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 811-10197
 
Nuveen California Dividend Advantage Municipal 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:            2/28          
 
Date of reporting period:         11/30/09         
 
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 California Dividend Advantage Municipal Fund 2 (NVX)      
  November 30, 2009      
Principal   Optional Call    
Amount (000) Description (1) Provisions (2) Ratings (3) Value
  Consumer Staples – 7.3% (5.0% of Total Investments)      
$      615  California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, Sonoma  6/15 at 100.00  BBB  $      575,326 
  County Tobacco Securitization Corporation, Series 2005, 4.250%, 6/01/21       
4,515  California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds,  6/12 at 100.00  Baa3  3,784,925 
  Stanislaus County Tobacco Funding Corporation, Series 2002A, 5.500%, 6/01/33       
4,000  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement  6/17 at 100.00  BBB  2,891,520 
  Asset-Backed Bonds, Series 2007A-1, 5.750%, 6/01/47       
13,480  Golden State Tobacco Securitization Corporation, California, Enhanced Tobacco Settlement  6/22 at 100.00  BBB  8,171,846 
  Asset-Backed Bonds, Series 2007A-2, 0.000%, 6/01/37       
22,610  Total Consumer Staples      15,423,617 
  Education and Civic Organizations – 8.5% (5.8% of Total Investments)      
2,000  California Educational Facilities Authority, Revenue Bonds, Stanford University, Series 2001Q,  6/11 at 101.00  AAA  2,073,960 
  5.250%, 12/01/32       
2,745  California Educational Facilities Authority, Revenue Bonds, University of Southern California,  10/18 at 100.00  AA+  3,016,206 
  Tender Option Bond Trust 09-11B, 17.175%, 10/01/38 (IF)       
  California Educational Facilities Authority, Revenue Bonds, University of the Pacific,       
  Series 2006:       
125  5.000%, 11/01/21  11/15 at 100.00  A2  129,678 
165  5.000%, 11/01/25  11/15 at 100.00  A2  167,016 
3,750  California Educational Facilities Authority, Student Loan Revenue Bonds, Cal Loan Program,  3/10 at 100.00  Baa1  3,752,700 
  Series 2001A, 5.400%, 3/01/21 – NPFG Insured (Alternative Minimum Tax)       
2,945  California State Public Works Board, Lease Revenue Bonds, University of California Regents,  3/18 at 100.00  Aa2  2,779,020 
  Trust 1065, 9.236%, 3/01/33 (IF)       
620  California Statewide Community Development Authority, Revenue Bonds, Notre Dame de Namur  10/13 at 100.00  N/R  544,341 
  University, Series 2003, 6.500%, 10/01/23       
3,000  Long Beach Bond Financing Authority, California, Lease Revenue Refunding Bonds, Long Beach  11/11 at 101.00  BBB  2,774,040 
  Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30 – AMBAC Insured       
2,680  University of California, Revenue Bonds, Multi-Purpose Projects, Series 2003A,  5/13 at 100.00  Aa1  2,721,996 
  5.000%, 5/15/33 – AMBAC Insured (UB)       
18,030  Total Education and Civic Organizations      17,958,957 
  Health Care – 18.9% (12.9% of Total Investments)      
2,000  California Health Facilities Financing Authority, Revenue Bonds, Casa Colina Inc., Series  4/12 at 100.00  BBB+  2,018,860 
  2001, 6.000%, 4/01/22       
415  California Health Facilities Financing Authority, Revenue Bonds, Kaiser Permanante System,  4/16 at 100.00  A+  379,787 
  Series 2006, 5.000%, 4/01/37       
9,260  California Health Facilities Financing Authority, Revenue Bonds, Sutter Health, Series 2007A,  11/16 at 100.00  Aa3  8,736,903 
  5.250%, 11/15/46 (UB)       
500  California Infrastructure Economic Development Bank, Revenue Bonds, Kaiser Hospital Assistance  8/11 at 102.00  A+  501,930 
  LLC, Series 2001A, 5.550%, 8/01/31       
2,520  California Statewide Communities Development Authority, Revenue Bonds, Adventist Health System  3/15 at 100.00  A  2,272,712 
  West, Series 2005A, 5.000%, 3/01/35       
  California Statewide Communities Development Authority, Revenue Bonds, Saint Joseph Health       
