We study the approximation of a bounded matrix-valued function G on th
e unit circle by functions Q bounded and analytic in the unit disc. We
show that if G is continuous then there is a unique Q for which the e
rror G - Q has a strong minimality property involving not only the L(i
nfinity)-norm of G-Q but also the suprema of its subsequent singular v
alues. We obtain structural properties of the error G - Q and show tha
t certain smoothness properties of G are inherited by Q (e.g., members
hip of Besov spaces). (C) 1994 Academic Press, Inc.