Unassociated Document



 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
 
Investment Company Act file number 811-22253
 
Nuveen Municipal Value Fund 2
(Exact name of registrant as specified in charter)
 
Nuveen Investments
        333 West Wacker Drive, Chicago, Illinois 60606         
(Address of principal executive offices) (Zip code)
 

Kevin J. McCarthy
Vice President and Secretary
        333 West Wacker Drive, Chicago, Illinois 60606         
(Name and address of agent for service)
 
Registrant's telephone number, including area code:         312-917-7700        
 
Date of fiscal year end:            10/31          
 
Date of reporting period:         1/31/12         
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 
 
 

 
Item 1. Schedule of Investments
 

 
           
   
Portfolio of Investments (Unaudited) 
     
   
Nuveen Municipal Value Fund 2 (NUW) 
     
   
January 31, 2012 
     
Principal 
   
Optional Call 
   
Amount (000) 
 
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Alaska – 0.6% 
     
   
Northern Tobacco Securitization Corporation, Alaska, Tobacco Settlement Asset-Backed Bonds, 
     
   
Series 2006A: 
     
$ 1,140 
 
4.625%, 6/01/23 
6/14 at 100.00 
Ba1 
$ 1,120,210 
155 
 
5.000%, 6/01/46 
6/14 at 100.00 
B2 
114,480 
1,295 
 
Total Alaska 
   
1,234,690 
   
Arizona – 3.5% 
     
4,000 
 
Maricopa County Pollution Control Corporation, Arizona, Pollution Control Revenue Bonds, El 
2/19 at 100.00 
BBB 
4,758,680 
   
Paso Electric Company, Refunding Series 2009A, 7.250%, 2/01/40 
     
2,995 
 
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, Citigroup Energy Inc 
No Opt. Call 
A– 
2,977,809 
   
Prepay Contract Obligations, Series 2007, 5.000%, 12/01/37 
     
6,995 
 
Total Arizona 
   
7,736,489 
   
California – 7.5% 
     
2,500 
 
California State Public Works Board, Lease Revenue Bonds, Department of General Services 
4/19 at 100.00 
A2 
2,841,500 
   
Buildings 8 & 9, Series 2009A, 6.250%, 4/01/34 
     
500 
 
California State, General Obligation Bonds, Tender Option Bond Trust 3162, 19.782%, 3/01/18 – 
No Opt. Call 
AA– 
745,760 
   
AGM Insured (IF) 
     
1,800 
 
Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement 
6/15 at 100.00 
A2 
1,806,174 
   
Asset-Backed Revenue Bonds, Series 2005A, 5.000%, 6/01/45 
     
3,290 
 
Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed 
6/17 at 100.00 
B– 
2,464,736 
   
Bonds, Series 2007A-1, 5.000%, 6/01/33 
     
450 
 
M-S-R Energy Authority, California, Gas Revenue Bonds, Series 2009A, 6.500%, 11/01/39 
No Opt. Call 
A– 
547,461 
10,200 
 
Palomar Pomerado Health, California, General Obligation Bonds, Series 2009A, 0.000%, 8/01/38 – 
8/29 at 100.00 
AA– 
8,198,862 
   
AGC Insured 
     
18,740 
 
Total California 
   
16,604,493 
   
Colorado – 5.2% 
     
5,000 
 
Denver City and County, Colorado, Airport System Revenue Bonds, Series 2005A, 5.000%, 
11/15 at 100.00 
A+ 
5,591,150 
   
11/15/25 – SYNCORA GTY Insured 
     
3,605 
 
E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, Series 2004B, 0.000%, 9/01/27 – 
9/20 at 67.94 
BBB 
1,486,846 
   
NPFG Insured 
     
4,000 
 
Park Creek Metropolitan District, Colorado, Senior Property Tax Supported Revenue Bonds, 
No Opt. Call 
AA– 
4,582,560 
   
Series 2009, 6.375%, 12/01/37 – AGC Insured 
     
12,605 
 
Total Colorado 
   
11,660,556 
   
Florida – 8.4% 
     
1,100 
 
Hillsborough County, Florida, Junior Lien Revenue Refunding Bonds, Series 2001, 5.500%, 
No Opt. Call 
AA+ 
1,128,501 
   
8/01/12 – AMBAC Insured 
     
9,500 
 
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami International Airport, Series 2009A, 
10/19 at 100.00 
A2 
10,541,580 
   
5.500%, 10/01/41 
     
   
Miami-Dade County, Florida, General Obligation Bonds, Build Better Communities Program, 
     
