nq2.htm



 
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 811-22271
 
Nuveen New York 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:            9/30          
 
Date of reporting period:         12/31/10         
 
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 New York Municipal Value Fund 2, Inc. (NYV) 
      
   
December 31, 2010 
      
Principal 
    
Optional Call 
    
Amount (000) 
  
Description (1) 
Provisions (2) 
Ratings (3) 
Value 
   
Consumer Staples – 3.8% (3.9% of Total Investments) 
      
$   1,350 
  
District of Columbia Tobacco Settlement Corporation, Tobacco Settlement Asset-Backed Bonds, 
No Opt. Call 
BBB 
$   1,337,310 
   
Series 2001, 6.500%, 5/15/33 
      
   
Education and Civic Organizations – 13.5% (13.6% of Total Investments) 
      
1,200 
  
Albany Industrial Development Agency, New York, Revenue Bonds, Brighter Choice Charter 
4/17 at 100.00 
N/R 
929,904 
   
Schools, Series 2007A, 5.000%, 4/01/37 
      
1,000 
  
Dormitory Authority of the State of New York, Lease Revenue Bonds, State University Dormitory 
7/17 at 100.00 
Aa2 
998,540 
   
Facilities, Series 2007, 5.000%, 7/01/37 
      
1,500 
  
Dormitory Authority of the State of New York, Revenue Bonds, New York University, Series 
7/18 at 100.00 
AA– 
1,501,395 
   
2008A, 5.000%, 7/01/38 
      
5,095 
  
New York City Industrial Development Agency, New York, Revenue Bonds, Yankee Stadium Project 
No Opt. Call 
AA+ 
848,827 
   
PILOT, Series 2009A, 0.000%, 3/01/40 – AGC Insured 
      
400 
  
New York Liberty Development Corporation, Second Priority Liberty Revenue Refunding Bonds, 
1/20 at 100.00 
AA 
408,368 
   
Bank of America Tower at One Bryant Park Project, Series 2010, 5.625%, 1/15/46 
      
9,195 
  
Total Education and Civic Organizations 
    
4,687,034 
   
Energy – 2.8% (2.8% of Total Investments) 
      
1,000 
  
Virgin Islands Public Finance Authority, Revenue Bonds, Refinery Project - Hovensa LLC, Series 
1/14 at 100.00 
Baa3 
990,660 
   
2003, 6.125%, 7/01/22 (Alternative Minimum Tax) 
      
   
Health Care – 20.8% (21.1% of Total Investments) 
      
500 
  
Dormitory Authority of the State of New York, FHA-Insured Revenue Bonds, St. Lukes Roosevelt 
8/15 at 100.00 
N/R 
452,940 
   
Hospital, Series 2005, 4.900%, 8/15/31 
      
50 
  
Dormitory Authority of the State of New York, Highland Hospital of Rochester Revenue Bonds, 
7/20 at 100.00 
A2 
48,919 
   
Series 2010, 5.000%, 7/01/26 
      
1,000 
  
Dormitory Authority of the State of New York, Insured Revenue Bonds, Franciscan Health 
1/11 at 100.00 
A3 
957,160 
   
Partnership Obligated Group - Frances Shervier Home and Hospital, Series 1997, 5.500%, 
      
   
7/01/27 – RAAI Insured 
      
1,500 
  
Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish 
11/16 at 100.00 
A3 
1,429,635 
   
Obligated Group, Series 2006B, 5.000%, 11/01/34 
      
1,500 
  
Dormitory Authority of the State of New York, Revenue Bonds, North Shore Long Island Jewish 
5/19 at 100.00 
A– 
1,501,860 
   
Obligated Group, Series 2009A, 5.500%, 5/01/37 
      
1,010 
  
Dormitory Authority of the State of New York, Revenue Bonds, NYU Hospitals Center, Series 
7/17 at 100.00 
BBB+ 
988,901 
   
2007B, 5.625%, 7/01/37 
      
700 
  
Hospital Authority of Delaware County, Indiana, Hospital Revenue Bonds, Cardinal Health 
8/16 at 100.00 
Baa3 
636,776 
   
System, Series 2006, 5.000%, 8/01/24 
      
725 
  
Illinois Finance Authority, Revenue Bonds, OSF Healthcare System, Series 2007A, 
11/17 at 100.00 
A 
663,984 
   
5.750%, 11/15/37 
      
85 
  
Westchester County Health Care Corporation, New York, Senior Lien Revenue Bonds, Series 
11/20 at 100.00 
A3 
83,835 
   
2010-C2, 6.125%, 11/01/37 
      
500 
  
Wisconsin Health and Educational Facilities Authority, Revenue Bonds, ProHealth Care, Inc. 
2/14 at 100.00 
A+ 
513,445 
   
Obligated Group, Series 2009, 6.625%, 2/15/32 
      
7,570 
  
Total Health Care 
    
7,277,455 
   
Housing/Multifamily – 12.8% (13.0% of Total Investments) 
      
1,500 
  
New York City Housing Development Corporation, New York, FNMA Backed Progress of Peoples 
11/15 at 100.00 
AAA 
1,409,025 
   
Development Multifamily Rental Housing Revenue Bonds, Series 2005B, 4.950%, 5/15/36 
      
   
(Alternative Minimum Tax) 
      
1,800 
  
New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, 
11/14 at 100.00 
AA 
1,706,238 
   