  System, Trust 2554:       
998  18.284%, 7/01/47 – FSA Insured (IF)  7/18 at 100.00  AAA  1,017,869 
1,325  18.251%, 7/01/47 – FSA Insured (IF)  7/18 at 100.00  AAA  1,352,057 
  California Statewide Communities Development Authority, Revenue Bonds, ValleyCare Health       
  System, Series 2007A:       
900  4.800%, 7/15/17  No Opt. Call  N/R  847,755 
2,225  5.125%, 7/15/31  7/17 at 100.00  N/R  1,792,950 
2,185  California Statewide Community Development Authority, Health Facility Revenue Refunding Bonds,  No Opt. Call  A+  2,322,546 
  Memorial Health Services, Series 2003A, 6.000%, 10/01/11       
2,500  California Statewide Community Development Authority, Hospital Revenue Bonds, Monterey  6/13 at 100.00  AAA  2,679,350 
  Peninsula Hospital, Series 2003B, 5.250%, 6/01/18 – FSA Insured       
1,755  California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanante System,  3/16 at 100.00  A+  1,588,345 
  Series 2006, 5.000%, 3/01/41       
425  California Statewide Community Development Authority, Revenue Bonds, Kaiser Permanente System,  8/16 at 100.00  A+  413,708 
  Series 2001C, 5.250%, 8/01/31       
1,000  California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series  8/18 at 100.00  AAA  986,490 
  2004D, 5.050%, 8/15/38 – FSA Insured       
6,020  California Statewide Community Development Authority, Revenue Bonds, Sutter Health, Series  11/15 at 100.00  Aa3  5,484,702 
  2005A, 5.000%, 11/15/43       
2,000  Loma Linda, California, Hospital Revenue Bonds, Loma Linda University Medical Center, Series  12/17 at 100.00  BBB  2,198,720 
  2008A, 8.250%, 12/01/38       
5,785  Rancho Mirage Joint Powers Financing Authority, California, Revenue Bonds, Eisenhower Medical  7/17 at 100.00  A3  5,269,730 
  Center, Series 2007A, 5.000%, 7/01/38       
41,813  Total Health Care      39,864,414 
  Housing/Multifamily – 5.3% (3.6% of Total Investments)      
5,962  California Statewide Community Development Authority, Multifamily Housing Revenue Refunding  6/11 at 102.00  AAA  6,190,106 
  Bonds, Claremont Village Apartments, Series 2001D, 5.500%, 6/01/31 (Mandatory put 6/01/16)       
  (Alternative Minimum Tax)       
205  Independent Cities Lease Finance Authority, California, Mobile Home Park Revenue Bonds, San  5/16 at 100.00  N/R  172,696 
  Juan Mobile Estates, Series 2006B, 5.850%, 5/15/41       
1,055  Rohnert Park Finance Authority, California, Senior Lien Revenue Bonds, Rancho Feliz Mobile  9/13 at 100.00  A+  1,010,595 
  Home Park, Series 2003A, 5.750%, 9/15/38       
700  Rohnert Park Finance Authority, California, Subordinate Lien Revenue Bonds, Rancho Feliz  9/13 at 100.00  N/R  670,243 
  Mobile Home Park, Series 2003B, 6.625%, 9/15/38       
3,045  Yucaipa Redevelopment Agency, California, Mobile Home Park Revenue Bonds, Rancho del Sol and  5/11 at 102.00  N/R  3,054,622 
  Grandview, Series 2001A, 6.750%, 5/15/36       
10,967  Total Housing/Multifamily      11,098,262 
  Housing/Single Family – 1.5% (1.0% of Total Investments)      
405  California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2006H, 5.750%,  2/16 at 100.00  AA–  420,617 
  8/01/30 – FGIC Insured (Alternative Minimum Tax)       
3,290  California Housing Finance Agency, Home Mortgage Revenue Bonds, Series 2007M, Trust 1021,  2/16 at 100.00  AA–  2,244,208 
  7.376%, 8/01/31 (Alternative Minimum Tax) (IF)       
420  California Rural Home Mortgage Finance Authority, Mortgage-Backed Securities Program Single  6/11 at 102.00  AAA  434,620 
  Family Mortgage Revenue Bonds, Series 2001A, 5.650%, 12/01/31 (Alternative Minimum Tax)       
4,115  Total Housing/Single Family      3,099,445 
  Industrials – 1.6% (1.1% of Total Investments)      
1,250  California Pollution Control Financing Authority, Solid Waste Disposal Revenue Bonds, Waste  1/16 at 102.00  BBB  1,183,663 
  Management Inc., Series 2002A, 5.000%, 1/01/22 (Alternative Minimum Tax)       
3,175  California Statewide Communities Development Authority, Revenue Bonds, EnerTech Regional  No Opt. Call  BB  2,096,230 