   
Series 2009-B1: 
     
2,500 
 
6.000%, 7/01/38 
7/18 at 100.00 
Aa2 
2,875,700 
2,000 
 
5.625%, 7/01/38 
7/18 at 100.00 
Aa2 
2,246,580 
4,500 
 
Tolomato Community Development District, Florida, Special Assessment Bonds, Series 2007, 
5/18 at 100.00 
N/R 
1,916,325 
   
6.450%, 5/01/23 (4) 
     
19,600 
 
Total Florida 
   
18,708,686 
   
Georgia – 0.8% 
     
495 
 
Atlanta, Georgia, Tax Allocation Bonds, Beltline Project Series 2008A. Remarketed, 
1/19 at 100.00 
N/R 
552,796 
   
7.500%, 1/01/31 
     
1,000 
 
Clayton County Development Authority, Georgia, Special Facilities Revenue Bonds, Delta Air 
6/20 at 100.00 
CCC+ 
1,159,630 
   
Lines, Inc. Project, Series 2009A, 8.750%, 6/01/29 
     
1,495 
 
Total Georgia 
   
1,712,426 
   
Illinois – 9.0% 
     
5,000 
 
Illinois Finance Authority, Revenue Bonds, Northwestern Memorial Hospital, Series 2009A, 
8/19 at 100.00 
AA+ 
5,759,350 
   
6.000%, 8/15/39 
     
3,500 
 
Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2009A, 
5/19 at 100.00 
A
4,233,355 
   
7.125%, 11/15/37 
     
5,000 
 
Illinois Finance Authority, Revenue Bonds, Rush University Medical Center Obligated Group, 
11/18 at 100.00 
A2 
6,089,650 
   
Series 2009A, 7.250%, 11/01/38 
     
3,980 
 
Illinois Finance Authority, Student Housing Revenue Bonds, Educational Advancement Fund Inc., 
5/17 at 100.00 
Baa3 
3,872,739 
   
Refunding Series 2007A, 5.250%, 5/01/34 
     
17,480 
 
Total Illinois 
   
19,955,094 
   
Indiana – 6.2% 
     
1,890 
 
Indiana Bond Bank, State Revolving Fund Program Bonds, Series 2001A, 5.500%, 8/01/12 
No Opt. Call 
AAA 
1,940,520 
5,000 
 
Indiana Finance Authority, Hospital Revenue Bonds, Deaconess Hospital Obligated Group, Series 
3/19 at 100.00 
A
5,782,250 
   
2009A, 6.750%, 3/01/39 
     
3,650 
 
Indiana Health Facility Financing Authority, Revenue Bonds, Community Foundation of Northwest 
3/17 at 100.00 
BBB+ 
3,754,755 
   
Indiana, Series 2007, 5.500%, 3/01/37 
     
2,000 
 
Indiana Municipal Power Agency, Power Supply System Revenue Bonds, Series 2009B, 
1/19 at 100.00 
A+ 
2,284,280 
   
6.000%, 1/01/39 
     
12,540 
 
Total Indiana 
   
13,761,805 
   
Iowa – 1.1% 
     
3,025 
 
Iowa Tobacco Settlement Authority, Asset Backed Settlement Revenue Bonds, Series 2005C, 
6/15 at 100.00 
B+ 
2,354,993 
   
5.375%, 6/01/38 
     
   
Louisiana – 7.4% 
     
5,000 
 
Louisiana Citizens Property Insurance Corporation, Assessment Revenue Bonds, Series 2006C-3, 
6/18 at 100.00 
AA– 
5,872,550 
   
6.125%, 6/01/25 – AGC Insured 
     
   
Louisiana Public Facilities Authority, Revenue Bonds, Ochsner Clinic Foundation Project, 
     
   
Series 2007A: 
     
7,000 
 
5.375%, 5/15/43 
5/17 at 100.00 
Baa1 
7,098,980 
275 
 
5.500%, 5/15/47 
5/17 at 100.00 
Baa1 
281,325 
3,255 
 
St John Baptist Parish, Louisiana, Revenue Bonds, Marathon Oil Corporation, Series 2007A, 
6/17 at 100.00 
BBB 
3,306,169 
   
5.125%, 6/01/37 
     
15,530 
 
Total Louisiana 
   
16,559,024 
   
Maine – 1.9% 
     
3,335 
 
Maine Health and Higher Educational Facilities Authority, Revenue Bonds, Bowdoin College, 
7/19 at 100.00 
Aa2 
4,310,488 
   
