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)

Registrant’s telephone number, including area code:      312-917-7700     

Date of fiscal year end:        12/31      

Date of reporting period:    3/31/2008   

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.

 

 

Nuveen Quality Preferred Income Fund 2 (JPS)
March 31, 2008

Shares				Description (1)		Coupon				Ratings (2)		Value
				$25 Par (or similar) Preferred Securities – 91.0% (57.7% of Total Investments)
				Capital Markets – 6.3%
	21,993			BNY Capital Trust V, Series F		5.950%				Aa3		$	471,750
	1,338,200			Deutsche Bank Capital Funding Trust II		6.550%				Aa3			29,145,996
	219,800			Deutsche Bank Contingent Capital Trust III		7.600%				Aa3			5,451,040
	10,400			Goldman Sachs Capital I (CORTS)		6.000%				A1			223,080
	14,000			Goldman Sachs Capital I, Series A (CORTS)		6.000%				A1			286,440
	4,800			Goldman Sachs Group Inc. (SATURNS)		5.750%				AA-			96,960
	1,900			Goldman Sachs Group Inc., Series 2003-06 (SATURNS)		6.000%				AA-			40,432
	6,600			Goldman Sachs Group Inc., Series 2003-11 (SATURNS)		5.625%				Aa3			129,888
	35,900			Goldman Sachs Group Inc., Series 2004-04 (SATURNS)		6.000%				A1			735,950
	7,000			Goldman Sachs Group Inc., Series 2004-06 (SATURNS)		6.000%				A1			142,450
	10,200			Goldman Sachs Group Inc., Series 2004-4 (CORTS)		6.000%				A1			209,508
	16,800			Goldman Sachs Group Inc., Series GSC-3 (PPLUS)		6.000%				A1			322,728
	12,700			Goldman Sachs Group Inc., Series GSC-4 Class A (PPLUS)		6.000%				A1			245,872
	106,800			Goldman Sachs Group Inc., Series GSG-1 (PPLUS)		6.000%				AA-			2,285,520
	7,400			Goldman Sachs Group Inc., Series GSG-2 (PPLUS)		5.750%				AA-			149,850
	228,000			Lehman Brothers Holdings Capital Trust III, Series K		6.375%				A2			4,058,400
	85,300			Lehman Brothers Holdings Capital Trust IV, Series L		6.375%				A2			1,514,075
	30,983			Lehman Brothers Holdings Capital Trust V, Series M		6.000%				A2			545,611
	197,781			Merrill Lynch Preferred Capital Trust III		7.000%				A2			4,026,821
	137,800			Merrill Lynch Preferred Capital Trust IV		7.120%				A2			2,933,762
	243,200			Merrill Lynch Preferred Capital Trust V		7.280%				A2			5,204,480
	416,864			Morgan Stanley Capital Trust III		6.250%				A1			8,449,833
	270,757			Morgan Stanley Capital Trust IV		6.250%				A1			5,444,923
	34,779			Morgan Stanley Capital Trust V		5.750%				A+			666,018
	495,400			Morgan Stanley Capital Trust VI		6.600%				A1			10,651,100
	118,297			Morgan Stanley Capital Trust VII		6.600%				A1			2,531,556
				Total Capital Markets									85,964,043
				Commercial Banks – 15.3%
	47,100			ABN AMRO Capital Fund Trust V		5.900%				A1			935,406
	162,960			ASBC Capital I		7.625%				A3			4,057,704
	5,200			BAC Capital Trust IV		5.875%				Aa2			110,864
	7,100			BAC Capital Trust V		6.000%				Aa3			150,875
	7,200			BAC Capital Trust VIII		6.000%				Aa2			152,208
	57,200			BAC Capital Trust X		6.250%				Aa2			1,276,704
	21,134			Banco Santander Finance		6.410%				Aa3			495,170
	86,879			Banco Santander Finance, 144A		6.500%				A			1,846,179
	221,657			Banco Santander Finance, 144A		6.800%				Aa3			4,931,868
	18,200			BancorpSouth Capital Trust I		8.150%				Baa1			452,634
	731,000			Banesto Holdings, Series A, 144A		10.500%				A1			23,140,755
	100,000			Bank of America Corporation		6.625%				Aa3			2,260,000
	206,700			Bank One Capital Trust VI		7.200%				Aa3			5,111,691
	100,000			Barclays Bank PLC		7.750%				Aa3			2,500,000
	100,000			Barclays Bank PLC		7.100%				Aa3			2,420,000
	21,829			Barclays Bank PLC		6.625%				Aa3			518,002
	272,200			Capital One Capital II Corporation		7.500%				Baa1			5,362,340
	475,200			Citizens Funding Trust I		7.500%				Baa1			8,173,440
	225,500			Cobank ABC, 144A		7.000%				A			10,092,253
	41,700			Credit Suisse Guernsey		7.900%				Aa3			1,050,319
	659,300			Fifth Third Capital Trust VI		7.250%				A1			14,339,775
	2,000			Fleet Capital Trust IX		6.000%				Aa2			42,420
	372,995			HSBC Finance Corporation		6.875%				AA-			8,992,909
	104,549			HSBC Finance Corporation		6.000%				Aa3			2,300,078
	4,500			KeyCorp Capital Trust V		5.875%				A3			81,000
	5,300			Keycorp Capital Trust VI		6.125%				A3			103,562
	51,398			KeyCorp Capital Trust IX		6.750%				A3			1,027,446
