The main reason to be in MMs right now is that the alternatives may be even riskier. It’s a case of looking for the return of capital rather than a return on capital.
Otherwise every security vehicle is a Ford Pinto........
In that case, deposits directly with the treasury makes more sense. Anyone can buy short term paper and everything else for that matter, with no commission or fees.
That’s why MM fund companies are going to have a hard time offering money market funds when current interest rates are so low - in effect making customers pay to receive only negative returns. That’s not gonna fly.