UBS (AMUB) rolls out $4.55M autocall note tied to NVIDIA with a 14.10% contingent coupon

UBS AG (AMUB) is offering $4,553,000 of Trigger Autocallable Contingent Yield Notes with Memory Interest linked to NVIDIA stock, due Feb. 23, 2029; the issuer confirmed the terms on its offering page.

AMUB stock chart

AMUB

Put simply: this is a structured note, not a plain corporate bond. It’s an unsecured debt obligation from a global Swiss bank that combines a high conditional coupon with automatic early‑redeem rules and a meaningful equity downside exposure tied to NVIDIA’s share price.

The headline attraction is a contingent coupon of 14.10% per year. That sounds juicy, but it’s paid only when NVIDIA closes at or above a specified coupon barrier on scheduled observation dates. Miss the barrier and there’s no coupon that period — though unpaid coupons can be reclaimed later thanks to the product’s “memory interest” feature, which lets missed payments carry forward and be paid if a future observation clears the hurdle.

The notes are autocallable on quarterly observation dates after a roughly six‑month waiting period. The initial reference level is $189.82, and the call threshold is set at 100% of that initial level — in other words, if NVIDIA closes at or above $189.82 on an observation date after about six months, UBS will automatically redeem the notes early. You can review the issuer’s terms page for the full mechanics the issuer’s terms page.

Now the painful part: principal is conditional. If the notes survive to maturity without being called, UBS will return full principal only if NVIDIA’s final level is at or above a downside threshold equal to 60% of the initial level — that threshold is $113.89. If NVIDIA finishes below that mark, the maturity payment is proportional to the stock’s decline and investors can lose a substantial portion — potentially all — of their initial investment.

Pricing details matter. The offering size is modest at $4,553,000, and the estimated initial value was quoted at $976.40 per note as of the trade date — below the usual $1,000 face amount, which reflects embedded costs and the note’s risk profile. Remember that any payment you receive depends on UBS’s creditworthiness; these are unsecured obligations of the bank, not a claim on NVIDIA.

Key timing is straightforward: the trade/strike date was Feb. 20, 2026; settlement is Feb. 25, 2026; the final valuation date is Feb. 20, 2029, and legal maturity is Feb. 23, 2029. That schedule puts the first autocall opportunity at roughly six months after Feb. 20, 2026.

For context on the issuer: UBS is a global Swiss bank that regularly issues structured products and debt securities. This product reads like a packaged bet on NVIDIA’s near‑term stability or upside: you collect a high coupon only if the stock cooperates, get automatic exits if the stock rebounds to the initial level, and accept material downside if the stock crashes below 60% of the starting price.

There’s also a technical angle on the issuer ticker, AMUB. Check the recent trading snapshot — AMUB closed near $21.55 in the most recent session and is trading comfortably above its 20‑ and 50‑day averages, which suggests near‑term momentum is positive. The RSI sits very high (about 94), which in plain terms means the short‑term rally looks stretched and could be vulnerable to a pullback.

How to think about the trade as a retail player: this is a yield‑enhancement vehicle that transfers most equity downside to the noteholder while offering an outsized coupon if the underlying behaves. If you want a recurring 14.10% coupon with built‑in protection, this isn’t it — the coupon is conditional. If you want principal preservation, this is also likely not it unless you’re confident NVIDIA won’t fall below that 60% threshold over the life of the note.

Practical watch: mark the first few quarterly observation dates (the first one comes about six months after Feb. 20, 2026). If NVIDIA closes at or above $189.82 on those dates the notes will be redeemed early and you’ll lock in whatever coupons have already been paid plus principal; if the stock drifts lower, the maturity math becomes the dominant risk. Also keep an eye on UBS’s credit condition — payments are unsecured and rely on the bank’s ability to pay at maturity.

Bottom line: attractive headline yield, but with real equity risk and issuer credit dependency. This product is for people who understand they’re buying a leveraged, conditional payout tied to NVIDIA, not a plain‑vanilla bank deposit or bond.