<PAGE>

================================================================================

                      SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C. 20549
                            ----------------------

                                    FORM 10-Q
                    QUARTERLY REPORT PURSUANT TO SECTION 13
                OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended June 25, 1999

                     MERRILL LYNCH PREFERRED CAPITAL TRUST V
      (Exact name of Registrant as specified in its certificate of trust)

                        COMMISSION FILE NO.: 1-7182-10

             Delaware                                       13-7140866
    (State or other jurisdiction                         (I.R.S. Employer
  of incorporation or organization)                     Identification No.)

         World Financial Center
               North Tower
           New York, New York                                 10281
(Address of principal executive offices)                    (Zip Code)

Registrant's telephone number, including area code:              (212) 449-1000


           SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

                                                Name of each exchange
Title of each class                             on which registered
-------------------                             --------------------
7.28% Trust Originated Preferred                New York Stock Exchange
Securities ("TOPrS")
(and the related guarantee)

       SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE

                    MERRILL LYNCH PREFERRED FUNDING V, L.P.
         (Exact name of Registrant as specified in its certificate of
                             limited partnership)

                        COMMISSION FILE NO.: 1-7182-09


            Delaware                                        13-3983474
    (State or other jurisdiction                         (I.R.S. Employer
  of incorporation or organization)                     Identification No.)

       World Financial Center
            North Tower
        New York, New York                                   10281
(Address of principal executive offices)                   (Zip Code)


Registrant's telephone number, including area code:      (212) 449-1000


         SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

                                                Name of each exchange on
Title of each class                             which registered
-------------------                             ----------------
7.28% Partnership Preferred Securities          New York Stock Exchange
(and the related guarantee)

       SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE

Indicate by check mark whether the Registrants (1) have 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
Registrants were required to file such reports), and (2) have been subject to
such requirements for the past 90 days. Yes |X| No |_|

As of June 25, 1999, no voting stock was held by non-affiliates of the
                 -----------------------------------------------------
Registrants.
-----------
<PAGE>

                        PART I - FINANCIAL INFORMATION
                        ------------------------------

ITEM 1. FINANCIAL STATEMENTS
        --------------------

MERRILL LYNCH PREFERRED CAPITAL TRUST V
BALANCE SHEETS (UNAUDITED)
(dollars in thousands, except per security amounts)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------


                                                                 JUNE 25, 1999             DECEMBER 25, 1998
                                                                 -------------             -----------------
ASSETS
<S>                                                             <C>                          <C>
Investment in partnership preferred securities                    $   876,300                  $    876,300

Income receivable                                                      15,949                        10,101
                                                                  -----------                  ------------

Total Assets                                                      $   892,249                  $    886,401
                                                                  ===========                  ============


LIABILITY AND STOCKHOLDERS' EQUITY

Distributions payable                                             $    15,949                  $     10,101
                                                                  -----------                  ------------

Stockholders' equity:

   Preferred securities (7.28% Trust Originated Preferred
      Securities; 34,000,000 authorized, issued, and
      outstanding; $25 liquidation amount per security)               850,000                       850,000

   Common securities (7.28% Trust Common Securities;
      1,052,000 authorized, issued, and outstanding;
      $25 liquidation amount per security)                             26,300                        26,300
                                                                  -----------                  ------------

   Total stockholders' equity                                         876,300                       876,300
                                                                  -----------                  ------------

   Total Liability and Stockholders' Equity                       $   892,249                  $    886,401
                                                                  ===========                  ============
</TABLE>


See Note to Financial Statements

                                       2
<PAGE>

MERRILL LYNCH PREFERRED CAPITAL TRUST V
STATEMENTS OF EARNINGS  (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------



                                                                                                   FOR THE THREE
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------
EARNINGS
<S>                                                                                             <C>
Income on partnership preferred securities                                                         $      15,949
                                                                                                   =============




                                                                                                    FOR THE SIX
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------
EARNINGS

Income on partnership preferred securities                                                         $      31,897
                                                                                                   =============
</TABLE>



See Note to Financial Statements

                                       3
<PAGE>

MERRILL LYNCH PREFERRED CAPITAL TRUST V
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY  (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------


