Associated Independent Recording ones. The studios contained two Bösendorfer pianos, many soundproof booths, and a 56-channel mixing console, custom-designed by Neve to AIR's specification. The company built another recording studio on the Caribbean island of Montserrat in the mid 1970s. In 1986, the facility was described as such: Jimmy Buffett recorded "Volcano" at the Montserrat studio in May 1979, naming the album and its title song for the then dormant Soufrière Hills volcano on the island. Elton John recorded three albums at the Montserrat studio in the 1980s. Dire Straits recorded their successful "Brothers in Arms" album between 1984 and 1985. Other artists
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