Tender Option Bond Trust 2009-5B, 13.723%, 7/01/39 (IF) (5) 
     
   
Massachusetts – 0.6% 
     
1,000 
 
Massachusetts Water Pollution Abatement Trust, Pooled Loan Program Bonds, Tender Option Bond 
8/19 at 100.00 
AAA 
1,401,160 
   
Trust 2989, 13.334%, 8/01/38 (IF) 
     
   
Michigan – 3.6% 
     
3,000 
 
Detroit Water Supply System, Michigan, Water Supply System Revenue Bonds, Refunding Senior 
No Opt. Call 
AA– 
3,084,150 
   
Lien Series 2006D, 5.000%, 7/01/32 – AGM Insured 
     
5,000 
 
Detroit, Michigan, Second Lien Sewerage Disposal System Revenue Bonds, Series 2005A, 5.000%, 
7/15 at 100.00 
A
5,038,000 
   
7/01/35 – NPFG Insured 
     
8,000 
 
Total Michigan 
   
8,122,150 
   
Nevada – 3.0% 
     
250 
 
Clark County, Nevada, Senior Lien Airport Revenue Bonds, Series 2005A, 5.000%, 7/01/40 – 
No Opt. Call 
Aa2 
257,860 
   
AMBAC Insured 
     
5,415 
 
Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Series 2009A, 
6/19 at 100.00 
A
6,472,387 
   
8.000%, 6/15/30 
     
5,665 
 
Total Nevada 
   
6,730,247 
   
New Jersey – 2.8% 
     
   
New Jersey Educational Facilities Authority, Revenue Refunding Bonds, University of Medicine 
     
   
and Dentistry of New Jersey, Series 2009B: 
     
2,135 
 
7.125%, 12/01/23 
6/19 at 100.00 
Baa1 
2,662,623 
3,000 
 
7.500%, 12/01/32 
6/19 at 100.00 
Baa1 
3,671,040 
5,135 
 
Total New Jersey 
   
6,333,663 
   
New York – 1.6% 
     
3,000 
 
Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds Series 
No Opt. Call 
A1 
3,421,350 
   
2007, 5.500%, 10/01/37 
     
130 
 
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air 
12/20 at 100.00 
BBB– 
140,628 
   
Terminal LLC Project, Eighth Series 2010, 6.000%, 12/01/42 
     
3,130 
 
Total New York 
   
3,561,978 
   
North Carolina – 1.4% 
     
3,000 
 
North Carolina Municipal Power Agency 1, Catawba Electric Revenue Bonds, Series 2003A, 5.250%, 
1/13 at 100.00 
A
3,126,600 
   
1/01/19 – NPFG Insured 
     
   
Ohio – 5.7% 
     
5,000 
 
American Municipal Power Ohio Inc., General Revenue Bonds, Prairie State Energy Campus Project 
2/19 at 100.00 
AA– 
5,678,050 
   
Series 2009A, 5.750%, 2/15/39 – AGC Insured 
     
5,885 
 
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Revenue 
6/17 at 100.00 
B– 
4,800,571 
   
Bonds, Senior Lien, Series 2007A-2, 6.500%, 6/01/47 
     
2,000 
 
Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds, University 
1/15 at 100.00 
A
2,128,020 
   
Hospitals Health System, Series 2009, 6.750%, 1/15/39 
     
12,885 
 
Total Ohio 
   
12,606,641 
   
Puerto Rico – 5.1% 
     
4,390 
 
Puerto Rico Aqueduct and Sewerage Authority, Revenue Bonds, Senior Lien Series 2008A, 
7/18 at 100.00 
Baa2 
4,754,546 
   
6.000%, 7/01/44 
     
3,000 
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 
8/19 at 100.00 
A+ 
3,398,970 
   
2009A, 6.000%, 8/01/42 
     
2,500 
 
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Tender Option Bonds 
No Opt. Call 
Aa2 
3,101,000 
   
Trust 11851, 18.866%, 2/01/16 (IF) 
     
9,890 
 
Total Puerto Rico 
   
11,254,516 
   
Rhode Island – 3.0% 
     
3,000 
 
Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, 
5/19 at 100.00 
A– 
3,498,930 
   
Lifespan Obligated Group Issue, Series 2009A, 7.000%, 5/15/39 
     
3,240 
 
Rhode Island Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed Bonds, 
6/12 at 100.00 
BBB 
3,242,754 
   
Series 2002A, 6.125%, 6/01/32 
     
6,240 
 
Total Rhode Island 
   
6,741,684 
   
Texas – 5.5% 
     
3,550 
 
Ennis Independent School District, Ellis County, Texas, General Obligation Bonds, Series 2006, 
8/16 at 46.64 
Aaa 
1,433,810 
   
