Montserrat Montserrat Montserrat () is a Caribbean island in the Leeward Islands, which is part of the chain known as the Lesser Antilles, in the West Indies. It is a British Overseas Territory (BOT). Montserrat measures approximately in length and in width, with approximately of coastline. Montserrat is nicknamed "The Emerald Isle of the Caribbean" both for its resemblance to coastal Ireland and for the Irish ancestry of many of its inhabitants. On 18 July 1995, the previously dormant Soufrière Hills volcano, in the southern part of the island, became active. Eruptions destroyed Montserrat's Georgian era capital city of Plymouth. Between
Long-Term Capital Management invested in other derivatives such as equity options. Under prevailing US tax laws, there was a different treatment of long-term capital gains, which were taxed at 20.0 percent, and income, which was taxed at 39.6 percent. The earnings for partners in a hedge fund was taxed at the higher rate applying to income, and LTCM applied its financial engineering expertise to legally transform income into capital gains. It did so by engaging in a transaction with UBS (Union Bank of Switzerland) that would defer foreign interest income for seven years, thereby being able to earn the more favourable capital gains