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I read the below and didnt understand it,
I felt the opposite is rather true
Market Values
Fixed-rate positions (in investments or borrowings) are traditionally regarded as risky since the market value of the position will change as interest rates change.Variable-rate positions are traditionally regarded as less risky since their values are either unaffected or less affected by changes in interest rates
The market value is the PV of the interest receipts discounted at the investors required rate of return and the required rate of return changes as general interest rates change. So it they are. Paying fixed interest but general interest rates change, then the MV will keep changing and it is this that makes them risky.
please Fixed-rate positions does not mean the interest is fixed? Maybe my question should be please what is a fixed rate position. My understanding was fixed rate position means the interest is fixed, hence not understanding why it is changing
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