850%		3/23/49		A1			32,104,494
	6,500			HBOS PLC, Series 144A		6.413%		9/29/49		A1			6,293,658
	2,400			HSBC Capital Funding LP, 144A		9.547%		12/31/49		A1			2,726,114
	6,250			HSBC Capital Funding LP, Debt		10.176%		6/30/50		A1			9,211,050
	32,000			KBC Bank Fund Trust III, 144A		9.860%		5/02/50		A2			35,810,752
	8,000			KeyCorp Capital III		7.750%		7/15/29		A3			9,315,480
	4,000			KeyCorp Capital VII		5.700%		6/15/35		A3			3,712,280
	2,500			KeyCorp Institutional Capital Trust A		7.826%		12/01/26		A3			2,604,928
	13,500			Lloyds TSB Bank PLC, Subordinated Note		6.900%		11/22/49		Aa2			13,570,443
	25,000			M&I Capital Trust A		7.650%		12/01/26		A2			25,967,200
	14,000			Nordbanken AB, 144A		8.950%		11/29/49		A			15,350,552
	2,000			North Fork Capital Trust I, Capital Securities		8.700%		12/15/26		A3			2,092,740
	8,000			North Fork Capital Trust II		8.000%		12/15/27		A3			8,495,272
	2,000			Peoples Heritage Capital Trust I, Series B		9.060%		2/01/27		A3			2,109,436
	290			PFCI Capital Corporation		7.750%		8/17/52		A-			7,692,500
	33,085			PNC Institutional Capital Securities, 144A		7.950%		12/15/26		A-			34,509,508
	2,000			Popular North American Capital Trust I		6.564%		9/15/34		Baa1			1,950,710
	12,100			RBS Capital Trust B		6.800%		12/31/49		A1			12,149,392
	8,000			Reliance Capital Trust I, Series B		8.170%		5/01/28		N/R			8,571,744
	500			Republic New York Capital II, Capital Securities		7.530%		12/04/26		A1			519,941
	17,500			Royal Bank of Scotland Group PLC		9.118%		3/31/49		A1			19,547,360
	5,000			Sparebanken Rogaland, Notes, 144A		6.443%		5/01/49		Baa1			4,960,895
	9,000			St. George Funding Company LLC, 144A		8.485%		12/31/47		A3			9,494,109
	3,400			Swedbank ForeningsSparbanken AB, 144A		9.000%		9/17/50		A2			3,766,833
	7,500			Union Planters Capital Trust A		8.200%		12/15/26		A2			7,817,715
	-			Union Planters Preferred Fund, 144A		7.750%		7/15/53		A2			26,550,000
	26,500			Washington Mutual Preferred Funding Cayman, Series A-1, 144A		7.250%		3/15/49		BBB			26,587,026
	10,000			Zions Institutional Capital Trust, Series A		8.536%		12/15/26		Baa1			10,467,940
				Total Commercial Banks									507,058,239
				Consumer Finance - 0.3%
	5,500			American Express Company		6.800%		9/01/66		A			5,817,108
				Diversified Financial Services - 3.7%
	1,000			BNP Paribas Capital Trust, 144A		9.003%		12/29/49		A+			1,126,995
	2,750			BNP Paribas Capital Trust		7.200%		12/31/49		A+			2,771,021
	3,700			Fulton Capital Trust I		6.290%		2/01/36		A3			3,569,760
	146			General Electric Capital Corporation		6.450%		6/15/46		AAA			3,732,236
	22,085			JPM Capital Trust II		7.950%		2/01/27		A1			23,043,555
	15,300			JPMorgan Chase Capital Trust XVIII		6.950%		8/17/36		A2			16,304,231
	13,800			Old Mutual Capital Funding, Notes		8.000%		6/22/53		Baa2			14,410,277
				Total Diversified Financial Services									64,958,075
				Diversified Telecommunication Services - 2.0%
	30			Centaur Funding Corporation, Series B, 144A		9.080%		4/21/20		BBB			35,108,906
				Household Durables - 0.2%
	4,100			Stanley Works Capital Trust I		5.902%		12/01/45		Baa1			3,854,668
				Insurance - 11.1%
	14,280			Ace Capital Trust II		9.700%		4/01/30		Baa1			19,101,842
	28,000			American General Institutional Capital, 144A		8.125%		3/15/46		Aa3			35,204,624
	9,600			Great West Life and Annuity Insurance Company		7.153%		5/16/46		A-			9,987,830
	1,400			Lincoln National Corporation, Capital Securities		7.000%		5/17/66		A-			1,468,939
	2,000			Mangrove Bay, Class 3, 144A		6.102%		7/15/33		BBB+			1,938,498
	6,000			MIC Financing Trust I		8.375%		2/01/27		A+			6,034,062
	12,000			Oil Insurance Limited, 144A		7.550%		12/30/49		Baa1			12,304,956
	10,250			Prudential PLC		6.500%		6/29/49		A			10,004,256
	51,700			Sun Life Canada Capital Trust, Capital Securities, 144A		8.526%		5/06/47		A+			54,634,388
	40,500			Zurich Capital Trust I, 144A		8.376%		6/01/37		A-			42,625,359
				Total Insurance									193,304,754
				Oil, Gas & Consumable Fuels - 1.2%
	3,680			KN Capital Trust I, Preferred Securities		8.560%		4/15/27		Baa3			3,704,292
	10,750			KN Capital Trust III		7.630%		4/15/28		Baa3			10,092,573
	7,355			Phillips 66 Capital Trust II		8.000%		1/15/37		A3			7,682,445
				Total Oil Gas, & Consumable Fuels									21,479,310
				Thrifts & Mortgage Finance - 2.7%
	1,000			Caisse Nationale Des Caisses d’Epargne et de Prevoyance		6.750%		1/27/49		A+			992,539
	5,595			Countrywide Capital Trust I		8.000%		12/15/26		BBB+			5,616,311
	12,811			Countrywide Capital Trust III, Series B		8.050%		6/15/27		BBB+			14,572,269
	11,825			Dime Capital Trust I, Series A		9.330%		5/06/27		Baa1			12,610,346
	13,000			Great Western Financial Trust II, Series A		8.206%		2/01/27		Baa1			13,626,275
				Total Thrifts & Mortgage Finance									47,417,740
				Total Capital Preferred Securities (cost $1,018,937,723)									1,010,757,986

