I think Schweser got this wrong

It seems to me that CFAI says the pay fixed side of swap faces market risk and the pay floating side face CF risk. This is in Volume 5, page 222-24. I think a few days ago we decided it was the other way around, maybe because Schweser said so.

no. in the floating side, you have no idea what your CF is as it is floating. so you face CF risk. in fixed, your PV chnages when rates change because the CF is fixed. so you face market risk.

This is from the CFAI text: There is a firm that has borrowed money with a floating rate. They enter a pay-fix/receive-float swap to convert this loan to a fixed-rate loan. “So, in summary, using a swap to convert a floating-rate loan to a fixed-rate loan is a common transaction, one ostensibly structured as a hedge. Such a transaction, despite stabilizing a company’s cash outflows, however, increases the risk of the company’s market value.” The way I read this, by converting your pay-floating liability to a pay-fixed liability, you are now paying a defined cash flow so your cash flow risk is minimized.