                                                                                                    FOR THE SIX
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------
PREFERRED SECURITIES
<S>                                                                                                <C>
Balance, beginning and end of period                                                               $     850,000
                                                                                                   -------------
COMMON SECURITIES

Balance, beginning and end of period                                                               $      26,300
                                                                                                   -------------

UNDISTRIBUTED EARNINGS

Balance, beginning of period                                                                                -

Earnings                                                                                                  31,897

Distributions                                                                                            (15,948)

Distributions payable                                                                                    (15,949)
                                                                                                   -------------
Balance, end of period                                                                                      -
                                                                                                   -------------

Total Stockholders' Equity                                                                         $     876,300
                                                                                                   =============
</TABLE>

See Note to Financial Statements

                                       4
<PAGE>

MERRILL LYNCH PREFERRED CAPITAL TRUST V
STATEMENT OF CASH FLOWS  (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------


                                                                                                    FOR THE SIX
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                             <C>
   Earnings                                                                                         $     31,897

   Increase in income receivable                                                                          (5,848)
                                                                                                    ------------

      Cash provided by operating activities                                                               26,049
                                                                                                    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:

   Distributions                                                                                         (26,049)
                                                                                                    ------------
      Cash used for financing activities                                                                 (26,049)
                                                                                                    ------------

NET CHANGE IN CASH                                                                                          -

CASH, BEGINNING OF PERIOD                                                                                   -
                                                                                                    ------------

CASH, END OF PERIOD                                                                                 $       -
                                                                                                    ============
</TABLE>
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS
Preferred and common distributions of $15,470 and $479, respectively, were
accrued at June 25, 1999.


See Note to Financial Statements

                                       5
<PAGE>

MERRILL LYNCH PREFERRED CAPITAL TRUST V
NOTE TO FINANCIAL STATEMENTS  (UNAUDITED)
JUNE 25, 1999
--------------------------------------------------------------------------------


BASIS OF PRESENTATION

These unaudited financial statements should be read in conjunction with the
audited financial statements included in the Annual Report on Form 10-K of
Merrill Lynch Preferred Capital Trust V (the "Trust") for the year ended
December 25, 1998. The December 25, 1998 balance sheet was derived from the
audited financial statements. The interim financial statements for the three-
and six-month periods are unaudited; however, in the opinion of the Regular
Trustee of the Trust, all adjustments, consisting only of normal recurring
accruals necessary for a fair statement of the results of operations, have been
included.

                                       6
<PAGE>

MERRILL LYNCH PREFERRED FUNDING V, L.P.
BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------


                                                                     JUNE 25, 1999             DECEMBER 25, 1998
                                                                     -------------             -----------------
ASSETS
<S>                                                                <C>                         <C>
Cash                                                                  $          1                 $        -

Investments:
   Affiliate debentures                                                  1,020,640                     1,020,640
   U.S. Treasury bills                                                      10,384                        10,374
                                                                      ------------                 -------------
   Total investments                                                     1,031,024                     1,031,014

Interest receivable                                                         18,576                        11,765
                                                                      ------------                 -------------

Total Assets                                                          $  1,049,601                 $   1,042,779
                                                                      ============                 =============

LIABILITY AND PARTNERS' CAPITAL


Distributions payable                                                 $     18,576                 $      11,765
                                                                      ------------                 -------------

Partners' capital:
   Limited partnership interest                                            876,300                       876,300
   General partnership interest                                            154,725                       154,714
                                                                      ------------                 -------------
   Total partners' capital                                               1,031,025                     1,031,014
                                                                      ------------                 -------------

Total Liability and Partners' Capital                                 $  1,049,601                 $   1,042,779
                                                                      ============                 =============
</TABLE>

See Note to Financial Statements

                                       7

<PAGE>

MERRILL LYNCH PREFERRED FUNDING V, L.P.
STATEMENTS OF EARNINGS  (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------



                                                                                                   FOR THE THREE
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------
EARNINGS

Interest income:
<S>                                                                                                <C>
   Affiliate debentures                                                                            $      18,576
   U.S. Treasury bills                                                                                       119
                                                                                                   -------------

Earnings                                                                                           $      18,695
                                                                                                   =============




                                                                                                    FOR THE SIX
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------
EARNINGS

Interest income:
   Affiliate debentures                                                                            $      37,151
   U.S. Treasury bills                                                                                       238
                                                                                                   -------------