	41,862			KeyCorp Capital VIII		7.000%				A3			872,404
	109,800			M&T Capital Trust IV		8.500%				A3			2,774,097
	1,162,456			National City Capital Trust II		6.625%				BBB+			19,645,506
	49,594			National City Capital Trust IV		0.000%				A2			980,969
	1,800			National Westminster Bank PLC		7.760%				Aa3			45,180
	289,600			PFCI Capital Corporation		7.750%				A-			7,620,100
	25,000			PNC Capital Trust		7.750%				A2			614,375
	4,600			PNC Capital Trust		6.125%				A2			100,050
	50,000			Royal Bank of Scotland Group PLC, Series L		5.750%				A1			985,000
	598,076			Royal Bank of Scotland Group PLC, Series N		6.350%				A1			13,205,518
	8,900			Royal Bank of Scotland Group PLC, Series P		6.250%				A1			192,596
	229,400			Royal Bank of Scotland Group PLC, Series T		7.250%				Aa3			5,613,418
	97,900			Royal Bank of Scotland Group PLC		6.600%				Aa3			2,183,170
	3,500			SunAmerica CORTS		6.700%				AA			76,650
	224,700			SunTrust Capital Trust IX		7.875%				A1			5,505,150
	6,600			USB Capital Trust VI		5.750%				Aa3			130,812
	12,300			USB Capital Trust VII		5.875%				Aa3			247,722
	523,450			USB Capital Trust XI		6.600%				Aa3			11,929,426
	74,740			VNB Capital Trust I		7.750%				A3			1,868,500
	9,715			Wachovia Capital Trust IX		6.375%				A1			207,318
	176,316			Wachovia Trust IV		6.375%				A1			3,764,347
	297,000			Wells Fargo Capital Trust V		7.000%				Aa2			7,148,790
	34,481			Wells Fargo Capital Trust VII		5.850%				Aa2			751,341
	279,700			Wells Fargo Capital Trust XII		7.875%				Aa2			7,083,403
	588,750			Zions Capital Trust B		8.000%				BBB-			14,495,025
				Total Commercial Banks									209,966,469
				Computers & Peripherals – 0.0%
	7,200			IBM Corporation, Class A (CORTS)		5.625%				A+			172,728
	11,310			IBM Inc., Trust Certificates, Series 2001-2		7.100%				A+			282,750
	1,500			IBM Trust VI (CORTS)		6.375%				A+			36,570
				Total Computers & Peripherals									492,048
				Diversified Financial Services – 11.3%
	6,300			Allied Capital Corporation		6.875%				BBB+			112,770
	1,800			American International Group, CORTS		6.125%				Aa3			35,190
	374,360			BAC Capital Trust XII		6.875%				Aa3			8,857,358
	554,725			Citigroup Capital Trust VIII		6.950%				A1			12,120,741
	101,190			Citigroup Capital Trust IX		6.000%				A1			1,996,479
	32,300			Citigroup Capital Trust XI		6.000%				A1			634,372
	21,500			Citigroup Capital X		6.100%				A1			417,100
	13,475			Citigroup Capital XIV		6.875%				A1			299,819
	851,188			Citigroup Capital XV		6.500%				A1			17,755,782
	27,900			Citigroup Capital XVI		6.450%				A1			566,370
	103,000			Citigroup Capital XVII		6.350%				A1			2,040,430
	67,000			Citigroup Capital XIX		7.250%				A1			1,539,660
	241,800			Citigroup Capital XX		7.875%				Aa3			5,999,663
	65,000			Citigroup Inc., Series M		8.125%				A			1,564,063
	1,089,600			Deutsche Bank Capital Funding Trust VIII		6.375%				A			25,169,760
	114,912			General Electric Capital Corporation		6.450%				AAA			2,958,984
	19,228			General Electric Capital Corporation		6.100%				AAA			478,393
	100			General Electric Capital Corporation		6.050%				AAA			2,539
	2,600			General Electric Capital Corporation		5.875%				AAA			63,622
	1,502,700			ING Groep N.V.		7.200%				A1			36,185,015
	1,432,255			ING Groep N.V.		7.050%				A			33,586,380
	25,800			ING Groep N.V.		6.375%				A1			564,762
	2,900			JPMorgan Chase Capital Trust XIV		6.200%				Aa3			67,193
	114,500			Merrill Lynch Capital Trust I		6.450%				A			2,279,695
				Total Diversified Financial Services									155,296,140
				Diversified Telecommunication Services – 0.3%
	87,100			AT&T Inc.		6.375%				A			2,175,758
	17,500			BellSouth Capital Funding (CORTS)		7.100%				A			396,485
	43,200			BellSouth Corporation (CORTS)		7.000%				A			974,700
	28,800			Verizon Communications (CORTS)		7.625%				A			722,304
				Total Diversified Telecommunication Services									4,269,247
				Electric Utilities – 6.0%
	27,400			DTE Energy Trust I		7.800%				Baa3			696,508
	2,700			Entergy Arkansas Inc.		6.700%				AAA			69,525
	5,300			Entergy Arkansas Inc.		6.000%				AAA			134,620
	57,350			Entergy Louisiana LLC		7.600%				A-			1,446,367
	1,298,900			Entergy Mississippi Inc.		7.250%				A-			32,550,434
	1,400			Entergy Mississippi Inc.		6.000%				AAA			34,832
