Volcano (Jimmy Buffett song) Volcano (Jimmy Buffett song) "Volcano" is a song performed by American popular music singer-songwriter Jimmy Buffett. It was written by Jimmy Buffett, Keith Sykes, and Harry Dailey and released as a single (b/w "Stranded on a Sandbar") on MCA 41161 in November 1979. It was first released on his 1979 album "Volcano". It reached #66 on the "Billboard" Hot 100 and #43 on the Easy Listening chart. This song was originally a minor hit. The song and album are named for the then-dormant Soufrière Hills volcano on the island of Montserrat in the British West Indies where Buffett recorded the
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