Sept 25 (Reuters) - Investment bank Jefferies

Financial's ( JEF ) reported third-quarter profit on Wednesday

that jumped more than three-fold, on the back of a busier

environment for dealmaking and debt sales.

The bank's results underscore the strong recovery in mergers

and acquisitions, as hopes of a resilient economy prompt

corporate executives to pursue takeovers.

Buyers are also taking on more debt to finance their

acquisitions, allowing underwriters to pocket bigger fees on

bond sales.

The bank's results are often viewed as a prelude to earnings

at Wall Street titans such as JPMorgan Chase ( JPM ), Goldman

Sachs ( GS ) and Morgan Stanley ( MS ).

Jefferies' investment banking revenue soared 47%

year-over-year to $949 million. Capital markets revenue jumped

nearly 28% to $670.6 million, helped by equities.

Net revenue in the asset management arm also jumped to $59.0

million from $10.1 million a year earlier.

The New York-based bank's net profit attributable to common

shareholders was $167.1 million, or 75 cents per share, for the

three months ended Aug. 31, compared with $51.4 million, or 22

cents per share, a year earlier.

Net revenue jumped 42% to $1.68 billion. Analysts had

expected $1.71 billion, according to estimates compiled by LSEG.

So far this year, Jefferies shares have gained nearly 55% as

of Tuesday's close, while those of Goldman Sachs ( GS ) and Morgan

Stanley ( MS ) jumped about 29% and 10%, respectively.