Shares				Description (1)								Value
				Investment Companies - 2.3% (1.6% of Total Investments)
	496,849			Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.								$	10,269,869
	238,883			Flaherty and Crumrine/Claymore Total Return Fund Inc.									4,827,825
	542,319			John Hancock Preferred Income Fund III									11,708,667
	200,849			Preferred and Corporate Strategies Fund Inc.									4,107,362
	449,725			Preferred Income Strategies Fund Inc.									8,994,500
				Total Investment Companies (cost $37,800,131)									39,908,223

Principal
Amount (000)				Description (1)		Coupon		Maturity				Value
				Short-Term Investments – 0.7% (0.5% of Total Investments)
$	12,591			Repurchase Agreement with State Street Bank, dated 9/29/06, repurchase price $12,596,129, collateralized by $10,425,000 U.S. Treasury Bonds, 6.500%, due 11/15/26, value $12,848,813		4.800%		10/02/06				$	12,591,093
				Total Short-Term Investments (cost $12,591,093)									12,591,093
				Total Investments (cost $2,439,466,130) – 142.3%									2,482,075,193
				Other Assets Less Liabilities – 3.6%									61,982,952
				Preferred Shares, at Liquidation Value – (45.9)%									(800,000,000)
				Net Assets Applicable to Common Shares – 100%								$	1,744,058,145

												Fixed Rate		Floating Rate				Unrealized
		Notional				Rate Paid		Rate Received				Payment		Payment		Termination		Appreciation
Counterparty		Amount				by the Fund (4)		by the Fund (5)				Frequency		Frequency		Date		(Depreciation)
Citigroup Inc.		$	200,000,000			3.375	%		5.330	%		Monthly		Monthly		11/06/07		$	4,058,190
Citigroup Inc.			200,000,000			3.910	%		5.330	%		Monthly		Monthly		11/06/09			6,146,192
Citigroup Inc.			100,000,000			4.713	%		5.330	%		Monthly		Monthly		12/06/06			166,330
																		$	10,370,712

(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 or Moody’s rating. Ratings below BBB by Standard & Poor’s Group or Baa by Moody’s Investor Service, Inc. are considered to be below investment grade.
(3)		Investment is eligible for the Dividends Received Deduction.
(4)		Represents the annualized fixed rate paid by the Fund.
(5)		Based on USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate).
N/R		Not rated.
WI/DD		Purchased on a when-issued or delayed delivery basis.
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.
CBTCS		Corporate Backed Trust Certificates.
CORTS		Corporate Backed Trust Securities.
PCARS		Public Credit and Repackaged Securities.
PPLUS		PreferredPlus Trust.
SATURNS		Structured Asset Trust Unit Repackaging.

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 the recognition of income and timing differences in recognizing certain gains and losses on investment transactions.

At September 30, 2006, the cost of investments was $2,448,021,423.

Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2006, were as follows:

Gross unrealized:
Appreciation		$	74,533,531
Depreciation			(40,479,761	)
Net unrealized appreciation (depreciation) of investments		$	34,053,770

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

Date November 28, 2006

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.

Date November 28, 2006

Date November 28, 2006