Earnings                                                                                           $      37,389
                                                                                                   =============

</TABLE>

See Note to Financial Statements

                                       8
<PAGE>

MERRILL LYNCH PREFERRED FUNDING V, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL  (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------


                                                                                                    FOR THE SIX
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------
LIMITED PARTNER'S CAPITAL
<S>                                                                                             <C>
Balance, beginning of period                                                                       $     876,300

Net income allocated to limited partner                                                                   31,897

Distributions                                                                                            (15,948)

Distributions payable                                                                                    (15,949)
                                                                                                   -------------
Balance, end of period                                                                                   876,300
                                                                                                   -------------


GENERAL PARTNER'S CAPITAL

Balance, beginning of period                                                                             154,714

Net income allocated to general partner                                                                    5,492

Distributions                                                                                             (2,854)

Distributions payable                                                                                     (2,627)

                                                                                                   -------------
Balance, end of period                                                                                   154,725
                                                                                                   -------------

TOTAL PARTNERS' CAPITAL                                                                            $   1,031,025
                                                                                                   =============
</TABLE>


See Note to Financial Statements

                                       9
<PAGE>

MERRILL LYNCH PREFERRED FUNDING V, L.P.
STATEMENT OF CASH FLOWS  (UNAUDITED)
(dollars in thousands)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------


                                                                                                    FOR THE SIX
                                                                                                    MONTHS ENDED
                                                                                                   JUNE 25, 1999
                                                                                                   -------------

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                                                             <C>
   Earnings                                                                                        $      37,389

   Accretion of U.S. Treasury bills                                                                         (238)

   Increase in interest receivable                                                                        (6,811)
                                                                                                   -------------
      Cash provided by operating activities                                                               30,340
                                                                                                   -------------

CASH FLOWS FROM INVESTING ACTIVITIES:

   Purchases of investment securities                                                                    (10,309)

   Maturities of investment securities                                                                    10,537
                                                                                                   -------------
      Cash provided by financing activities                                                                  228
                                                                                                   -------------
CASH FLOWS FROM FINANCING ACTIVITIES:

   Distributions to limited partner                                                                      (26,049)

   Distributions to general partner                                                                       (4,518)
                                                                                                   -------------
      Cash used for financing activities                                                                 (30,567)
                                                                                                   -------------
NET CHANGE IN CASH                                                                                             1

CASH, BEGINNING OF PERIOD                                                                                   -
                                                                                                   -------------

CASH, END OF PERIOD                                                                                $           1
                                                                                                   =============
</TABLE>

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS
Distributions of $18,576 were accrued at June 25, 1999.


See Note to Financial Statements

                                       10
<PAGE>

MERRILL LYNCH PREFERRED FUNDING V, L.P.
NOTE TO FINANCIAL STATEMENTS  (UNAUDITED)
JUNE 25, 1999
--------------------------------------------------------------------------------

BASIS OF PRESENTATION

These unaudited financial statements should be read in conjunction with the
audited financial statements included in the Annual Report on Form 10-K of
Merrill Lynch Preferred Funding V, L.P. (the "Partnership") for the year ended
December 25, 1998. The December 25, 1998 balance sheet was derived from the
audited financial statements. The interim financial statements for the three-
and six-month periods are unaudited; however, in the opinion of the General
Partner of the Partnership, all adjustments, consisting only of normal recurring
accruals necessary for a fair statement of the results of operations, have been
included.

                                       11
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

         Merrill Lynch Preferred Capital Trust V (the "Trust") is a statutory
business trust formed under the Delaware Business Trust Act, as amended,
pursuant to a declaration of trust and the filing of a certificate of trust with
the Secretary of State on January 8, 1998, which was subsequently amended by an
amended and restated declaration of trust dated as of October 29, 1998. The
Trust exists for the exclusive purposes of (i) issuing trust securities,
consisting of 7.28% Trust Originated Preferred Securities (the "TOPrS") and
trust common securities (the "Trust Common Securities"), representing undivided
beneficial ownership interests in the assets of the Trust, (ii) investing the
gross proceeds of the trust securities in 7.28% Partnership Preferred Securities
(the "Partnership Preferred Securities") issued by Merrill Lynch Preferred
Funding V, L.P. (the "Partnership"), and (iii) engaging in only those other
activities necessary or incidental thereto.