	110,392			FPL Group Capital Inc.		6.600%				A3			2,771,943
	6,500			FPL Group Capital Trust I		5.875%				A3			154,375
	1,600			National Rural Utilities Cooperative Finance Corporation		6.750%				A3			38,784
	9,000			National Rural Utilities Cooperative Finance Corporation		6.100%				A3			203,940
	25,600			National Rural Utilities Cooperative Finance Corporation		5.950%				A3			592,896
	331,300			PPL Capital Funding, Inc.		6.850%				Baa2			8,060,529
	356,600			PPL Energy Supply LLC		7.000%				BBB			8,982,754
	264,900			Virginia Power Capital Trust		7.375%				BBB			6,667,533
	835,882			Xcel Energy Inc.		7.600%				Baa2			20,782,116
				Total Electric Utilities									83,187,156
				Food Products – 0.4%
	56,900			Dairy Farmers of America Inc., 144A		7.875%				BBB-			4,875,619
				Household Durables – 0.3%
	229,618			Pulte Homes Inc.		7.375%				BB+			4,330,595
				Insurance – 17.9%
	1,214,900			Ace Ltd., Series C		7.800%				BBB			30,056,626
	1,000			Aegon N.V., Series 1		4.000%				A-			18,100
	72,618			Aegon N.V.		6.875%				A-			1,634,631
	2,463,950			Aegon N.V.		6.375%				A-			50,018,184
	8,900			Aegon N.V.		7.250%				A-			208,527
	2,100			AIG Capital Securities, Series 2002-11 (SATURNS)		6.000%				Aa3			42,420
	67,190			AMBAC Financial Group Inc.		5.950%				AA			907,737
	11,000			American International Group, Inc.		6.450%				Aa3			253,660
	315,000			American International Group		7.700%				Aa3			7,849,800
	989,983			Arch Capital Group Limited		8.000%				BBB-			25,264,366
	10,500			Arch Capital Group Limited, Series B		7.785%				BBB-			265,125
	711,246			Berkley WR Corporation, Capital Trust II		6.750%				BBB-			14,865,041
	660,207			Delphi Financial Group, Inc.		8.000%				BBB+			15,191,363
	426,900			Delphi Financial Group, Inc.		7.376%				BBB-			8,115,369
	313,650			EverestRe Capital Trust II		6.200%				Baa1			6,291,819
	63,800			Financial Security Assurance Holdings		6.875%				AA			1,496,110
	714,000			Financial Security Assurance Holdings		6.250%				AA			15,272,460
	2,800			Financial Security Assurance Holdings		5.600%				AA			54,600
	54,100			Lincoln National Capital Trust VI		6.750%				A-			1,276,760
	14,900			Lincoln National Corporation		6.750%				A-			359,090
	531,600			Markel Corporation		7.500%				BBB-			13,077,360
	661,620			PartnerRe Limited, Series C		6.750%				BBB+			15,032,006
	12,900			PartnerRe Limited, Series D		6.500%				BBB+			293,475
	109,000			PLC Capital Trust III		7.500%				BBB+			2,606,190
	462,240			PLC Capital Trust IV		7.250%				BBB+			10,922,731
	26,100			PLC Capital Trust V		6.125%				BBB+			522,000
	109,600			Protective Life Corporation		7.250%				BBB			2,623,824
	9,400			Prudential Financial Inc. (CORTS)		6.000%				A+			209,150
	380,900			Prudential PLC		6.750%				A			9,046,375
	19,500			Prudential PLC		6.500%				A-			456,495
	358,200			RenaissanceRe Holdings Limited		6.600%				BBB			7,396,830
	156,100			RenaissanceRe Holdings Limited, Series B		7.300%				BBB			3,404,541
	19,300			RenaissanceRe Holdings Limited, Series C		6.080%				BBB+			365,735
	5,600			Torchmark Capital Trust III		7.100%				BBB+			134,288
				Total Insurance									245,532,788
				IT Services – 0.0%
	16,500			Vertex Industries Inc. (PPLUS)		7.625%				A			415,305
				Media – 5.7%
	167,400			CBS Corporation		7.250%				BBB			4,056,102
	864,700			CBS Corporation		6.750%				BBB			19,101,223
	1,372,514			Comcast Corporation		7.000%				BBB+			32,322,705
	6,000			Comcast Corporation		6.625%				BBB+			135,960
	1,000,840			Viacom Inc.		6.850%				BBB			23,289,547
	3,500			Walt Disney Company (CORTS)		6.875%				A			87,535
				Total Media									78,993,072
				Oil, Gas & Consumable Fuels – 1.6%
	908,311			Nexen Inc.		7.350%				Baa3			21,790,381
				Pharmaceuticals – 0.0%
	7,600			Bristol-Myers Squibb Company (CORTS)		6.250%				A+			172,368
	7,500			Bristol-Myers Squibb Company Trust (CORTS)		6.800%				A+			185,625
				Total Pharmaceuticals									357,993
				Real Estate/Mortgage – 20.8%
	40,000			AMB Property Corporation, Series O		7.000%				Baa2			941,800
	212,979			AMB Property Corporation, Series P		6.850%				Baa2			5,002,877
	94,100			AvalonBay Communities, Inc., Series H		8.700%				BBB			2,397,668
	105,805			BRE Properties, Series C		6.750%				BBB-			2,262,111
	32,635			BRE Properties, Series D		6.750%				BBB-			697,247
