Natixis, the French banking group and asset manager, has insisted the illiquid bond holdings at one of its subsidiaries, which last week sparked fears that sent its shares tumbling more than 10%, are a small fraction of its total investments.

H2O Asset Management, the London-based subsidiary, announced on June 24 that it has sold down part of its holdings in the illiquid bonds, or “private debt securities”, and has revalued the rest. It said the affected mutual funds will now be “priced at a discount between 3% and 7%”.