UNITED
STATES

SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C.
20549



| | FORM
    10-K | 
| | ------------- | 



|☒ | ANNUAL
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016        
|- | --------------------------------------------------------------------------------------------------------------------------------------------
| 
| 
|  | OR                                                                                                                                          
|  |                                                                                                                                             
|☐ | 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:     001-32867Central Index Key Number of issuing entity:0001357660STRATS TRUST FOR ALLSTATE CORPORATION SECURITIES, SERIES 2006-3(Exact name of issuing entity as specified in its charter)

Commission
File Number of depositor and sponsor:   001-31818Central Index Key Number of depositor and sponsor:  0001140396SYNTHETIC FIXED-INCOME SECURITIES, INC.(Exact name of depositor and sponsor as specified in its charter)



|New York(State of incorporation or organizationof the issuing entity)                                        | 26-6115117(IRS Employer Identification No.)
|------------------------------------------------------------------------------------------------------------ | -------------------------------------------
|                                                                                                             |                                            
|One Wells Fargo Center301 S. College StreetCharlotte, North Carolina(Address of principal executive offices) | 28288(Zip Code)                            
|                                                                                                             |                                            

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



|Title of Class                     |  |                                  | Name of Registered Exchange | 
|---------------------------------- |  | -------------------------------- | --------------------------- | 
|                                   |  |                                 
|STRATS Certificates, Series 2006-3 |  | New York Stock Exchange (“NYSE”)



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



Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act.

☐  Yes
☒ No



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 ☒ No



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 ☐ No



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 ☐ No



Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) 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.

☐



Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of “large
accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange
Act.





|Large accelerated filer ☐ | Accelerated filer ☐ | Non-accelerated filer ☒ | Smaller Reporting Company ☐
|------------------------- | ------------------- | ----------------------- | ---------------------------



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

☐
Yes ☒ No



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.



Not applicable.



DOCUMENTS INCORPORATED BY REFERENCE



List hereunder the following documents if incorporated
by reference and the part of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is incorporated: (1) Any annual
report to security holders; (2) Any proxy information statement; and, (3) Any prospectus filed pursuant to Rule 424(b) or (c) under
the Securities Act of 1933. The listed documents should be clearly described for identification purposes (e.g., annual report to
security holders for fiscal year ended December 24, 1980).



None.


















PART I



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



Item 1. Business.



Item IA. 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 Disagreement 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.



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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 Accountant Fees and Services.



Substitute information provided in accordance with General Instruction
J to Form 10-K:



Item 1112(b) of Regulation AB. Significant Obligors of Pool Assets (Financial
Information).



The Allstate Corporation, 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 Allstate Corporation please see its periodic and current reports filed with the Securities and Exchange
Commission (the “Commission”) under its Exchange Act file number, 001-11840. 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 The
Allstate Corporation may be accessed on this site. 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.



Item 1114(b)(2) of Regulation AB. Credit Enhancement and Other Support,
Except for Certain Derivatives Instruments (Financial Information).



None.



Item 1115(b) of Regulation AB. Certain Derivatives Instruments (Financial
Information).



None.



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.



In accordance with the Instruction to Item 1119, affiliations
and certain relationships and related transactions are described below in response to this item.



Wells Fargo Bank, National Association (“Wells Fargo
Bank”), as successor to Wachovia Bank, National Association, is the “Swap Counterparty” with respect to its obligations
under the ISDA Master Agreement including the Schedule thereto and a confirmation thereunder, by and among the Swap Counterparty
and the issuing entity, dated as of April 28, 2006. Wells Fargo Bank is an affiliate of Synthetic Fixed-Income Securities, Inc.,
the sponsor of the issuing entity and the depositor of the issuing entity and Wells Fargo Securities, LLC (formerly known as Wachovia
Capital Markets, LLC), who acted as an underwriter of the Certificates issued by the issuing entity.





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The Trustee is unaffiliated with, but may have normal banking
relationships with, the sponsor, the depositor and their respective affiliates.



Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria.



The Trustee has been identified as a party participating
in the servicing function during the reporting period with respect to the pool assets held by the issuing entity. The Trustee’s
report on an assessment of compliance with the servicing criteria applicable to it during the Issuing Entity’s fiscal year
ending December 31, 2016 and an attestation report by a registered independent public accounting firm regarding the Trustee’s
related report on assessment are attached as exhibits 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 the Trustee.



Item 1123 of Regulation AB. Servicer Compliance Statement.



The Trustee has provided a compliance statement, signed
by an authorized officer, attached as an exhibit to this Form 10-K.



PART IV



Item 15. Exhibits, Financial Statement Schedules.



| | (a) | List of Documents Filed as Part of this Report
| | --- | ----------------------------------------------



| | (1) | Not Applicable.
| | --- | ---------------



| | (2) | Not Applicable.
| | --- | ---------------



| | (3) | See Item 15 (b), below.
| | --- | -----------------------



| | (b) | Exhibits Required by Item 601 of Regulation S-K.
| | --- | ------------------------------------------------



| | 31.1 | Rule 13a-14/15d-14 Certification (Section 302 Certification).
| | ---- | -------------------------------------------------------------

| | 33.1 | Report on Assessment of Compliance with Applicable Servicing Criteria of The Bank of New York Mellon for the year ended December
31, 2016.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------

| | 34.1 | Independent Accountants’ Attestation Report concerning servicing activities of The Bank of New York Mellon for the year
ended December 31, 2016.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------

| | 35.1 | Compliance Statement of The Bank of New York Mellon for the year ended December 31, 2016.
| | ---- | -----------------------------------------------------------------------------------------

| | (c) | Omitted.
| | --- | --------





4







SIGNATURES



Pursuant to the requirements of Section 13 or 15(d)
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.



|                      | Synthetic Fixed-Income Securities, Inc.

(Depositor)
|--------------------- | ----------------------------------------------------
|                      |                                                     
|Dated: March 31, 2017 | By:                                                 
|                      |                                                     
|                      |                                                     
|                      |                                                     











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EXHIBIT INDEX



|EXHIBIT | DESCRIPTION                                                                                                                                     
|------- | ------------------------------------------------------------------------------------------------------------------------------------------------
|        |                                                                                                                                                 
|31.1    | Rule 13a-14/15d-14 Certification (Section 302 Certification).                                                                                   
|        |                                                                                                                                                 
|33.1    | Report on Assessment of Compliance with Applicable Servicing Criteria of The Bank of New York Mellon for the year ended December 31, 2016.      
|        |                                                                                                                                                 
|34.1    | Independent Accountants’ Attestation Report concerning servicing activities of The Bank of New York Mellon for the year ended December 31, 2016.
|        |                                                                                                                                                 
|35.1    | Servicer Compliance Statement of The Bank of New York Mellon for the year ended December 31, 2016.                                              





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