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, 2008




or




o
              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:




STRATSSM Trust
For IBM Corporation Securities, Series 2004-7





(Exact
name of registrant as specified in its charter)




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





301
      South College, Charlotte, North Carolina
              28288(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
      registeredSTRATSSM
      Certificates, Series 2004-7
              New
      York Stock Exchange (“NYSE”)










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 o 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 o 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 o




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 o
            Accelerated filer
      o
            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 o 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 STRATSSM 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 STRATSSM
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




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
Certificates 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 Certificates are
listed on the NYSE.




Item 6. Selected Financial
Data.




Not
Applicable




3




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






1.
            Trustee’s
      Distribution Statements documented on Form 8-K of STRATSSM
      Trust For IBM Corporation Securities, Series 2004-7 to the
      certificateholders for the period from January 1, 2008 through and
      including December 31, 2008 have been filed with the Securities and
      Exchange Commission and are hereby incorporated by reference. Filing dates
      are listed below:




Trust
      Description
                    Distribution
      Date
                    Filed
      onSTRATSSM
      Trust For IBM Corporation Securities, Series 2004-7
                    01-29-2008
                      02-29-2008
                      03-31-2008
                      04-29-2008
                      05-29-2008
                      06-30-2008
                      07-29-2008
                      08-29-2008
                      09-29-2008
                      10-29-2008
                      12-01-2008
                      12-29-2008
                    02-11-2008
                      03-07-2008
                      04-15-2008
                      05-14-2008
                      06-05-2008
                      07-11-2008
                      08-13-2008
                      10-14-2008
                      10-14-2008
                      11-12-2008
                      12-12-2008
                      01-09-2009





2.
            None






5






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 February 11, 2008, 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 March 7, 2008, 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 April 15, 2008, 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 May 14, 2008, 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 June 5, 2008, 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 July 11, 2008, 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 August 13, 2008, 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 October 14, 2008, 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 October 14, 2008, 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 November 12, 2008, 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 December 12, 2008, as further described in Item
      15(a)(1) above, is incorporated herein by
  reference.






6






99.14
      - Registrant’s Current Report on Form 8-K filed with the Securities and
      Exchange Commission on January 9, 2009, as further described in Item
      15(a)(1) above, is incorporated herein by
  reference.






(b)           See
Item 15(a) above.




(c)           Not
Applicable.


















































7




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 TrustBy:
              /s/ James
      WhangName:
              James
      WhangTitle:
              Director






Dated:  March
30, 2009










































8







EXHIBIT
INDEX




Reference
      Number per Item 601 of Regulation SK
                                              Description
      of Exhibits
                                              Exhibit
      Number in this Form 10-K(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.
                                              31.1(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.
                                              99.1(99.2)
                                              Report
      of Aston Bell, CPA.
                                              99.2(99.3)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on February 11, 2008, as further described in Item 15(a)(1)
      above, is incorporated herein by reference.
                                              99.3(99.4)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on March 7, 2008, as further described in Item 15(a)(1) above,
      is incorporated herein by reference.
                                              99.4(99.5)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on April 15, 2008, as further described in Item 15(a)(1) above,
      is incorporated herein by reference.
                                              99.5(99.6)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on May 14, 2008, as further described in Item 15(a)(1) above,
      is incorporated herein by reference.
                                              99.6(99.7)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on June 5, 2008, as further described in Item 15(a)(1) above,
      is incorporated herein by reference.
                                              99.7(99.8)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on July 11, 2008, as further described in Item 15(a)(1) above,
      is incorporated herein by reference.
                                              99.8(99.9)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on August 13, 2008, as further described in Item 15(a)(1)
      above, is incorporated herein by reference.
                                              99.9(99.10)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on October 14, 2008, as further described in Item 15(a)(1)
      above, is incorporated herein by reference.
                                              99.10(99.11)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on October 14, 2008, as further described in Item 15(a)(1)
      above, is incorporated herein by reference.
                                              99.11(99.12)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on November 12, 2008, as further described in Item 15(a)(1)
      above, is incorporated herein by reference.
                                              99.12(99.13)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on December 12, 2008, as further described in Item 15(a)(1)
      above, is incorporated herein by reference.
                                              99.13(99.14)
                                              Registrant’s
      Current Report on Form 8-K filed with the Securities and Exchange
      Commission on January 9, 2009 as further described in Item 15(a)(1) above,
      is incorporated herein by reference.
                                              99.14








9