Soufrière Hills century in Montserrat. When pyroclastic flows and mudflows began occurring regularly, the capital, Plymouth, was evacuated, and a few weeks later a pyroclastic flow covered the city in several metres of debris. The first phreatic explosion in this new period of activity occurred on 21 August 1995, and such activity lasted for 18 weeks until it caused an andesitic lava dome formation. This was initially confined by a sector-collapse scar. This period lasted for another 60 weeks, after which there were major dome collapses and two periods of explosive volcanic eruptions and fountain-collapse pyroclastic flows. The explosion blanketed Plymouth, away,
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