UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

~~WASHINGTON~~Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

~~PURSUANT~~Pursuant TOto ~~SECTION~~ Section 13 ORor 15(Dd) OFof ~~THE SECURITIES EXCHANGE ACT OF 1934~~the

~~Date~~Securities ofExchange ~~Report~~Act ~~(Date~~ of ~~earliest event reported): October 25, 2012~~1934

~~STRATS~~Date of report (~~SM)~~Date ~~TRUST~~of ~~FOR~~earliest ~~IBM~~event ~~CORPORATION~~reported): October ~~SECURITIES~~29, 2012

~~SERIES~~SYNTHETIC ~~2004~~FIXED-7 INCOME SECURITIES, INC. ON BEHALF OF:

~~(Exact~~STRATSSM ~~name~~TRUST ofFOR ~~Registrant~~IBM asCORPORATION ~~specified~~SECURITIES, inSERIES ~~its charter)~~2004-7

~~SYNTHETIC~~(Exact ~~FIXED-INCOME~~Name ~~SECURITIES,~~of ~~INC.~~ Registrant as Specified in Its Charter)

(Exact name of Sponsor and Depositor as specified in its charter)

Delaware	333-111858-02 001-32232	52-2316339
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
Synthetic Fixed-Income Securities, Inc. 301 South College Charlotte, North Carolina		28288
(Address of Principal Executive Offices)		(Zip Code)

	333-111858-02
Delaware	001-32232	52-2316339
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

Registrant’s telephone number, including area code: (212) 214-6282

	Synthetic Fixed-Income Securities, Inc.
	301 S. College St.
	Charlotte, North Carolina	28288
	(Address of principal executive offices)	(zip code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any following provisions (see General Instruction A.2. below):

Registrant’s telephone number, including area code: 212-214-6282

Not Applicable

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))

[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

The ~~STRATS(SM)~~STRATSSM TRUST FOR IBM CORPORATION SECURITIES, SERIES 2004-7, which we refer to herein as the “Trust,” was formed pursuant to the Base Trust Agreement, dated as of September 26, 2003, between Synthetic Fixed-Income Securities, Inc., as depositor, and U.S. Bank Trust National Association, as trustee and securities intermediary, as supplemented by the ~~STRATS(SM)~~STRATSSM Certificates Series Supplement 2004-7 in respect of the Trust dated as of June 15, 2004.

Item 8.01 ~~Other Events~~. OTHER EVENTS

On October 1829, 2012, ~~Standard~~distribution ~~& Poor’s Ratings Services (“Standard & Poor’s) announced that it~~ was ~~updating~~made ~~its~~to ~~rating~~the ~~methodology~~holders ~~for repackaged securities, effective immediately. As a result~~ of ~~this change, Standard & Poor’s announced on October 25, 2012 that it has withdrawn its rating assigned to~~ the ~~Floating~~ ~~Rate~~certificates ~~Structured Repackaged Asset-Backed Trust Securities (STRATS(SM) Certificates, Series 2004-7)~~ issued by ~~STRATS(SM) Trust for IBM Corporation Securities Series 2004-7 (~~the ~~“Certificates”)~~Trust. ~~Standard~~Specific ~~and~~information ~~Poor’s indicated that the rating assigned to the Certificates was being withdrawn because a redemption of the Certificates together~~ with a ~~termination~~respect ~~of the Swap Agreement (either in whole or proportionately) in which termination payments are owed~~ to the ~~Swap~~distribution ~~Counterparty~~is ~~could~~filed ~~result~~as inExhibit ~~payment shortfalls to holders of the Certificates~~99. ~~The~~1 ratings action was specific to this feature of the Certificates and did not address, and to our knowledge the ratings action does not relate to or affect, Standard & Poor’s existing ratings of the Underlying Securities or the Swap Counterpartyhereto.

~~The~~No ~~withdrawal~~other ofreportable ~~the~~transactions ~~rating previously assigned to the Certificates does not constitute a termination event under the terms of the Certificates~~ or ~~the~~matters ~~Swap Agreement; however, the withdrawal of the rating may~~ have aoccurred ~~material~~during ~~adverse effect on~~ the ~~secondary~~current ~~market~~reporting price and liquidity of the Certificates. Many institutional investors prefer or are required to invest in securities assigned particular ratings. If a significant amount of the Certificates are held by such investors, the withdrawal of the rating previously assigned to the Certificates may cause these investors to sell their Certificates within a limited period ~~of time~~. In these circumstances, the market price of the Certificates may be adversely affected, and prospective sellers of the Certificates may be unable to sell their Certificates at the prices at which their Certificates were acquired or, in some cases, may be unable to find a buyer for their Certificates at any price.

~~SIGNATURES~~International Business Machines Corporation (“IBM”), the issuer of the underlying securities, is subject to the information reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Securities and Exchange Commission (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.” For information on IBM please see its periodic and current reports filed with the Commission under its Exchange Act file number 001-02360. 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.

~~Pursuant~~Item to9.01. ~~the~~FINANCIAL ~~requirements~~STATEMENTS ofAND ~~the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.~~EXHIBITS

	Synthetic Fixed-Income Securities, Inc.
Date: October 26, 2012	By: /s/ Barbara Garafalo
	Name: Barbara Garafalo
	Title: Vice President

(c)

The following exhibit is filed as part of this report:


	99.1	Trustee’s Distribution Statement to the STRATSSM Certificates, Series 2004-7 for October 29, 2012 Scheduled Distribution Date.

SIGNATURE

Pursuant to the requirements 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.

	By:	/s/ Barbara Garafalo

	Name:	Barbara Garafalo
	Title:	Vice President

Date: October 29, 2012

EXHIBIT INDEX

Exhibit Number	Description

99.1	Trustee’s Distribution Statement to the STRATSSM Certificates, Series 2004-7 for October 29, 2012 Scheduled Distribution Date.

Filing Compare · STRATS SM TRUST FOR IBM CORP SEC SERIES 2004-7