<div>UPDATE 2-Natixis' H2O sells some illiquid debt to try to staunch outflows</div> <!-- no image --> <div>* Forced to mark down value; funds priced at 3-7% discount (Adds detail from Natixis, H2O statements, background, bullet points)<div class="feedflare"> <a href="http://feeds.reuters.com/~ff/reuters/UKBankingFinancial?a=od171IaXjYg:b66UsG2rlgc:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/reuters/UKBankingFinancial?d=yIl2AUoC8zA" border="0"></a> <a href="http://feeds.reuters.com/~ff/reuters/UKBankingFinancial?a=od171IaXjYg:b66UsG2rlgc:V_sGLiPBpWU"><img src="http://feeds.feedburner.com/~ff/reuters/UKBankingFinancial?i=od171IaXjYg:b66UsG2rlgc:V_sGLiPBpWU" border="0"></a> <a href="http://feeds.reuters.com/~ff/reuters/UKBankingFinancial?a=od171IaXjYg:b66UsG2rlgc:F7zBnMyn0Lo"><img src="http://feeds.feedburner.com/~ff/reuters/UKBankingFinancial?i=od171IaXjYg:b66UsG2rlgc:F7zBnMyn0Lo" border="0"></a> </div><img src="http://feeds.feedburner.com/~r/reuters/UKBankingFinancial/~4/od171IaXjYg" height="1" width="1" alt=""></div> Posted by Reuters