	42,167			Developers Diversified Realty Corporation		7.500%				BBB-			948,758
	639,813			Developers Diversified Realty Corporation, Series G		8.000%				BBB-			15,355,512
	191,323			Developers Diversified Realty Corporation, Series H		7.375%				BBB-			4,100,052
	62,000			Duke Realty Corporation, Series O		8.375%				BBB			1,522,100
	231,300			Duke Realty Corporation, Series K		6.500%				BBB			4,676,886
	302,600			Duke Realty Corporation, Series L		6.600%				BBB			6,684,434
	2,200			Duke Realty Corporation, Series N		7.250%				BBB			51,062
	154,846			Duke-Weeks Realty Corporation		6.950%				BBB			3,479,390
	5,600			Duke-Weeks Realty Corporation		6.625%				BBB			121,296
	5,300			First Industrial Realty Trust, Inc., Series J		7.250%				BBB-			111,035
	283,800			First Industrial Realty Trust, Inc., Series J		7.250%				BBB-			5,860,470
	1,066,465			HRPT Properties Trust, Series B		8.750%				BBB-			25,552,501
	71,980			HRPT Properties Trust, Series C		7.125%				BBB-			1,382,016
	173,100			Kimco Realty Corporation, Series F		6.650%				BBB+			3,695,685
	905,801			Kimco Realty Corporation, Series G		7.750%				BBB+			21,580,709
	95,328			Prologis Trust, Series G		6.750%				BBB			2,235,442
	108,900			PS Business Parks, Inc., Series I		6.875%				BBB-			2,292,345
	110,700			PS Business Parks, Inc., Series K		7.950%				BBB-			2,640,195
	401,000			PS Business Parks, Inc., Series L		7.600%				BBB-			9,204,955
	6,300			PS Business Parks, Inc., Series O		7.375%				BBB-			140,333
	774,970			PS Business Parks, Inc.		7.000%				BBB-			16,925,345
	13,100			PS Business Parks, Inc.		6.700%				BBB-			262,131
	234,600			Public Storage, Inc., Series C		6.600%				BBB+			5,020,440
	41,400			Public Storage, Inc., Series E		6.750%				BBB+			896,310
	73,666			Public Storage, Inc., Series F		6.450%				BBB+			1,499,103
	17,130			Public Storage, Inc., Series H		6.950%				BBB+			387,309
	401,300			Public Storage, Inc., Series I		7.250%				BBB+			9,595,083
	381,020			Public Storage, Inc., Series K		7.250%				BBB+			9,026,364
	711,570			Public Storage, Inc., Series M		6.625%				BBB+			14,807,772
	148,000			Public Storage, Inc., Series V		7.500%				BBB+			3,577,160
	5,300			Public Storage, Inc., Series X		6.450%				BBB+			108,915
	67,600			Public Storage, Inc., Series Y		6.850%				BBB+			1,523,116
	4,000			Public Storage, Inc., Series Z		6.250%				BBB+			81,720
	4,800			Public Storage, Inc.		7.125%				BBB+			115,584
	43,400			Public Storage, Inc.		6.750%				BBB+			943,950
	159,400			Realty Income Corporation		7.375%				BBB-			3,787,344
	474,358			Realty Income Corporation, Series E		6.750%				BBB-			10,013,697
	325,223			Regency Centers Corporation		7.450%				BBB			7,509,399
	245,800			Regency Centers Corporation		7.250%				BBB-			5,542,790
	40,200			United Dominion Realty Trust		6.750%				BBB-			949,323
	4,100			Vornado Realty Trust, Series F		6.750%				BBB-			87,330
	219,940			Vornado Realty Trust, Series G		6.625%				BBB-			4,585,749
	122,800			Vornado Realty Trust, Series H		6.750%				BBB-			2,592,308
	220,250			Vornado Realty Trust, Series I		6.625%				BBB-			4,680,313
	2,293,500			Wachovia Preferred Funding Corporation		7.250%				A2			54,310,079
	2,700			Weingarten Realty Investors Series F		6.500%				BBB			56,295
	158,600			Weingarten Realty Trust, Series E		6.950%				A-			3,608,150
				Total Real Estate/Mortgage									285,429,958
				Thrifts & Mortgage Finance – 2.0%
	818,809			Countrywide Capital Trust IV		6.750%				BBB-			13,936,129
	748,002			Countrywide Capital Trust V		7.000%				BBB-			12,491,633
	22,700			Harris Preferred Capital Corporation, Series A		7.375%				A1			535,266
				Total Thrifts & Mortgage Finance									26,963,028
				U.S. Agency – 1.4%
	76,600			Federal Home Loan Mortgage Corporation, Notes		5.570%				AA-			1,463,060
	67,200			Federal Home Loan Mortgage Corporation		6.550%				AA-			1,508,640
	289,000			Federal Home Loan Mortgage Corporation		0.000%				AA-			7,051,600
	221,000			Federal National Mortgage Association		0.000%				AA-			10,014,063
				Total U.S. Agency									20,037,363
				Wireless Telecommunication Services – 1.7%
	939,840			United States Cellular Corporation		8.750%				A-			23,505,397
				Total $25 Par (or similar) Preferred Securities (cost $1,372,683,451)									1,251,406,602

