UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549
                                     ----

                                   FORM 10-K
                       FOR ANNUAL AND TRANSITION REPORTS
                    PURSUANT TO SECTIONS 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

(Mark One)

      |X|   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934

      For the fiscal year ended December 31, 2006

                                      or

      |_|   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
            SECURITIES EXCHANGE ACT OF 1934

      For the transition period from ________ to ________

               Commission File Numbers: 333-111858-02, 001-32232

                    Synthetic Fixed-Income Securities, Inc.

                                 on behalf of:

        STRATS(SM) Trust For IBM Corporation Securities, Series 2004-7
            ------------------------------------------------------
            (Exact name of registrant as specified in its charter)

          Delaware                                            52-2316339
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(State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization)                            Identification No.)


   301 South College, Charlotte, North Carolina                  28288
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    (Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code: (704) 383-7727

Securities registered pursuant to Section 12(b) of the Act:

Title of each class             Name of Registered exchange on which registered
-------------------             -----------------------------------------------

STRATS(SM) Certificates,        New York Stock Exchange ("NYSE")
Series 2004-7

<PAGE>

Securities registered pursuant to Section 12(g) of the Act:   None

Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. Yes |_| No |X|

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. Yes |_| No |X|

Indicate by check mark whether the registrant: (1) Has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No |_|

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. Not applicable.

Indicate by check mark whether the registrant is large accelerated filer, an
accelerated filer or a non-accelerated filer. See the definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (check one):
 Large accelerated filer |_| Accelerated filer |_| Non- accelerated filer |X|

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Act). Yes |_| No |X|

State the aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the price at which the common
equity was last sold, or the average bid and asked price of such common equity,
as of the last business day of the registrant's most recently completed second
fiscal quarter:

The registrant has no voting stock or class of common stock that is held by
non-affiliates.


                      DOCUMENTS INCORPORATED BY REFERENCE

The following documents are incorporated by reference into Part IV of this
Annual Report: The distribution reports to security holders filed on Form 8-K
during the fiscal year, in lieu of reports on Form 10-Q, which include the
reports filed on Form 8-K listed in Item 15(a) hereto.


                               Introductory Note

Synthetic Fixed-Income Securities, Inc. (the "Depositor") is the Depositor in
respect of the STRATS(SM) Trust For IBM Corporation Securities, Series 2004-7
(the "Trust"), a common law trust formed pursuant to the Base Trust Agreement,
dated as of September 26, 2003, between the Depositor and U.S. Bank Trust
National Association, as trustee (the "Trustee"), as supplemented by the
STRATS(SM) Certificates Series Supplement 2004-7 (the "Series Supplement")
dated as of June 15, 2004 in respect of the Trust. The Trust's assets consist
solely of notes issued by International Business Machines Corporation. The
Certificates do not represent obligations of or interests in the Depositor or
the Trustee.

Pursuant to staff administrative positions established in Corporate Asset
Backed Corporation (available August 9, 1995), the Trust is not required to
respond to various items of Form 10-K. Such items are designated herein as "Not
Applicable." Distribution reports detailing receipts and distributions by the
Trust are filed after each distribution date on Form 8-K in lieu of reports on
Form 10-Q.


                                       2
<PAGE>

International Business Machines Corporation ("IBM"), the issuer of the
underlying securities, is subject to the information reporting requirements of
the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). The
Securities and Exchange Commission (the "Commission") maintains a site on the
World Wide Web at "http://www.sec.gov" at which users can view and download
copies of reports, proxy and information statements and other information filed
electronically through the Electronic Data Gathering, Analysis and Retrieval
system, or "EDGAR." For information on IBM please see its periodic and current
reports filed with the Commission under its Exchange Act file number 001-02360.
Neither Synthetic Fixed-Income Securities, Inc. nor the Trustee has
participated in the preparation of such reporting documents, or made any due
diligence investigation with respect to the information provided therein.
Neither Synthetic Fixed-Income Securities, Inc. nor the Trustee has verified
the accuracy or completeness of such documents or reports. There can be no
assurance that events affecting the issuer of the underlying securities, or the
underlying securities themselves, have not occurred or have not yet been
publicly disclosed which would affect the accuracy or completeness of the
publicly available documents described above.




                                     PART I

Item 1. Business.

            Not Applicable

Item 1A. Risk Factors.

            Not Applicable

Item 1B. Unresolved Staff Comments.

            Not Applicable

Item 2. Properties.

            Not Applicable

Item 3. Legal Proceedings.

            None

Item 4. Submission of Matters to a Vote of Security Holders.

            None


                                    PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities.

      The Class A-1Certificates representing investors' interest in the Trust
are represented by one or more physical Certificates registered in the name of
"Cede & Co.", the nominee of The Depository Trust Company. The Class A-1
Certificates are listed on the NYSE.

Item 6. Selected Financial Data.

            Not Applicable


                                       3
<PAGE>

Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations.

            Not Applicable

Item 7A. Quantitative and Qualitative Disclosures About Market Risk.

            Not Applicable

Item 8. Financial Statements and Supplementary Data.

            Not Applicable

Item 9. Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure.

            None

Item 9A. Controls and Procedures.

            Not Applicable

Item 9B. Other Information.

            None


                                    PART III

Item 10. Directors and Executive Officers of the Registrant.

            Not Applicable

Item 11. Executive Compensation.

            Not Applicable

Item 12. Security Ownership of Certain Beneficial Owners and Management and
Related Stock Matters.