  Biosolids Project, Series 2007A, 5.500%, 12/01/33 (Alternative Minimum Tax)       
4,425  Total Industrials      3,279,893 
  Long-Term Care – 2.1% (1.4% of Total Investments)      
1,550  California Health Facilities Financing Authority, Cal-Mortgage Insured Revenue Bonds, Northern  1/13 at 100.00  A  1,524,580 
  California Retired Officers Community Corporation – Paradise Valley Estates, Series 2002,       
  5.125%, 1/01/22       
3,750  California Statewide Communities Development Authority, Revenue Bonds, Inland Regional Center  12/17 at 100.00  Ba1  2,857,950 
  Project, Series 2007, 5.375%, 12/01/37       
5,300  Total Long-Term Care      4,382,530 
  Tax Obligation/General – 10.7% (7.3% of Total Investments)      
10,000  California State, General Obligation Bonds, Series 2006CD, 4.600%, 12/01/32 (Alternative  12/15 at 100.00  AA–  8,233,200 
  Minimum Tax)       
3,615  Colton Joint Unified School District, San Bernardino County, California, General Obligation  8/12 at 102.00  A+  3,813,102 
  Bonds, Series 2002A, 5.500%, 8/01/22 – FGIC Insured       
  Contra Costa County Community College District, California, General Obligation Bonds,       
  Series 2002:       
3,005  5.000%, 8/01/21 – FGIC Insured  8/12 at 100.00  AA  3,207,206 
3,300  5.000%, 8/01/22 – FGIC Insured  8/12 at 100.00  AA  3,463,647 
1,285  Los Angeles Unified School District, Los Angeles County, California, General Obligation Bonds,  7/19 at 100.00  AA–  1,347,798 
  Series 2009D, 5.000%, 7/01/27       
2,000  Puerto Rico, General Obligation and Public Improvement Bonds, Series 2001A, 5.500%, 7/01/20 –  No Opt. Call  A  2,104,020 
  NPFG Insured       
355  Roseville Joint Union High School District, Placer County, California, General Obligation  8/15 at 100.00  AA–  365,742 
  Bonds, Series 2006B, 5.000%, 8/01/27 – FGIC Insured       
23,560  Total Tax Obligation/General      22,534,715 
  Tax Obligation/Limited – 19.5% (13.3% of Total Investments)      
  Beaumont Financing Authority, California, Local Agency Revenue Bonds, Series 2004D:       
650  5.500%, 9/01/24  9/14 at 102.00  N/R  602,212 
385  5.800%, 9/01/35  9/14 at 102.00  N/R  340,148 
1,240  Borrego Water District, California, Community Facilities District 2007-1 Montesoro, Special  8/17 at 102.00  N/R  1,074,658 
  Tax Bonds, Series 2007, 5.750%, 8/01/25       
4,900  California State Public Works Board, Lease Revenue Bonds, Department of Corrections, Series  12/13 at 100.00  A–  5,148,479 
  2003C, 5.500%, 6/01/16       
1,245  California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15  7/14 at 100.00  A1  1,357,598 
1,200  Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community  9/13 at 100.00  N/R  1,114,092 
  Facilities District 90-2 – Talega, Series 2003, 6.000%, 9/01/33       
435  Capistrano Unified School District, Orange County, California, Special Tax Bonds, Community  9/15 at 100.00  A  421,289 
  Facilities District, Series 2005, 5.000%, 9/01/24 – FGIC Insured       
4,845  Encinitas Public Financing Authority, California, Lease Revenue Bonds, Acquisition Project,  4/10 at 100.00  AA+  4,881,192 
  Series 2001A, 5.250%, 4/01/31 – NPFG Insured       
750  Fontana, California, Special Tax Bonds, Sierra Community Facilities District 22, Series 2004,  9/14 at 100.00  N/R  640,493 
  6.000%, 9/01/34       
1,785  Hawthorne Community Redevelopment Agency, California, Project Area 2 Tax Allocation Bonds,  9/16 at 100.00  A–  1,601,038 
  Series 2006, 5.250%, 9/01/36 – SYNCORA GTY Insured       
1,800  Hesperia Unified School District, San Bernardino County, California, Certificates of  2/17 at 100.00  BBB+  1,528,434 
  Participation, Capital Improvement, Series 2007, 5.000%, 2/01/41 – AMBAC Insured       
  Irvine, California, Unified School District, Community Facilities District Special Tax Bonds,       
  Series 2006A:       
205  5.000%, 9/01/26  9/16 at 100.00  N/R  179,375 
470  5.125%, 9/01/36  9/16 at 100.00  N/R  386,443 
