dunno bout trap.
banks will make a margin on a fixed or a variable rate, really doesnt matter to them.
With the fixed rate they have usually bough the money at a fixed rate, so from that point of view there is no "trap"
However, this tends to suggest that the large scale investors that are selling this money ( eg Super funds) think its a reasonable punt that rates may fall again within the next 3 years or so, and they want some surety of income
ta
rolf
from the bank to encourage us to fix as they forecast rate going down?