Principal
Amount (000)				Description (1)		Coupon		Maturity		Ratings (2)		Value
				Corporate Bonds – 0.6% (0.4% of Total Investments)
				Commercial Banks – 0.6%
$	5,000			Credit Agricole SA		6.637%		5/29/49		Aa3		$	3,879,334
	4,400			Swedbank ForengingsSparbanken AB, 144A		7.500%		9/27/49		Aa2			4,688,306
	9,400			Total Commercial Banks									8,567,640
$	9,400			Total Corporate Bonds (cost $9,683,108)									8,567,640

Principal
Amount (000)/
Shares				Description (1)		Coupon		Maturity		Ratings (2)		Value
				Capital Preferred Securities – 58.9% (37.3% of Total Investments)
				Capital Markets – 6.3%
	5,000			C.A. Preferred Fund Trust II		7.000%		10/30/49		A1		$	4,611,650
	10,300			C.A. Preferred Funding Trust		7.000%		1/30/49		A1			9,499,103
	21,190			Dresdner Funding Trust I, 144A		8.151%		6/30/31		A1			18,778,197
	17,095			First Union Capital Trust II, Series A		7.950%		11/15/29		A1			17,616,124
	10,000			Mizuho JGB Investment		9.870%		6/30/48		A1			10,042,160
	3,600			MUFG Capital Finance		4.850%		7/25/56		BBB+			4,031,190
	3,000			Schwab Capital Trust I		7.500%		11/15/37		A3			2,797,047
	19,800			UBS Preferred Funding Trust I		8.622%		10/29/49		Aa2			19,665,637
				Total Capital Markets									87,041,108
				Commercial Banks – 31.2%
	10,000			AB Svensk Exportkredit, 144A		6.375%		10/27/49		AA-			9,972,790
	36,650			Abbey National Capital Trust I		8.963%		6/30/50		A+			43,488,999
	29,000			AgFirst Farm Credit Bank		8.393%		12/15/16		A-			27,164,039
	7,100			AgFirst Farm Credit Bank		7.300%		12/15/53		A-			6,663,357
	6,500			Bank One Capital III		8.750%		9/01/30		Aa3			7,254,078
	4,300			BankAmerica Institutional Capital Trust, Series B, 144A		7.700%		12/31/26		Aa2			4,308,114
	4,500			BanPonce Trust I, Series A		8.327%		2/01/27		Baa1			4,414,658
	36,000			Barclays Bank PLC, 144A		8.550%		6/15/49		Aa3			37,669,499
	1,000			Barclays Bank PLC		7.434%		12/15/57		Aa3			905,585
	6,900			BBVA International Unipersonal		5.919%		10/18/49		A1			5,455,913
	1,000			BNP Paribas		7.195%		12/25/57		AA-			888,162
	5,000			Capital One Capital III Corporation		7.686%		8/15/36		Baa1			3,892,665
	6,920			Capital One Capital IV Corporation		6.745%		2/17/37		Baa1			4,953,294
	15,000			CBG Florida REIT Corporation		7.114%		11/15/49		BB+			8,517,510
	2,000			Corestates Capital Trust I, 144A		8.000%		12/15/26		A+			2,087,394
	3,700			DBS Capital Funding Corporation, 144A		7.657%		3/15/49		Aa3			3,721,375
	9,200			Den Norske Bank, 144A		7.729%		6/29/49		Aa3			9,272,892
	1,500			First Empire Capital Trust I		8.234%		2/01/27		A3			1,532,408
	1,500			First Midwest Bancorp Inc.		6.950%		12/01/33		Baa1			1,175,640
	6,310			HBOS Capital Funding LP, Notes		6.850%		3/23/49		A1			4,424,162
	19,200			HBOS PLC, Series 144A		6.413%		4/01/49		A1			13,787,059
	5,000			HBOS PLC, Series 144A		6.657%		11/21/57		A1			3,581,460
	2,400			HSBC Capital Funding LP, 144A		9.547%		12/31/49		A1			2,580,830
	6,250			HSBC Capital Funding LP, Debt		10.176%		6/30/50		A1			7,503,869
	6,000			HT1 Funding, GmbH		6.352%		6/30/57		A-			6,858,189
	25,000			KBC Bank Fund Trust III, 144A		9.860%		5/02/50		A1			27,068,625
	8,000			KeyCorp Capital III		7.750%		7/15/29		A3			7,297,536
	12,500			Lloyds TSB Bank PLC, Subordinated Note		6.900%		11/22/49		Aa2			11,955,250
	14,000			Mizuho Financial Group		8.375%		4/27/49		Aa3			13,951,700
	8,000			Nordbanken AB, 144A		8.950%		11/29/49		Aa3			8,450,120
	8,000			North Fork Capital Trust II		8.000%		12/15/27		Baa1			6,919,672