2,000  Lake Elsinore Public Finance Authority, California, Local Agency Revenue Refunding Bonds,  10/13 at 102.00  N/R  1,998,220 
  Series 2003H, 6.000%, 10/01/20       
415  Lammersville School District, San Joaquin County, California, Community Facilities District  9/16 at 100.00  N/R  312,748 
  2002, Mountain House Special Tax Bonds, Series 2006, 5.125%, 9/01/35       
1,265  Lee Lake Water District, Riverside County, California, Special Tax Bonds, Community Facilities  9/13 at 102.00  N/R  1,162,573 
  District 1 of Sycamore Creek, Series 2003, 6.500%, 9/01/24       
800  Los Angeles Community Redevelopment Agency, California, Lease Revenue Bonds, Manchester  9/15 at 100.00  A2  686,680 
  Social Services Project, Series 2005, 5.000%, 9/01/37 – AMBAC Insured       
2,795  Los Angeles County Metropolitan Transportation Authority, California, Proposition C Second  1/10 at 100.00  A1  2,797,320 
  Senior Lien Sales Tax Revenue Refunding Bonds, Series 1998A, 5.000%, 7/01/23 –       
  AMBAC Insured       
495  North Natomas Community Facilities District 4, Sacramento, California, Special Tax Bonds,  9/14 at 102.00  N/R  386,333 
  Series 2006D, 5.000%, 9/01/33       
2,000  Orange County, California, Special Tax Bonds, Community Facilities District 02-1 of Ladera  8/11 at 101.00  N/R  1,774,720 
  Ranch, Series 2003A, 5.550%, 8/15/33       
385  Rialto Redevelopment Agency, California, Tax Allocation Bonds, Merged Project Area, Series  9/15 at 100.00  A–  335,705 
  2005A, 5.000%, 9/01/35 – SYNCORA GTY Insured       
475  Roseville, California, Certificates of Participation, Public Facilities, Series 2003A, 5.000%,  8/13 at 100.00  AA–  468,374 
  8/01/25 – AMBAC Insured       
700  Sacramento, California, Special Tax Bonds, North Natomas Community Facilities District 4,  9/14 at 100.00  N/R  612,136 
  Series 2003C, 6.000%, 9/01/33       
  San Buenaventura Redevelopment Agency, California, Merged Project Areas Tax Allocation Bonds,       
  Series 2008:       
1,000  7.750%, 8/01/28  8/16 at 102.00  A  1,116,590 
1,325  8.000%, 8/01/38  8/16 at 102.00  A  1,456,612 
1,530  San Marcos Public Facilities Authority, California, Tax Allocation Bonds, Project Areas 2 and 3,  8/15 at 100.00  A–  1,334,390 
  Series 2005C, 5.000%, 8/01/35 – AMBAC Insured       
825  San Mateo Union High School District, San Mateo County, California, Certificates of  12/17 at 100.00  N/R  747,211 
  Participation, Phase 1, Series 2007A, 5.000%, 12/15/30 – AMBAC Insured       
415  West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities  9/14 at 105.00  N/R  438,190 
  District 01-1, Refunding Series 2009A, 8.625%, 9/01/39       
1,930  West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities  9/13 at 103.00  N/R  1,675,124 
  District 01-1, Series 2003B, 6.750%, 9/01/30       
500  West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities  9/13 at 102.00  N/R  376,300 
  District 01-1, Series 2004B, 6.000%, 9/01/39       
850  West Patterson Financing Authority, California, Special Tax Bonds, Community Facilities  9/13 at 103.00  N/R  651,440 
  District 2001-1, Series 2004A, 6.125%, 9/01/39       
3,715  Western Placer Unified School District, Placer County, California, Certificates of  8/18 at 100.00  AAA  3,432,326 
  Participation, Series 2008, 5.000%, 8/01/47 – AGC Insured       
43,330  Total Tax Obligation/Limited      41,038,443 
  Transportation – 11.6% (7.9% of Total Investments)      
1,930  Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series  4/16 at 100.00  AA  1,969,777 
  2006F, 5.000%, 4/01/31 (UB)       
1,430  Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Series  4/18 at 100.00  AA  1,573,572 
  2008, Trust 3211, 13.319%, 4/01/39 (IF)       
7,000  Foothill/Eastern Transportation Corridor Agency, California, Toll Road Revenue Refunding  1/14 at 101.00  BBB–  6,921,320 
  Bonds, Series 1999, 5.875%, 1/15/27       
5,585  Port of Oakland, California, Revenue Bonds, Series 2002N, 5.000%, 11/01/16 – NPFG Insured  11/12 at 100.00  A1  5,747,021 