            Not Applicable

Item 13. Certain Relationships and Related Transactions.

            None

Item 14. Principal Accounting Fees and Services.

            Not Applicable


                                    PART IV

Item 15. Exhibits, Financial Statement Schedules.

      (a)   The following documents have been filed as part of this report.


                                       4
<PAGE>

            1.    Trustee's Distribution Statements documented on Form 8-K of
                  STRATS(SM) Trust For IBM Corporation Securities, Series
                  2004-7 to the certificateholders for the period from January
                  1, 2006 through and including December 31, 2006 have been
                  filed with the Securities and Exchange Commission and are
                  hereby incorporated by reference. Filing dates are listed
                  below:

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                Trust Description                  Distribution     Filed on
                                                       Date
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STRATS(SM) Trust For IBM Corporation Securities,    12-29-2005     01-09-2006
Series 2004-7                                       01-29-2006     02-06-2006
                                                    03-01-2006     03-14-2006
                                                    03-29-2006     04-07-2006
                                                    04-29-2006     05-08-2006
                                                    05-29-2006     06-08-2006
                                                    06-29-2006     07-11-2006
                                                    07-29-2006     08-11-2006
                                                    08-29-2006     09-08-2006
                                                    09-29-2006     10-12-2006
                                                    10-29-2006     11-03-2006
                                                    11-29-2006     12-07-2006
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            2.    None


                                       5
<PAGE>

            3.    Exhibits:

                  31.1 - Certification by Director of the Registrant pursuant
                  to 15 U.S.C. Section 7241, as adopted pursuant to Section 302
                  of the Sarbanes-Oxley Act of 2002.

                  99.1 - Annual Compliance Report by Trustee pursuant to 15
                  U.S.C. Section 7241, as adopted pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

                  99.2 - Report of Aston Bell, CPA.

                  99.3 - Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on January 9, 2006, as
                  further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.4 - Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on February 6, 2006, as
                  further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.5 - Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on March 14, 2006, as
                  further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.6 - Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on April 7, 2006, as
                  further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.7 - Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on May 8, 2006, as further
                  described in Item 15(a)(1) above, is incorporated herein by
                  reference.

                  99.8 - Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on June 8, 2006, as
                  further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.9 - Registrant's Current Report on Form 8-K filed with the
                  Securities and Exchange Commission on July 11, 2006, as
                  further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.10 - Registrant's Current Report on Form 8-K filed with
                  the Securities and Exchange Commission on August 11, 2006, as
                  further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.11 - Registrant's Current Report on Form 8-K filed with
                  the Securities and Exchange Commission on September 8, 2006,
                  as further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.12 - Registrant's Current Report on Form 8-K filed with
                  the Securities and Exchange Commission on October 12, 2006,
                  as further described in Item 15(a)(1) above, is incorporated
                  herein by reference.

                  99.13 - Registrant's Current Report on Form 8-K filed with
                  the Securities and Exchange Commission on November 3, 2006,
                  as further described in Item 15(a)(1) above, is incorporated
                  herein by reference.


                                       6
<PAGE>

                  99.14 - Registrant's Current Report on Form 8-K filed with
                  the Securities and Exchange Commission on December 7, 2006,
                  as further described in Item 15(a)(1) above, is incorporated
                  herein by reference.



      (b)   See Item 15(a) above.

      (c)   Not Applicable.


                                       7
<PAGE>

                                   SIGNATURE

      Pursuant to the requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.

                                      Synthetic Fixed-Income Securities, Inc.,
                                      as Depositor for the Trust




                                      By:   /s/ Jimmy Whang
                                            -----------------------------------
                                      Name:  Jimmy Whang
                                      Title: Director


Dated:  March 30, 2007


                                       8
<PAGE>

                                 EXHIBIT INDEX

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   Reference
   Number per                                                       Exhibit
  Item 601 of                Description of Exhibits               Number in
 Regulation SK                                                   this Form 10-K
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                  Certification by Directorof the Registrant
     (31.1)       pursuant to 15 U.S.C. Section 7241, as              31.1
                  adopted pursuant to Section 302 of the
                  Sarbanes-Oxley Act of 2002.
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                  Annual Compliance Report by Trustee pursuant
                  to 15 U.S.C. Section 7241, as adopted
     (99.1)       pursuant to Section 302 of the                      99.1
                  Sarbanes-Oxley Act of 2002.
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     (99.2)       Report of Aston Bell, CPA.                          99.2
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
     (99.3)       Commission on January 9, 2006, as further           99.3
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
     (99.4)       Commission on February 6, 2006, as further          99.4
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
     (99.5)       Commission on March 14, 2006, as further            99.5
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
     (99.6)       Commission on April 7, 2006, as further             99.6
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
     (99.7)       Commission on May 8, 2006, as further               99.7
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
     (99.8)       Commission on June 8, 2006, as further              99.8
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
     (99.9)       Commission on July 11, 2006, as further             99.9
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
    (99.10)       Commission on August 11, 2006, as further          99.10
                  described in Item 15(a)(1) above, is
                  incorporated herein by
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                                       9
<PAGE>

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                  reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
    (99.11)       Commission on September 8, 2006, as further        99.11
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
    (99.12)       Commission on October 12, 2006, as further         99.12
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
    (99.13)       Commission on November 3, 2006, as further         99.13
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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                  Registrant's Current Report on Form 8-K
                  filed with the Securities and Exchange
    (99.14)       Commission on December 7, 2006, as further         99.14
                  described in Item 15(a)(1) above, is
                  incorporated herein by reference.
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