As I understand it the issue is how AC mains leakage current flows
between boxes. With unbalanced the leakage current goes through the
shield which is the voltage reference for the "hot" conductor, thus the
noise generated from the leakage current is directly added to the
signal. With a balanced connection the shield is NOT used as the
voltage reference for the signal so any noise generated by the leakage
current flowing between boxes does not add to the signal. 

Note that this does NOT need galvanic isolation (such as from an audio
transformer) it just arises because neither of the conductors used for
carrying the signal are directly connected to ground such as IS the
case for unbalanced.

John S.


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