  (Alternative Minimum Tax)       
  San Francisco Airports Commission, California, Revenue Bonds, San Francisco International       
  Airport, Second Series 2003, Issue 29A:       
2,430  5.250%, 5/01/18 – FGIC Insured (Alternative Minimum Tax)  5/13 at 100.00  A1  2,489,924 
2,555  5.250%, 5/01/19 – FGIC Insured (Alternative Minimum Tax)  5/13 at 100.00  A1  2,600,428 
1,000  San Francisco Airports Commission, California, Revenue Bonds, San Francisco International  5/13 at 100.00  A1  1,057,670 
  Airport, Second Series 2003, Issue 29B, 5.125%, 5/01/17 – FGIC Insured       
2,000  San Francisco Airports Commission, California, Revenue Refunding Bonds, San Francisco  5/12 at 100.00  A1  2,047,020 
  International Airport, Second Series 2002, Issue 28A, 5.250%, 5/01/17 – NPFG Insured       
  (Alternative Minimum Tax)       
23,930  Total Transportation      24,406,732 
  U.S. Guaranteed – 41.2% (28.0% of Total Investments) (4)      
9,000  Anitoch Area Public Facilities Financing Agency, California, Special Tax Bonds, Community  8/11 at 100.00  A (4)  9,711,540 
  Facilities District 1989-1, Series 2001, 5.250%, 8/01/25 (Pre-refunded 8/01/11) – MBIA Insured       
6,000  California Department of Water Resources, Power Supply Revenue Bonds, Series 2002A, 5.125%,  5/12 at 101.00  Aaa  6,692,040 
  5/01/18 (Pre-refunded 5/01/12)       
450  California Statewide Community Development Authority, Revenue Bonds, Thomas Jefferson School  10/15 at 100.00  N/R (4)  501,012 
  of Law, Series 2005A, 4.875%, 10/01/31 (Pre-refunded 10/01/15)       
860  California, Economic Recovery Revenue Bonds, Series 2004A, 5.000%, 7/01/15  7/14 at 100.00  A1 (4)  1,001,418 
  (Pre-refunded 7/01/14)       
4,000  Daly City Housing Development Finance Agency, California, Mobile Home Park Revenue Bonds,  12/13 at 102.00  N/R (4)  4,787,040 
  Franciscan Mobile Home Park Project, Series 2002A, 5.850%, 12/15/32 (Pre-refunded 12/15/13)       
4,900  East Bay Municipal Utility District, Alameda and Contra Costa Counties, California, Water  6/11 at 100.00  AAA  5,230,848 
  System Subordinated Revenue Bonds, Series 2001, 5.000%, 6/01/26 (Pre-refunded 6/01/11) –       
  NPFG Insured       
2,690  Golden State Tobacco Securitization Corporation, California, Tobacco Settlement Asset-Backed  6/13 at 100.00  AAA  3,002,820 
  Bonds, Series 2003A-1, 6.250%, 6/01/33 (Pre-refunded 6/01/13)       
1,170  Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1,  9/13 at 102.00  N/R (4)  1,416,999 
  Series 2003A, 6.500%, 9/01/25 (Pre-refunded 9/01/13)       
885  Lincoln, California, Special Tax Bonds, Lincoln Crossing Community Facilities District 03-1,  9/13 at 102.00  N/R (4)  1,055,663 
  Series 2004, 6.000%, 9/01/34 (Pre-refunded 9/01/13)       
1,530  Los Angeles Unified School District, California, General Obligation Bonds, Series 2000D,  7/10 at 100.00  AA– (4)  1,575,946 
  5.375%, 7/01/25 (Pre-refunded 7/01/10) – FGIC Insured       
9,510  Los Angeles Unified School District, California, General Obligation Bonds, Series 2002E,  7/12 at 100.00  AA– (4)  10,557,431 
  5.000%, 7/01/19 (Pre-refunded 7/01/12) – MBIA Insured       
3,000  Northern California Tobacco Securitization Authority, Tobacco Settlement Asset-Backed Bonds,  6/11 at 100.00  AAA  3,216,090 
  Series 2001A, 5.375%, 6/01/41 (Pre-refunded 6/01/11)       
2,000  Puerto Rico Public Finance Corporation, Commonwealth Appropriation Bonds, Series 2002E,  No Opt. Call  AAA  2,490,080 
  6.000%, 8/01/26       
6,000  Riverside County Redevelopment Agency, California, Tax Allocation Bonds, Jurupa Valley Project  10/11 at 102.00  A– (4)  6,634,980 
  Area, Series 2001, 5.250%, 10/01/35 (Pre-refunded 10/01/11) – AMBAC Insured       
12,090  Santa Clara Valley Transportation Authority, California, Sales Tax Revenue Bonds, Series  6/11 at 100.00  AAA  12,917,677 
  2001A, 5.000%, 6/01/25 (Pre-refunded 6/01/11) – MBIA Insured       
4,050  Santa Rosa High School District, Sonoma County, California, General Obligation Bonds, Series  5/11 at 101.00  A+ (4)  4,371,773 