Series 2004-H2, 5.125%, 11/01/34 (Alternative Minimum Tax) 
      
1,000 
  
New York State Housing Finance Agency, Affordable Housing Revenue Bonds, Series 2009A, 
5/19 at 100.00 
Aa2 
968,770 
   
5.250%, 11/01/41 
      
450 
  
New York State Housing Finance Agency, Affordable Housing Revenue Bonds, Series 2009B, 
5/19 at 100.00 
Aa2 
417,024 
   
4.500%, 11/01/29 
      
4,750 
  
Total Housing/Multifamily 
    
4,501,057 
   
Tax Obligation/General – 5.8% (5.9% of Total Investments) 
      
1,500 
  
New York City, New York, General Obligation Bonds, Fiscal 2009 Series J1, 5.000%, 5/15/36 
No Opt. Call 
AA 
1,500,420 
500 
  
New York City, New York, General Obligation Bonds, Fiscal 2010 Series C, 5.000%, 8/01/23 
8/19 at 100.00 
AA 
529,965 
2,000 
  
Total Tax Obligation/General 
    
2,030,385 
   
Tax Obligation/Limited – 25.6% (26.0% of Total Investments) 
      
1,200 
  
Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, 
3/19 at 100.00 
AAA 
1,199,028 
   
Education Series 2009A, 5.000%, 3/15/38 
      
1,200 
  
Guam Government, Limited Obligation Section 30 Revenue Bonds, Series 2009A, 5.750%, 12/01/34 
12/19 at 100.00 
BBB– 
1,171,008 
1,710 
  
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series 2006A, 5.000%, 2/15/47 
2/17 at 100.00 
A 
1,546,712 
1,500 
  
New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Fiscal 
1/19 at 100.00 
AA– 
1,522,065 
   
Series 2009-S5, 5.250%, 1/15/39 
      
2,000 
  
New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, Tender 
3/17 at 100.00 
AAA 
2,001,138 
   
Option Bond Trust 09-6W, 12.635%, 3/15/37 (IF) 
      
1,500 
  
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, First Subordinate Series 
8/19 at 100.00 
A+ 
1,533,195 
   
2009A, 6.000%, 8/01/42 
      
9,110 
  
Total Tax Obligation/Limited 
    
8,973,146 
   
Transportation – 10.8% (10.9% of Total Investments) 
      
   
New York City Industrial Development Agency, New York, American Airlines-JFK International 
      
   
Airport Special Facility Revenue Bonds, Series 2005: 
      
500 
  
7.500%, 8/01/16 (Alternative Minimum Tax) 
No Opt. Call 
B– 
513,430 
500 
  
7.750%, 8/01/31 (Alternative Minimum Tax) 
8/16 at 101.00 
B– 
522,560 
2,000 
  
New York City Industrial Development Agency, New York, Civic Facility Revenue Bonds, Bronx 
10/17 at 100.00 
N/R 
1,263,140 
   
Parking Development Company, LLC Project, Series 2007, 5.750%, 10/01/37 
      
140 
  
Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air 
12/20 at 100.00 
BBB– 
139,082 
   
Terminal LLC Project, Eigth Series 2010, 6.000%, 12/01/36 
      
1,325 
  
Triborough Bridge and Tunnel Authority, New York, General Purpose Revenue Bonds, Refunding 
5/18 at 100.00 
Aa2 
1,335,892 
   
Series 2008A, 5.000%, 11/15/33 
      
4,465 
  
Total Transportation 
    
3,774,104 
   
Water and Sewer – 2.8% (2.8% of Total Investments) 
      
1,000 
  
New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue 
6/19 at 100.00 
AA+ 
997,680 
   
Bonds, Second Generation Resolution, Series 2009FF, 5.000%, 6/15/40 
      
$   40,440 
  
Total Investments (cost $33,111,055) – 98.7% 
    
34,568,831 
   
Other Assets Less Liabilities – 1.3% 
    
463,870 
   
Net Assets Applicable to Common Shares – 100% 
    
$ 35,032,701 
 
 
 
Fair Value Measurements
 
 
In determining the fair 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 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 December 31, 2010:
 
         
 
Level 1 
Level 2 
Level 3 
Total 
Investments: 
        
Municipal Bonds 
$ — 
$34,568,831 
$ — 
$34,568,831 
 
During the period ended December 31, 2010, the Fund recognized no significant transfers to/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 December 31, 2010, the cost of investments was $33,046,923.
 
 
Gross unrealized appreciation and gross unrealized depreciation of investments at December 31, 2010, were as follows:
 
   
Gross unrealized: 
  
  Appreciation 
$1,661,327 
  Depreciation 
(139,419)
Net unrealized appreciation (depreciation) of investments 
$1,521,908 
 
   
(1) 
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common 
 
Shares unless otherwise noted. 
(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 Investor Service, Inc. 
 
(“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB 
 
by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of 
 
these national rating agencies. 
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 New York Municipal Value Fund 2 
 
By (Signature and Title)     /s/ Kevin J. McCarthy                    
                                                   Kevin J. McCarthy
                                                   Vice President and Secretary
 
Date         March 1, 2011        
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
By (Signature and Title)     /s/ Gifford R. Zimmerman                    
                                                    Gifford R. Zimmerman
                                                  Chief Administrative Officer (principal executive officer) 
 
Date         March 1, 2011        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                                   Stephen D. Foy
                                                  Vice President and Controller (principal financial officer) 
 
Date         March 1, 2011