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

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

| New York                                                      | 20-7474289                           |
|---------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporationor organization) | (I.R.S. Employer Identification No.) |
|                                                          |                                 |
|                                                          |                                 |
| 301 South College Street, Charlotte, North Carolina           | 28288                                |
| (Address of principal executive offices)                      | (Zip Code)                           |
|                                                          |                                 |

| Title of each class                    | Name of Registered exchange on which registered |
|----------------------------------------|-------------------------------------------------|
|                                   |                                            |
| STRATS(SM) Certificates, Series 2007-1 | New York Stock Exchange (“NYSE”)    |

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| Item 15. Exhibits, Financial Statement Schedules. |   |                                                            |
|---------------------------------------------------|--------|-----------------------------------------------------------------|
|                                              |   |                                                            |   |
|                                              | (a)    | The following documents have been filed as part of this report. |   |
|                                              |   |                                                            |   |
|                                              |   | 1.                                                              | Trustee’s Distribution Statements documented on Form 10-D of STRATS(SM) Trust for AMBAC Financial Group, Inc. Securities, Series 2007-1 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 on          |
|----------------------------------------------------------------------------|-------------------------|-------------------|
| STRATS(SM) Trust for AMBAC Financial Group, Inc. Securities, Series 2007-1 | February 15, 2008  | February 28, 2008 |
| STRATS(SM) Trust for AMBAC Financial Group, Inc. Securities, Series 2007-1 | August 15, 2008    | August 29, 2008   |

|   |   | 2.     | None                                                                                                                                                                                                          |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                          |
|   |   | 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.                                  |
|   |   |   |                                                                                                                                                                                                          |
|   |   |   | 33.1 – Report on Assessment of Compliance with Servicing Criteria for U.S. Bank Trust National Association for the period from and including January 1, 2008 through and including December 31, 2008.*  |
|   |   |   |                                                                                                                                                                                                          |
|   |   |   | 34.1 – Attestation Report of Ernst & Young LLP on Assessment of Compliance with Servicing Criteria relating to U.S. Bank Trust National Association.*                                               |
|   |   |   |                                                                                                                                                                                                          |
|   |   |   | 35.1 – Servicer Compliance Statement of U.S. Bank Trust National Association for the period from and including January 1, 2008 through and including December 31, 2008.*                                |
|   |   |   |                                                                                                                                                                                                          |
|   |   |   | 99.1 - Registrant’s Current Report on Form 10-D filed with the Securities and Exchange Commission on February 27, 2009 is incorporated herein by reference.  The filing date is listed below: |

| Trust Description                                                          | Distribution Date       | Filed on          |
|----------------------------------------------------------------------------|-------------------------|-------------------|
| STRATS(SM) Trust for AMBAC Financial Group, Inc. Securities, Series 2007-1 | February 15, 2009  | February 27, 2009 |

|   |   |   | 99.2 - Registrant’s Current Report on Form 10-D filed with the Securities and Exchange Commission on August 29, 2008, as further described in Item 15(a)(1) above, is incorporated herein by reference. |
|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   |                       | 99.3 - Registrant’s Current Report on Form 10-D filed with the Securities and Exchange Commission on February 28, 2008, as further described in Item 15(a)(1) above, is incorporated herein by reference. |
|--------|--------|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                       |                                                                                                                                                                                                            |
|   | (b)    | See Item 15(a) above. |                                                                                                                                                                                                            |
|   |   |                       |                                                                                                                                                                                                            |
|   | (c)    | Not Applicable.            |

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|   |  Synthetic Fixed-Income Securities, Inc.,                            |                                            |   |
|--------|---------------------------------------------------------------------------|-------------------------------------------------|--------|
|   |  as Depositor for the Trust                                          |                                            |   |
|   |                                                                      |                                            |   |
|   |                                                                      |                                            |   |
|   |  By:                                                       |      /s/ William Threadgill |   |   |
|   |  Name:  William Threadgill                                      |                                            |   |
|   |  Title:     President                       |                                            |   |
|   |                                                                      |                                            |   |
|   |   (senior officer in charge of the securitizations of the depositor) |

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|  ExhibitNumber in thisForm 10-K | Description of 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.                                   |
| 33.1                                      | Report on Assessment of Compliance with Servicing Criteria for U.S. Bank Trust National Association for the period from and including January 1, 2008 through and including December 31, 2008.*   |
| 34.1                                      | Attestation Report of Ernst & Young LLP on Assessment of Compliance with Servicing Criteria relating to U.S. Bank Trust National Association.*                                                |
| 35.1                                      | Servicer Compliance Statement of U.S. Bank Trust National Association for the period from and including January 1, 2008 through and including December 31, 2008.*                                 |
| 99.1                                      | Registrant’s Current Report on Form 10-D filed with the Securities and Exchange Commission on February 27, 2009 is incorporated herein by reference.                                        |
| 99.2                                      | Registrant’s Current Report on Form 10-D filed with the Securities and Exchange Commission on August 29, 2008 is incorporated herein by reference.                                          |