Select Notes Trust LT 2004-1 Annual Report - How They Did This Year

Hey there! Let's break down the annual report for Select Notes Trust LT 2004-1. We'll look at what it means for your investment, using clear, simple language.

We're looking at their annual report (a Form 10-K filing). This covers the fiscal year ending December 31, 2025. Let's dive in.

What Exactly Is Select Notes Trust LT 2004-1?

First, understand this: Select Notes Trust LT 2004-1 isn't a regular company. It doesn't make products or offer services. Think of it as a special investment basket, officially called a "trust." It started in 2004, as "LT 2004-1" shows. This trust holds a collection of long-term debt securities.

• It's a Trust, Not a Business: The report says Structured Obligations Corporation is the "Trustor." This means they set up the trust. U.S. Bank Trust Company is the "Trustee." They manage it. The Trustee holds the assets. They collect income and pay it to certificate holders. This follows the trust's rules. Your "Certificates" are your share in this trust. They represent your right to the assets and their income. But you don't own part of the Trustor or Trustee companies. The trust is passive. It does not actively trade or manage its investments. It only follows its founding documents.

• What's in the Basket? This trust mainly holds corporate debt securities. We often call these "notes." They come from many other large companies. This is key! Your investment's performance depends on these underlying companies. Specifically, it depends on their ability to pay interest and repay their debt. The report lists companies where the trust holds a lot of securities. These holdings represent 10% or more of the trust's total assets:

  • Lumen Technologies, Inc.: A big telecom company. Its debt performance depends on competition and spending in its sector.
  • AT&T Inc. (includes former Time Warner Inc.): Another telecom and media giant. The trust holds debt that links it to the combined company's credit health.
  • General Electric Company (guarantees GE Capital Corporation securities): The trust holds debt from GE Capital Corporation. General Electric Company backs this debt. So, GE's financial strength and changes matter directly.
  • UBS Group AG: A global financial services company. The trust's UBS debt performance connects to the banking sector's stability and rules.
  • The Boeing Company: A top aerospace maker. Its debt performance depends on the aerospace industry's cycles. Global travel demand and production problems also play a role.
  • Citigroup Inc.: Another big global financial firm. Its debt faces similar risks as UBS in the financial sector.
  • Array Digital Infrastructure, Inc.: This company works in digital infrastructure. This means exposure to data centers and network growth.
  • Pfizer Inc.: A global drug company. Its debt performance depends on new drug development. Patent expirations and healthcare rules also affect it.

  So, investing in Select Notes Trust LT 2004-1 means you get exposure to corporate debt. This debt comes from a focused group of large, established companies. The trust's value and income directly depend on these companies. Their credit health and payment performance are key.

How Did They Perform This Year?

This report differs from a typical company report. Select Notes Trust LT 2004-1 is a trust. It only holds other securities. So, it has no "business operations" or "employees" in the usual way. Its performance comes from income generated by its holdings. It also comes from payments made to certificate holders.

• No Traditional Financials: The report states: "Financial Statements and Supplementary Data: None." It also says: "Management’s Discussion and Analysis of Financial Condition and Results of Operations: Not Applicable." This is normal for a passive grantor trust. The trust itself is a pass-through entity. Its main job is to hold assets and pay out income. It does not earn revenue from operations.
• Focus on Payments: The trust filed monthly reports (Form 8-Ks) in 2025. These reports detailed "payment dates." These 8-K filings are the main source of performance information for investors. They show the exact income paid per certificate each month. This covers the fiscal year ending December 31, 2025. For example, if the trust paid $0.05 per certificate monthly, the total annual payment would be $0.60 per certificate. This shows the trust regularly paid money to its certificate holders. This likely came from interest income on its corporate notes. To understand your actual return, combine these 8-K payment reports. This will show your total income for 2025. The fair value of the underlying investments also matters. This value directly affects the certificates' market value. It is a key measure for total return. This value changes with market conditions and the credit health of the underlying companies.

What About Risks?

Again, this trust holds other companies' investments. So, risks mainly tie to those companies. They also tie to the nature of debt investments.

• Underlying Company Risks: The report states "Risk Factors: Not Applicable" for the trust itself. This means the trust has no operational risks. It also faces no risks from active investment choices. However, your investment's real risks come directly from the companies listed above. These include Lumen, AT&T, GE, UBS, Boeing, Citigroup, Array Digital Infrastructure, and Pfizer. Their credit health and market performance are key.
  • Credit Risk: This is the main risk. If any underlying company struggles financially, its credit rating might drop. In the worst case, it could fail to pay its debt. Then the trust's income would shrink or stop. The value of affected investments (and your certificates) would fall a lot. The trust holds 10% or more in certain companies. So, if even one big company defaults, it could hurt the trust significantly.
  • Interest Rate Risk: The trust holds long-term debt investments. Their market value moves opposite to interest rate changes. If interest rates go up, the value of the trust's fixed-rate notes usually falls. This could lower the market value of your certificates. This happens even if the underlying companies keep making payments.
  • Concentration Risk: A large part (10% or more) of the trust's assets are in a few companies. This means the trust isn't widely diversified. This increases the impact if one of these companies faces problems. For instance, if Lumen Technologies struggles with operations or competition, its debt rating could fall. This would directly affect the trust's value.
  • Market Risk: Economic slowdowns can hurt corporate debt prices. So can industry challenges, like in telecom or finance. Wide market swings also have a negative effect. This can happen even for financially strong companies.
  • Liquidity Risk: The underlying companies are large. But the trust's specific notes might not always trade easily. This is especially true in tough markets. This could make it hard to value the trust's assets accurately. It could also be hard to sell them fast if needed. However, the trust is generally passive.
• Legal Standing: The trust itself faces no major legal battles. This is normal for a passive trust. Legal issues usually happen with the underlying companies.

What Does This Mean for You?

• It's a Basket of Big Names: Your investment gives you exposure to established companies. It's a focused group, but still diversified within its holdings. You get this exposure through their debt. This can offer stable income compared to stock investments. But it has less potential for big gains.
• Performance Depends on Others: To truly understand your investment's 2025 performance, you need to check a few things. Look at the credit health and financial strength of the underlying companies. See how stable their interest payments were. Also, review the specific payments you received. These are detailed in the monthly 8-K filings. Your certificates' market value also reflects interest rates. It also reflects the underlying debt's credit spreads.
• Not a "Growth" Company: Don't expect this trust to innovate or grow like a tech startup. Its job is to hold specific debt investments. It collects interest income and passes it to certificate holders. It works more as an income or capital preservation tool. It doesn't focus on growing value through business expansion. Its "growth" mainly comes from stable interest payments. It also comes from potential gains if interest rates fall or credit health improves. Conversely, value could drop if these factors move unfavorably.

To get a complete picture of your investment's 2025 performance, check the monthly payment reports. These Form 8-Ks, filed by the trust, provide specific figures for total payments made. They also show the fair value of the underlying investments at different times.