  We study theoretically the class of mixed-valent Kondo insulators, employing
a recently developed local moment approach to heavy Fermion systems using the
asymmetric periodic Anderson model (PAM). Novel features in spectra and
transport, observable experimentally but lying outside the scope of the
symmetric PAM or the Kondo lattice model, emerge naturally within the present
theory. We argue in particular that a shoulder-like feature in the optical
conductivity, that is distinct from the usual mid-infrared or direct gap peak
and has been observed experimentally in mixed-valent compounds such as
CeOs4Sb12 and YbAl3, is of intrinsic origin. Detailed comparison is made
between the resultant theory and transport/optical experiments on the
filled-skutterudite compound CeOs4Sb12, and good agreement is obtained.