  2001, 5.300%, 5/01/26 (Pre-refunded 5/01/11) – FGIC Insured       
6,200  Southwestern Community College District, San Diego County, California, General Obligation  8/11 at 101.00  AA– (4)  6,764,510 
  Bonds, Series 2001, 5.375%, 8/01/25 (Pre-refunded 8/01/11) – AMBAC Insured       
2,800  Tobacco Securitization Authority of Southern California, Tobacco Settlement Asset-Backed  6/12 at 100.00  AAA  3,118,640 
  Bonds, San Diego County Tobacco Asset Securitization Corporation, Senior Series 2001A,       
  5.500%, 6/01/36 (Pre-refunded 6/01/12)       
1,500  Whittier, California, Health Facility Revenue Bonds, Presbyterian Intercommunity Hospital,  6/12 at 101.00  N/R (4)  1,696,695 
  Series 2002, 5.600%, 6/01/22 (Pre-refunded 6/01/12)       
78,635  Total U.S. Guaranteed      86,743,202 
  Utilities – 7.8% (5.3% of Total Investments)      
5,000  Anaheim Public Finance Authority, California, Second Lien Electric Distribution Revenue Bonds,  10/14 at 100.00  A+  5,200,700 
  Series 2004, 5.250%, 10/01/21 – NPFG Insured       
2,355  Long Beach Bond Finance Authority, California, Natural Gas Purchase Revenue Bonds, Series  No Opt. Call  A  2,008,674 
  2007A, 5.000%, 11/15/35       
1,000  Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series  7/13 at 100.00  AA–  1,046,230 
  2003A-2, 5.000%, 7/01/23 – NPFG Insured       
500  Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Series  7/15 at 100.00  AAA  513,825 
  2005, 5.000%, 7/01/31 – FSA Insured (UB)       
  Merced Irrigation District, California, Electric System Revenue Bonds, Series 2005:       
790  5.125%, 9/01/31 – SYNCORA GTY Insured  9/15 at 100.00  N/R  697,823 
1,500  5.250%, 9/01/36 – SYNCORA GTY Insured  9/15 at 100.00  N/R  1,309,605 
2,000  Santa Clara, California, Subordinate Electric Revenue Bonds, Series 2003A, 5.250%, 7/01/20 –  7/13 at 100.00  A1  2,086,080 
  NPFG Insured       
4,000  Southern California Public Power Authority, Natural Gas Project 1 Revenue Bonds, Series 2007A,  No Opt. Call  A  3,608,680 
  5.000%, 11/01/33       
17,145  Total Utilities      16,471,617 
  Water and Sewer – 10.8% (7.4% of Total Investments)      
1,400  Castaic Lake Water Agency, California, Certificates of Participation, Series 2006C, 5.000%,  8/16 at 100.00  AA–  1,346,086 
  8/01/36 – NPFG Insured       
545  Healdsburg Public Financing Authority, California, Wastewater Revenue Bonds, Series 2006,  4/16 at 100.00  AA–  526,394 
  5.000%, 4/01/36 – NPFG Insured       
1,160  Metropolitan Water District of Southern California, Waterworks Revenue Bonds, Tender Option  7/19 at 100.00  AAA  1,311,496 
  Bond Trust 09-8B, 17.387%, 7/01/35 (IF)       
1,500  Orange County Water District, California, Revenue Certificates of Participation, Tender Option  8/19 at 100.00  AAA  1,470,270 
  Bond Trust 11782-1, 17.411%, 8/15/41 (IF)       
750  Sacramento County Sanitation District Financing Authority, California, Revenue Bonds, Series  6/16 at 100.00  AA  765,008 
  2006, 5.000%, 12/01/31 – FGIC Insured       
1,700  San Buenaventura, California, Wastewater Revenue Certificates of Participation, Series 2004,  3/14 at 100.00  AA  1,759,721 
  5.000%, 3/01/24 – NPFG Insured       
4,785  San Diego Public Facilities Financing Authority, California, Subordinate Lien Water Revenue  8/12 at 100.00  A+  4,995,014 
  Bonds, Series 2002, 5.000%, 8/01/21 – NPFG Insured       
10,000  San Francisco City and County Public Utilities Commission, California, Clean Water Revenue  4/13 at 100.00  A+  10,673,400 
  Refunding Bonds, Series 2003A, 5.250%, 10/01/20 – NPFG Insured       
21,840  Total Water and Sewer      22,847,389 
$      315,700  Total Investments (cost $308,163,402) – 146.8%      309,149,216 
  Floating Rate Obligations – (4.2)%      (8,905,000)
  Other Assets Less Liabilities – 1.9%      4,186,125 
  Auction Rate Preferred Shares, at Liquidation Value – (44.5)% (5)      (93,775,000)
  Net Assets Applicable to Common Shares – 100%      $ 210,655,341 

