Motivated by the works of Delsarte and Genin (1988, 1991), who studied paraorthogonal
polynomials associated with positive definite Hermitian linear functionals and their
corresponding recurrence relations, we provide paraorthogonality theory, in the
context of quasidefinite Hermitian linear functionals, with a recurrence relation and
the analogous result to the classical Favard’s theorem or spectral theorem. As an
application of our results, we prove that for any two monic polynomials whose
zeros are simple and strictly interlacing on the unit circle, with the possible
exception of one of them which could be common, there exists a sequence of
paraorthogonal polynomials such that these polynomials belong to it. Furthermore,
an application to the computation of Szegő quadrature formulas is also
discussed.