**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, 2007

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: 333-135656-04,            001-33639

STRATS(SM) Trust for BNSF Funding Trust I Securities, Series            2007-2

______________________________________________________

(Exact name of issuing entity as specified in its charter)

Commission File Number of depositor and sponsor: 333-131889,            001-31818

Synthetic Fixed-Income Securities, Inc.

______________________________________________________

(Exact name of depositor and sponsor as specified in its            charter)

| Delaware                                                                       | 52-2316339                           |
|--------------------------------------------------------------------------------|--------------------------------------|
| (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)                           |
|                                                                           |                                 |

Registrant's telephone number, including area code: (704)            715-8400

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

| Title of each class                    | Name of Registered exchange on which                            registered |
|----------------------------------------|----------------------------------------------------------------------------|
|                                   |                                                                       |
| STRATS(SM) Certificates, Series 2007-2 | New York Stock Exchange ("NYSE")                                           |

 

 

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| 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.

| YesoNo                              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.

YesoNox

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.

YesxNoo

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 acceleraed filero | Accelerated filero | Non- accelerated filerx |
|-------------------------|--------------------|-------------------------|

Indicate by check mark whether the registrant is a shell company (as            defined in Rule 12b-2 of the Act).

YesoNox

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 10-D during the            fiscal year, in lieu of reports on Form 10-Q, which include the reports filed on            Form 10-D listed in Item 15(a) hereto.

**Introductory Note**

Synthetic Fixed-Income Securities, Inc. (the "Depositor") is the            Depositor in respect of the STRATS(SM) Trust for BNSF Funding Trust I Securities,            Series 2007-2 (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(SM)            Certificates Series Supplement 2007-2 (the "Series Supplement") dated as of July 31,            2007 in respect of the Trust. The Trust's assets consist solely of notes issued by News            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 10-D in lieu of reports on            Form 10-Q.

 

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BNSF            Funding Trust I, 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 BNSF Funding Trust I, please see its periodic and current reports filed            with the Securities and Exchange Commission (the "Commission") under its Exchange Act            file number, 001-11535. 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 BNSF Funding Trust I 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 (800) SEC-0330 for further information on the            operation of the SEC's public reference rooms. In addition, such reports and other            information can be inspected at the offices of the New York Stock Exchange at 20 Broad            Street, New York, New York 10005. 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.

 

 

 

 

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

 

 

Item 1B. Unresolved Staff            Comments.

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 and Executive Officers of the Registrant.

Item            11. Executive Compensation.

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

Item            13. Certain Relationships and Related Transactions.

Item            14. Principal Accounting Fees and Services.

 

 

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**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, $33,000,000 of 6.613% corporate bonds due                            December 15, 2055 issued by BNSF Funding Trust I and unconditionally                            guaranteed by Burlington Northern Santa Fe Corporation and certain of                            its subsidiaries. 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, 001-11535.

                              |
| **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.**                                                                                                                                                                                                                |
| Based on the standards set forth in Item 1117 of                            Regulation AB no information is required in response to this                            Item.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **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(SM) Trust for BNSF                            Funding Trust I Securities, Series 2007-2. 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                            March 28, 2008 and for a period beginning January 1, 2007 through                            and including December 31, 2007, 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, 2007 through and including                            December 31, 2007, 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

 

 

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**PART IV**

Item 15. Exhibits, Financial Statement            Schedules.

| (a)    |        | The following documents have been filed as part of this                            report.                                                                                                                                                                                                                                                                                                                                |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1.     | The Trust made no distributions to certificateholders                            for the period from January 1, 2007 through and including December 31,                            2007. Therefore no reports on Form 10-D have been filed with the                            Securities and Exchange Commission for the period from January 1, 2007                            through and including December 31, 2007. |
|   | 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, 2007 through and including                            December 31, 2007.                                                                                                                              |
|   |   | 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,                            2007 through and including December 31, 2007.                                                                                                                                                                                       |
|   |   | 99.1 - Registrant's Current Report on Form 10-D filed                            with the Securities and Exchange Commission on January 28, 2008 is                            incorporated herein by reference. The filing date is listed                            below:                                                                                                                                              |

             

| Trust Description                                                                              | Distribution Date | Filed on         |
|------------------------------------------------------------------------------------------------|-------------------|------------------|
| STRATS(SM) Trust for BNSF Funding Trust I Securities,                            Series 2007-2 | January 15, 2008  | January 28, 2008 |

 

| (b) |   | See Item 15(a) above. |
|-----|--------|----------------------------|
| (c) |   | Not Applicable.            |

             

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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/ James                            Whang                  Name: James WhangTitle: Director |
|                  | (senior officer in charge of the securitizations of the                            depositor)                                                                                              |
|                  |                                                                                                                                                                                       |
| Dated: March 28, 2008 |                                                                                                                                                                                       |

 

 

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**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, 2007 through and including December 31,                            2007.    |
| 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, 2007                            through and including December 31, 2007.                                                             |
| 99.1                                  | Registrant's Current Report on Form 10-D filed with the                            Securities and Exchange Commission on January 28, 2008, as further                            described in Item 15(a)(1) above, is incorporated herein by                            reference. |

 

 

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