 
 
 
 

 
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 November 30, 2009:
 
  Level 1 Level 2 Level 3 Total
Investments:         
Municipal Bonds  $ —  $309,149,216  $ —  $309,149,216 

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 November 30, 2009, the cost of investments was $299,280,324.
 
Gross unrealized appreciation and gross unrealized depreciation of investments at November 30, 2009, were as follows:
 
Gross unrealized:   
  Appreciation  $ 14,873,246 
  Depreciation  (13,906,022)
Net unrealized appreciation (depreciation) of investments  $      967,224 

(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 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. 
(4)  Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities 
  which ensure the timely payment of principal and interest. Such investments are normally considered to 
  be equivalent to AAA rated securities. 
(5)  Auction Rate Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.3%. 
N/R  Not rated. 
(IF)  Inverse floating rate investment. 
(UB)  Underlying bond of an inverse floating rate trust reflected as a financing transaction. 
 
 
 
 
 
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 California Dividend Advantage Municipal Fund 2 
 
By (Signature and Title)      /s/ Kevin J. McCarthy                    
                                                Kevin J. McCarthy
                                                Vice President and Secretary
 
Date         January 29, 2010        
 
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         January 29, 2010        
 
By (Signature and Title)     /s/ Stephen D. Foy                              
                                               Stephen D. Foy
                                               Vice President and Controller (principal financial officer) 
 
Date        January 29, 2010