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,
2014
|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 Number of issuing entity:
001-33605                    | 
| | ---------------------------------------------------------------------- | 
| | STRATS Trust for AMBAC Financial Group,
Inc. Securities, Series 2007-1 | 
| | (Exact name of issuing entity as specified in its charter)             | 
| |                                                                        | 
| | Commission File Number of depositor and
sponsor: 001-31818             | 
| | Synthetic Fixed-Income Securities, Inc.                                | 
| | (Exact name of depositor and sponsor as specified in its charter)      | 
| |                                                                        | 



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

Registrants telephone number, including area code: (212)
214-6277



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



|Title of each class                | Name of Registered exchange on which registered
|---------------------------------- | -----------------------------------------------
|                                   |                                                
|STRATS Certificates, Series 2007-1 | New York Stock Exchange                        



1









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 whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files).
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, a non-accelerated filer, or a smaller reporting company. See the definition of large accelerated
filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.



Large accelerated filer o      Accelerated filer o      Non- accelerated filer x      Smaller reporting company o



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



None.



Introductory Note



Synthetic Fixed-Income Securities, Inc. (the Depositor)
is the Depositor in respect of the STRATS Trust for AMBAC Financial Group, Inc. Securities, Series 2007-1 (the Trust),
a common law trust formed pursuant to the Base Trust Agreement, dated as of September 8, 2006, between the Depositor and U.S. Bank
Trust National Association, as trustee (the Trustee), as supplemented by the STRATS Certificates Series Supplement
2007-1 (the Series Supplement) dated as of July 16, 2007 in respect of the Trust. The Trusts assets consist
solely of DISCS issued by Ambac Financial Group Inc. The Certificates do not represent obligations of or interests in the Depositor
or the Trustee.

2







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 10-D in lieu of reports on Form 10-Q. AMBAC Financial Group,
Inc., the issuer of the underlying securities, is subject to the information reporting requirements of the Securities Exchange
Act of 1934 (the Exchange Act). For information on AMBAC Financial Group, Inc. please see its periodic and current
reports filed with the Securities and Exchange Commission (the Commission) under its Exchange Act file number, 001-10777.
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. Periodic and current reports and other information required to be filed
pursuant to the Exchange Act by AMBAC Financial Group, Inc. may be accessed on this site. You can request copies of these documents,
upon payment of a duplicating fee, by writing to the SEC. The public may read and copy any materials filed with the Commission
at the Commissions Public Reference Room at 100 F Street, NE, Washington, DC 20549. The public may obtain information on
the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330.  Please call the SEC at 1-800-SEC-0330
for further information on the operation of the SECs public reference rooms. 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.



3









PART I



The following Items have been omitted in accordance with
General Instruction J to Form 10-K:



Item 1. Business.



Item 1A. Risk Factors.



Item 2. Properties.



Item 3. Legal Proceedings.



Item 1B. Unresolved Staff Comments.



Not Applicable.



Item 4. Mine Safety Disclosures.



Not Applicable.



PART II



The following Items have been omitted in accordance with
General Instruction J to Form 10-K:



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



Item 6. Selected Financial Data.



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



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



Item 8. Financial Statements and Supplementary Data.



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



Item 9A. Controls and Procedures.



Item 9B. Other Information.



None.



PART III



The following Items have been omitted in accordance with
General Instruction J to Form 10-K:



Item 10. Directors, Executive Officers and Corporate Governance.



Item 11. Executive Compensation.



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



Item 13. Certain Relationships and Related Transactions, and
Director Independence.



Item 14. Principal Accounting Fees and Services.



4









SUBSTITUTE INFORMATION PROVIDED IN ACCORDANCE
WITH GENERAL INSTRUCTION J(2) TO FORM 10-K.



|Item 1112(b) of Regulation AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Significant Obligors of Pool Assets (Financial Information).                                                                                                                     
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The primary asset of the issuing entity is the underlying securities,
        $37,500,000 of 6.15% DISCS due February 15, 2037 issued by AMBAC Financial Group, Inc. The issuer of the underlying securities,
        therefore, may be considered a significant obligor. The issuer of the underlying securities is subject to the information reporting
        requirements of the Securities Exchange Act of 1934 (the Exchange Act). For information on the issuer of the underlying
        securities please see its periodic and current reports filed with the Securities and Exchange Commission (the Commission)
        under its Exchange Act file number, 001-10777.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Item 1114(b)(2) of Regulation AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Credit Enhancement and Other Support, Except for
Certain Derivatives
        Instruments (Information Regarding Significant Enhancement
        Providers Financial Information).
|Based on the standards set forth in Item 1114(b)(2) of Regulation AB, no information is required in response to this Item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Item 1115(b) of Regulation AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Certain Derivatives Instruments (Financial Information).                                                                                                                         
|Based on the standards set forth in Item 1115(b) of Regulation AB, no information is required in response to this Item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Item 1117 of Regulation AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Legal Proceedings.                                                                                                                                                               
|There are no legal proceedings pending, or any proceedings known to be contemplated, by governmental authorities against the depositor, the Trustee or the issuing entity, or any property thereof, that is material to the holders of the Certificates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Item 1119 of Regulation AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Affiliations and Certain Relationships and Related Transactions.                                                                                                                 
|Based on the standards set forth in Item 1119 of Regulation AB, no information is required in response to this Item.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Item 1122 of Regulation AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Compliance with Applicable Servicing Criteria                                                                                                                                    
|U.S. Bank Trust National Association has been identified by
        the registrant as a party participating in the servicing function with respect to the pool assets held by STRATS Trust for AMBAC
        Financial Group, Inc. Securities, Series 2007-1. U.S. Bank Trust National Association has completed a report on an assessment of
        compliance with the servicing criteria applicable (the Report on Assessment) as of February [ ], 2015 and for a period
        beginning January 1, 2014 through and including December 31, 2014, which Report on Assessment is attached as an exhibit to this
        Form 10-K. In addition, U.S. Bank Trust National Association has provided an attestation report (the Attestation Report)
        by a registered independent public accounting firm regarding its related Report on Assessment. The Attestation Report is attached
        as an exhibit to this Form 10-K. Neither the Report on Assessment or the related Attestation Report has identified any material
        instances of noncompliance with the servicing criteria described in the Report on Assessment as being applicable to U.S. Bank Trust
        National Association.
|Item 1123 of Regulation AB.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Servicer Compliance Statement.                                                                                                                                                   
|U.S. Bank Trust National Association has provided a statement of compliance (the Compliance Statement) for the period from and including January 1, 2014 through and including December 31, 2014, which has been signed by an authorized officer of U.S. Bank Trust National Association. The Compliance Statement of U.S. Bank Trust National Association is attached as an exhibit to this Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



5





PART IV



Item 15. Exhibits, Financial Statement Schedules.



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



1.	None.



| | 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, 2014 through and including December 31, 2014.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 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,
2014 through and including December 31, 2014.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



(b)	See Item 15(a) above.



(c)	Not Applicable.



6





SIGNATURE



Pursuant to the requirements of Section
13 or 15(d) 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/ Barbara Garafalo
Name: Barbara Garafalo
Title: Vice President



(senior officer in charge of the securitizations
of the depositor)



Dated: March 31, 2015



7









EXHIBIT INDEX



|Exhibit Number in this Form 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, 2014 through and including December 31, 2014.
|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, 2014 through and including December 31, 2014.                              



8