	10,000			Northgroup Preferred Capital Corporation, 144A		6.378%		10/15/57		A1			7,459,460
	16,000			PNC Preferred Funding Trust III (3)		8.700%		3/15/58		A-			15,440,000
	2,000			Popular North American Capital Trust I		6.564%		9/15/34		Baa1			1,404,924
	8,000			Reliance Capital Trust I, Series B		8.170%		5/01/28		N/R			6,889,280
	17,500			Royal Bank of Scotland Group PLC		9.118%		3/31/49		Aa3			17,662,155
	3,300			Royal Bank of Scotland Group PLC, Series U		7.640%		3/31/49		A1			2,846,448
	22,700			Shinsei Finance II Cayman Limited, Perpetual Maturity, 144A		7.160%		7/25/49		Baa2			16,400,750
	5,000			Sparebanken Rogaland, Notes, 144A		6.443%		5/01/49		A2			5,073,275
	6,900			Standard Chartered PLC, 144A		7.014%		1/30/58		BBB+			6,024,024
	13,600			Swedbank ForeningsSparbanken AB, 144A		9.000%		9/17/50		Aa3			13,695,254
	9,000			Unicredito Italiano Capital Trust, 144A		9.200%		4/05/51		A1			8,872,542
	1,500			Union Bank of Norway,		7.068%		11/19/49		A2			2,369,189
	—	(4)		Union Planters Preferred Fund, 144A		7.750%		7/15/53		A3			26,805,000
				Total Commercial Banks									428,659,145
				Diversified Financial Services – 3.6%
	1,000			BNP Paribas Capital Trust, 144A		9.003%		12/29/49		AA-			1,071,822
	6,800			Fulton Capital Trust I		6.290%		2/01/36		A3			4,923,880
	15,300			JPMorgan Chase Capital Trust XVIII		6.950%		8/17/36		Aa3			14,133,926
	11,150			MBNA Corporation, Capital Trust A		8.278%		12/01/26		Aa2			11,211,258
	19,300			Old Mutual Capital Funding, Notes		8.000%		6/22/53		Baa2			18,238,500
				Total Diversified Financial Services									49,579,386
				Diversified Telecommunication Services – 2.1%
	30			Centaur Funding Corporation, Series B, 144A		9.080%		4/21/20		BBB			28,595,704
				Insurance – 11.5%
	14,280			Ace Capital Trust II		9.700%		4/01/30		Baa1			16,037,697
	28,000			American General Institutional Capital, 144A		8.125%		3/15/46		Aa3			29,426,992
	12,900			AXA SA, 144A		6.463%		12/14/49		BBB+			10,372,348
	10,700			AXA-UAP		8.600%		12/15/30		A-			11,544,530
	6,600			Great West Life and Annuity Insurance Company		7.153%		5/16/46		A-			5,975,924
	1,000			Liberty Mutual Group		7.800%		3/15/37		Baa3			845,216
	8,000			MetLife Capital Trust IV		0.000%		12/15/67		BBB+			7,294,000
	2,600			MetLife Inc.		6.400%		12/15/66		BBB+			2,071,966
	1,200			Nationwide Financial Services Capital Trust		7.899%		3/01/37		Baa1			1,109,660
	6,400			Nationwide Financial Services Inc.		6.750%		5/15/67		Baa1			5,341,280
	12,300			Oil Insurance Limited, 144A		7.558%		12/30/49		Baa1			10,758,183
	15,600			Progressive Corporation		6.700%		6/15/37		A2			13,916,588
	2,850			Prudential PLC		6.500%		6/29/49		A			2,394,487
	18,100			QBE Capital Funding Trust II, 144A		6.797%		6/01/49		BBB			16,424,537
	28,900			XL Capital, Limited		6.500%		10/15/57		BBB			21,695,750
	3,800			ZFS Finance USA Trust V		6.500%		5/09/67		BBB+			3,434,934
				Total Insurance									158,644,092
				Road & Rail – 1.0%
	14,400			Burlington Northern Santa Fe Funding Trust I		6.613%		12/15/55		BBB			13,113,922
				Thrifts & Mortgage Finance – 3.2%
	12,811			Countrywide Capital Trust III, Series B		8.050%		6/15/27		BBB-			9,846,714
	1,300			MM Community Funding Trust I Limited		9.480%		6/15/31		Baa2			1,322,204
	36,700			Washington Mutual Preferred Funding Cayman, Series A-1, 144A		7.250%		3/15/49		BB+			23,326,043
	18,100			Washington Mutual Preferred Funding Trust II		6.665%		3/15/57		BB+			9,787,557
				Total Thrifts & Mortgage Finance									44,282,518
				Total Capital Preferred Securities (cost $939,582,445)									809,915,875

