UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): ~~May~~March 313, ~~2013~~2014

STRATSSM Trust for Ambac Financial Group, Inc. Securities, Series 2007-1

________________________________________

(Exact name of Registrant as specified in its charter)

Synthetic Fixed-Income Securities, Inc.

________________________________________

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

Delaware		001-33605		52-2316339
(State or other jurisdiction of incorporation		(Commission File Number)		(IRS Employer Identification No.)

Synthetic Fixed-Income Securities, Inc. 301 South College Charlotte, North Carolina		28288
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 212-214-6277

	No Change
	(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 under the Exchange Act (17 CFR 240.14a-12)

[ ] 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))

Section 8 - Other Events

Item 8.01 Other Events.

On ~~November~~October 819, ~~2010~~2011, U.S. Bank Trust National Association, as trustee (in such capacity, the “Trustee”) on behalf of the STRATSSM Trust for Ambac Financial Group, Inc. Securities, Series 2007-1 (the “~~Ambac~~Trust”) ~~filed~~submitted ~~for~~ a ~~voluntary~~Proof ~~petition~~of ~~for~~Claim ~~relief~~and ~~under~~Release ~~Chapter~~(the 11“Trust ofClaim”) ~~the~~in ~~United~~connection ~~States~~with ~~Bankruptcy~~the ~~Code. Pursuant~~In tore ~~its~~Ambac ~~First~~Financial ~~Modified~~Group ~~Fifth~~Inc. ~~Amended~~Securities ~~Plan~~Litigation ofclass ~~Reorganization~~action lawsuit (the “~~Plan~~Ambac Securities Litigation”), ~~effective~~in aswhich the issuer of ~~May~~the 1,Underlying ~~2013~~Securities was a defendant, ~~Ambac~~and ~~emerged~~the ~~from~~resulting ~~bankruptcy~~settlement onof ~~May~~the 1,Ambac ~~2013~~Securities Litigation. AnOn ~~electronic~~November ~~copy~~15, of2013, the ~~Plan~~United isStates ~~available~~District ~~free~~Court offor ~~cost~~the atSouthern ~~http://www.kccllc.net/Ambac. For~~District ~~further~~of ~~information~~New onYork ~~Ambac~~issued ~~please~~an ~~see~~order ~~its~~approving ~~periodic~~the ~~and~~distribution ~~current~~plan ~~reports~~for ~~under~~the ~~its~~funds ~~Exchange~~awarded ~~Act~~to ~~file~~the ~~number,~~class ~~001-10777,~~members ~~filed~~in ~~with~~ the ~~Securities~~settlement ~~and~~of ~~Exchange~~the ~~Commission~~Ambac atSecurities ~~http://www~~Litigation.~~sec.gov.~~ AtOn ~~the~~February ~~time~~21, 2014, the ~~electronic~~Trust ~~version~~received offunds ~~this~~in ~~report was prepared,~~ the ~~uniform~~amount ~~resource~~of ~~locators~~$1,455,843.66 or(the ~~URLs,~~“Initial inTrust ~~this~~Award”) ~~paragraph~~relating ~~were~~to ~~included~~the ~~as,~~Trust ~~and~~Claim ~~were~~in ~~intended~~the tosettlement ~~remain,~~of ~~inactive~~the ~~textual~~Ambac ~~references~~Securities ~~only~~Litigation.

~~Under~~On ~~the~~March ~~Plan~~11, 632014,~~281~~ ~~shares of new common stock of Ambac (~~the ~~“Shares”)~~Trustee ~~and~~issued ~~469,192~~a ~~warrants~~notice ~~(the “Warrants”) have been distributed~~ to the ~~STRATSSM~~Certificateholders ~~Trust~~regarding ~~for~~its ~~Ambac Financial Group~~receipt, ~~Inc.~~on ~~Securities,~~behalf ~~Series 2007-1 (the “Trust”) in full and final satisfaction~~ of the ~~Underlying Securities and discharge of any claim against Ambac by the Trustee (as defined below)~~Trust, ~~as holder~~ of the ~~Underlying~~Initial ~~Securities,~~Trust ~~and the Underlying Securities have been cancelled~~Award. InA ~~connection~~copy ~~with such distribution, Law Debenture Trust Company~~ of ~~New~~the ~~York,~~notice asis ~~successor~~attached ~~indenture trustee under that certain Junior Subordinated Indenture, dated~~ as ofExhibit ~~February~~99.1 12, 2007, between Ambac and The Bank of New York Mellon (formerly known as The Bank of New York), as trustee (as supplemented by that certain First Supplemental Indenture dated February 12, 2007), pursuant to which the Underlying Securities were issued, has urged all holders of the Underlying Securities to consult with their tax advisors concerning treatment of such distribution for tax purposeshereto.

In accordance with the terms of (i) the Base Trust Agreement, dated as of September 8, 2006 (the “Base Trust Agreement”), between Synthetic Fixed-Income Securities, Inc., as trustor (in such capacity, the “Trustor”) and ~~U.S. Bank Trust National Association, as trustee (in such capacity,~~ the “Trustee”) and (ii) the Series Supplement, dated as of July 16, 2007 (the “Series Supplement” and, together with the Base Trust Agreement, the “Trust Agreement”), between the Trustor and the Trustee, the ~~Shares~~Initial ~~and~~Trust ~~the~~Award ~~Warrants~~ will be distributed to the Certificateholders. ~~To avoid delivery of fractional securities to the Certificateholders, such distribution will include cash in lieu of fractional securities in an amount equal to such fractional securities.~~ Such distribution will be made net of all accrued and unpaid expenses of the Trustee and its respective agents up to the Allowable Expense Amount, all accrued and unpaid fees of the Trustee, and any unpaid listing fees of the Trust. Following the final disposition of all material outstanding claims of the Trust, the Trust will terminate in accordance with the terms of the Trust Agreement. Capitalized terms used but not defined herein have the meanings assigned in the Trust Agreement.

Section 9 - Financial Statements and Exhibits

Item 9.01(d) Exhibits.

The following is filed as an Exhibit to this Report.

Exhibit 99.1

Notice to Certificateholders from U.S. Bank Trust National Association, as Trustee for the STRATSSM Trust for Ambac Financial Group, Inc. Securities, Series 2007-1, dated March 11, 2014.

SIGNATURES

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 hereunto duly authorized.

	Synthetic Fixed-Income Securities, Inc.
	(Registrant)
Date: May 6, 2013	By: /s/ Barbara Garafalo
Date: March 14, 2014	By: /s/ Barbara Garafalo
	Name: Barbara Garafalo
	Title: Vice President

Exhibit Index

Exhibit No.	Description

99.1	Notice to Certificateholders from U.S. Bank Trust National Association, as Trustee for the STRATSSM Trust for Ambac Financial Group, Inc. Securities, Series 2007-1, dated March 11, 2014.

Filing Compare · STRATS (SM) Trust for Ambac Financial Group, Inc. Securities, Series 2007-1