Schweser Exam 3PM page 189 has a phrase that says “a cash flow matching strategy would be free from immunization risk” and the phrase is said to be a correct statement.
The answer explains that “coupons are used to fund liabiities rather than being invested and therefore a cash flow matching strategy has no immunization risk.”
But isn’t immunization risk (which is a form of reinvestment risk) the risk of not being able to fund liabilities? If viewed like that, I think it is wrong to say cash flow matching has NO immunization risk. To me, the key difference between multiple imminization and CF matching is that one method relies on duration matching portfolio assets and liabilities and the other method relies on cash flows from coupons–but both have immunization risk.
Schweser Book 3 Page 40 even says “Because it is unlikely that the cash flows from a bond portfolio will exactly match the liabilities, reinvestment risk is inherent in cash flow matching.”