Shares				Description (1)								Value
				Investment Companies – 4.9% (3.1% of Total Investments)
	306,317			Blackrock Preferred and Corporate Income Strategies Fund								$	4,551,872
	1,126,886			Blackrock Preferred Income Strategies Fund									17,117,398
	347,135			Blackrock Preferred Opportunity Trust									5,717,313
	1,217,312			Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.									18,064,910
	216,222			Flaherty and Crumrine/Claymore Total Return Fund Inc.									3,392,523
	107,237			John Hancock Preferred Income Fund									2,020,345
	90,920			John Hancock Preferred Income Fund II									1,727,480
	884,701			John Hancock Preferred Income Fund III									15,234,551
				Total Investment Companies (cost $88,111,171)									67,826,392

Principal
Amount (000)				Description (1)		Coupon		Maturity				Value
				U.S. Government and Agency Obligations – 0.5% (0.3% of Total Investments)
$	6,000			United States of America Treasury Notes (5)		3.125%		11/30/09				$	6,147,660
$	6,000			Total U.S. Government and Agency Obligations (cost $6,077,630)									6,147,660
Principal
Amount (000)				Description (1)		Coupon		Maturity				Value
				Short-Term Investments – 1.8% (1.2% of Total Investments)
$	25,212			Repurchase Agreement with Fixed Income Clearing Corporation, 3/31/08, repurchase price $25,212,857, collateralized by $17,435,000 U.S. Treasury Bonds, 8.750%, due 8/15/20, value $25,716,625		1.100%		4/01/08				$	25,212,087
				Total Short-Term Investments (cost $25,212,087)									25,212,087
				Total Investments (cost $2,441,349,892) – 157.7%									2,169,076,256
				Other Assets Less Liabilities – 0.5%									6,064,542
				FundPreferred Shares, at Liquidation Value – (58.2)% (6)									(800,000,000	)
				Net Assets Applicable to Common Shares – 100%								$	1,375,140,798