         The Partnership is a limited partnership formed under the Delaware
Revised Uniform Limited Partnership Act, as amended, pursuant to an agreement of
limited partnership and the filing of a certificate of limited partnership with
the Secretary of State on January 8, 1998, which was subsequently amended by an
amended and restated agreement of limited partnership dated November 3, 1998.
Merrill Lynch & Co., Inc. (the "Company") is the sole general partner of the
Partnership. The Partnership is managed by the general partner and exists for
the exclusive purposes of (i) issuing its partnership interests, consisting of
the Company's general partner interest and the Partnership Preferred Securities,
(ii) investing the proceeds thereof in certain eligible securities of the
Company and wholly owned subsidiaries of the Company (the "Affiliate Investment
Instruments") and certain eligible debt securities, and (iii) engaging in only
those other activities necessary or incidental thereto.

         The Registrants' activities are limited to issuing securities and
investing the proceeds as described above. Since the Trust was organized on
January 8, 1998, its activities, as specified in its declaration of trust, have
been limited to the issuance of the TOPrS and the Trust Common Securities, the
investing of the proceeds in the Partnership Preferred Securities, and the
payment of distributions on the TOPrS and the Trust Common Securities in
accordance with their terms. Since the Partnership was organized on January 8,
1998, its activities, as specified in its agreement of limited partnership, have
been limited to the issuance of the Partnership Preferred Securities, the
receipt of a capital contribution from the Company, as general partner, the
investment of the proceeds in Affiliate Investment Instruments and certain
eligible debt securities, and the payment of distributions on the Partnership
Preferred Securities.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

         On November 3, 1998, the Trust invested the gross proceeds from the
sale of the Trust Common Securities and the TOPrS in the Partnership Preferred
Securities (the "Trust Assets"). The Partnership, in turn, invested the proceeds
from the sale of the Partnership Preferred Securities and a capital contribution
from the Company in certain Affiliate Investment Instruments and eligible
securities (the "Partnership Assets"). To the extent the Partnership has funds
available from the Partnership Assets, the general partner of the Partnership
may declare distributions to the Trust, as holder of the Partnership Preferred
Securities. The Trust's ability to pay distributions to the holders of the TOPrS
is dependent on its receipt of distributions on the Trust Assets from the
Partnership. Therefore, upon the receipt by the Partnership of payments from the
Partnership Assets and the distribution thereof to the Trust, the Trust will
pass through such payments to the holders of the TOPrS.


                                      12
<PAGE>

                          PART II - OTHER INFORMATION


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
        --------------------------------

(a)     Exhibits

        12    Computation of Ratios of Earnings to Combined Fixed Charges and
              Preferred Securities Distributions

        27    Financial Data Schedules*


 (b)    Reports on Form 8-K

        None.


-------------------

* The Financial Data Schedules to be contained in Exhibit 27 are required to be
submitted only in the Registrants' electronic filing of this Form 10-Q by means
of the EDGAR system.



                                      13
<PAGE>

                                  SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrants have duly caused this report to be signed on their
behalf by the undersigned, thereunto duly authorized on the 6th day of August,
1999.


                            MERRILL LYNCH PREFERRED CAPITAL TRUST V*


                            By: /s/ STANLEY SCHAEFER
                                ---------------------------------------------
                            Name:   Stanley Schaefer
                            Title:  Regular Trustee


                            MERRILL LYNCH PREFERRED FUNDING V, L.P.*


                            By: MERRILL LYNCH & CO., INC., as General Partner


                            By: /s/ JOHN C. STOMBER
                                ---------------------------------------------
                            Name:   John C. Stomber
                            Title:  Senior Vice President and Treasurer


------------
*    There is no principal executive officer(s), principal financial officer,
     controller, principal accounting officer or board of directors of the
     Registrants. The Trustees of the Trust (which include the Regular Trustee,
     the Property Trustee and the Delaware Trustee) together exercise all powers
     and perform all functions with respect to the Trust.


                                      14
<PAGE>

                               INDEX TO EXHIBITS

EXHIBITS

12    Computation of Ratios of Earnings to Combined Fixed Charges and Preferred
      Securities Distributions

27    Financial Data Schedules



                                      15