Item 8.01. Other Events

STRATS(SM) Trust for Ambac Financial Group, Inc. Securities, Series 2007-1 (the "Trust") was formed pursuant to the Base Trust Agreement dated September 8, 2006 and the STRATS(SM) Certificates Series Supplement Series 2007-1, dated July 13, 2007 each between Synthetic Fixed Income Securities, Inc., as trustor and U.S. Bank Trust National Association, as trustee. This current report on Form 8-K relates to the Trust's STRATS(SM) Callable Class A Certificates, Series 2007-1 (the "STRATS Certificates"). The Trust's assets consist solely of the 6.15% Directly-Issued Subordinated Capital Securities due February 15, 2037 (the "Underlying Securities"), issued by AMBAC Financial Group, Inc. (the "Underlying Securities Issuer").

On July 27, 2009, the Underlying Issuer issued a public news release stating that, in order to preserve cash at Ambac Financial Group, Inc., it would discontinue paying the semi-annual interest on its directly-issued subordinated capital securities (DISCs), including the Underlying Securities, beginning August 1, 2009. Consistent with the public announcement, the Underlying Issuer did not make the scheduled interest payment to the Trust in respect of the Underlying Securities on August 17, 2009. Consequently, the Trust did not make any interest payment in respect of the STRATS Certificates on August 17, 2009. Under the terms of the Underlying Securities, the Underlying Issuer may elect to defer payments of interest on the Underlying Securities for a period of up to 10 years. Under the terms of the STRATS Certificates, if payments of interest on the Underlying Securities are deferred, then distributions of interest will not be payable on the STRATS Certificates during the deferral period.

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