Fund

Fixed Rate

Unrealized

Notional

Pay/Receive

Floating Rate

Fixed Rate

Payment

Termination

Appreciation

Counterparty

Amount

Floating Rate

Index

(Annualized)

Frequency

Date

(Depreciation)

Citigroup Inc.

$

200,000,000

Receive

1-Month USD-LIBOR

3.910%

Monthly

11/06/09

$

(5,016,643

)

USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)

(1)		All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)		Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating.
		Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
(3)		Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees.
(4)		Principal Amount (000)/Shares rounds to less than $1,000.
(5)		Portion of investment, with an aggregate market value of $4,793,126, has been pledged to collateralize the net payment obligations under interest rate swap contracts.
(6)		FundPreferred Shares, at Liquidation Value as a percentage of total investments is (36.9)%.
N/R		Not rated.
144A		Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.
CORTS		Corporate Backed Trust Securities.
PPLUS		PreferredPlus Trust.
SATURNS		Structured Asset Trust Unit Repackaging.

Fair Value Measurements

During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:

Level 1 -

Quoted prices in active markets for identical securities.

Level 2 -

Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 -

Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the Fund’s fair value measurements as of March 31, 2008:

			Level 1				Level 2				Level 3				Total
Investments		$	1,241,443,872			$	912,192,384			$	15,440,000			$	2,169,076,256
Derivatives*			-				(5,016,643	)			-				(5,016,643	)
Total		$	1,241,443,872			$	907,175,741			$	15,440,000			$	2,164,059,613

* Represents net unrealized appreciation (depreciation).

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

		Level 3
		Investments
Balance as of December 31, 2007		$	-
Gains (losses):
Net realized gains (losses)			-
Net change in unrealized appreciation (depreciation)			(560,000	)
Net purchases at cost (sales at proceeds)			16,000,000
Net discounts (premiums)			-
Net transfers in to (out of) at end of period fair value			-
Balance as of March 31, 2008		$	15,440,000