0.000%, 8/15/31 
     
5,300 
 
North Texas Tollway Authority, Second Tier System Revenue Refunding Bonds, Series 2008F, 
1/18 at 100.00 
A3 
5,733,434 
   
5.750%, 1/01/38 
     
5,000 
 
Richardson Hospital Authority, Texas, Revenue Bonds, Richardson Regional Medical Center, 
12/13 at 100.00 
A
5,155,550 
   
Series 2004, 6.000%, 12/01/34 
     
13,850 
 
Total Texas 
   
12,322,794 
   
Virgin Islands – 0.6% 
     
1,000 
 
Virgin Islands Public Finance Authority, Matching Fund Revenue Loan Note – Diageo Project, 
10/19 at 100.00 
BBB 
1,119,140 
   
Series 2009A, 6.750%, 10/01/37 
     
   
Virginia – 1.1% 
     
2,000 
 
Washington County Industrial Development Authority , Virginia, Hospital Revenue Bonds, 
1/19 at 100.00 
BBB+ 
2,374,080 
   
Mountain States Health Alliance, Series 2009C, 7.750%, 7/01/38 
     
   
Wisconsin – 7.9% 
     
120 
 
Badger Tobacco Asset Securitization Corporation, Wisconsin, Tobacco Settlement Asset-Backed 
6/12 at 100.00 
Aaa 
122,370 
   
Bonds, Series 2002, 6.125%, 6/01/27 (Pre-refunded 6/01/12) 
     
5,000 
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, Aurora Healthcare Inc., 
4/13 at 100.00 
BBB+ 
5,143,950 
   
Series 2003, 6.400%, 4/15/33 
     
1,500 
 
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, ProHealth Care, Inc. 
2/19 at 100.00 
A+ 
1,698,660 
   
Obligated Group, Series 2009, 6.625%, 2/15/39 
     
9,000 
 
Wisconsin State, General Fund Annual Appropriation Revenue Bonds, Refunding Series 2009A, 
5/19 at 100.00 
AA– 
10,711,527 
   
6.000%, 5/01/36 
     
15,620 
 
Total Wisconsin 
   
17,676,507 
$ 200,055 
 
Total Investments (cost $171,933,172) – 93.5% 
   
207,969,904 
   
Other Assets Less Liabilities – 6.5% 
   
14,563,135 
   
Net Assets – 100% 
   
$ 222,533,039 
 
 
 
 
 

 
 
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 for 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 January 31, 2012:
 
                         
   
Level 1
   
Level 2
   
Level 3
   
Total
 
Investments: 
                       
Municipal Bonds 
  $     $ 207,969,904     $     $ 207,969,904  
 
 
During the period ended January 31, 2012, the Fund recognized no significant transfers to or from Level 1, Level 2 or Level 3.
 
Income Tax Information
 
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
 
At January 31, 2012, the cost of investments was $171,189,600.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at January 31, 2012, were as follows:
 
       
Gross unrealized: 
     
Appreciation 
  $ 38,216,475  
Depreciation 
    (1,436,171 ) 
Net unrealized appreciation (depreciation) of investments 
  $ 36,780,304  
 
 
     
(1) 
 
All percentages shown in the Portfolio of Investments are based on net assets. 
(2) 
 
Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. 
   
There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities 
   
may be subject to periodic principal paydowns. 
(3) 
 
Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors 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. 
(4) 
 
At or subsequent to the end of the reporting period, this security is non-income producing. Non-income 
   
producing security, in the case of a bond, generally denotes that the issuer has (1) defaulted on the payment 
   
of principal or interest, (2) is under the protection of the Federal Bankruptcy Court or (3) the Fund’s Adviser 
   
has concluded that the issue is not likely to meet its future interest payment obligations and has directed 
   
the Fund’s custodian to cease accruing additional income on the Fund’s records. 
(5) 
 
Investment, or portion of investment, has been pledged to collateralize the net payment obligations for 
   
inverse floating rate transactions. 
N/R 
 
Not rated. 
(IF) 
 
Inverse floating rate investment. 
 
 

 
 
 
 

 
Item 2. Controls and Procedures.

a.  
The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
 
b.  
There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
 
Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: See EX-99 CERT attached hereto.

 
 
 

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
(Registrant)  Nuveen Municipal Value Fund 2 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         March 30, 2012        
 
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         March 30, 2012        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         March 30, 2012