[question removed by moderator]
My q here is that they will still have cash flow risk because of the uncertainty of floating payment coming back in. ??!!!
When you enter a payer swap, you pay fixed and receive floating. The floating CFs that you receive match the floating payments on your loan. When they talk about cash flow risk, they mean the CF amounts, not the timing nor the uncertainty (they assume you have chosen a high quality counterparty, so no default)
Cash flow risks are captured by SWAP. You have consider it in the light of total cash flows which uncertainty SWAP should neutralize.