April 24 (Reuters) - Raymond James on Wednesday

posted a 11% rise in second-quarter adjusted profit, powered by

strong performance in its capital markets business on the back

of a rebound in mergers and acquisitions.

After a two-year dry spell, global M&A activity bounced back

this year, on expectations of potential interest rate cuts and a

rally in the equity markets.

Total M&A volumes globally climbed 30% to about $755.1

billion in the first quarter, according to the most recent data

from Dealogic.

Revenue in the capital markets unit jumped 6% to $321

million in the January-to-March quarter, driven by a rebound in

investment banking, which increased to $171 million from $145

million in the year ago period.

Wall Street heavyweight and larger peer Morgan Stanley ( MS )

beat estimates for first-quarter profit last week, helped

by a resurgence in investment banking and wealth management.

Raymond James' asset management revenue rose 17% in the

reported quarter to $252 million.

Adjusted net income available to common shareholders was

$494 million, or $2.31 per share, in the three months ended

March 31, compared with $446 million, or $2.03 per share, a year

earlier.